Displacement, Velocity, Acceleration, and Second Derivatives
KPI and CAMEL analysis of axis and idbi bank
1. Presentation on
Key Performance Indicators (KPI) and CAMEL analysis
Of
AXIS BANK
And
IDBI BANK
• Presented to: Presented by:
Dr. A. C. Mehta Neel Sharma(13F53)
G. H. Patel P G Institute of Business Management,
Sardar Patel University,
V. V. Nagar
2013-15
2. Introduction to
• Formerly known as Unit Trust of India (UTI)
• First of the new private banks to have begun operations in 1994, after
the Government of India allowed new private banks to be established
• Was jointly promoted by UTI, LIC, GIC and four PSU insurance
companies
• The Bank as on 31st December, 2011 is capitalized to the extent of Rs.
412.57 crores with the public holding (other than promoters and GDRs)
at 53.63%.
3. • very wide network of more than 1281 branches & network of over 7591
ATMs (including 169 Service Branches/CPCs as on 31st March, 2011)
• 70% of corporate advances have rating of at least ‘A’ as at December
2011
• 80% of SME advances have rating of at least ‘SME3’ as at December
2011
• strengths in both retail and corporate banking
• listed in the top 100 most trusted brands of India in the Brand Trust
Report
4. Awards and Recognitions
• Bank of the Year Money Today FPCIL Awards 2012–13
• Best Bank CNBC-TV18 India’s Best Bank and Financial Institution Awards 2012
• Best Bank Runner-up – Outlook Money Awards 2012
• 'Consistent Performer' in 'India’s Best Banks – 2012 survey' by Business Today and
KPMG
• Fastest Growing Large Bank Dun & Bradstreet – Polaris Financial Technology
Banking Awards 2012
• Fastest Growing Large Bank Business world Best Banks Survey 2012
• Best Domestic Bond House The Asset Triple A Country Awards 2012
• India Bond House of the year IFR ASIA – Country Awards 2012
• Deal Maker of the Year in Rupee Bonds Business world Magna Awards – India's Best
Deal Makers 2012
• The Best Emerging Bullion Dealing Bank 9th India International Gold Convention-
2011-12
• Best Acquiring Institution in South Asia Visa LEADER Award at Visa’s 2012 APCEMEA
Security Summit, Bali
• Gold Shield for Excellence in Financial Reporting in the Private Banks category –
2011–12 from Institute of Chartered Accountants of India
8. Vision 2015 and Core Values
VISION 2015:
To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology.
Core Values:
Customer Centricity
Ethics
Transparency
Teamwork
Ownership
9. • Treasury operations
• Retail banking
• Corporate/wholesale banking
• NRI services
• Business banking
• Investment banking
• Lending to small and medium enterprises
• Agriculture banking
Services
10. Introduction to IDBI BANK:
IDBI Bank Limited is an Indian financial service company headquartered Mumbai, India. RBI categorized IDBI
as an "other public sector bank". It was established in 1964 by an Act of Parliament to provide credit and other
facilities for the development of the fledgling Indian industry.
It is currently 10th largest development bank in the world in terms of reach with 1514 ATMs, 923 branches
including one overseas branch at DIFC, Dubai and 621 centers including two overseas centers at Singapore &
Beijing.
Some of the institutions built by IDBI are the Securities and Exchange Board of India (SEBI), National Stock
Exchange of India (NSE), the National Securities Depository Limited (NSDL), the Stock Holding Corporation of
India Limited (SHCIL), the Credit Analysis & Research Ltd, the Exim Bank (India)(Exim Bank), the Small Industries
Development Bank of India(SIDBI), the Entrepreneurship Development Institute of India, and IDBI BANK, which
is owned by the Indian Government.
11. IDBI Bank is on a par with nationalized banks and the SBI Group as far as government ownership is
concerned. It is one among the 26 commercial banks owned by the Government of India. The Bank has an
aggregate balance sheet size of Rs. 2,53,378 crore as on March 31, 2011.
In March 2008, IDBI Bank entered into a joint venture with Federal Bank and Fortis Insurance
International to form IDBI Fortis Life Insurance, of which IDBI Bank owns 48 percent. The company ended
the year with over 300 Cr in premiums as on 31 March 2009.The name of IDBI Fortis Life Insurance is now
changed to IDBI Federal Life Insurance Co Ltd.
Government of India now owns 65.17% stake in IDBI Bank. Hence IDBI Bank is also referred as 'The New
Age Government owned Bank'
12. CURRENT ACCOUNT AND SAVINGS ACCOUNT (CASA)
Current account and Saving Account chart shows No. of accounts are
increased or decreases in a year.
Here we had taken % of No. of Accounts are in a Bank.
We can see from chart in Year 2010 Axis Bank have 46.73% and IDBI
Bank have 14.59%. It means approximately IDBI bank had 1/3 accounts
compared to Axis Bank. So it is good sign for Axis Bank.
But in a next year i.e. 2011 Axis Bank’s CASA is decreased 46.73% to
41.30% and IDBI Bank’s CASA is increased to 14.59% to 20.88%. So
here we can say that IDBI Bank had Captured more customers by giving
good offers, interest rates, Services etc.
It happens continuously up to 2013 and then Axis Bank had make a
Strategy and increase their Customers by giving at Home services so in
2014 IDBI bank had loss its CASA to 22.63% and Axis Bank had increase
its CASA to 45.01%.
13. CURRENT ACCOUNT AND SAVING ACCOUNT (CASA) IN
%
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
2014 2013 2012 2011 2010
Amtin%
Years
CASA (%)
Axis Bank CASA
(%)
Years 2014 2013 2012 2011 2010
Axis Bank CASA (%) 45.01 44.38 41.54 41.10 46.73
IDBI Bank CASA (%) 22.63 25.12 24.10 20.88 14.59
14. EARNING PER SHARE
Earning per Share indicates firm’s profitability.
Earning per Share is calculated from Profit after Tax/No. of Shares.
Here from a chart we can see that in year 2010 IDBI Bank’s EPS is
Rs.14.23 and Axis Bank’s EPS is Rs.62.06
EPS of Axis Bank is increasing continuously, because Net Profit of a Axis
Bank is increasing continuously. But in case of IDBI Bank Net Profit is
fluctuating.
Net Profit of IDBI Bank is increasing continuously from year 2010 to 2013
but in year 2014 it is declining.
Here, Axis Bank is giving more EPS to their share holder compared to
IDBI Bank.
15. EARNING PER SHARE IN RUPEES
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
2014 2013 2012 2011 2010
AmtinRupees
Years
Earning Per Share in Rupees
Axis Bank
Earnings Per
Share (Rs)
Years 2014 2013 2012 2011 2010
Axis Bank Earnings Per Share (Rs) 132.33 110.68 102.67 82.54 62.06
IDBI Bank Earnings Per Share (Rs) 6.99 14.12 15.89 16.76 14.23
16. DIVIDEND PER SHARE
Dividend is also shows profitability of a firm.
Higher profit means firm is able to pay high dividend.
Here, from this two Banks Axis Bank is giving good amount of
Dividend compared to IDBI Bank.
17. 0.00
5.00
10.00
15.00
20.00
25.00
2014 2013 2012 2011 2010
AmtinRupees
Years
Dividend Per Share in Rupees
Axis Bank DPS(Rs)
IDBI Bank DPS(Rs)
DIVIDEND PER SHARE (DPS) IN RUPEES
Years 2014 2013 2012 2011 2010
Axis Bank DPS(Rs) 20.00 18.00 16.00 14.00 12.00
IDBI Bank DPS(Rs) 1.00 3.50 3.50 3.50 3.00
18. RETURN ON EQUITY (ROE) IN %
0.00
5.00
10.00
15.00
20.00
25.00
2014 2013 2012 2011 2010
Amtin%
Years
Return on Equity (ROE) in %
Axis Bank ROE(%)
IDBI Bank ROE(%)
Years 2014 2013 2012 2011 2010
Axis Bank ROE(%) 17.43 18.53 20.29 19.34 19.15
IDBI Bank ROE(%) 5.42 10.16 13.43 15.80 13.16
19. CASH/DEPOSIT IN %
0.00
0.02
0.04
0.06
0.08
0.10
0.12
2014 2013 2012 2011 2010
Amtin%
Years
Cash/Deposit in %
Axis Bank Cash/Deposits
IDBI Bank Cash/Deposits
Years 2014 2013 2012 2011 2010
Axis Bank Cash/Deposits 0.06 0.06 0.05 0.07 0.07
IDBI Bank Cash/Deposits 0.05 0.05 0.07 0.11 0.08
20. CREDIT/DEPOSIT IN %
65.00
70.00
75.00
80.00
85.00
90.00
2014 2013 2012 2011 2010
Amtin%
Years
Credit/Deposit in %
Axis Bank Credit/Deposits(%)
IDBI Bank Credit/Deposits(%)
Years 2014 2013 2012 2011 2010
Axis Bank Credit/Deposits(%) 81.89 77.97 77.13 75.25 73.84
IDBI Bank Credit/Deposits(%) 83.85 86.43 85.79 87.04 82.43
21. NET PROFIT IN RUPEES CRORES
0
1000
2000
3000
4000
5000
6000
2014 2013 2012 2011 2010
AmtinRupeesCrores
Years
Net Profit in Rupees Crores
Net Profit for the Year For Axis
Bank in Rupees Crore
Net Profit for the Year For IDBI
Bank in Rupees Crores
Years 2014 2013 2012 2011 2010
Net Profit for the Year For Axis Bank
in Rupees Crore 0 5,179.43 4,242.21 3,388.49 2,514.53
Net Profit for the Year For IDBI Bank
in Rupees Crores
1,121.40 1,882.08 1,894.34 1,650.32 1,031.13
22. NET INTEREST INCOME/TOTAL FUNDS IN %
0
1
2
3
4
5
6
2014 2013 2012 2011 2010
Amtin%
Years
Net Interest Income / Total Funds in %
Net Interest Income / Total
Funds For Axis Bank in %
Net Interest Income / Total
Funds For IDBI Bank in %
Years 2014 2013 2012 2011 2010
Net Interest Income / Total Funds For Axis
Bank in % 3.3 3.09 3.04 3.1 5.34
Net Interest Income / Total Funds For IDBI
Bank in %
1.85 1.76 2.4 2.39 2.02
23. CURRENT RATIO IN %
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
2014 2013 2012 2011 2010
Amtin%
Years
Current Ratio in %
Current Ratio of Axis Bank in %
Current Ratio of IDBI Bank in %
Years 2014 2013 2012 2011 2010
Current Ratio of Axis Bank in % 0.03 0.03 0.03 0.02 0.03
Current Ratio of IDBI Bank in % 0.03 0.03 0.02 0.02 0.03
24. QUICK RATIO IN %
0
5
10
15
20
25
30
2014 2013 2012 2011 2010
Amtin%
Years
Quick Ratio in %
Quick Ratio of Axis Bank in %
Quick Ratio of IDBI Bank in %
Years 2014 2013 2012 2011 2010
Quick Ratio of Axis Bank in % 18.57 20.1 21.63 19.6 19.19
Quick Ratio of IDBI Bank in % 23.11 24.82 27.11 26.78 19.49
25.
26. CAMELAnalysis
A technique, used to rate banks on various parameters based on financial and non-
financial performance.
Each letter refers to the specific category of performance
C = Capital Adequacy A = Assets quality
M = Management quality E = Earnings
L = Liquidity
27. A-CAPITALADEQUACY
It indicates the bank’s capacity to maintain capital commensurate with the nature and
extent of all types of risks, as also the ability of the bank’s managers to identify, measure,
monitor and control these risks.
There are 3 ratios have been used to analyze the capital adequacy of the bank
Capital Adequacy ratio
Debt-equity ratio
Credit extended ratio
28. (1) Capital Adequacy Ratio
Formula=Total capital/Risk-weighted assets
201403 201303 201203 201103 201003
Axis(%) 16.97 17.00 13.66 12.65 15.80
IDBI(%) 13.13 13.13 14.58 13.64 11.31
16.97 17.00
13.66
12.65
15.80
13.13 13.13
14.58
13.64
11.31
AxisTitle
Capital Adequacy Ratio
Interpretation
This ratio shows how the management has maintained the capital commensurate to the risks, and also the ability of management
to identify, monitor and measure the risks. Higher the ratio less is the risk. Here Axis Bank has higher capital adequacy ratio than
the IDBI Bank in the year 2013-14 and therefore carry less risks.
29. (2)Debt Equity Ratio
Formula= Total debt/total equity
201403 201303 201203 201103 201003
Axis(%) 7.35 7.63 9.65 9.96 8.81
IDBI(%) 9.97 10.7 11.98 14.24 20.38
7.35 7.63
9.65 9.96 8.819.97 10.7 11.98
14.24
20.38
AxisTitle
Debt Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates
what proportion of equity and debt the company is using to finance its assets.
Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.
Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements as well as
corporate ones.
30. A- Assets quality
Asset quality determines the robustness of financial institutions against
loss of value in the assets. The deteriorating value of assets, being prime source
of banking problems, directly pour into other areas, as losses are eventually
written-off against capital, which ultimately jeopardizes the earning capacity of
the institution..
Following ratios can be used to analysis Assets Quality of the bank:
•Net NPAs to Advances Ratio
•Net NPAs to Total Assets Ratio
31. Net NPAs to Advances Ratio
201403 201303 201203 201103 201003
Axis(%) 0.44 0.36 0.27 0.29 0.40
IDBI(%) 2.48 1.58 1.61 1.06 1.02
0.44 0.36 0.27 0.29 0.40
2.48
1.58 1.61
1.06 1.02
AxisTitle
Net NPAs to Advances Ratio
Interpretation
The net NPA to advances ratio is used to measure of the overall quality of the bank’s loan book. Higher ratio
reflects rising bad quality of loans.
Ratio of IDBI is increasing highly each year where as ratio of Axis is increasing in slow rate. Ratio of IDBI is
higher than ratio of Axis in the year 2014 which shows that IDBI have higher amount of bad quality of loans.
32. M - Management Quality
Management of financial institution is evaluated in terms of compliance with set norms,
ability to plan and react to changing circumstances, technical competence, leadership and
administrative ability.
Following ratios can be calculated to analyze Management Quality of the bank:
• Return on Equity
• Efficiency Ratio
• Advances to Deposits Ratio
• Income Productivity Per Employee
33. Return on Equity(ROE)
Formula=Net Profit/Equity
201403 201303 201203 201103 201003
Axis 17.43 18.53 20.29 19.34 19.15
IDBI 5.42 10.16 13.43 15.80 13.16
17.43 18.53
20.29 19.34 19.15
5.42
10.16
13.43
15.80
13.16
AxisTitle
Return on Equity(ROE)
Interpretation
Return on equity (ROE) measures the rate of return on the ownership interest (shareholders' equity) of the common stock
owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net
assets or assets minus liabilities). ROE shows how well a company uses investment funds to generate earnings growth.
ROEs between 15% and 20% are generally considered good. The performance of Axis is better than IDBI.
34. E - Earnings
Earnings and profitability, the prime source of increase in capital base, is examined with
regards to interest rate policies and adequacy of provisioning. In addition, it also helps
to support present and future operations of the institutions. The single best indicator
used to gauge earning is the Return on Assets (ROA), which is net income after taxes to
total asset ratio.
35. 201403 201303 201203 201103 201003
Axis 1.72 1.65 1.61 1.60 1.53
IDBI 0.34 0.61 0.75 0.68 0.51
1.72 1.65 1.61 1.60 1.53
0.34
0.61
0.75 0.68
0.51
AxisTitle
Return on Assets( ROA )
Return on Assets( ROA )
Formula=Net Profit/Total Assets
Interpretation
The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue. This number
tells what the company can do with what it has, i.e. how many dollars of earnings they derive from each dollar of assets
they control. It's a useful number for comparing competing companies in the same industry. The number will vary widely
across different industries. Return on assets gives an indication of the capital intensity of the company, which will depend
on the industry; companies that require large initial investments will generally have lower return on assets. Axis is a better
performer when ROAs of the two years are compared.
37. INTERPRETATION
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure
of profitability. It is calculated by finding the net profit as a percentage of
the revenue. The profit margin is mostly used for internal comparison. It is difficult
to accurately compare the net profit ratio for different entities. Individual
businesses' operating and financing arrangements vary so much that different
entities are bound to have different levels of expenditure, so that comparison of one
with another can have little meaning. A low profit margin indicates a low margin of
safety: higher risk that a decline in sales will erase profits and result in a net loss,
or a negative margin. Profit margin is an indicator of a company's pricing strategies
and how well it controls costs. Differences in competitive strategy and product mix
cause the profit margin to vary among different companies.
Here the profit margin of Axis has been increasing over the last three years but in
case of IDBI it has been decreasing. Profit margin of Axis is higher than Profit
margin of IDBI in 2014.
39. INTERPRETATION
The portion of a company's profit allocated to each outstanding share of
common stock. Earnings per share serve as an indicator of a company's
profitability. When calculating, it is more accurate to use a weighted average
number of shares outstanding over the reporting term, because the number of
shares outstanding can change over time. However, data sources sometimes
simplify the calculation by using the number of shares outstanding at the end
of the period.
Axis has higher earnings per share than IDBI over the last two years. Axis is
better than IDBI in Earning per Share.
40. L - Liquidity
An adequate liquidity position refers to a situation, where institution can obtain sufficient
funds, either by increasing liabilities or by converting its assets quickly at a reasonable
cost. It is, therefore, generally assessed in terms of overall assets and liability management, as
mismatching gives rise to liquidity risk. Efficient fund management refers to a situation
where a spread between rate sensitive assets (RSA) and rate sensitive liabilities (RSL) is
maintained.
41. Cash to Deposits Ratio
201403 201303 201203 201103 201003
Axis 0.06 0.06 0.05 0.07 0.07
IDBI 0.05 0.05 0.07 0.11 0.08
0.06 0.06
0.05
0.07 0.07
0.05 0.05
0.07
0.11
0.08
AxisTitle
Cash to Deposits Ratio
Interpretation
Cash deposit ratio is the amount of money a bank should have available as a percentage of the total amount of money its
customers have paid into the bank. This amount is calculated so that customers can be sure that they will be able to take
their money out of the bank if they want to.
Axis have better cash to deposits ratio than IDBI.
42. Other Ratios
Cost of funds(%)
201403 201303 201203 201103 201003
Axis 4.88 5.14 4.89 3.54 3.67
IDBI 6.25 6.10 6.48 5.63 5.57
4.88 5.14 4.89
3.54 3.67
6.25 6.10
6.48
5.63 5.57
AxisTitle
Cost of funds
Interpretation:
This ratio shows the interest paid with respect to the funds borrowed from the lenders. Here the cost of
borrowing funds for IDBI is higher than the Axis Bank.
43. (6) Dividend Per Share
Formula=Dividend paid/Number of equity shares
201403 201303 201203 201103 201003
Axis 20.00 18.00 16.00 14.00 12.00
IDBI 1.00 3.50 3.50 3.50 3.00
20.00
18.00
16.00
14.00
12.00
1.00 3.50 3.50 3.50 3.00
AxisTitle
Dividend per Share
Interpretation:
Dividend per share (DPS) is the total dividends paid out over an entire year (including interim dividends but
not including special dividends) divided by the number of outstanding ordinary shares issued. DPS of Axis is
higher than IDBI in all the years which shows that Axis is better.
