AXIS BANK Project Word File

7/30/2019 AXIS BANK Project Word File

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A Project Report

On

AXIS BANK

Submitted by

Mr. Akshay Goyal

Mr. Piyush Raj

Mr. Arjit Maheshwari

Mr. Anurag Agarwaal

Mr. Krishan ChangulaniI n partial ful fi l lment for the award of the degree of

BACHELOR OF COMMERCE (HONOURS)

At

ITM UNIVERSITY, OPP. SITHOULI RAILWAY

STATION,

JHANSI ROAD, GWALIOR, M.P.


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INTRODUCTION

Axis Bank Limited is an Indian financial services firm headquarteredin 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 AssuranceCompany, 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 yearended 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 ofIndia and Reserve Bank of India have ordered an inquiry.


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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 andcorporate debt, equity and mutual funds, trading operations, derivative trading

and foreign exchange operations on the account, and for customers and centralfunding.

Retail banking

In the retail banking category, the bank offers services such as lending toindividuals/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, projectappraisals, capital market related services and cash management services.


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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 e-

Payments) 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. Thebank 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.


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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 subgroupfor 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 agriculturalloans 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 9states 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.


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CORPORATE SOCIAL RESPONSIBILITIES

Axis Bank has set up a Trustthe 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.


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AWARDS AND RECOGNITIONS

In year 201112

Bank of the YearIndia The Banker Awards 2011 Best BankPrivate 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 personalbanking 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 HouseIndia TheAsset Triple A Country Awards

2011

Best Risk Master (Private Sector Category) FIBAC 2011 Banking Awards Best Bond House India 2011 Finance Asia


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BOARD OF DIRECTORS

NAME DICLERATION

Adarsh Kishore Chairman / Chair Person

Rama Bijapurkar Director

V R Kaundinya Director

Prasad R Menon Director

Samir K Barua DirectorSom Mittal Director

Somnath Sengupta Executive Director

Shikha Sharma Managing Director & CEO

K N Prithviraj Director

S B Mathur Director

R N Bhattacharyya Director

A K Dasgupta Director

V Srinivasan Executive Director

Ireena Vittal Addnl. & Ind.Director


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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 FoundationSanjeev 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 AuditorsChartered Accountants

M/s Karvy Computershare Private Limited Registrar and Share Transfer Agent


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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 seriesanalysis.

I.e. comparison of banks presents ratios & past ratios.

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


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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.


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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 AlertsII.ATM cum International Debit CardIII.Phone BankingIV. Corporate IConnectV.Daily free account statements through e-mail

Investment Products :-

1.Gold and Silver Mohur2.Mutual Funds3.Life Insurance4.General Insurance

Gold And Silver MohurCertified Gold and Silver bars.

Mutual FundsAxis 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 InsuranceAxis Bank has a Corporate Agency partnership with

TATA AIG General Insurance to distribute General Insuranceproducts. The various General Insurance products available

for sale at Axis Bank branches are:


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

LoansHome LoansCar Loans

Personal LoansLoans Against PropertyLoans Against ShareLoans Against SecuritiesLoans Against Gold

CardsTitanium Smart Traveler Credit CardsPlatinum Advantage Credit CardVisa Signature Credit CardVisa Infinite Credit Card

Agri Business LoansKisan PowerPower GoldKisan 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 withfriendly repayment terms.


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Power GoldPower Gold gives easy loans up to 15, 00,000 to individuals

engaged in agriculture or allied activities, against the pledgeof Gold ornaments.


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RESEARCH METHODOLOGY

Research Methodology:-

Research methodology is a way to systematically solve theresearch problem. The research methodology using for find

out the solution of the research problem is analytical research

methodology and some extend descriptive researchmethodology.

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 forcollection 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 primaryform, 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.


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The sources of secondary data include:-BooksMagazinesInternetNewspaperAnnual Report

Techniques:-The technique used in the analysis of the company is excel

sheets, graphs and tables of financial statement for examplebalance sheet, profit loss a/c, cash flow statement, dividend

per share, ratio analysis, valuation ratio etc.


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FINANCIAL STATEMENTS

AXIS BANK LIMITEDBALANCE SHEET

Balance sheet as on 31march2012

Schedule

No

Current year31-03-2012(in

thousands)

Previous year31-03-2011(in thousands)

APITAL AND

IABILITIES

apital 1 4,132,039 4,105,458

serve and surplus 2 223,953,384 185,882,797

eposits 3 2,201,043,033 1,892,378,010

orrowings 4 340,716,721 262,678,824

ther liabilities andovisions

5 86,432,757 82,088,627

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


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ssets

ash and Balances

th Reserve Bank ofdia

6 107,029,214 138,861,630

alances with Banks

d Money at Call and

hort Notice

7 32,309,943 75,224,929

vestments 8 931,920,859 719,916,208

dvances 9 1,697,595,386 1,424,078,286

xed Assets 10 22,593,250 22,731,456

ther Assets 11 64,829,282 46,321,207

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

ontingent liabilities 12 4,802,373,747 4,453,914,432

lls for collection 346,346,043 324,731,072

gnificant

ccounting Policies

d Notes to Accounts

17 &

18


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AXIS BANK LIMITED - PROFIT & LOSS ACCOUNT

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED

31 MARCH, 2012

Schedule

no.

Year ended

(31-03-2012)(in thousands)

Year ended

(31-03-2012)(in thousands)

) INCOME

terest earned 13 219,946,474 151,548,058

ther income 14 54,202,163 46,321,338

otal 274,148,637 197,869,396

I) EXPENDITURE

terest expanded 15 139,769,024 85,918,230

perating expenses 16 60,070,995 47,794,281

ovisions and contingencies 18 (2.1.1) 31,886,564 30,271,979

OTAL 231,726,583 163,984,490

II) NET PROFIT FOR THEEAR (I - II)

42,422,054 33,884,906


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alance in Profit & Loss Account

ought forwardom previous year

49,697,707 34,274,337

V) AMOUNT AVAILABLE FOR

PPROPRIATION

92,119,761 68,159,243

V) APPROPRIATIONS :

ansfer to Statutory Reserve 10,605,513 8,471,227

ansfer to/(from) Investment Reserve (149,372)

ansfer to Capital Reserve 519,047 47,630

ansfer to General Reserve 3,388,491

oposed dividend (includes tax on

vidend)7,700,725 6,703,560

alance in Profit & Loss Accountrried forward 73,294,476 49,697,707

otal 92,119,761 68,159,243


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CALCULATION OF BALANCE SHEET, PROFIT

& LOSS A/C & EARNINGS PER SHARE RATIOS

(Rs. In Crore)

20122011

20102009

2008

13.6612.65 15.8

13.69 13.73

72.29 76.1672.96 73.87 75.89

BALANCE SHEET RATIOS

Capital Adequacy Ratio Advances / Loans Funds(%)


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63.55

56.69 57

65.9863.09

23.87

27.6530.96

24.95 26.2

0.32 0.4 0.3 0.34 0.85

2012 2011 2010 2009 2008

PROFIT & LOSS A/C RATIOS

Interest Expended / Interest Earned Operating Expense / Total Income

Selling Distribution Cost Composition

102.6782.54

62.0650.57

29.94

2012 2011 2010 2009 2008

Earnings Per Share

Earnings Per Share


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3.91 3.73 3.95 4.24 3.77

16.69 18.71 17.63 14.76 14.19

15.51 17.2 16.1 13.31 12.22

88.75

72.2966.34

97.35

71.17

18.59 17.83 15.67 17.7712.2118.51 17.87 15.69 17.85

12.38

2012 2011 2010 2009 2008

PROFITABILITY RATIO

Interest Spread Adjusted Cash Margin(%)

Net Profit Margin Return on Long Term Fund(%)Return on Net Worth(%) Adjusted Return on Net Worth(%)


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CONCLUSION

According to financial Ratio analysis of Axis bank itsperformance in the private bank is good and expected togrow further in the near future which is a good sign for

investment.

Earnings per Share and dividend both are increasing yearto year.

The Financial Ratio analysis is a process of evaluatingthe financial statements to obtain a better understandingof 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 tohighlight 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 %.


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SUGGESTION

The analysis carried out at on the Axis Bank, their profit

and loss account, balance sheet and ratios. I shall suggest theinvestors 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 internationallevel also; its Insurance and asset management businessare also performing well.

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AXIS BANK Project Word File