Axis Bank was incorporated as UTI Bank in 1994 and has since grown to become one of the largest private sector banks in India. It has over 1035 branches across 30 states and union territories in India as well as international offices in Singapore, China, Hong Kong, and Dubai. The bank analyzes its performance using various financial ratios that measure profitability, leverage, liquidity, and payouts. These ratios indicate that between 2008-2012 the bank improved its earnings, returns, and ability to cover costs and debts while maintaining adequate current assets to meet short-term obligations.

1. Ratio Analysis on
Axis bank
Presented by :
Mehul Rasadiya
K.K. Parekh Institute of Management Studies
(Amreli)

2. Axis bank

3. ABOUT Axis Bank
• Incorporated as UTI Bank,
headquartered in Mumbai
• First Branch inaugurated at
Ahmadabad
• Completes first profitable year in
operation in 1995
• Deposit crosses Rs.10bn mark in 1996

4. Conti………
• Opens its first international branch in
Singapore
• Opens Representative Office in Shanghai
• Crosses the 12,600 ATM mark in 2011
• Opens a Full Licence Bank Branch in
Hong Kong
• Re-brands itself as Axis Bank
• Mumbai, Jul 30 2007 : UTI Bank on Monday
rechristened itself as Axis Bank.

5. • The Axis banks business is divided
into four segments:
– Retail
– Corporate
– Treasury
– Merchant banking.

6. • A part from this the bank is:
→Insurance
→Investment banking
→Mortgage financing
→Credit cards
→Depository services etc .

7. Services
Retail banking
• Deposits schemes
• Loans and advances
– Personal loans
– Housing loans
– Cards
– Consumer durables
– Auto loans

8. Conti……
Personal banking
• Accounts
– Term deposit
– Fixed deposit
– Recurring deposit
• Cards
– Different variant like: Gold plus card, Gold card,
Silver & silver plus cards.

9. Conti……
Corporate banking
• Accounts
– Normal Current Account
– Trust/NGO Savings Account
• Services
– Private Equity, Mergers & Acquisitions
– Advisory Services
– Capital Market Funding
– E-Broking

10. Performance
 As on the year ended March 31, 2012 the Bank had a net profit of
Rs 4,242.21crores
 The bank now has 1035 branches including extension networks
across 30 States and 4 Union Territories.
 The bank also has overseas offices in Singapore, China, Hong Kong
and Dubai.
 Crosses the 19000 ATM mark in Mar 2013
 Axis Bank share is now trading at Rs 1430.00 (20th April,2013)

11. Why its important
By preparing financial statement
investors can easily take decision about
particular org. whether to invest or not.
By preparing financial statement
management are easily to identify his
decision right or wrong.

12. Conti…..
It is helpful to researcher to research
for future value of org.
It is also helpful to students to
prepare such decision making reports.

13. A. Per Share Ratio
1) Earnings per share Net profit after Taxes
=
No. of Equity Shares
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
102.17 82.71 62.16 50.79 30.37

14. Conti……
2)Dividend per share= Dividends
No of shares
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
16.00 14.00 12.00 10.00 6.00

15. Conti…..
Total stockholder's equity
3)Book Value Per Share =
Number of shares
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
551.99 462.77 395.99 284.50 245.13

16. Conti…..
4)Net Operating
Income Per Share = operating income * (1-tax rate)
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
654.06 471.17 380.27 377.46 244.63

17. Conti…..
Market price per equity share
5)Price Earning Ratio =
Earnings per share
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
551.99 462.77 395.99 284.50 245.13

18. B. Profitability ratio
1)Operating Margin COGS + Operating expenses × 100
=
Net sales
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
24.13 27.43 25.58 22.13 23.25

19. Conti……
Net profit
2)Net Profit Margin =
Net sales
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
15.51 17.20 16.10 13.31 12.22

20. Conti……
3)Return on Investment
=
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08

21. Conti……
4)Return on Long Term
Funds =
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
88.75 72.29 66.34 97.35 71.17

22. C. Leverage Ratio
1)Debt-Equity Ratio = Total liabilities .
Shareholders equity
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
9.65 9.96 8.81 11.49 9.99

23. C. Leverage Ratio
2)Fixed Assets Turnover Cost of Sales
Ratio = Net Fixed Assets
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.10 5.65 7.31 7.78 6.32

24. C. Leverage Ratio
3)Financial Leverage =
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.10 5.65 7.31 7.78 6.32

25. C. Leverage Ratio
4)Operating Leverage =
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.10 5.65 7.31 7.78 6.32

26. C. Leverage Ratio
5)Combined Leverage =
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.10 5.65 7.31 7.78 6.32

27. D. Liquidity Ratio
1) Current Ratio = Current Assets
Current Liabilities
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.75 0.56 0.63 0.37 0.36

28. Conti…..
current asset-inventories
2) Quick Ratio =
current liabilities
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
21.63 19.60 19.19 9.52 9.23

29. Conti……..
cost of goods sold
3) Inventory Ratio =
average inventory
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
21.63 19.60 19.19 9.52 9.23

30. E. Payout Ratio
1)Divident Payout Ratio = Dividend per Equity Share
Earnings per share
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
18.15 19.78 22.56 23.16 23.49

31. Conti….
2)Financial Charges Profit Before Interest And Tax
Coverage Ratio = Annual Interest And Bank Charges
Mar ' 12 Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08
0.48 0.65 1.62 1.43 1.46

32. Thank you