A Project Report

On

AXIS BANK
Submitted by

Mr. Akshay Goyal Mr. Piyush Raj Mr. Arjit Maheshwari Mr. Anurag Agarwaal Mr. Krishan Changulani
In partial fulfillment for the award of the degree of

BACHELOR OF COMMERCE (HONOURS)

At

ITM UNIVERSITY, OPP. SITHOULI RAILWAY STATION, JHANSI ROAD, GWALIOR, M.P.

INTRODUCTION

Axis Bank Limited is an Indian financial services firm headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after the Government of India allowed new 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 UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. As on the year ended 31 March 2012, Axis Bank had an operating revenue of 134.37 billion and a net profit of 42.42 billion. Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmadabad and corporate office in Mumbai in December 1993. The first branch was inaugurated in April 1994 in Ahmedabad by Dr. Manmohan Singh, then the Honorable Finance Minister. The Bank, as on 31 March 2012, is capitalised to the extent of Rest. 4.132 billion with the public holding (other than promoters and GDRs) at 54.08%.New Zealand born Richard Chandler owns about 9.5% share through Orient Global. On March 14, 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider showing high ranking officials and some employees of Axis bank willing to turn black money into white which is violation of Money Laundering Control Act. After this The government of India and Reserve Bank of India have ordered an inquiry.

Network

The Bank's Registered Office is situated in Ahmedabad and its Central Office is located at Mumbai. The Bank has an extensive network of more than 1600 branches (including 169 Service Branches/CPCs as on 31 March 2012). The Bank has a network of over 10000 ATMs (as on 31 March 2012). Axis Bank operates one of the worlds highest ATM sites at Thegu, Sikkim (at a height of 13,200 feet above sea level) and has the largest ATM network among private banks in India.

Business focus Axis Bank operates in four segments: treasury operation, retail banking, corporate/wholesale banking, and other banking business. Treasury operations The Banks treasury operation services include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. Retail banking In the retail banking category, the bank offers services such as lending to individuals/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.

Corporate/wholesale banking The Bank offers to corporate and other organisations services including corporate relationship not included under retail banking, corporate advisory services, placements and syndication, management of public issues, project appraisals, capital market related services and cash management services.

INTERNATIONAL BRANCHES

Singapore Hong Kong Dubai Shanghai Abu Dhabi Colombo

NRI services Products and services for NRIs that facilitate investments in India. Business banking The Bank accepts income and other direct taxes through its 214 authorized branches at 137 locations and central excise and service taxes (including ePayments) through 56 authorized branches at 14 locations. Investment banking The Banks Investment Banking business comprises activities related to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-registered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs, QIPs, and Rights Issues etc. During the financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers.

LENDING TO SMALL AND MEDIUM ENTERPRISES

Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup for financing micro enterprises is also set up. Axis bank is the 1st Indian Bank having TCDC cards in 11 currencies.

AGRICULTURE
401 branches of the Bank have dedicated officers for providing agricultural loans to farmers.

FINANCIAL INCLUSION
Till March 2012, the Bank had opened over 4.4 million No Frills accounts in over 7607 villages through a network of 15 Business Correspondents and nearly 6000 customer service points. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states till date with over 3.7 million beneficiaries.

INTERNATIONAL BANKING
Axis Bank has a foreign network of four branches (Singapore, Hong Kong, DIFC (Dubai) and Colombo (Sri Lanka) and three representative offices (Shanghai, Dubai and Abu Dhabi) with presence in 6 countries.

AXIS BANK CORPORATE OFFICE

The Axis Bank Corporate Office in Mumbai received the Platinum rating by the US Green Building Council for its environment friendly facilities and reduction of carbon emission.

CORPORATE SOCIAL RESPONSIBILITIES

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 201112, 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. Education foundation The Axis Bank Foundation was founded in 2006 and supports supplementary education.

AWARDS AND RECOGNITIONS

In year 201112

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) Star News 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 The Best Domestic Bank- India TheAsset Triple A Country Awards 2011 The Best Domestic Bond House India TheAsset Triple A Country Awards 2011 Best Risk Master (Private Sector Category) FIBAC 2011 Banking Awards Best Bond House India 2011 Finance Asia

BOARD OF DIRECTORS NAME Adarsh Kishore Rama Bijapurkar V R Kaundinya Prasad R Menon Samir K Barua Som Mittal Somnath Sengupta Shikha Sharma K N Prithviraj S B Mathur R N Bhattacharyya A K Dasgupta V Srinivasan Ireena Vittal DICLERATION Chairman / Chair Person Director Director Director Director Director Executive Director Managing Director & CEO Director Director Director Director Executive Director Addnl. & Ind.Director

THE CORE MANAGEMENT TEAM

V. Srinivasan Executive Director (Corporate Banking) Somnath Sengupta Executive Director and CFO Snehomoy Bhattacharya Executive Director (Human Resources) R. K. Bammi Executive Director (Retail Banking) P. Mukherjee President - Treasury & International Banking S. S. Bajaj President & Chief Audit Executive Vinod George President - Wholesale Banking Operations M. V. Subramanian President - Rural and Inclusive Banking S. K. Mitra President - Distribution B. Gopalakrishnan President - Law Bapi Munshi President & Chief Risk Officer C. Babu Joseph Executive Trustee & CEO - Axis Bank Foundation Sanjeev K. Gupta President - Finance & Accounts and Investor Relations V. K. Bajaj President - Mid Corporates Sidharth Rath President - Infrastructure Business A. R. Gokulakrishnan President - Stressed Assets Rajendra D. Adsul President - SME R. V. S. Sridhar President (IT & Retail Banking Operations) Lalit Chawla President - Corporate Credit Rajesh Kumar Dahiya President - Human Resources Nilesh Shah President - Investment Banking *as on 27 April 2012 M/s Deloitte Haskins & Sells Auditors Chartered Accountants M/s Karvy Computershare Private Limited Registrar and Share Transfer Agent

OBJECTIVES Ratio has been defined that technique that is possibly used to facilitate the comparison of significant figures thereby expressing the relationship in form of percentage.

The objectives therefore included: To know the financial position of the axis bank.

To provide in formulation for making time series analysis. I.e. comparison of banks presents ratios & past ratios.

To interpret the financial ratios of the bank & give proper suggestion for its improvement.

PRODUCT DETAILS
SAVING ACCOUNT:Axis banks easy access saving account. The account is an endeavor by the bank to understand the consumers needs and redefine banking to suit your requirement for a truly comfortable banking experience. Easy access saving account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs. 10,000 in a metro or urban centers Rs.5000 in semi urban centers and Rs.2500 in rural centers.

CURRENT ACCOUNT:The product with half yearly average balance requirements captures the seasonality nature of agriculture based businesses and is packed with host of powerful features and incentives for higher balances. Features:Half Yearly Average Balance There are different Half Yearly Average Balances (HABs) for different category of locations. (Urban - Rs.10,000, Semi Urban - Rs. 5,000, Rural - Rs. 2,500). Anywhere Banking:Enjoy Anywhere Banking with Axis Bank from more than 800 branches / service outlets where you can : Issue multi-city cheques payable "At-Par" at any Axis Bank branch. Deposit cheques drawn on any location in the country for local clearing.

Upto 50% rebate on charges for maintaining higher balances:You deserve to be treated differently if you maintain higher balances. The product comes with reward in the form of rebate on transaction charges, if you maintain higher balances. Higher the balances you maintain higher is the scale of rebate.

Fund transfer :Opening accounts of wholesaler / retailer and farmer at any location would also help you for instant funds transfer.

Other ancillary services:I. Mobile Alerts II. ATM cum International Debit Card III. Phone Banking IV. Corporate IConnect V. Daily free account statements through e-mail

Investment Products :-

1. Gold and Silver Mohur 2. Mutual Funds 3. Life Insurance 4. General Insurance Gold And Silver Mohur Certified Gold and Silver bars. Mutual Funds Axis Bank offers options from 12 mutual fund companies. Life Insurance Axis Bank has a corporate agency agreement with Max Life, one of the most reputed Life Insurance companies in India. General Insurance Axis Bank has a Corporate Agency partnership with TATA AIG General Insurance to distribute General Insurance products. The various General Insurance products available for sale at Axis Bank branches are:

 Loans

Health Insurance Motor Insurance Jewellery Insurance Personal Accident Cover Home Insurance Travel Insurance

Home Loans Car Loans Personal Loans Loans Against Property Loans Against Share Loans Against Securities Loans Against Gold Cards Titanium Smart Traveler Credit Cards Platinum Advantage Credit Card Visa Signature Credit Card Visa Infinite Credit Card

Agri Business Loans Kisan Power Power Gold Kisan power Kisan Power aims at providing adequate and timely credit to farmers for various needs.It gives farmers the flexibility to choose between cash, credit and term loans with friendly repayment terms.

 Power Gold Power Gold gives easy loans up to 15, 00,000 to individuals engaged in agriculture or allied activities, against the pledge of Gold ornaments.

RESEARCH METHODOLOGY Research Methodology:Research methodology is a way to systematically solve the research problem. The research methodology using for find out the solution of the research problem is analytical research methodology and some extend descriptive research methodology. Method of Data Collection PRIMARY DATA COLLECTION :Primary data are those which are collected for the first time. They are original in character. They are collected by the researcher for the first time of his own use. The main tools for collection of data will be collection through internal as well as external source. SECONDARY DATA COLLECTION :Secondary data are those which have already been collected by others. When it is not possible to collected data in primary form, the research may the help of secondary data. They are those which have already been collected with some other view in mind. They are collected for serving the objectives other for than what the researcher might have in his mind.

The sources of secondary data include: Books Magazines Internet Newspaper Annual Report

Techniques:The technique used in the analysis of the company is excel sheets, graphs and tables of financial statement for example balance sheet, profit loss a/c, cash flow statement, dividend per share, ratio analysis, valuation ratio etc.

FINANCIAL STATEMENTS AXIS BANK LIMITED BALANCE SHEET

Balance sheet as on 31march2012

Current year Schedule 31-03-2012 No (in thousands) CAPITAL AND LIABILITIES Capital reserve and surplus 1 2 4,132,039 223,953,384 4,105,458 185,882,797 Previous year 31-03-2011 (in thousands)

Deposits Borrowings Other liabilities and provisions TOTAL

3 4 5

2,201,043,033 1,892,378,010 340,716,721 86,432,757 262,678,824 82,088,627

2,856,277,934 2,427,133,716

Assets Cash and Balances with Reserve Bank of India 6 107,029,214 138,861,630

Balances with Banks 7 and Money at Call and Short Notice Investments Advances Fixed Assets Other Assets Total Contingent liabilities Bills for collection Significant 17 & Accounting Policies 18 and Notes to Accounts 12 8 9 10 11

32,309,943

75,224,929

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

719,916,208 1,424,078,286 22,731,456 46,321,207 2,427,133,716 4,453,914,432 324,731,072

AXIS BANK LIMITED - PROFIT & LOSS ACCOUNT

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2012 Schedule Year ended no. (31-03-2012) (in thousands) (I) INCOME Interest earned Other income Total (II) EXPENDITURE Interest expanded Operating expenses Provisions and contingencies TOTAL (III) NET PROFIT FOR THE YEAR (I - II) 15 16 139,769,024 60,070,995 85,918,230 47,794,281 30,271,979 163,984,490 33,884,906 13 14 219,946,474 54,202,163 274,148,637 151,548,058 46,321,338 197,869,396 Year ended (31-03-2012) (in thousands)

18 (2.1.1) 31,886,564 231,726,583 42,422,054

Balance in Profit & Loss Account brought forward from previous year (IV) AMOUNT AVAILABLE FOR APPROPRIATION (V) APPROPRIATIONS : Transfer to Statutory Reserve Transfer to/(from) Investment Reserve

49,697,707

34,274,337

92,119,761

68,159,243

10,605,513

8,471,227 (149,372)

Transfer to Capital Reserve Transfer to General Reserve Proposed dividend (includes tax on dividend) Balance in Profit & Loss Account carried forward Total

519,047

47,630 3,388,491

7,700,725

6,703,560

73,294,476

49,697,707

92,119,761

68,159,243

CALCULATION OF BALANCE SHEET, PROFIT & LOSS A/C & EARNINGS PER SHARE RATIOS (Rs. In Crore) BALANCE SHEET RATIOS
Capital Adequacy Ratio Advances / Loans Funds(%)

72.29

76.16

72.96

73.87

75.89

13.66

12.65

15.8

13.69

13.73

2012

2011

2010

2009

2008

PROFIT & LOSS A/C RATIOS

Interest Expended / Interest Earned Selling Distribution Cost Composition Operating Expense / Total Income

63.55 56.69 57

65.98

63.09

30.96 27.65 23.87 24.95 26.2

0.32 2012

0.4 2011

0.3 2010

0.34 2009

0.85 2008

Earnings Per Share

Earnings Per Share
102.67
82.54

62.06

50.57

29.94 2008

2012

2011

2010

2009

PROFITABILITY RATIO
Interest Spread Net Profit Margin Return on Net Worth(%) Adjusted Cash Margin(%) Return on Long Term Fund(%) Adjusted Return on Net Worth(%)

97.35 88.75 72.29 71.17

66.34

15.51 17.2 16.1 13.31 12.22 18.71 18.59 17.83 17.77 16.69 17.63 14.76 15.67 14.19 12.21 18.51 17.87 17.85 15.69 4.24 3.95 3.91 3.77 3.73 12.38 2012 2011 2010 2009 2008

CONCLUSION
According to financial Ratio analysis of Axis bank its performance in the private bank is good and expected to grow further in the near future which is a good sign for investment. Earnings per Share and dividend both are increasing year to year. The Financial Ratio analysis is a process of evaluating the financial statements to obtain a better understanding of the Banks position and performance. Financial Ratio analysis is the process of selection, relation and evaluation. The first task of financial analyst is to select the information from the financial statements. The second step is to arrange the information in a way to highlight significant relationships. The final step is interpretation and drawing of inferences and conclusions. The financial year 2011 the Current Ratio is decrease by 0.02 %.

SUGGESTION The analysis carried out at on the Axis Bank, their profit and loss account, balance sheet and ratios. I shall suggest the investors to invest in Axis Bank than the other banks as a value investment. Reasons: Largest private sector bank in India. Strong increase in profit year-on-year basis. Increasing EPS indicate good earnings. Increase in sharing profit with shareholders in form of dividend. Axis Bank is expanding its footholds on international level also; its Insurance and asset management business are also performing well.