REPORT ON

SUBMITTED TO:Mr. VIVEK BAJPAI Mr. MAYANK DHAUNDIYAL

SUBMITTED BY: PANKAJ KUMAR GUPTA PARAS GUPTA PARTHA ROY MITHUN BISWAS PINKY

ACKNOWLEDGEMENT

This report has been prepared in fulfillment of the requirement for paper of Competitor in the course module of III term of PGDM batch of IILM-CMS. The primary objective of this report is to analyze the Indian Banking Industry.

The group member hereby wishes to express their heartiest gratitude towards all those people who have helped in the preparation of this report. At first, the member owes their special thanks to all the faculties of IILM-CMS & IILM-GSM who have imparted with their general knowledge about different subject matter which helped us to build the foundation for analyzing the information. Along with this, the member would like to express their special thanks to Prof. Vivek Bajpai & Dr. Mayank Dhaundiyal for providing the guide without whose support and guidance the report writing would be impossible.

Last but not the least, the group member also express their thanks to their friends, family of IILM-CMS and IILM-GSM for maintaining such a environment and helping us procure the data without which this report writing would have been hardly possible.

AXIS BANK
Axis bank limited is a Indian financial services firm headquartered in Mumbai,Maharastra.It has began its operations in 1994,after Indian gov. allowed private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company. The Bank, as on 31 March 2012, is capitalized to the extent of Rest. 4.132 billion with the public holding (other than promoters and GDRs) at 54.08%.The chairman is Adarsh Kishore,MD and CEO is Sikha Sharma.

Business focus
Axis bank focuses in four segments:Treasury operation,retail banking,corporate or wholesale banking and other businesses.

International Branches
Hong Kong Singapore Abu Dhabi Dubai Shanghai Colombo

Awards and recognition

Bank of the Year India The Banker Awards 2011 Best Bank - Private Sector NDTV Profit Business Leadership Awards Best Bank 2011 Outlook Money Brand Excellence Award 2011 (BFSI) StarNews The Most Consistent Large Bank Best Banks-2011 Survey by Business Today and KPMG

Most Preferred Bank Amongst Retail Customers CLSA survey on personal banking trends

Most Productive Private Sector Bank FIBAC 2011 Banking Awards 3rd Strongest Bank in Asia-Pacific Region Asian Banker

Corporate social responsibility

Axis Bank has set up a Trust the Axis Bank Foundation, which contributes up to 1 percent of its net profit annually to various social initiatives undertaken by the foundation. During the year 2011-12, the foundation has partnered with 36 NGOs for educating over a lakh underprivileged and special kids in 13 states. The recycling initiative under the Green Banking banner has helped the bank productively use around 21572 kilograms of dry waste during the year.

BALANCE SHEET AS ON 31.03.2012

BANK CAPITAL & LIABILITIES Capital Reserve & surplus Deposits Borrowings Other liabilities & provision Employee stock option Minority Interest Total ASSETS Cash & balance with RBI Balance with bank & money at call & short notice Investment Advance Fixed assets Other assets Total CONTINGENT LIABILITIES BILL FOR COLLECTION

AXIS

HDFC

KOTAK MAHINDRA

SBI

4,132,039 223,953,384 2,201,043,033 340,716,721 86,432,757 2,856,277,934 107,029,214 32,309,943

4,693,377 294,550,358 2,467,064,459 238,465,086 374,318,690 3020 3,379,094,990 149,910,945 59,466,318

3,703,448 75,755,942 385,365,206 165,955,205 25,536,724 348,207 656,664,732 20,164,945 6,180,601

6,710,448 832,801,610 10,436,473,623 1,270,055,680 809,150,946 13,355,192,307 540,759,386 430,872,263

931,920,859 1,697,595,386 22,593,250 64,829,282 2,856,277,934 4,802,373,747 346,346,043

974,829,094 1,954,200,292 23,471,940 217,216,401 3,379,094,990 8,652,928,262 186,924,956

215,668,123 390,792,322 4,499,658 19,359,083 656,664,732 384,758,617 15,766,592

3,121,976,103 8,675,788,901 54,665,492 531,130,162 13,355,192,307 8,326,053,343 669,598,500

PROFIT &LOSS ACCOUNT FOR THE YEAR ENDING 31st MARCH 2012

AXIS BANK INCOME: Interest earned Other income TOTAL EXPENDITURE Interest expended Operating expenses Provisions and contingencies TOTAL NET PROFIT FOR THE YEAR (I - II) Balance in Profit & Loss Account brought forward from previous year Profit & Loss balance of e-SBI Commercial & International Bank Ltd. transferred on amalgamation AMOUNT AVAILABLE FOR APPROPRIATION APPROPRIATIONS : Transfer to Statutory Reserve Transfer to/(from) Investment Reserve Transfer to Capital Reserve Transfer to General Reserve/special reserve Proposed dividend (includes tax on dividend) Balance in Profit & Loss Account carried forward 219,946,474 54,202,163 274,148,637 139,769,024 60,070,995 31,886,564 231,726,583 42,422,054 49,697,707

KOTAK BANK 61,802,362 9,773,458 71,575,820 36,677,460 18,348,299 5,699,531 60,725,290 10,850,530 14,945,189

HDFC BANK 272863517 52436949 325300466 149895780 85900571 37833208 273629559 51,670,907 61,742,416

SBI BANK 1065214534 143514457 1208728991 632303687 260689921 198662497 1091656105 117072886 3393

57115

92,119,761

25,795,719

113413323

117133394

10,605,513

2,712,700 145,200

12917726 (416937) 5167091

35169772

519,047

200 792,600

143769 55364960

7,700,725

517,107

11748973

26451500

73,294,476

21,627,912

83996470

3393

TOTAL EARNINGS PER EQUITY SHARE/face value Basic Last year basic

92,119,761 10

25,795,719 5

113413323 2

117133394 10

102.94 82.95

14.69 11.35

22.11 17.00

184.31 130.16

RATIO ANALYSIS

Profitability Ratio Net Profit Margin Return on Net Worth INVESTMENT VALUATION RATIO Face value Dividend Per Share Net Operating Profit per Share MANAGEMENT EFFICIENCY RATIO Asset Turnover Ratio Total Asset turnover ratio BALANCE SHEET RATIO Capital Adequacy Ratio LEVERAGE RATIO Current ratio Quick ratio CASH FLOW INDICATOR RATIO Dividend payout ratio(Net Profit) Earning Retention ratio EPS

Axis Bank 15.51% 18.59%

HDFC Bank 15.93% 17.26%

Kotak Mahindra 15.39% 13.59%

SBI Bank 9.73% 13.94%

10 16 654.06

2 4.30 138.66

5 0.60 94.94

10 35 1776.47

0.11 0.10

0.12 0.11

0.13 0.12

0.1 0.09

13.66 0.03 21.63

16.52 .08 6.20

17.52 0.05 16.85

13.86 0.05 12.05

18.15 81.77 102.67

22.69 77.30 22.02

4.76 95.24 14.65

22.59 77.45 174.15

ANALYSIS
Comparison between 2010-11 & 2011-12 year balance sheet of Axis Bank
Total balance sheet amount increases from 2,427,133,716 to 2,856,277,934 by 17.68% growth from the previous year. Borrowings increases from 262,678,824 to 340,716,721 by 29.7% growth as compared to last year. Investment increases from 719,916,208 to 931,920,859 by 29.44% growth as compared to previous year. Reserve & surplus increases by 20.48% from 185,882,797 to 223,953,384. Interest earned increases from 151,548,058 to 219,946,474 by 45% as compared to last year. Subsequently interest expenditure increases from 85,918,230 to 139,769,024 by 63% as compared to last year. Net profit increases from 33,884,906 to 42,422,054 by 25.19% as compared to previous year. Earning per equity share increases from 82.95 to 102.94 by 24% growth as compared to previous year. Cash & balance with RBI decreases from 138,861,630 to 107,029,214 by 23% as compared to last year. Subsequently balance with bank decreases from 75,224,929 to 32,309,943 by 57% as compared to last year. So we can say that Axis bank grow by 17.68% with increase in EPS by 24% as compared to last year, so Axis bank will grow in near future. Share holders will invest money because they get more EPS.

Comparison with other banks When we compare axis bank with other banks, we find various facts which are as follows: Increase in net interest income Axis bank HDFC ICICI 22.17% 16.63% 16.40%

Compare with EPS

When we compare EPS of Axis bank with ICICI bank at face value Rs 10/share, the basic EPS of ICICI bank is 56.11& the basic EPS of Axis bank is 102.94. so it will attract the share holders to invest money in Axis bank to get more returns, but there is a negative aspect also that when we compare EPS growth rate of HDFC bank with Axis bank, HDFC bank growth rate is 30% from the last year whereas Axis bank EPS growth is 24% but when we compare with Kotak bank the growth rate of EPS is 14.17%. The basic EPS of Kotak bank increases from 21.73 to 24.81 by 14.17% growth ,but when we compared it with Axis bank, the EPS growth rate is higher than kotak Mahindra bank. So it will help in attracting the new share holders & helps in building the good will. Net profit of Kotak Mahindra bank increases by 17.92% whereas net profit of Axis bank increased by 25.19%. So it will help the share holders in getting more EPS but there is a negative aspect also when we compare Axis bank with SBI, the net profit growth rate of SBI bank is 41.65%. Interest earned increased by 45% of Axis bank but when we compare it with SBI, the interest earned growth rate is 30.87% whereas interest earned growth rate of Kotak bank is 41%. Reserve & surplus growth rate of Kotak bank is 18.2% whereas in Axis bank growth rate is 20.48% but when we compare it with SBI the growth rate is 29.41%. The growth rate of interest expenditure areSBI AXIS BANK HDFC BANK KOTAK BANK 29.31% 62% 60% 70%

This implies that private sector banks takes more loans.

RATIO ANALYSIS
The quick ratio of SBI bank is 12.05 whereas the quick ratio of Axis bank is 21.63. It implies that higher the quick ratio better the position of the company. Dividend payout ratio of Axis bank is 18.15 whereas the dividend payout ratio of kotak bank is 4.76. It implies that more matured company tend to have a higher payout ratio. The return on net worth of Axis bank is 18.59% whereas the return on net worth of SBI & HDFC bank is 13.94%, 17.26% resp. It implies that higher the return on net worth is good for the bank. The total asset turnover ratio of Axis bank is 0.10 whereas of SBI & HDFC is 0.09 & 0.11 resp. It implies that higher the total asset turnover ratio better for the bank. The capital adequacy of Axis Bank is 13.66% whereas of SBI &HDFC is 13.86% & 16.52%