Working Capital Management

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A
PROJECT REPORT
ON
“A STUDY ON WORKING CAPITAL MANAGEMENT ANALYSIS OF
AXIS BANK”
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTER OF
BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
ABHISHEK RAMESHWARRAO BAPULE
(BATCH 2019-2021)
UNDER THE GUIDANCE OF
Asst. Prof. MAYUREE TAWADE
SINHGAD INSTITUTE OF MANAGEMENT
PUNE-411041

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Sinhgad Technical Educational Society’s
SINHGAD INSTITUTE OF MANAGEMENT
(Affiliated to Savitribai Phule Pune University, Approved by AICTE)
S.No. 44/1, Vadgaon (Bk.), Off Sinhgad Road, Pune 411 041
Telefax : (020) 24356592 E-mail : director_siom@sinhgad.edu Website : www.sinhgad.edu
C E R T I F I C A T E
This is to certify that the project report titled “A STUDY ON WORKING
CAPITAL MANAGEMENT ANALYSIS OF
AXIS BANK” which is being submitted herewith for the award of the
degree of Master of Business Administration (MBA) course of Savitribai
Phule Pune University is the result of the Summer Internship Programme
completed by Mr. ABHISHEK RAMESHWARRAO BAPULE under
our supervision and guidance. To the best of our knowledge and belief, the
work embodied in this project report has not formed earlier the basis for the
award of any degree or similar title of this for any other University or
examination body.
Place: Pune
Date: 30/4/2021
Guide Name: Asst. Prof. Mayuree Tawade
Project Guide
Dr. Daniel Penkar
Director

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DECLARATION
I, The undersigned, hereby declare that the project report entitled “A STUDY ON
WORKING CAPITAL MANAGEMENT ANALYSIS OF AXIS
BANK ‘’ Written and submitted by me to the Savitribai Phule Pune University, Pune in
partial fulfillment of the requirement for the award of degree of MBA under the guidance of
Asst. Prof. MAYUREE TAVADE, is my original work except the topics on organizational
profile and the conclusion drawn therein are based on the material collected by myself.
Place : Pune ABHISHEK RAMESHWARRAO
BAPULE
Date:

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Acknowledgement
I take this opportunity and privilege to express my deep sense of gratitude to Professor M.
N.Navale, Honorable Founder President, The Sinhgad Technical Education Society, Pune
and Dr. Daniel Penkar, Director SIOM. They have been a source of inspiration to me and I
am indebted to them for initiating me in the field of research.
I am deeply indebted to Faculty Member, SIOM. Asst. Prof. Mayuree Tavade, my research
guide at Sinhgad Institute of Management, Pune, without whose help completion of the
project was highly impossible.
I wish to express a special thanks to all teaching and non-teaching staff members of Sinhgad
Institute of Management, Pune for their continuous support. I would like to acknowledge all
my family members, relatives and friends for their help and encouragement.
Place : pune
Date: ABHISHEK RAMESHWARRAO BAPULE

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Working capital
management analysis of
Axis Bank.

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Index
Sr
no.
Paricular Page No.
1. Executive Summary 7 to 8
2. Introduction 9 to 14
3. Company Profile 15 to 26
4. Vision of the Bank 27
5. Award and Recognition 28
6. Research Methodology 29 to 32
7. Data Analysis and Interpretation 33 to 44
8. Conclusion 45
9. Finding Suggetions 46
10. Bibliography 47

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EXECUTIVE SUMMARY
Efficient management of Working Capital is very important for the
success of an Enterprise. In present time greater importance is given
to Working Capital. So, here an Attempt is made by me to study the
working capital management of the selected unit i.e. AXIS BANK.
From the financial management point of view, capital in broader
sense can Be divided into two main categories- fixed capital and
working capital. Here I am going to Study the concept of working
capital. After this study the research finds that the working Capital
position of the AXIS BANK is not satisfactory
The present study is conducted to analysis the working capital
management of AXIS consultancy services from 2015-2016 to 2019-
2020. The working capital ratio shows unfavourable position and the
utilization of net working capital is not satisfactory. The working
capital turnover ratio is not satisfactory due to heavy investments in
total assets. But the organization it shows fluctuating. The company
can have proper control over investment in total assets and tries to
reduce the existing level of current liabilities, so that it can strengthen
its liquidity position.
Working capital management is very important element to measure
the short term solvency position of a firm and for Profitability.
Without its proper management, no corporate can run their business
smoothly. The purpose of this study Is to investigate the impact of
working capital management on liquidity, profitability and element of
risk on the axis Company. To Achieve these objectives, data has been
collected from secondary sources and for getting results various kind
of statistical tools are used like ratio, Average, Spearman’s coefficient
of correlation etc. The results reveal that there is a positive correlation
between liquidity, profitability and risk. This study will help to both
companies in management of their working capital and improving
short term solvency position of the companies.

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OBJECTIVES OF THE STUDY
• To know the financial performance of the company.
• To study the overall operating cycle of the company
• To study receivable management, inventory management and
cash
management
• To study the working capital financing practices of the
company.
• To study about utilization of current assets and current
liabilities.
• To access the efficiency of working capital management by
applying ratio analysis.
• To study the working capital management is easily solving the
problems in finance.
• To evaluate the liquidity, solvency and profitability position of
Axis.

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Banking in India
Without a sound and effective banking system in India it cannot have
a healthy economy. The banking system of India should not only
hassle free but it should be able to meet new challenges posed by the
technology and other external and internal factors. For the past three
decades India’s banking system has several outstanding achievements
to its credit. The most striking is its extensive reach. It is no longer
confined to only metropolitans or cosmopolitans in India. In fact,
Indian banking system has reached even to the remote corners of the
country. This is one of the main reasons of India’s growth process.
History
The first bank in India, though conservative, was established in 1786.
From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian Banks ·
PHASE II - Nationalization of Indian Banks and up to 1991 ·
PHASE III - Indian Financial & Banking Sector Reforms after 1991.
Nationalised Banks in India
The first bank in India, though conservative, was established in 1786.
From 1786 till today, the journey of Indian Banking System can be
segregated into three distinct phases. They are as mentioned below: ·

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PHASE I - Early phase from 1786 to 1969 of Indian Banks · PHASE
II - Nationalization of Indian Banks and up to 1991 · PHASE III -
Indian Financial & Banking Sector Reforms after 1991.
Private Banks
All the banks in India were earlier private banks. They were founded
in the pre-independence era to cater to the banking needs of the
people. But after nationalization of banks in 1969 public sector banks
came to occupy dominant role in the banking structure. Private sector
banking in India received a fillip in 1994 when Reserve Bank of India
encouraged setting up to private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive
an ‘In principle’ approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector. Private Banks have played a major
role in the development of Indian banking industry. They have made
banking more efficient and customer friendly. In the process they
have jolted public sector banks out of complacency and forced them
to become more competitive.

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What Is Working Capital Management?
Working capital management is a business strategy designed to ensure
that a company operates efficiently by monitoring and using its
current assets and liabilities to the best effect. The primary purpose of
working capital management is to enable the company to maintain
sufficient cash flow to meet its short-term operating costs and short-
term debt obligations.
Importance of effective working capital
management
Although the importance of working capital is unquestionable and
type of business. Working capital management is a day to day
activity, inefficiencies at any levels of management have an impact on
the working capital and its management. Following are the main
points that signify it is important to take the management of working
capital seriously.
 Ensures higher return on capital
Improvement in credit profile & solvency
Increased profitability
Better liquidity
Business value appreciation
Most suitable finance terms
Interruption free production
Readiness for shocks and peak demand
Advantage over competitors.

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Decisions in working capital management
If anybody describes the benefit of working capital management in
terms of money likely be the cost of capital that a business pays on
the investment in working capital. The amount of this cost would
depends on two things viz. the quantum of working capital required
and the cost of working capital. The quantum of working capital is
decided by the working capital policies of a company where as the
optimization of the cost of capital is worked out with working capital
management strategies.
Working capital management policies
Relaxed policies :- this policy has a high level of current assets
maintained to honour the current liabilities. Here, the liquidity is a
very high and the direct impact on profitability is also high.
Restricted policies :- this policy a lower level of current assets. Here
the liquidity levels are very low, therefore, the direct impact on
profitability is also low.
Moderate policy :- it lies between the conservative and aggressive
policy.
Advantages of working capital management
 Working capital management ensures sufficient liquidity when
required.
 It evades interruptions in operations.
 Profitability maximized.
 Achieves better financial health.
 Develops competitive advantage due to streamlined operations.

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Disadvantage of working capital management
 It only considers monetary factors. There are non-monetary
factors that it ignores like customer and employee satisfaction,
government policy, market trend etc.
 Difficult to accommodate sudden economic changes.
 Too high dependence on data is another downside. A smaller
organisation may not have such data generation.

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Name of the Bank Axis Bank
Type Private
Industry Banking and financial services
Founded 1994 (as UTI bank)
Key people S. Vishvanathan (Chairman)
Amitabh Chaudhary (MD & CEO)
Products Credit Card, Consumer Bank, Corporate
Banking, Finance and Insurance, Investment
Banking, Mortgage loan, Private Banking,
Private Equity, Wealth Management.
Revenue ₹80,057.67 crore (2020)
Operating Income
₹61,991.91 crore (2020)
Net Income ₹1,853.11 crore (2020)
Total Assets 927,871.81 crore
Website www.axisbank.com

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COMPANY DESCRIPTION
Axis Bank India, the first bank to begin operations as new private
banks in 1994 after the Government of India allowed new private
banks to be established. Axis Bank was jointly promoted 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.
Also with associates viz. National Insurance Company Ltd., the New
India Assurance Company, The Oriental Insurance Corporation and
United Insurance Company Ltd.
CORPORATE PROFILE
 Axis Bank is the third largest private sector bank in India. Axis
Bank offers the entire spectrum of 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 is one of the first new generation private sector
banks to have begun operations in 1994. The Bank was
promoted in 1993, jointly by Specified Undertaking of Unit
Trust of India (SUUTI) (then known as Unit Trust of India),

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Life Insurance Corporation of India (LIC), General Insurance
Corporation of India (GIC), National Insurance Company Ltd.,
The New India Assurance Company Ltd. The Oriental
Insurance Company Ltd. and United India Insurance Company
Ltd. The shareholding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.
 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.
REGISTERED OFFICE ADDRESS
The registered office of Axis Bank is located at:
‘Trishul’, 3rd Floor,
Opposite Samartheshwar Temple,
Near Law Garden, Ellisbridge,
Ahmedabad, Gujarat - 380 006
CORPORATE OFFICE ADDRESS
Axis House,
C-2 Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai – 4000 025

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 The Corporate Office of Axis Bank is located at Axis House
Mumbai. Axis House has received the ‘Platinum’ rating
awarded by the US Green Building Council for its environment
friendly facilities and reduction of carbon emission.
SUBSIDIARIES OF AXIS BANK
The Bank has set up eight wholly-owned subsidiaries
 Axis Capital Ltd.
 Axis Private Equity Ltd.
 Axis Trustee Services Ltd.
 Axis Asset Management Company Ltd.
 Axis Mutual Fund Trustee Ltd.
 Axis Bank UK Ltd.
 Axis Securities Ltd.
 Axis Finance Ltd.

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PROMOTERS
Axis Bank Ltd. has been promoted by the largest Financial
Institutions 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.
CAPITAL STRUCTURE
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).
DISTRIBUTION NETWORK
The Bank has a network of 1947 domestic branches (including
extension counters) and 11,245 ATMs across the country, as on 31st
March 2013. The Bank’s overseas network consists of 4 branches in -
77 - Singapore, Hong Kong, DIFC – Dubai, Colombo and 3
Representative offices at Shanghai, Dubai, and Abu Dhabi.

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BUSINESS OVERVIEW
An overview of various business segments.
Retail Banking :-
Axis Bank has developed a strong retail banking franchise over the
years. Retail Banking is one of the key drivers of the Bank’s growth
strategy and it encompasses a wide range of products delivered to
customers through multiple channels. The Bank offers a complete
suite of products across deposits, loans, investment solutions,
payments and cards to help customers - 77 - achieve their financial
objectives. The Bank focuses on product differentiation as well as a
high level of customer-service to enable it to build its retail business.
The growth areas identified by the Bank are in the areas of residential
mortgages and passenger car loans. Of the total retail loans portfolio,
88.47% is in the form of secured loans (residential mortgages and
auto loans).
INTERNATIONAL RETAIL
International Retail Business focuses specifically on the overseas
sales channel, retail foreign exchange business, remittances and retail
businesses in overseas centres such as Hong Kong and Sri Lanka,
where the Bank has a presence. The products offered in the area of
retail Forex and remittances include travel currency cards, inward and
outward wire transfers, traveller’s cheques and foreign currency
notes, remittance facilities through online portals as well as through
collaboration with correspondent banks, exchange houses and money
transfer operators. The Bank continued to have a market leadership
position in Travel Currency Cards with 11 currency options other than

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INR being offered. The aggregate spends on Travel Currency Cards
have crossed USD 3 billion during the year 2012-13.
BUSINESS BANKING
 Business Banking leverages the Bank’s strengths – a well
distributed network of branches and a strong technology
platform to offer the best in transaction banking services. The
Bank offers a range of current account products and cash
management solutions across all business segments covering
corporates, institutions, central and state government ministries
and undertakings as well as small and retail customers.
 The Bank is one of the top CMS providers in the country. The
Bank acts as an agency bank for transacting government business
offering services to various Central Government Ministries /
Departments and other State Governments and Union Territories.
CORPORATE CREDIT
• Axis Bank has built a strong corporate banking franchise across
corporate, liability and asset businesses. Axis Bank provides
customized structuring and financing solutions in a timely and
comprehensive manner to its corporate customers with a focus on
building out a high quality credit portfolio. The Bank is a market
leader in Debt Capital Markets and loan - 77 - syndication business
across segments, sectors and geographies. The Bank also provides
full range of Treasury and Trade Finance solutions to its corporate
clients. The Bank offers technology enabled transaction banking and
cash management services to customers across Government,
financial institutions and corporate segments.

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INTERNATIONAL BANKING
• The international operations of the Bank form a key enabler in its
strategy to partner with the overseas growth potential of its domestic
clientele, who are venturing abroad or require non-rupee funds for
domestic projects. The Bank now has a foreign network of four
branches (Singapore, Hong Kong, DIFC - 77 - (Dubai) and Colombo
(Sri Lanka)) and three representative offices (Shanghai, Dubai and
Abu Dhabi) with presence in six countries. While corporate banking,
trade finance, treasury and risk management solutions are the primary
offerings through the branches at Singapore, Hong Kong, DIFC
(Dubai) and Colombo, the Bank also offers retail liability products
from its branches at Hong Kong and Colombo. Further, the Bank’s
Gulf Cooperation Council (GCC) initiatives in the form of
representative offices in Dubai and Abu Dhabi, and alliances with
banks and exchange houses in the Middle East provide the support for
leveraging the business opportunities emanating from the large NRI
diaspora present in these countries.
SMALL AND MEDIUM
ENTERPRISES
• The Small and Medium Enterprises (SME) segment is a thrust area
of the Bank. The business approach towards this segment, which is
expected to contribute significantly to economic growth in future, is
to build relationships and nurture the entrepreneurial talent available.
The relationship based approach enables the Bank to deliver value
through the entire life cycle of SMEs. The Bank has segmented its
SME business in three groups: Small Enterprises, Medium Enterprises
and Supply Chain Finance. The Bank extends working capital, project
finance as well as trade finance facilities to SMEs. The Bank has

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launched ‘Business Gaurav SME Awards’ in association with Dun &
Bradstreet to recognize and award achievers in the SME space.
INFORMATION TECHNOLOGY
• Technology is one of the key enablers for business and delivery of
customized financial solutions. The Bank continues to focus on
introducing innovative banking services through investments in
scalable and robust technology platforms that delivers efficient and
seamless services across multiple channels for customer convenience
and cost reduction. The Bank has also focused on improving the
governance process in IT. The Bank has launched the Business
Process Management System, a reusable system, which helps to build
process efficiencies across various areas of operations. • The Bank has
undertaken various steps in order to align itself towards RBI
guidelines on security and governance, including setting up of Board
and Executive level committees and working on IT operations and
other key areas.
AGRICULTURE
• The Bank continues to drive and expand the flow of credit to the
agricultural sector. 401 branches of the Bank have dedicated officers
for providing farm 19 loans. Products and solutions are created
specifically with simple features and offered at affordable rates to
rural customers. The Bank has also adopted a value-chain approach,
wherein end-to-end solutions are being provided for various
stakeholders. It also offers various customized solutions to meet the
regional requirements.
FINANCIAL INCLUSION
• The Bank perceives financial inclusion (FI) not as a corporate social
responsibility or a regulator driven initiative but as a large business

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opportunity that lies untapped in the rural and unexplored section of
the urban market. Till March 2012, the Bank has opened over 4.4
million No-Frills accounts in over 7,607 villages through a network of
15 Business Correspondents and nearly 6,000 customer service
points. The Bank has a strong presence in the Electronic Benefit
Transfer (EBT) space and has covered around 6,800 villages across
19 districts and 9 states till date with over 3.7 million beneficiaries.
HUMAN RESOURCES
• The Bank aims in creating and developing human capital to realise
its vision of nurturing a mutually beneficial relationship with its
employees. Employee engagement and learning, leadership
development, enhancing productivity and building multiple
communication platforms thus occupied centre stage in the Bank’s
HR objective. The Bank continues to maintain a strong employer
brand in the financial services sector especially on the campuses of
the premier business schools of the country. In a major initiative, the
Bank launched Axis Academic Interface Program (AAIP) with
Institutions to offer youngsters an understanding about the financial
services industry, and creating ‘Axis Bankers’. So far, the Bank has
tied up with Manipal University, NIIT, IFBI and Guwahati
University.

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Board of Directors
Person Designation
Rakesh Makhija Chairman
Amitabh Chaudhary MD & CEO
Rohit Bhagat Director
S. Vishvanathan Director
Ketaki Bhagwati Director
B. Babu Rao Director
Sthepen Pagliuca Director
Girish Paranjpe Director
Susheel kumar Director
Meena Ganesh Director
Rajeev Anand Director
Rajesh Dahiya Director

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Vision of the Bank
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

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Awards and recognition
 Axis Bank wins for 'Excellence in Operations' at the
International Data Corporation (IDC) Insights Awards,
2019.
 Axis Bank wins 'Top Sell-side Firm in Secondary
Market' and 'Top Arrangers - Investors' Choice for
Primary Issues' at The Asset Benchmark Research
Awards, 2019.
 Axis Bank wins in the 'Data Science/AI in BFSI'
category at the Cypher Analytics Awards, 2019
 Axis Bank wins Financial Inclusion Initiative of the Year
at the Asian Banking & Finance Awards, 2019
 Axis Bank wins for the Best Use of Data & Analytics for
Business Outcome amongst Large Banks at the 14th
Indian Banking Association Technology Awards
 Axis Bank wins Best Digital Bank at the 2016-17 edition
of The Financial Express 'India's Best Banks' awards
ceremony, held on January 10th, 2019.
 Axis Bank wins The Best Rewards Program for the fifth
consecutive year at the Customer Loyalty Awards, 2019.
 Axis Bank wins The Best Loyalty Program for the
second consecutive year at the Customer Loyalty
Awards, 2019.
 Axis Bank wins Best DCM House at the Finance Asia
Country Awards, 2019
 Axis Bank wins The Anti-Money Laundering
Technology Implementation of the Year at The Asian
Banker Risk Management Awards, 2019.

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Litrature Review
Madhavi K. (2014) :-
She has done research based on empirical study of co relation among
liquidity position an profitability of the paper mills in Andhra
Pradesh. That has been evaluated ineffective working capital
negatively effect on profitability of the paper mills.
Kumar Rakesh Rasiklalajani and Bhatt Satyaki J. (2015) the proposed
examinations should look at the style and example of financing the
capital structure of Indian organizations. The investigate is to inquire
about the determinants of general obligation proportions just as
determinants of short timeframe and long time proportions.
Kumar Neeraj and Kaur Kuldip (2016)
Made an attempt to test the measurements and gainfulness
relationship in the Indian Banking endeavor. To look at the
association direct relapse form just as cross-sectional has been
employed for the yr 19980 2014. For benefit assessment unique
measures had been utilized (1) proportion of net benefit to in general
deals turnover (ii) proportion of net gain to web property in addition
to working capital and for shape length pointers utilized especially, by
and large deals flip over and net resources. The time arrangement
assessment demonstrated the phenomenal relationship among
association length and gainfulness yet cross-sectional show no
relationship among association length and productivity Ravichandran.
M. and Subramanian M Venkata (2016) the fundamental idea at the
rear of this gander at is to appraisal of practicality, steadiness and
benefit of Force vehicles limited Operating job of the organization
can be estimated by method for utilizing differing monetary gear
suchas gainfulness proportion. dissolvability proportion, near

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proclamation and charts, etc. This investigate uncovers that
organization has adequate assets to satisfy its obligations and
liabilities. Organization can comparatively upgrade budgetary
execution by utilizing diminishing the managerial, selling and
working expenses.
Mathur Shivam and Agarwal Krati (2016) Ratio’s are a phenomenal
and clinical approach to look into the financial by and large execution
of any organization. The business endeavor has gotten numerous
honors and accomplishments because of its new developments and
mechanical headway. These signs help the purchasers to make
speculations the correct organization for anticipated profit. The
investigate shows that Wipro kept is better than Tata engines
constrained.
Jothi. K and Geethalakshmi, A. (2016) this inspect attempts to survey
the productivity and money related situation of chose offices of Indian
Banking undertaking the utilization of factual devices like, proportion
assessment, mean, favored deviation relationship. The view acclaimed
the worthwhile connection between gainfulness, brief timeframe
period and long haul capital.
noteworthy relationship between current assets and risk management
and profitability. Panigrahi [4] did a study on ACC Limited to find a
relationship between working capital with liquidity, profitability and
solvency during the period of 2001 to 2010 and found that the current
assets management is very important for all these three. The firm
should maintain a proper working capital for medium as well as long
term to escape from bankruptcy. Goswami and Sarkar [5] found the
effect of working capital management on liquidity and profitability of
SAIL during the period 2001-2010 with the guidance of tools and
techniques in statistics. This study concluded that from the 9 ratios
that they took related to working capital management, 5 ratios showed
positive association while the remaining 4 ratios showed negative
association with profitability. Danuletiu [6] analyzed the impact of

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working capital management of companies which are located in Alba
county. The relationship was analyzed for 20 different companies
between the period 2004 to 2008. An uncooperative relationship was
found between profitability and working capital management. Sur and
Rakshit [7] did an analysis for the correlation between current assets
management and profitability in 25 different companies from Indian
Industries. The study shows both positive and uncooperative
relationship between profitability and receivable turnover. The
outcome shows that 47.7% of the variation on profitability was due to
efficiency in management of receivables, inventory and the operating
assets for the long term. Goswami and Sarkar [8] made a study to
interpret the relation between liquidity and profitability of airline
companies in India during the period of 2000 to 2006, and to assess
their financial position. The article found out that the debtors
management system and profitability is quite weak in Kingfisher
airlines. The relationship between Inventory turnover Ratio (ITR) and
profitability was not found to be of the accepted standards for both
Air India and Kingfisher. The relationship between quick ratio (QR)
and ROCE was not found to be of the accepted standards for both Jet
Airways and Indian Airlines in the given period. Sarkar [9] made a
analysis to find the result of liquidity management on the profitability
of ONGC limited during the period 2004 to 2010. The study
concludes that from 8 ratios related to working capital management
Current Asset to Total Asset Ratio, Current Asset to Sales Ratio and
Inventory Turnover Ratio showed positive relation with the
profitability and the other ratios like Quick Ratio, Current Ratio,
Debtor Turnover Ratio, Cash Turnover Ratio were found to have a
uncooperative relationship with the profitability ratio. Mandal and
Hossain [10] did a study to measure the effect of working capital
management on liquidity and profitability of the IT sector during the
period of 1999to 2009. This analysis examines the correlation
between profitability and position of liquidity. From the analysis it
was concluded that the working capital management is essential to
sustain better production capacity utilization, better liquidity and
profit ability for the IT sector in India.

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Research
Methodology

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OBJECTIVES OF STUDY
Banking and finance can be called as the nerves of any economic
system as they accelerate the process of economic development
through canalization of adequate finance. It is hard to anticipate
development of efficient banking services in the country. No doubt
financial institutions play so important in economic development but
at the some time economic development determines the growth and
development of banking institutions the role of various kind of
banking institution. In economic development need not be
emphasized.
Main objective of the study is to “Critical appraisal of product &
services offered by axis bank.” Some of the major objectives of the
study include the determination of the following:
 Consumer awareness about the products and services provided
by the axis bank.
 Consumer preference about various products and services.
 Customer’s perception towards private Banking and their
expectations from private banks.
 Customer satisfaction with the service provided by the bank.
 Draw out with conclusions and suggestion based on the
analysis and the interpretation of data.
TYPE OF RESEARCH
Research is one of the most important parts of any study and pertains
to the collection of information and knowledge. Marketing research is
defined as the systematic design, collection, analysis, and reporting of
data and findings relevant to a specific marketing situation facing the
company. My project has been developed on has basis of both

34 | P a g e
exploratory and descriptive research. The research process depends
upon developing the most efficient plan for gathering the needed
information.
Secondary data
Secondary data provides a starting point for any research and offers
valuable sources of already existing information. Secondary data are
the easiest to gather and the cost of collecting this data is also very
low. For my project work it was collected through the help of various
directories of various associations, magazines, newspapers, websites
etc. The directories helped me in short listing people, for my target
people.
SCOPE OF STUDY
Axis Bank is one of the most famous banks in India. The various
products and services offered by it include:
PRODUCT
• Deposits (Saving account and current account)
• Loans
• Card
SERVICES
• ATM
• Mobile Banking

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• Internet Banking
• Payment
• Other Services
The deposit mix of an organization especially the Saving accounts are
the backbone of every bank as an ordinary man is most inclined to
invest in it due to its convenience and easy availability. This project
deals with the various customer concerns regarding these and tries to
suggest appropriate suggesting based on conclusions. I hope that this
report would be able to suggest some measures and draw attention of
bank towards the area of improvement.
LIMITATIONS OF STUDY
• The study was based on a very modest sample size hence cannot be
called as a representation of the views and opinion of the majority.
• In a rapidly changing industry, analysis on one day or in one
segment can change very quickly. The environmental changes are
vital to be considered in order to assimilate the findings.
• The conclusion arrived at are based on a very less experience of
researcher in this field.

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Data Analysis and Interpretation
Ratio analysis:
Ratio analysis is a widely used tool of financial analysis. The term
ratio in it refers to the Relationship expressed in mathematical terms
between two individual figures or group of figures connected with
each other in some logical manner and are selected from financial
statements of the concern. The ratio analysis is based on the fact that a
single accounting figure by itself may not communicate any
meaningful information but when expressed as a relative to some
other figure, it may definitely provide some significant information
the relationship between two or more accounting figure/groups is
called a financial ratio helps to express the relationship between two
accounting figures in such a way that users can draw conclusions
about the performance, strengths and weakness of a firm.
1.Current ratio:
Current assets
Current assets = ----------------------------------
Current liabilities
The Current Ratio is a measure of the firm’s short-term solvency. It
indicates the availability of current assets in rupee of current liability.

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Current Ratio (2015 to 2020) (Rs in CRS)
YEAR Current Assets Current Liability Ratio
2015-16 341913.28 15101.07 22.64
2016-17 404948.69 20283.07 19.96
2017-18 469018.87 26386.95 17.77
2018-19 533609.83 26373.47 20.23
2019-20 622075.57 33158.05 18.76
2020 754175.16 42215.44 17.86
0
100000
200000
300000
400000
500000
600000
700000
800000
1 2 3 4 5 6
Chart Title
YEAR Current Assets Current Liability Ratio

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Debt Equity Ratio :
The debt-to-equity ratio is calculated by dividing a company’s total
liabilities by its shareholder equity. These numbers are available on
the balance sheet of a company’s financial statements.
Total Liabilities
Debt Equity Ratio : ---------------------------------
Total Equity
Working Capital Turnover Ratio (Rs in CRS)
YEAR Total
Liabilities
Total Equity Ratio
2015-16 446876.72 474.10 942.5
2016-17 519712.85 476.57 1090.5
2017-18 575172.19 479.01 1200.75
2018-19 665084.12 513.31 1229.67
2019-20 767923.39 514.33 1493.05
2020 873006.92 564.34 1546.95

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A high debt to equity ratio, as we have rightly established tells us that the
company is borrowing more than using its own money which is in deficit and
a low debt to equity ratio tells us that the company is using more of its own
assets and lesser borrowings.
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1 2 3 4 5 6
Chart Title
YEAR Total Liabilities Total Equity Ratio

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3. Quick Ratio :
The quick ratio is an indicator of a company’s short-
term liquidity position and measures a company’s ability to meet its
short-term obligations with its most liquid assets. Since it indicates
the company’s ability to instantly use its near-cash assets (assets that
can be converted quickly to cash) to pay down its current liabilities, it
is also called the acid test ratio. An acid test is a quick test designed to
produce instant results—hence, the name.
Current Assets - Inventory
Quick Ratio = ------------------------------------------
Current Liabilities
YEAR Current
Assets
Inventory Current
Laibilities
Ratio
2015-16 341913.28 0.00 15101.07 22.64
2016-17 404948.69 0.00 20283.07 19.96
2017-18 469018.87 0.00 26386.95 17.77
2018-19 533609.83 0.00 26373.47 20.23
2019-20 622075.57 0.00 33158.05 18.76
2020 754175.16 0.00 42215.44 17.86

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0
100000
200000
300000
400000
500000
600000
700000
800000
1 2 3 4 5 6 7
Chart Title
YEAR Current Assets Inventory Current Laibilities Ratio

42 | P a g e
Calculation of Working Capital for The Year 2015 to 2020
Sr
No.
Particular 2020 2019 2018 2017 2016 2015
1. CURRENT
ASSETS
i Inventories 0.00 0.00 0.00 0.00 0.00 0.00
ii Sundry
Debtors
0.00 0.00 0.00 0.00 0.00 0.00
iii Cash and
Bank
972.68.28 67204.63 43454.89 50256.18 33325.44 36099.03
iv Loan and
Advances
656906.88 554870.94 490154.94 418762.69 371623.25 305814.25
Total
Current
Assets (A)
754175.16 622075.57 533609.83 469018.87 404948.69 341913.28
Total
Current
Liabilities
(B)
42215.44 33158.05 26373.47 26386.95 20283.07 15101.07
Net
Working
Capital (A-
B)
711959.72 588917.52 507236.36 442631.92 384665.62 326812.21

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0
100000
200000
300000
400000
500000
600000
700000
800000
1 2 3 4 5 6
Chart Title
Sr No. Particular
Sr No. Total Current Assets (A) Sr No. Total Current Liabilities (B)
Sr No. Total Current Liabilities (B)

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CONCLUSION
• The study mainly was on the customer orientation that how they
think, what they want from their banks and how they take decision
going to any bank.
• In this study I found that the bond of Axis Bank with its customers
is very strong, because Axis Bank mainly focuses on retaining their
customers.
• This study finds that however Axis Bank is not the leading private
sector bank but its vast range of products and availability of options
make it one of the better banks in India.
• The bank should focus on the semi urban and rural market because
these markets are very good opportunity for someone like Axis Bank
which is in growing face. Without expanding in these markets Axis
Bank can not be a leading bank so they should focus on this market.
• The bank should focus on mass banking in order to increase their
market share. They should launch such products which would be
within the reach of the lower middle class
• The bank should pay more attention on giving updates and should
increase the level of service providing because the competitors of axis
are better in this area.
• The bank should try to increase the use of technology like mobile
and net banking among its customers.

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FINDING & SUGGESTION
1. Efficient working capital needed to balance liquidity, profitability
and to sufficient liquid assets to provide fund to pay-off obligation as
they arise without loss goodwill affecting the day today operation of
business.
2. The basic principal of working capital management is that, the
permanent financed from long-term sources and temporary fluctuation
in current assets to be financed by raising short-term fund.
3. If high rate of inflation prevails, the need level of working capital is
also higher due to increase in raw material, wages rate, more amount
to be spent on expenses, increase in debtors balance etc.
4. Working capital estimation is done on the basis on TOTAL
approach i. e. depreciation & profit margin. The financial condition of
QEC is not so strong because
1) Goodwill. 2) Quality. 3) Continuous improvement.
Following are the Suggetions :-
1. The proper follow up procedure for making the collection from
debtors & also Introducing some cash discount & other encouraging
policy should be introduced.
2. Creditors should be paid in proper time & debtors should be collect
in proper time. The ratio like current ratio, working capital turnover
ratio should be improved through efficient working & effective policy
to facilitate lower investment in working capital & optimum
utilization of assets.

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Bibliography
www.moneycontrol.com
www.wikipedia.com
www.axisbank.com
www.slideshare.net
www.macroaxis.com

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