A MINOR PROJECT REPORT

ON

“FINANCIAL RATIO ANALYSIS OF AXIS BANK”

SUBMITTED IN PARTIAL FULFILMENT OF REQUIREMENTS FOR THE AWARD OF

THE DEGREE OF

MASTERS OF BUSINESS ADMINISTRATION

(SESSION 2017-2019)

SUBMITTED BY

RUPINDER KAUR

ROLLNO: 1703104217

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

RAYAT BAHRA UNIVERSITY, MOHALI

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 ACKNOWLEDGEMENT
I express my since thanks to my project guide Prof. Kulteshwar singh for guiding me right from the
inception till successful completion of the project.

I sincerely acknowledge him for extending her valuable guidance, support for literature,
critical review of project and the report and above all the moral support they had provided to me with
all stages of project. My thanks are due to all those who have helped me directly or indirectly in
preparing this project report. However, I accept sole responsibility for any possible error of omission
and would be extremely grateful to the readers of this project if this project if they bring such mistakes
to my mistakes.

Signature of the Guide:

Place:

Date:

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 DECLARATION

I undersigned here by declare that the summer training project report submitted to my college.
RAYAT BAHRA UNIVERSITY. In partial fulfillment for the degree of master of business
administration on “Financial ratio analysis of axis bank” is a result of my own work under continuos
guidance and kind co-operation of our college faculty member Prof. Kulteshwar singh. I have not
submitted this training report to any other university for the award of degree.

Rupinder kaur

MBA 3rd

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 ABSTRACT

In today’s financial world, financial performance is a requirements amongst the perspective of

various stakeholders, be it in the management, lenders, owners and investors’ perspective. And
it is out of analysis of financial statements. Financial performance is crucial for taking financial
decisions related to planning and control. Hence, it forms the basis as one of the importance
for taking financial decisions effectively. 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 Axis Bank today is a leading
player in Indian banking industry and is deeply engaged in human and economic development
at the national level. The Bank works closely with although it is private. bank emerged as a
pioneer venture on the horizon of offering an expanded range of banking products and financial
services for corporate and retail customers through its diverse delivery channels and specialized
subsidiaries in the areas of investment banking, asset management, venture capital and
insurance. In the light of its strategic importance in the nation interest, it is crucial to evaluate
the financial performance of the Axis Bank. And the present study focused on operational
control of the asset, profitability and solvency etc. This research paper is aimed to analyze and
compare the Financial Performance of Axis Bank in five years period and offer suggestions for
the improvement of efficiency in the Bank

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 TABLE OF CONTENT
Sr.no Particulars Page no.

1 Introduction 3-6

2 Company profile 7-11

3 Research methodology 12-15

4 Data analysis and interpretation 16-25

5 Findings, Suggestions, Conclusions 26-29

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 INTRODUCTION

1.1 BACKGROUND
The banking sector is one of the most important instrument of the national 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 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 endeavor to become financial strong
and operationally efficient and effective. 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. 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. 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 analyzing 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. 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

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1.3 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 employed

1.4 SCOPE OF THE STUDY

The current study choose one private sector bank to evaluate the financial performance The
main 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 bank in India

1.5 SIGNIFICANCE OF THE STUDY

Government regulation, in most of the countries shielded the banks from the forces of
competition. India is no exception for this. With the nationalization of the most of the major
commercial banks in 1969, restrictions on entry and expansion of private and foreign banks
were gradually increased. The Reserve Bank of India also began enforcing uniform interest
rates, spreads and service changes among nationalized banks. This cause of lack free market
competition either among public and private banks. gradually the force of competition from
the banking sector is still remain. In addition some areas of concern in the form of increasing
non-performing assets, declining profitability and efficiency, which were threatening the
viability of commercial banks. Commercial banks have played a vital role in giving direction
to economic development by catering the financial requirement of trade and industry in the
country. By encouraging saving among the people, commercial banks have fastened the
process of capital formation. Banks draw the community savings into the organized sector
which can then be allotted among the different economic activities according to the priorities
laid down by planning authorities in the country. ‘The banks are not only the safe deposit vaults
for these savings, but taking the banking system as a whole, they also create deposits in the
process of their lending operations. However, the important function of a banker is the
provision of convenient machinery by which people can make payments to each other without
having to walk round each other’s house with bags of coins. Banks also exercise influence on
the level of economic activities through the creation of manufacturing of money. Through their
lending policies, they divert the economic activity to the needs of the country.

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1.7 RESEARCH DESIGN

In the present descriptive study is employed. an attempt has been made to measure, evaluate
and compare the financial performance of the Bank. the analysis partitioned two side aspect
of stakeholders. the shareholders wealth and other external stakeholders. The study is based
on secondary data that has been collected from annual reports of the bank website, magazines,
journals, documents and other published information. The study covers the period of 5 years
from year 2010-11 to year 2014-15. Ratio Analysis was applied to analyze and compare the
trends in banking business and financial performance.

1.8 STATISTICAL TOOLS

the Researcher has used the following tools to present and analysis data

data presentation
I. tables
II. Diagrams
data analysis
I. Microsoft excel 2007

1.9 PERIOD OF THE STUDY

this study of financial ratio analysis is limited to five years from 2010 to 2015. the accounting
year starts from 1 April to 31 march.

1.10 SCHEME OF CHAPTERISATION

The researcher is prepared the following scheme of chapterisation.

1. The first chapter deals with introduction and research design of the study.

2. The second chapters describes the Industry and company profile

3. The third chapter deals with literature review.

4. The fourth chapter is devoted to the research methodology.

5. The fifth chapter is data analysis and interpretation.

6. The sixth chapter gives findings of the study

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1.11 OPERATIONAL KEY TERMS DEFINITION

Ratios: are the simplest mathematical (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.

Analysis: Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a
quick indication of a firm's financial performance in several key areas. The ratios are
categorized as Short-term Solvency Ratios, Debt Management Ratios, Asset Management
Ratios, Profitability Ratios, and Market Value Ratios

Profit: The surplus remaining after total costs are deducted from total revenue, and the basis
on which tax is computed and dividend is paid. It is the best known measure of success in an
enterprise.

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 2.COMPANY INDUSTRY PROFILE

2.1 WORLD BANKS SCENARIO

The global financial system suffered a profound and traumatic shock in September 2008 when
US investment bank Lehman Brothers collapsed. As market players withdrew from the
financial system, credit dried up and world trade collapsed, there was a real and immediate fear
that the world was heading for a repeat of the Great Depression of the 1930s. Two years on and
there is growing optimism that both the world economy and the banking industry are recovering
from the impact of the financial crisis. But it is equally clear that the financial world has
changed permanently, both in terms of who holds the balance of power within global industry
and how banks will be allowed to operate in future Global shifts in banking While the growing
power of emerging markets is a long-term structural phenomenon, it has accelerated in the
banking industry thanks as much to the relative decline of the west as to expansion in the east.
There has been a pronounced shift from west to east – and, to some extent, from north to south
– in the wake of the crisis. Banks on both sides of the Atlantic are expected to have written
down more than $2.1trn of assets by the end of 2010, according to the International Monetary
Fund. The equivalent figure for Asian banks is just $115bn. Banks in emerging markets are
now well capitalized and well funded and big enough to be able to compete directly against
their western counterparts in the global marketplace. The two largest banks by market
capitalization are both Chinese – ICBC and China Construction Bank. Although third place is
taken by a British bank, HSBC, it is largely an Asian operation. A league table, compiled by
Bloomberg in April, shows that Citi bank once the world’s largest bank, comes in at fifth, while
banks from Brazil, Russia and India – the other members of the BRIC grouping alongside
China – are all in the top 25. There are already signs that customers are questioning the ability
of banks to look out for their financial well-being. Only 36 percent of consumers believe what
banks tell them, according to a Forrester survey. A separate survey also indicates that over 60
percent of U.S. house- holds conduct their own research before buying financial services
products. As a result, banks have begun to rethink what, where and how they serve an
increasingly informed and demanding customer base. At the same time, a confluence of
industry developments, including consolidation, regulation, industry specialization, changing
workforce needs and new technologies are putting additional pressure on banks’ operating
models and raising questions about traditional strategies for growth and value creation. in 2014,
the global economy entered a period of adjustment leading to differentiated bank performance
results

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2.2 NATIONAL SCENARIO
Modern banking in India could be traced back to the establishment of Bank of Bengal (Jan 2,
1809), the first joint-stock bank sponsored by Government of Bengal and governed by the royal
charter of the British India Government. It was followed by establishment of Bank of Bombay
(Apr 15, 1840) and Bank of Madras (Jul 1, 1843). These three banks, known as the presidency
banks, marked the beginning of the limited liability and joint stock banking in India and were
also vested with the right of note issue. In 1921, the three presidency banks were merged to
form the Imperial Bank of India, which had multiple roles and responsibilities and that
functioned as a commercial bank, a banker to the government and a banker’s bank. Following
the establishment of the Reserve Bank of India (RBI) in 1935, the central banking
responsibilities that the Imperial Bank of India was carrying out came to an end, leading it to
become more of a commercial bank. At the time of independence of India, the capital and
reserves of the Imperial Bank stood at Rs 118 mn, deposits at Rs 2751 mn and advances at Rs
723 mn and a network of 172 branches and 200 sub offices spread all over the country.

In 1951, in the backdrop of central planning and the need to extend bank credit to the rural
areas, the Government constituted All India Rural Credit Survey Committee, which
recommended the creation of a state sponsored institution that will extend banking services to
the rural areas. Following this, by an act of parliament passed in May 1955, State Bank of India
was established in Jul, 1955. In 1959, State Bank of India took over the eight former state-
associated banks as its subsidiaries. To further accelerate the credit to fl ow to the rural areas
and the vital sections of the economy such as agriculture, small scale industry etc., that are of
national importance, Social Control over banks was announced in 1967 and a National Credit
Council was set up in 1968 to assess the demand for credit by these sectors and determine
resource allocations. The decade of 1960s also witnessed significant consolidation in the Indian
banking industry with more than 500 banks functioning in the 1950s reduced to 89 by 1969.

For the Indian banking industry, Jul 19, 1969, was a landmark day, on which nationalization
of 14 major banks was announced that each had a minimum of Rs 500 mn and above of
aggregate deposits. In 1980, eight more banks were nationalised. In 1976, the Regional Rural
Banks Act came into being, that allowed the opening of specialized regional rural banks to
exclusively cater to the credit requirements in the rural areas .

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 Axis bank profile
Axis Bank is a leading private sector bank and financial services company in India offering a
wide range of products and services to corporate and retail customers through a variety of
delivery channels. Since commencing operations in April 1994 the Bank has grown both in
terms of its physical network of branches, extension counters and ATMs, as well as in terms
of the size of asset base. The Bank's ATM network of 3,171 ATMs is the third largest in the
country. The Bank has a wide presence through its 749 Branches & Extension Counters
across 454 cities and towns across India. As of March 31, 2008, the total assets of the Bank
were Rs.1,095.78 billion, an increase from Rs.732.57 billion as of March 31, 2007, whereas
the same were Rs. 1374.71 billion as at December 31, 2008. In fiscal year 2008 the Bank
posted a 63 per cent increase in net profit of Rs. 10.71 billion (Rs.6.59 billion, fiscal year
2007), whereas the same for the nine months ended December 31, 2008 was Rs. 12.34
billion, as compared to Rs. 7.10 billion during the corresponding nine months. Total deposits
have grown from Rs. 587.86 billion as of 31 March 2007 to Rs. 876.26 billion as of 31 March
2008, with demand deposits (savings bank and current account) increasing significantly by
Rs. 165.97 billion during the same period. As of December 31, 2008 the total deposits stood
at Rs. 1057.16 billion, with demand deposits contributing 38 percent to the total deposits. The
Bank’s net interest margin has increased from 2.74 per cent in fiscal year 2007 to 3.47 per
cent in fiscal year 2008 and for the nine months ended December 31, 2008 stood at 3.32
percent. For the fiscal year 2008 the Net NPA’s (as a percentage of net customer assets) of
the Bank stood at 0.36 percent, compared to 0.61 percent for the fiscal year 2007. The Net
NPA’s (as a percentage of net customer assets) for the nine months ended December 31, 2008
stood at 0.39 percent and the Capital Adequacy Ratio as at December 31, 2008 stood at 13.84
percent. The Bank’s principal business activity is broadly divided into two segments,
Banking Operations and Treasury. The Banking Operations consist of corporate/wholesale
banking; retail banking, including services offered to Non-Resident Indians (NRIs); and other
banking business which are not covered under any of the above three segments. Banking
Operations include products and services in the areas of Corporate Banking and Retail
Banking. Under Corporate Banking, the Bank offers various loan and fee-based products and
services to large corporations, MSMEs Mid-Corporate and to the agriculture sector. 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, cash management

9
services, warrant payment services, cross-border trade and correspondent banking services
and tax collections on behalf of the Government and various State governments in India.
Liability products including current accounts, certificate of deposits and time deposits are
also offered to corporate clients. The Bank also offers various Capital Markets related
services such as loan syndication and placement, advisory services, depository services,
custodian of securities, clearing and settlement services to stock and commodity exchanges
Retail Banking offers a variety of liability and asset products and services to retail customers.
Liability products include savings accounts, time deposits and customized products for
certain target groups such as high net worth individuals, senior citizens, defense personnel,
students and salaried employees. Retail asset products include home loans, personal loans,
auto loans, consumer loans, educational loans as well as security-backed loans of various
types. The Bank also offers other products and services such as debit and travel currency
cards, financial advisory services, bill payment services and wealth management services. As
of 31 March 2008, the Bank had 9.93 million retail customers. The Bank also markets third
party products such as mutual funds and Government savings bonds. A wide range of liability
and asset products and services are also offered to NRIs.
The Treasury department manages the funding position of the Bank and also manages and
maintains its regulatory reserve requirements. The Treasury department also invests in
sovereign and corporate debt instruments, undertakes proprietary trading in equity and fixed
income securities and foreign exchange. The Treasury department also undertakes investments
in commercial paper, mutual funds and floating rate instruments as part of the management of
short-term surplus liquidity. A wide range of treasury products and services are also offered to
corporate customers in the form of derivative instruments such as forward contracts, interest
rate swaps, currency swaps and foreign currency options.

Products and Services The Bank offers a wide spectrum of financial services to the corporate
sector. The Bank serves the large corporate sector, the growing SME sector and the agricultural
sector. A broad classification of products and services offered by the Bank is set out below.
Fund-based products. Loans and advances for working capital, corporate finance and project
finance. 9 Non-fund-based products. Non-funded advances such as documentary credits, stand-
by letters of credit and guarantees. Fee-based services. Including fund transfers, cash
management services, collection of Government taxes, trade services and loan syndication.
Other products and services offered include time deposits and current accounts (checking
accounts). These products and services are delivered to customers through a network of
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branches, correspondent banking networks, phone banking and the Internet. Fund-based limits
are generally granted by way of overdrafts, cash credit, demand loans, term loans and bills
discounted. Generally, the purpose, the security offered, size of advance, repayment terms and
requirements of the customer determine the type of facility to be granted. The following table
sets forth a breakdown of the Bank’s corporate loans as of the dates indicated. (Rs .in millions)
31st March 2007 31st March 2008 Working Capital Finance 106,112 164,356 Project and
Corporate Finance 173,377 296,339 Total 279,489 460,695 Working Capital Finance Cash
credit, working capital demand loans and overdraft facilities, which are the most common
forms of working capital financing, are funded facilities usually secured by current assets such
as inventories and receivables. These facilities are generally extended for a period of one year.
In almost all cases, facilities are subject to an annual review and are generally repayable on
demand. Interest is collected on a monthly basis, based on daily outstanding amounts. Bill
discounting involves discounting negotiable instruments, which are generally issued for trade
receivables. These can also be re-discounted with other banks if required. As of March 31,
2008, the Bank’s outstanding net working capital loans amounted to Rs. 164.36 billion,
constituting approximately 27.56 per cent of its net loan portfolio and as of March 31, 2007
these amounted to Rs. 106.11 billion, constituting 28.78 per cent of the Bank’s net loan
portfolio.

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 RESEARCH METHODOLOGY:
The researcher adopted the analysis of data in a manner that to combine relevance to purpose
with economy in procedure. Research design is the based define of a research problem. The
preparation of the design of the project is standard analytical of researcher favorite. It was used
in secondary data that was published already as annual reports of the bank in bank website,
journals, magazines and newspapers and other secondary data sources. this Secondary data
may be already collected and analyzed by someone else but gap is period of the study and
variables which we want to know. The study mainly connected annual financial reports that
are last five years 2010-2015 company final accounts ( balance sheet and profit and loss )

4.1 DATA COLLECTION

Main data of this study is based to the annual financial reports axis bank from in 2010 to 2015.
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

4.2 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 present 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 2015.
Second step of model, researcher identify the balance 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 was 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 .

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4.3 SECONDARY DATA
The major source of data for this project was collected through Balance sheet and Profit and
loss of Axis bank account of 5 year period from 2010-2015 Descriptive research is used in this
study because it will ensure the minimization of bias and maximization of reliability of data
collected. The researcher had to use fact and information already available through financial
statements of earlier years and analyze 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

4.4 RESEARCH INSTRUMENTS

study used secondary data collected from publishers of the bank final accounts it is limited to
last five years 2010-2015 annual financial reports

4.5 RATIO ANALYSIS FORMULAS

For most of us, accounting is not the easiest thing in the world to understand, and often the
terminology used by accountants is part of the problem. “Financial ratio analysis” sounds pretty
complicated. the analysis of the financial statements and interpretations of financial results of
a particular period of operations with the help of 'ratio' is termed as "ratio analysis." Ratio
analysis used to determine the financial soundness of a business concern.

4.5.1 CLASSIFICATION OF RATIOS

Accounting Ratios are classified on the basis of the different parties interested in making use
of the 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

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4.5.2 common size ratios
One of the most useful ways for the owner of a business to look at the company’s financial
statements is by using “common size” ratios. Common size ratios can be developed from both
balance sheet and income statement items. The phrase “common size ratio” may be unfamiliar
to you, but it is simple in concept and just as simple to create. You just calculate each line item
on the statement as a percentage of the total

4.5.3 Liquidity ratio

Liquidity ratio refers to the ability of a company to interact its assets that is most readily
converted into cash. Assets are converted into cash in a short period of time that are concerns
to liquidity position. However, the ratio made the relationship between cash and current
liability
 Current Ratio:
Current Ratio = Current assets /Current liabilities

 Quick Ratio:
Quick Ratio= (Quick Assets-Inventories)/ Quick Liabilities
Quick Asset= current asset-(stock + prepaid expense)
Quick Liabilities = current liabilities -Bank Overdraft
 Cash Ratio:
Cash Ratio = Cash / Current Liabilities

4.5.4 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
 Net Profit margin
Net Profit margin = Net profit /sales

 Return on common stock equity ratio

Return on common stock equity ratio = Net income / Common stockholders' equity

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  Return on Total Assets
Return on Total Assets = Net profits / total assets

4.5.5 Asset management ratios

Asset management ratios are most notable ratios of financial ratios analysis. It measure 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.

 current asset turnover ratio

current asset turnover ratio=sales/current asset

 Fixed asset turnover

Fixed asset turnover = Sales / Net fixed asset
 Total asset turnover
Total asset turnover = Sales / Total asset
 Debt Ratio
Debt Ratio =Total liabilities / Total assets

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 DATA ANALYSIS AND INTERPRETATION
5.1 Data Analysis
The previous chapter discussed a detailed description of the research methodology. In this
chapter, the data comes from the Axis Bank in India with relation to the research objectives,
all data is Secondary data which is already published to Secondary data sources mainly bank
website. The data will be analyzed by using Microsoft excel 2007. also In this section study
present the result from our data analysis, the study briefly examined the performance of
liquidity position of the bank. Second part present the overall profitability of the bank and
third part is asset management condition after analysis the study also discussion the debt
management position and finally comments represent the market value of the bank

CURRENT RATIO
Table 5.1 Showing The Bank's Current Ratio

Year Current Asset Current Liabilities Ratio

(A) (B) (A/B)
2010-2011 1,684,486,052 1,974,466,637 0.853

2011-2012 1,901,763,825 2,287,475,790 0.831

2012-2013 2,244,674,794 2,635,017,001 0.852

2013-2014 2,672,862,432 2,947,334,592 0.907

2014-2015 3,270,752,520 3,374,976,103 0.969

Source: Secondary Data From Financial Statements Of Axis Bank

16
INFERENCE:

Table 5.1 presents current ratio of five years from 2010 to 2015. in the above ratios the bank
current ratio of 2010 is 0.853, 2011 is 0.831, 2012 is 0.852, 2013 is 0.907, and 2014 is 0.969 it
shows us that bank current ratio is going to one with increasing positive growth year by year

Figure No:1

The Bank Current Ratio

0.080
0.070
0.060
0.050
0.040
0.030
0.020
0.010
0.000
2008 2010 2012 2014 2016

Quick Ratio

Table 5.2 Showing The Bank's Quick Ratio

Year Quick Assets Current Liabilities Ratio

(A) (B) (A/B)
2010-2011 214,086,559 1,974,466,637 0.108

2011-2012 139,339,157 2,287,475,790 0.061

2012-2013 204,349,599 2,635,017,001 0.078

2013-2014 282,386,946 2,947,334,592 0.096

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

17
Table 5.2 presents Quick ratio of five years from 2010 to 2015. in the above ratios the bank
quick / asset test ratio of 2010 is 0.108, 2011 is 0.061, 2012 is 0.078 , 2013 is 0.096, and 2014
is 0.107 it shows us that bank liquidity is normally good with small increasing of growth side

Figure No:2

The Bank Quick Ratio

0.120
0.100
0.080
0.060
0.040
0.020
0.000
2009 2010 2011 2012 2013 2014 2015

Table 5.3 Showing The Bank's cash position Ratio

Year Cash Current Liabilities Ratio

(A) (B) (A/B)
2010-2011 138,861,630 1,974,466,637 0.070

2011-2012 107,029,214 2,287,475,790 0.047

2012-2013 147,920,883 2,635,017,001 0.056

2013-2014 170,413,196 2,947,334,592 0.058

2014-2015 198,188,397 3,374,976,103 0.059

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

18
Table 5.3 presents cash ratio of five years from 2010 to 2015. in the above ratios the bank cash
position ratio of 2010 is 0.070, 2011 is 0.047, 2012 is 0.056 , 2013 is 0.058, and 2014 is 0.059
it shows us that bank liquidity is normally good but there is little decrease of current liabilities
in recent years

Figure No:3

The Bank Cash Position Ratio

0.080

0.060

0.040

0.020

0.000
2009 2010 2011 2012 2013 2014 2015

Table 5.4 Showing The Bank's Net Profit Margin Ratio

Year Net Profit Current Liabilities Ratio

(A) (B) (A/B)
2010-2011 33,884,906 1,974,466,637 0.171

2011-2012 42,422,054 2,287,475,790 0.155

2012-2013 51,794,329 2,635,017,001 0.154

2013-2014 62,176,666 2,947,334,592 0.163

2014-2015 73,578,223 3,374,976,103 0.168

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

19
Table 5.4 presents net profit margin ratio of five years from 2010 to 2015. in the above ratios
the bank net profit margin ratio of 2010 is 0.171, 2011 is 0.155, 2012 is 0.154 , 2013 is 0.163,
and 2014 is 0.168 it shows us that bank profitability is satisfactory

Figure No:4

Bank's Net Profit Margin

18.000
16.000
14.000
12.000
10.000
8.000
6.000
4.000
2.000
0.000
2009 2010 2011 2012 2013 2014 2015

Table 5.5 Showing The Bank's Return On Common Stock Equity

Year Net Profit Common stock equity Ratio

(A) (B) (A/B)
2010-2011 33,884,906 4,105,458 8.254

2011-2012 42,422,054 4,132,039 10.267

2012-2013 51,794,329 4,679,545 11.068

2013-2014 62,176,666 4,698,446 13.233

2014-2015 73,578,223 4,741,044 15.519

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

20
Table 5.5 presents Return on common stock equity ratio of five years from 2010 to 2015. in
the above ratios the bank net profit margin ratio of 2010 is 8.254, 2011 is 10.267, 2012 is
11.068 , 2013 is 13.233, and 2014 is 15.519 it shows us that bank profitability is satisfactory

Figure No:5

Bank's Return On Common Stock Equity

0.017

0.016

0.016

0.015

0.015

0.014

0.014
2008 2010 2012 2014 2016

Table 5.6 Showing The Bank's Return on Asset Ratio

Year Net Profit Total Assets Ratio

(A) (B) (A/B)
2010-2011 33,884,906 2,427,133,716 0.014

2011-2012 42,422,054 2,856,277,934 0.015

2012-2013 51,794,329 3,405,606,584 0.015

2013-2014 62,176,666 3,832,448,882 0.016

2014-2015 73,578,223 4,619,323,942 0.016

Source: Secondary Data From Financial Statements Of Axis Bank

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INFERENCE:

Table 5.6 presents Return on Asset Ratio of five years from 2010 to 2015. in the above ratios
the bank Return on Asset Ratio of 2010 is 0.014, 2011 is 0.015, 2012 is 0.015 , 2013 is 0.016,
and 2014 is 0.016 it shows us that bank profitability is satisfactory

Figure No:6

Bank's Return On Asset

0.017

0.016

0.016

0.015

0.015

0.014

0.014
2009 2010 2011 2012 2013 2014 2015

22
 Table 5.7 Showing The Bank's Current Asset Turnover Ratio

Year SALES Current Asset Ratio

(A) (B) (A/B)
2010-2011 197,869,396 1,684,486,052 0.117

2011-2012 274,148,637 1,901,763,825 0.144

2012-2013 337,336,807 2,244,674,794 0.150

2013-2014 380,463,801 2,672,862,432 0.142

2014-2015 438,436,435 3,270,752,520 0.134

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

Table 5.7 presents Current Asset Turnover Ratio of five years from 2010 to 2015. in the above
ratios the bank Current Asset Turnover Ratio of 2010 is 0.117, 2011 is 0.144, 2012 is 0.150,
2013 is 0.142, and 2014 is 0.134 it shows us that bank Current Asset Turnover Ratio is not
good as liquidity

Figure No:7

Bank's Current Asset Turnover

0.017
0.016
0.015
0.014
0.013
2009 2010 2011 2012 2013 2014 2015

23
 Table 5.8 Showing The Bank's Fixed Asset Turnover Ratio

Year SALES Fixed Asset Ratio

(A) (B) (A/B)
2010-2011 197,869,396 742,647,664 0.266

2011-2012 274,148,637 954,514,109 0.287

2012-2013 337,336,807 1,160,931,790 0.291

2013-2014 380,463,801 1,159,586,450 0.328

2014-2015 438,436,435 1,348,571,422 0.325

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

Table 5.8 presents Bank's Fixed Asset Turnover Ratio of five years from 2010 to 2015. in the
above ratios the bank Fixed Asset Turnover Ratio of 2010 is 0.226, 2011 is 0.287, 2012 is
0.291, 2013 is 0.328, and 2014 is 0.325 it shows us that bank Fixed Asset Turnover Ratio is
not good as liquidity

Figure No:8

The Bank's Fixed Asset Turnover Ratio

0.930
0.920
0.910
0.900
0.890
2009 2010 2011 2012 2013 2014 2015

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 Table 5.9 Showing The Bank's Total Asset Turnover Ratio

Year SALES Total Asset Ratio

(A) (B) (A/B)
2010-2011 197,869,396 2,427,133,716 0.082

2011-2012 274,148,637 2,856,277,934 0.096

2012-2013 337,336,807 3,405,606,584 0.099

2013-2014 380,463,801 3,832,448,882 0.099

2014-2015 438,436,435 4,619,323,942 0.095

Source: Secondary Data From Financial Statements Of Axis Bank

INFERENCE:

Table 5.9 presents Bank's Total Asset Turnover Ratio of five years from 2010 to 2015. in the
above ratios the bank Total Asset Turnover Ratio of 2010 is 0.082, 2011 is 0.096, 2012 is
0.099, 2013 is 0.099, and 2014 is 0.095 it shows us that bank Total Asset Turnover Ratio is not
good as liquidity

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 FINDINGS, SUGGESTIONS, AND CONCLUSION

6.1 Findings
After the study of the components of current assets & current liabilities and the trends of
working capital, it was found that:

 The liquidity position of the bank is not good. The current ratio is below 1(current
liabilities exceed current assets) for the study period, then the bank may have
problems paying its bills on time. However, low values do not indicate a critical
problem but should concern the management.

 The debt of the bank is quite high as it indicates debt ratio. there is leverage risk. to
address this concern, bank can also analyze the firm's interest coverage ratio, which is
the company's operating income divided by debt service payments. A high operating
income will allow even a debt-burdened firm to meets its obligations

 Asset turnover ratio should be improved together with the bank's 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 asset turnover ratio is a key driver of return on
equity which is quite constant according to axis bank ratios

 year after year from 2010 to 2015 is the indication of continuous improvement in the
earning power of the bank. This increasing EPS is the sign of favorable earnings,
health financial position and, therefore, a reliable firm to invest money.

26
6.2.SUGGESTIONS: 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

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6.3 CONCLUSION:
The conclusion chapter is directly connected to the purpose. The analysis will be summarized
in order fulfill the purpose of the study Since the start of the financial institutions in the
financial sector were introduced in India, banking sector has undergone major transformation.
The underlying objectives of the study were to know financial health make the banking system
more competitive, productive and profitable. Since 2008 world Financial Crisis and meltdown
which may institutions in Banking Industry there Liquidated and drop out of market. the greater
presence of international financial players in the Indian Financial system and some of the
Indian banks would become international players in the recent years. The key to success in the
competitive environment is increased productivity. This research has analyzed the productivity
of selected private sector bank ( axis bank) in India during 2010-15 This Study concludes that
though the per ratio of the bank financial productivity of axis bank is far better than other
improving. This study is based on three main research objectives. First, we analysis of liquidity
measures indicates that current ratio is bed condition for the bank. Quick and asset measures is
found that the same position of previous ratio and cash ratio measures the bank is little bit better
than the previous years. So we notice that the bank is better condition of liquidity position
compare that 2010 and 2011.
Second the study analysis's profitability measures indicates the different kind of ratio. The bank
compare are more profitable recent years in net profit margin, return on assets (ROA), return
on equity (ROE), and Overall, net profit margin is found rising for bank and falling of debt
ratio for bank during 2012-2015. net profit margin of bank is found to increase than it return
of asset to increase. Whereas, the opposite debt is decrease year by year. Return in Equity is
also found increase during that years in bank. On the other, study ensure that the Axis bank is
better condition for profitable. Third, study analysis is all efficiency measures of Asset
accounts. Current assets turnover.

fixed assets turnover, total asset turnover . the bank are significant increase in asset account
side also increases some measure and decreases some measures but increasing point is so
significant and betters then decreasing parts so study ensure that the axis bank is standards
position for asset management measure.

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