axis bank financial analysis
DESCRIPTION
Analysis of Financial Statements and Ratio Analysis of AXIS BANK with peer comparison in banking sectorTRANSCRIPT
Group MembersPRANAY ADHIKARI 1
JAYESH BHATIA 8
KAUSTUBH BARVE 11
ABHIJEET BHRAMANKAR 25
DANISH CHODHURY 32
YASH DAVE 36
History Axis Bank (formerly UTI Bank) was jointly promoted in 1993 by UTI, GIC, NIC, NIAC, OIC and United India Insurance Company
Opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993
Began its operations in 1994
The first branch was inaugurated on 02nd April 1994 in Ahmedabad by Dr. Manmohan Singh, the then Finance Minister of India
Axis Bank
Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India.
It offers financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.
The Bank has a large footprint of 1947 domestic branches (including extension counters) and 11,245 ATMs spread across the country as on 31st March 2013. The Bank also has overseas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.
Axis Bank has its headquarters in Mumbai, Maharashtra
With a balance sheet size of Rs.3,40,561 crores as on 31st March 2013
Axis Bank has achieved consistent growth and stable asset quality with a 5 year CAGR (2009-13) of 26% in Total Assets, 24% in Total Deposits, 27% in Total Advances and 37% in Net Profit.
Axis Bank
• Revenue-340 billion (US$5.7 billion)
• Operating income-94 billion (US$1.6 billion)
• Net income-52 billion (US$870 million)
• Total assets-3.4 trillion (US$57 billion)
• Employees-40,239 (on 30-Sep-2013)
Operations INDIAN BUSINESS
Network of 2225 branches and extension counters and 11796 ATMs (the largest ATM network among private banks)
Operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level
INTERNATIONAL BUSINESSBank has seven international offices with branches at Singapore, Hong Kong, Dubai and Colombo and representative offices at Shanghai, Dubai and Abu Dhabi
Operations focus on corporate lending, trade finance, syndication, investment banking and liability businesses
Also has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited
ServicesAxis Bank operates in four segments: 1. Treasury operations
2. Retail banking
3. Corporate/wholesale banking
4.Other Services: NRI services Business banking Investment banking Lending to small and medium enterprises: Agriculture banking
Name DesignationSanjiv Misra Chairman
Somnath Sengupta Executive Director & Head (Corporate Centre)
K N Prithviraj DirectorS B Mathur DirectorR N Bhattacharyya DirectorSom Mittal DirectorRohit Bhagat Director Shikha Sharma Managing Director & CEO
V Srinivasan Executive Director & Head (Corporate Banking)
V R Kaundinya DirectorPrasad R Menon DirectorSamir K Barua DirectorIreena Vittal DirectorUsha Sangwan Additional Director
Management
Capital Structure & Listing
The Bank has authorized share capital of Rs. 850 crores comprising 850,000,000 equity shares of Rs.10/- each.
As on 30th September, 2013 the Bank has issued, subscribed and paid-up equity capital of Rs. 469.19 crores, constituting 46,91,89,786 equity shares of Rs. 10/- each.
The Bank’s shares are listed on the National Stock Exchange and the Bombay Stock Exchange. The GDRs issued by the Bank are listed on the London Stock Exchange
(LSE).
33.88
43.18
6.61
6.03
4.47
3.9
0.85
Shareholding Pattern
Promoter Group
FII
Individual Shareholderstr
Bodies Corporate
GDR
Financial Institutions/Banks
Others
Promoter GroupNo. Name of the Shareholder
Total Shares held
NumberAs a % of
grand total(A) + (B) + (C)
1 Administratror of the specified undertaking of the Unit Trust of India - UTI - 1 SUUTI 97,224,373 20.72
2 Life Insurance Corporation of India 43,739,657 9.32
3 General Insurance Corporation of India 7,703,099 1.64
4 The New India Assurance Company Ltd 4,139,180 0.88
5 National Insurance Company Ltd 3,490,057 0.74
6 The Oriental Insurance Company Ltd 1,295,504 0.28
7 United India Insurance Company Ltd 1,370,765 0.29
Total 158,962,635 33.88
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI, LIC, GIC and its subsidiaries.
The Bank was set up in 1993 with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each
Ending: December 2013
Share Price Analysis
Financial Ratio Analysis
2011 2012 20130.725
0.73
0.735
0.74
0.745
0.75
0.755
0.76
0.765
0.77
0.775
0.74
0.77 0.77
Current Ratio
Current Ratio
2011 2012 201318.5
19
19.5
20
20.5
21
21.5
22
19.6
21.63
20.1
Quick Ratio
Quick Ratio
2011 2012 201314
14.5
15
15.5
16
16.5
17
17.5
18
18.5
19
17.83
18.59
15.64
Return on Net Worth
Return on Net Worth
2011 2012 20130
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
0.09
0.1
0.07
0.08
0.09
Total Assets Turnover
Total Assets Turnover
2011 2012 201317
18
19
20
21
22
2322.69
20.66
19.45
Operating Expenses/ Total Income
Operating Expenses/ Total Income
2011 2012 201314
14.5
15
15.5
16
16.5
17
17.5
17.12
15.4715.35
Net Profit Margin
Net Profit Margin
2011 2012 20130
20
40
60
80
100
120
82.54
102.67
110.68
Earning Per Share
Earning Per Share
2011 2012 201379
79.5
80
80.5
81
81.5
82
80.22
81.85
80.94
Earning Retention Ratio
Earning Retention Ratio
2011 2012 20130
10
20
30
40
50
60
70
80
90
100
72.25
88.84
75.72
Return on Long Term Fund
Return on Long Term Fund
PEER GROUP ANALYSIS
Current Ratio
ICICI HDFC Union Bank of India Bank of Baroda SBI0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.90.84
0.8
0.69 0.69
0.81
Return on Net Worth
ICICI HDFC Union Bank of India Bank of Baroda SBI0
2
4
6
8
10
12
14
16
18
20
13.96
18.74
6.37
14.43 14.32
EPS
ICICI HDFC Union Bank of India Bank of Baroda SBI0
50
100
150
200
250
72.22
28.27
8.64
106.37
206.2
Total Assets Turnover
ICICI HDFC Union Bank of India Bank of Baroda SBI0
0.02
0.04
0.06
0.08
0.1
0.12
0.07
0.1
0.09
0.07
0.08
Net Profit Margin
ICICI HDFC Union Bank of India Bank of Baroda SBI0
2
4
6
8
10
12
14
16
18
12.94
15.97
3.79
11.73
8.93