INTRODUCTION

Financial management is universal phenomenon. Management is the process involving planning, directing, organizing, staffing and controlling human efforts, to achieve stated objectives in organization. Everyone should know the fundamental principles or proactive of Management with a special emphasis to business enterprise Management is an art of getting things down through or with the people in formally organized groups. It is a task of planning, co-ordinating, controlling and motivating the efforts for other towards a specific objective. Finance is a blood of business. Financial management helps in achieving group goals. IT reduces the cost and optimum utilization of funds and maximum results with the minimum efforts. In India the co-operative has started officially in the year 1904 when the government of India passed the first co-operative act. The co-operative movement was introduced in India with the main objective of making a break through in the provision of credit to the poor classes. Especially for the vast majority of agriculturists who were suffering under the heavy weight of indebtedness. With the over whelming importance assigned to food production in our successive five-year plans, the planners and pioneers of our conviction that cooperation is the most effective instrument for the economic growth and prosperity of our nation.

MEANING AND CONCEPT OF FINANCIAL ANALYSIS

The term Financial Analysis is also known as analysis and interpretation of financial statements, refers of the process of determining financial strength and weakness of the firm by establishing strategic relationship between the items of the balance sheet, profit and loss account and other operative data. Analyzing financial statements According to METCALF AND TITARD is a process of evaluating the relationship between component parts of financial statements to obtain a better understanding of a firms possessions and performance In the words of MYERS, financial statements analysis is largely a study of relationship among the various financial factors in a unisons as disclosed by a single of statement and a study of the trend of these factors as shown in a series of statements. The purpose of financial analysis of to diagnose the information contain in financial statements as to judge the profitability and financial soundness of the firms. The analysis and interpretation of financial statements is essential to bring out the mystery behind the figures in financial statements. Financial statement analysis is an attempt to determine the significance and meaning to the financial statement data so that forecast my be made of the future earnings, ability to pay interest and debt maturates (Both current and long term) the profitability a sound dividend policy.

The term financial statement analysis includes both analyses and interpretation. A distinction should, be made between the two terms. While the term analysis is used to mean the simplification of financial data by methodical classification of the data given in the financial statements, interpretation means, explaining the meaning and significance of the data so simplified.

NEED OF THE STUDY

The project work is done for analyzing the financial position of the AXIS Bank. The analysis of the financial position gives a better picture of the financial position of the organization in order to take better decisions. Financial management is very important for both individuals and organizations because it deals with managing the funds. It guides a company and individual to make optimum use of money to achieve maximum returns. Financial analysis helps to an individual / organization to save more and thus invest more.

SCOPE OF THE STUDY

The study is confined to evaluation of the last 6 years financial annual reports the first being a part report as the AXIS Bank was established in the middle of the financial year.

OBJECTIVES OF THE STUDY

The primary objective of this study is to analyses the financial performance of AXIS Bank. The following are its subsidiary objectives. 1. To examine the liquidity and solvency position of the company over the period of study. 2. To study the operational performance and efficiency of the company in terms of utilization of funds and other financial resources. 3. To evaluate the profitability of the concern to know the reasons and factors responsible for the losses and to study its way of profit allocation And lastly to draw conclusions and offer suggestions

RESEARCH METHODOLOGY
Data is mainly two types they are Primary data Secondary data

Primary data It is the information collected directly. In the study, it was mainly interviews with concerned officer and staffs individually or collectively. This study does not include any primary data. Secondary data The secondary data was collected from already published sources such as Pamphlets. Annual reports and internal records. The data includes: 1. Collection of required data from annual reports of The AXIS BANK, 2. Reference from text books and journals relating to financial management and articles published in business dairies like the Economic times, business line etc.,

LIMITATIONS OF THE STUDY

1 2 3 4 5 6. 7. 8. The study is mainly based on the secondary and no primary data was used. While computing ratios, averages and percentages the figures are appropriated two decimal places. Therefore sometimes the total may not exactly tally. Only comparative, common-size trend and ratios analysis has been taken for the study as a tool of financial and no other techniques is used. The study is restricted to financial position of the AXIS Bank. The study is mainly based restricted to only five years. Lack of sufficient literature on the subject and also the regional urban AXIS Banks. Only monetary values are considered while studying the projects. The study was conducted only for a limited period of 45 days.

COMPANY PROFILE 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. Axis Bank in India today is capitalized with Rs. 43,283.77 Crores. It has more than 1281 branch offices and Extension Counters in the country with over 6270 Axis Bank ATM proving to be one of the largest ATM networks in the country . This is the first bank in India to offer the AT-PAR Cheque facility , without any charges, to all its Savings Bank customers in all the places across the country where it has presence. With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card. The Travel Currency Card is a signature based pre-paid travel card which enables travelers global access to their money in local currency of the visiting country in a safe and convenient way. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. It is has a diversified presence across business and product lines with corporateAdvances constituting ~57% of its total loan book, retail ~20%, SME ~14% and agriculture ~9%, as on December 31, 2010. The bank was formerly known as UTI Bank; it changed its name to Axis Bank in July 20 07. The bank has overseas offices at Singapore, Dubai and Hong Kong and a representative o ffice in Shanghai.

EVOLUTION UTI was established in 1964 by an Act of Parliament; neither did the Government of India own it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each, and the rest was contributed by scheduled commercial banks which were not nationalized then. This kind of structure for a unit trust is not found anywhere else in the world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn profits. In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in achieving its objective and has the largest share anywhere in the world of the domestic mutual fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes an interesting story. The announcement by the then Finance Minister that the Government of India was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the then President of the World Bank. Mr. Woods took a great deal of interest in the Indian financial system, as he was one of the principal architects of the ICICI, in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the services of an expert. The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust proposals till the expert visited India. The only point Mr. Sullivan made was that the provision to limit the ownership of units to individuals might result in unnecessarily restricting the market for units. While making this point, he had in mind the practice in the US, where small pension funds are an important class of customers for the unit trusts. The Centre accepted the foreign expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the tax concession given by the government in the 1990-91 Budget. According to this concession, the dividends received by a company from investments in other companies, including the UTI, were completely exempt from corporate income tax, and provided the dividends declared by the investing company were higher than the dividends received. The result was a phenomenal increase in corporate investment which accounted for 57 per cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the UTI to park its liquid funds. This added to the volatility of the UTI funds.

The corporate lobby which perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its own benefits later. The Government-RBI power game started with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the Government, albeit in consultation with RBI. Although the appointment was to be made in consultation with the Reserve Bank, the Government could appoint a person of its choice as Chairman even if the Bank did not approve of him.

Board of Directors The members of the Board are Dr. Adarsh Kishore Smt. Shikha Sharma Shri S. K. Chakrabarti Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri Prasad R. Menon Shri R. N. Bhattacharyya Shri Samir K Barua Chairman Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director Director Director

MISSION AND VALUES AXIS VALUES

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology up gradation while maintaining human values.

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 Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

CORE VALUES
Customer Satisfaction through Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits

Maximization of Stakeholder value Success through Teamwork, Integrity and People

MARKETING OBJECTIVES Axis Bank wants to achieve following marketing objectives by the end of the year 2011.
To get the market capitalization 500 Crore To get the 200 Crore retail investment To get 125 Crore Corporate investments To get the 175 Crore Capital investments

AWARDS & RECOGNITION 1. Best Bank - CNBC- TV18 Indias Best Bank and Financial Institution Awards 2012 2. Consistent Performer - Indias Best Banks 2012 survey by Business Today & KPMG 3. Fastest Growing Large Bank - Dun & Bradstreet-Polaris Financial Technology Banking Awards 2012 4. Fastest Growing Large Bank - Businessworld Best Banks Survey 2012 5. Best Bank - Runner Up - Outlook Money Awards 2012 6. Deal Maker of the Year in Rupee Bonds Business world Magna Awards India's Best Deal Makers 2012 7. India Bond House of the year - IFR ASIA - Country Awards 2012

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8. Best Domestic Bond House - The Asset Triple A Country Awards 2012 - Our Bank has been honored with this award for the Third year in a row. 9. The Best Emerging Bullion Dealing Bank of the year 2011-12 at 9th India International Gold Convention 10. Best Acquiring Institution in South Asia- Visa LEADER Award at Visas 2012 APCEMEA Security,Summit, Bali. 11. Bank of the Year India The Banker Awards 2011 12. Best Bank in the Private Sector - NDTV Profit Business Leadership Awards 2011 13. Best Bank - Outlook Money Awards 2011 14. The Best Domestic Bank India - The Asset Triple A Country Awards 2011 15. Fastest Growing Bank - Bloomberg UTV Financial Leadership Awards 2012 16. Most Productive Private Sector Bank- FIBAC 2011 Banking Awards 17. 3rd Strongest Bank in Asia -Pacific Region by Asian Banker 18. Brand Excellence Award- 2011(BFSI Sector) - Star News 19. Most Preferred Bank amongst retail consumers - CLSA survey on personal banking trends 20. Best Bond House India - 2011 by Finance Asia 21. Best Risk Master award - (Private Sector Category) FIBAC 2011 Banking Awards

MISSION

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World Class Indian Bank. Benchmarking against international standards. To build sound customer franchises across distinct businesses. Best practices in terms of product offerings, technology, service levels, risk management and audit & compliance VISION The Axis Bank is committed to maintain the highest level of ethical standards, professional integrity and regulatory compliance. Axis Banks business philosophy is based on four core values such as:1. Operational excellence. 2. Customer Focus. 3. Product leadership. 4. People.

INDUSTRY PROFILE
HDFC 13

The 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, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. BUSINESS SUMMARY HDFC Bank Limited offers a range of commercial and transactional banking services, and treasury products to wholesale and retail customers. It operates in three segments:
Retail Banking, Wholesale Banking, Treasury Services.

WHOLE SALE BANKING SERVICES The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including
Working capital finance, Trade services, Transactional services, Cash management,

RETAIL BANKING SERVICES 14

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like
ATMs, Phone Banking, Net Banking, Mobile Banking.

TREASURY Within this business, the bank has three main product areas
Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, Equities.

ICICI 15

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46%through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to lowcost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April

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2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. Performance Review Quarter and year ended March 31, 2010 35% year-on-year increase in standalone profit after tax to Rs. 1,006 crore for the quarter ended March 31, 2010 from

Rs. 744 crore for the quarter ended March 31, 2009 Highest ever consolidated profit after tax of Rs. 4,670 crore for the year ended March 31, 2010; 31% increase from Rs. 3,577 crore for the year ended March 31, 2009 Current and savings account (CASA) ratio increased to 41.7% at March 31, 2010 from 28.7% at March 31, 2009 Strong capital adequacy ratio of 19.4% and Tier-1 capital adequacy of 14.0% Dividend of Rs. 12 per share proposed

SBI 17

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. BUSINESS SUMMARY The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs. one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century.

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All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities. SERVICES PROVIDED
PERSONAL BANKING: AGRICULTURAL BANKING CORPORATE BANKING NRI BANKING

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INDIAN OVERSEAS BANK Indian Overseas Bank (IOB) was founded on February 10, 1937 by Shri.M.Ct.M. Chidambaram Chettyar. IOB had the unique distinction of commencing business on the inaugural day itself in t h r e e b r a n c h e s s i m u l t a n e o u s l y - a t K a r a i k u d i a n d C h e n n a i i n I n d i a a n d R a n g o o n i n B u r m a (presently Myanmar) followed by a branch in Penang. Indian Overseas Bank was the first Bank to venture into consumer credit. It introduced the popular Personal Loan scheme. In 1964, the Bank made a beginning in computerization in the areas of inter-branch reconciliation and provident fund accounts. IOB was one of the 14 major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had 195branches in India with aggregate deposits of Rs 67.70 crores and Advances of Rs 44.90 crores. In1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in Colombo in 1979.As of March 2003, IOB had 1427 branches in India and 6 branches overseas. Besides the Bank has a network of over 240 ATMs and 243 Extension Counters. IOB has specialized branches to cater to the exclusive needs of Commercial & Industrial credit, Industrial finance, Small Scale industries, hi-tech agriculture and foreign exchange. SERVICES PROVIDED
Saving Bank Deposits No Frills SB Accounts Current Account Fixed Deposit Reinvestment Deposit Recurring Deposit Account Annuity Deposit Plan Multiple Investment Scheme Cumulative Benefit Deposit Multiple Deposit Account

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7P FRAME WORK IN AXIS BANK Once the marketing strategy is developed, there is a "Seven P Formula" that should be used to continually evaluate and reevaluate your business activities. These seven are:
Product, Price Promotion Place Process Positioning

People, as products, markets, customers and needs change rapidly, company must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace. PRODUCT To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. Ask critical questions such as, "Is the current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?" Develop a habit of assessing your business honestly and asking,
Are these the right products or services for our customers today? Compared to your competitors, is your product or service superior in some significant way to anything else available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service at all in the current market place? Product variety, quality and its features. Is there a market for the service on offer? Is the market growing or shrinking? Is the service new or established? The competition prevailing in the market for the service on offer? The USP of the product.

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PRICES The second P in the formula is price. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Could this be appropriate for you? Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your price over a series of months or years, you can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. Sometimes you can combine products and services together with special offers and special promotions. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. In business, as in nature, whenever you experience resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. Be open to the possibility that your current pricing structure is not ideal for the current market. Be open to the need to revise your prices, if necessary, to remain competitive, to survive and thrive in a fast-changing market place. AXIS bank has developed innovative strategies against its competitors with respect to pricing by use of technology. The use of technology is the strategic differentiator for AXIS bank that helps in cost minimization and creating efficiency for the customer. The creation of centralized processing system linking all its branches has been a major strategic move in this regard. The pricing mechanism and features of various Axis products are as follows: Home Loans: Floating rates:
For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at9.25 per cent (9 per cent). The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50 per cent).

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 The interest rate for above ten years now stands at 10.25 per cent (10 per cent)

Description of Charges Minimum Average Quarterly Balance

Regular Savings Account Rs 5000 (urban), Rs 2500(Semi Urban), Rs 1000 (Rural branch), Rs 500 (student account) Rs750 per quarter(urban & semi urban) Rs 500 (Rural branch), Rs 250 (student account) Free Free Free

Charges on non maintenance thereof

Cheque Book, Pass Book Issuance Account Statements Phone banking and Net banking PROMOTION

The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. AXIS bank has devised an aggressive promotional strategy through its diversified distribution mix which includes tied agencies and alternate channels like banks, brokers, telemarketing, direct sales force, internet advertizing . Some of the promotional activities undertaken are
Cross Selling exercises Organizing school level painting competitions in order to create awareness about the environmental concerns and the wild life to promote kids advantage account. Wheels of fortune - This promo are targeted at all those customers who avail a personal loan, car or a two wheeler loan. There will be lucky draw at the end of the promo and the winners would get exotic prizes.

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 Personalized promos by sending mailers about various products on offer to all those who come in contact during the mass promotion strategies.

The promotional strategies are carried out with an objective of positioning AXIS bank as a one stop financial super market. The focus of the promotions are not just confined to acquisition of new products but also extends to creating product awareness, enhancing usage, and also provide value add to the customers for their faith and loyalty. These promotions are scientifically designed based on data analysis and data mining in order to have maximum impact on the target audience. PLACE The fourth P in the marketing mix is the place where your product or service is actually sold. You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Many companies use a combination of one or more of these methods. It refers to those activities of the company that makes the product available to target consumers. It includes geographic spread, distribution channels, dealer ships that facilitate network establishment. Axis bank is widely spread in India and its core banking operations has huge network
1281 branches and extension counters foreign offices in Singapore, Hong Kong, Shanghai and Dubai

6270 ATMs reaches out to 34 states and union territories across the country AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby lowering the operating costs. It uses its network base to good effect to sell customized products. PROCESS The fifth element in the marketing mix is the process. Develop the habit of standing back and looking at every visual element in the process or service through the eyes of a critical prospect. Remember, people from their first impression about you within the first 30 seconds of seeing you or some element of your company. Small improvements in the process or external appearance of your product or service can often lead to completely different reactions from your customers. With regard to the process of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process. 24

Process refers to the way your product or service appears from the outside. Packaging refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer's confidence about dealing with you. POSITIONING The next P is positioning, the habit of thinking continually about how you are positioned in the hearts and minds of your customers.
How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?

AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible to maximum customer. It has also come up with some phone banking centre and centralized collection and payment hub. CENTRALISED PHONE BANKING CENTRE The Banks Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone, handling multiple queries in about 7000 calls per day. CENTRALISED COLLECTION AND PAYMENT HUB The Banks Centralized Collection and Payment Hub (CCPH) manages the entire collection and payment activity under the Banks Cash Management Services (CMS) across the country, handling on an average about Rs.5000 crores per month on the collection front and aboutRs.1500 crores per month on the payment front. PEOPLE The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of service is 25

essential if the organization has to obtain competitive advantage. AXIS bank values its human resources very highly and is on a constant endeavor to continuously develop its human resources by laying strong emphasis on training development. It possesses a highly motivated team of professionals and has the lowest employee turnover rate in the industry. PROMOTIONAL STRATERGIES In early 1950's most of the markets were choking with surplus products on offer, defying the theory "the best quality will always sell". The emergence of Branding as a value in offering has kept many organizations leaders, and in survival. Branding is termed as a part of offering, created in the mind of customer and consumer of superior values that he or she perceives and ready to pay for. The brand can be associated with superior product, superior services, and superior sales after services, or easy access. In today's era with increasing competition, is that not important enough to revisit Brand as a marketing offering (Product or Service). BRAND NAME UTI has officially announced the change of its name to Axis Bank. The awareness campaign titled UTI Bank is now Axis Bank; everything is the same except the name, has been created by O&M and is the brainchild of Sumanto Chattopadhyay. The decision to re-brand the bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. On the creative point of view, the change of name from UTI Bank to Axis Bank is precisely just a name change. Everything else about the brand remains the same. Axis is a strong name with an international aura to it. It is very much in keeping with UTIs success story in the private banking arena. LOGO DESIGN The logo design of Axis Bank is based on the letter A. It is a contemporary, universal and solid design that retains the burgundy color of the original UTI logo as a link to its heritage MARKETING INITIATIVES On the marketing initiatives, a multimedia campaign was unfolded on August 1 that will go on for the next few weeks. It seeks to reassure customers that the change of name will in no way affect the services offered by the bank. On the thought process the creative platform adopted for the name change is based primarily on twins -- siblings 26

whose names are different, but are identical in every other way. This campaign will run on
Television Outdoor Print Radio and other 360-degree media.

Some interesting innovations are planned in the print medium. On radio, the name change is being expressed in a slightly different manner, in keeping with the nature of the medium. Growth Prospects of Axis Over the last five years, the CAGR for loan growth for the banking industry has been 25-26 per cent; for Axis Bank it has been above 40 per cent. Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the industry average. In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28 per cent and in cent. For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FY10 and 16 per cent in FY11. Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of years. Marketing Objectives Axis Bank wants to achieve following marketing objectives by the end of the year 2011.
To get the market capitalization 500 Crore To get the 200 Crore retail investment To get 125 Crore Corporate investments To get the 175 Crore Capital investments

FY11 at 25 per

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FINANCIAL STATEMENT ANALYSIS

FINANCIAL ANALYSIS
Analysis is the process of critically examining in detail information given the financial statement. For the purpose of analysis individual items are studied their relationship with other related figures established, the data is sometime rearranged to have better understanding of the information with the help of different techniques or tools for the purpose. Analyzing financial statements is a process of evaluation relationship between component parts of financial statement to obtain better understanding of firms position and performance.

INTERPRETATION
Analysis and interpretation and closely related interpretation is not possible without analysis and without interpretation analysis has no value. Interpretation is that drawing of inference and stating what the figures in the financial statements really mean. Interpreter must have experience.Understanding and intelligence to draw correct conclusion for the analysis data.

USES OF FINANCIAL ANALYSIS

Financial analysis is helpful in assessing the financial position and profitability of a concern this is done through compares on by ratios for the same concern over a period of years or for one concern against the predetermined standards or for one department of a concern against other department of the same concern.

28

OBJECTIVE OF FINANCIAL ANALYSIS

Accounting ratios calculated for a number of years of the trend of the change of position the ascertainment of trend helps in making estimate for the future. The main objectives of financial analysis are to assess. The present and future earning capacity of the concern. The operational efficiency of the concern as a whole and of its various parts. The short term and long term solvency of the concern for the benefit of the debenture holders and trade creditors. To compare the performance of the company with that of another company or of the same company with previous performance. The financial stability of the company.

TYPES OF THE FINANCIAL ANALYSIS MAY BE:

1. The nature of the analyst and the material used by him. 2. The objective of analysis and 3. The modus operandi of the analysis

1. According to the nature of the analyst and the material used by him INTERNAL ANALYSIS:
The people who have assessed to the books of accounts make the internal analysis. They are members of the analysis. Analysis of the financial statement or other financial data for managerial is the internal type of analysis. The internal analyst can give more reliable result than the external analyst because every type of analysis. The internal type of analysis can give more reliable result than the external analyst because every type of information is at his disposal.

EXETERNAL ANALYSIS:
29

It is made by those persons who arent connected with the enterprises they dont have the assess to the detailed record of the company and have to depend mostly on published statements such analysis is made by investors, credit agencies, government agencies and research scholars.

2. According To the Object Of The Analysis: Long Term Analysis:

The analysis is made in order to study the long-term financial stability, solvency, profitability and earning capacity of a Company. The purpose of making such type of analysis is to know whether in the long run the company will be able to earn a minimum amount, which will be sufficient to maintain a reasonable rate of return of the investment of the Company and to meet it cot of capital. This type of analysis help the long term financial planning which essential for the continued success of the company.

B) Short Term Analysis:

This is made to determine the short-term solvency and liquidity of the company. The purpose of this analysis is to know whether in the short run a company will have adequate funds readily available to meet its short-term requirements and sufficient borrowing capacity to meet contingencies in the near future. This analysis is made with reference to items of current assets and current liabilities (working capital analysis) to have fairly sufficient knowledge about the companys position which may be helpful short-term financial planning.

3) According to the modus operand of the analysis: A) HORIZONTAL ANALYSIS:

This analysis is made to review and analysis financial statements of a number of years and therefore based on financial data taken from several years. This is very useful for long-term trend analysis and planning.

B) VERTICAL ANALYSIS:
This analysis is made to review and analyze the financial statement of one particular year only.

Procedure of Financial statement analysis:

30

There are three steps in the financial statement.

1) Selection:
Selection of Information (data) relevant to the purpose of analysis of financial statement.

2) Classification:
Methodical classification of the data.

3) Interpretation:
Drawing of Internees and conclusions.

Methods or Devices of Financial Analysis:

The analysis and interpretation of financial statement is used to determine the financial position and results of operations as well. A number of Methods or devices are used to study the relationship between different statements. An effort is made to use those devices which clearly analyze the position of the enterprise. The following methods of analysis are generally used. 1) Comparative statements. 2) Trend analysis 3) Common-size statements 4) Funds flow analysis 5) Cash flow analysis 6) Ratio analysis 7) Cost-Volume-profit analysis From the above methods the Comparative Statements, Trend analysis, Ratio Analysis is discussed in the chapter. As this project work deals with the study of the following method, these methods or devices of financial analysis are discussed.

31

I.

Comparative Balance Sheet:

The Comparative Balance Sheet analysis is the study of the trends of same items, groups of items and computed items in two or more Balance Sheets of the same business on different date. The change in the periodic Balance Sheet items reflect the conduct of business. The increase decrease in figures helps in forming opinion about the progress of an enterprise. Interpretation of Comparative Balance Sheet: While interpreting comparative Balance Sheet, the interpreter is expected to study the following aspects. 1. Current Financial and Liquidity position. 2. Long-Term Financial position, and 3. Profitability of the concern.

II.

Trend Analysis:

The trend analysis is a technique of studying several financial statements over a series of years. In this analysis the trend percentage are calclated for each item by taking the figure of that item for the base year taken as 100. Generally the first year is taken as a base year . the analyst is able to see the trend of figures, whether moving upward or downward. The Financial statement may be assigned by Computing Trend Series of information. This method determines the direction upward or downward and involves the computation of the percentage relationship in each statement item bears to same item in the base year (Base Year = 100). Generally, First year is taken as base year and trend ratios for another year are calculated based on base year. The method of trend analysis is useful analytical device since substitution of percentages for large amounts; the brevity and readability are 32

achieved. However, trend analysis is not calculated for all of these items in financial statement. They are usually calculated for major items since the purpose is import and changes.

III.

Ratio Analysis:

Ratio analysis is a widely used tool for Financial Analysis. It is defined as the systemic uses of ratio to interpret the Financial Statements so that the strengths and weakness of a Firm as well its Historical performance and current Financial condition can be determined. The Ratio Analysis is one of the most powerful tools of Financial Analysis. It is process of establishing and interpreting various Ratios. It is with the help of ratios that the Financial Statements can be analyzed more clearly and decisions. I. Interpretation of the Ratios:

The interpretations of Ratio is an important factor. The inherent limitations of Ratio Analysis should be kept in mind while interpreting them. The interpretation of Ratios can be made in the following ways. 1. Single Absolute Ratio:

Generally speaking one amount draw conclusions when a single is considered in isolation. But single ratios may be studied in relation to certain thumb-rules, which are based upon well proven conventions. 2. Group of Ratios:

Ratios can be interpreted by calculating a group of related ratio. A single by other related additional ratios becomes more understandable and meaningful. 3. Historical Comparison: One of the easiest and most popular ways of evaluating the performance is to compare its present ratio with the past ratios is called comparison overtime. It gives an 33

indication of the direction of the change and reflect whether the firms performance and Financial position has improved detrained or remained constant over as period of time.

II.

LIMITATIONS OF RATIO ANALYSIS

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Limited use of a single ratio. Lack of adequate standards. Inherent limitations of accounting. Change of accounting procedure. Window dressing. Personal bias. Un comparable. Absolute figures distinctive. Price level changes. Ratios no substitutes.

4.

Projected Ratios: Ratios can also be calculated for future standards based upon the projected

Financial statements. These future ratios are compared with the actual ratios to find variance, if any such variance helping interpreting and taking corrective actions. 5. Inter-Firm Comparison: Ratios of one firm can also be compared with the ratios some other firms in the industry at the same point of time. This helps in evaluating relative financial position and the performance of the firm. III. Uses and Significance: a) Managerial uses of ratio analysis. Helps in Decision making Helps in Financial forecasting and planning. Helps in communicating. Helps in Co-ordinating. b) Helps in control 34

c) Utility to shareholders d) Utility to Creditors e) Utility to employees f) Utility to Government. Can be made accurately. A financial ratio is the relationship between to accounting figures expressed mathematically. A ratio can be expressed as percentage by simply multiplying the ratio with 100. IV. Nature of Ratio Analysis:

Ratio analysis is a technique of analysis an interpretation of Financial Statements. It is process of establishing and interpreting various ratios for helping in making certain decisions. However, Ratio Analysis is not an end in itself. It is only a means of better understanding of Financial strengths and weakness of the Firm because in the long-run just near Calculation of Ratios does not serve any purpose, unless they are interpreted: IV. STEPS INVOLVED: of the analysis. 2) CALCULATION of Appropriate Rations from the above data. 3) COMPARISION of calculated Ratios of the firm in the past, or the Ratios developed from projected Financial or the Ratios of other firms or the comparison with the industry to which the firm belongs. 4) INTERPRETATION of the Ratios.

1) SELECTION of relevant data from the Financial statement depend upon the objective

RATIOS LIQUIDITY RATIOS:

Liquidity ratios measure the ability of a firm to meet its short-term obligations and reflect its short-term financial strength or solvency. In fact, liquidity is the per-requisite for the very survival of a firm. The important liquidity ratios are A) Current Ratio 35

1.

B) Quick or acid-test ratio.

2.

CURRENT RATIO:
The current ratio is a very popular financial ratio it measures the ability of the firm

to meet the current liabilities current assets gets converted into cash in the operational cycle of the firm and provide the funds needed to pay the current liabilities current assets includes cash, advances and prepaid expenses, current liabilities consists of loans and advances, trade creditors, accrued expenses and provisions.
CURRENT ASSETS CURRENT LIABILITIES

CURRENT RATIO =

Ideal Ratio = 2:1

3.

QUICK RATIO:
This ratio is also called acid test ratio this ratio establishes a relationship between

quick or liquid assets and current liabilities an assets is liquid if it can be converted into cash immediately without a loss of value. Cash is the most liquid asset other liquid assets are debtors and bills receivables and marketable securities inventories are considered to be less liquid quick ratio is found by dividing the quick assets by total current liabilities.
CURRENT ASSETS CURRENT LIABILITIES

CURRENT RATIO =

LEVERAGE RATIOS A) Property or Equity Ratio:

It is a various of debt-equity ratio. It establishes relationship between the proprietors funds are the total tangible assets.
EQUITY RATIO = SHARE HOLDER FUNDS L ASSETS

36

B) FIXED ASSETS RATIO TO LONG-TERM FUNDS:

This ratio exhibits the proportion of the total assets created through debt including short-term and long-term liabilities. This ratio is of considerable significance to the creditors in as much as it highlights the long-run solvency of the company. NET FIXED ASSETS FIXED ASSETS TO LONG TERM FUNDS = LONG TERM FUNDS

C) DEBT EQUITY RATIO:

This ratio is calculated to measure the relative claims of out sides against the firms assets. This ratio indicates the relationship between the external equities (or) the out side funds and the internal equities (or) share holders funds. NET FIXED ASSETS DEBT EQUITY RATION = -----------------------------------------LONG TERM FUNDS

Ideal Ratio 2:1

D) TOTAL LIABILITIES TO TOTAL ASSETS RATIO:

The ratio is a small variant of equity ratio and can be simply calculated as 100equity ratio. The ratio indicates the relationship between total liabilities to outsiders to total assets of a firm. There is no thumb rule of this ratio. It can be calculated as follows: NET FIXED ASSETS SOLVENCY RATIO = LONG TERM FUNDS

37

4) ACTIVITY / TURNOVER / EFFICIENCY RATIOS:

These are also known as activity or efficiency ratios. Such ratios are concerned with measuring the efficiency in asset management. The efficiency with which assets are managed/used is reflected in the speed and rapidity with which they are converted into sales. Thus, there ratios are a test of relationship between sales/cost of goods sold and assets.

1) Working Capital Turnover Ratio:

This is also known as working capital leverage ratio. This ratio indicates whether or now working capital has been efficiently utilized in making sales. In case a company can achieve higher volume of sales with relatively small amount of working capital, it is an indication o the operating efficiency of the company. COST OF SALES WORKING CAPITAL RATIO = NETW WORKING

2) FIXED ASSETS TURN OVER RATIO:

This ratio is based on the relationship between net sales and net fixed assets of the firm it measure the efficiency of a firm in meaning and utilizing the assets. NET SALES FIXED ASSETS TURN OVER RATIO = NET FIXED ASSETS

3) INVENTORY TURN OVER RATIO:

Every firm as to maintain certain level of inventory of finished goods so as to meet the requirements of the business. Inventory turn over ratio is normally calculated as sales/avg. inventory. COST OF GOODS SOLD 38

INVENTORY TURN OVER RATIO

= AVG. INVENTORY

4) PROFITABILITY RATIOS A) OPERATING PROFIT RATIO:

This ratio expresses the relationship between operating profit and sales with the help of this ratio one can judge the managerial efficiency which may not be reflect the net profit ratio. OPERATING COST OPERATING PROFIT RATIO = NET SALES X 100

B) EARNING FOR SHARE

In order to avoid confusion on account of the valid meaning of the term capital employed, the overall profitability can also be judged by calculating earning per share with the help of following formula. NET PROFIT AFTER TAX PREF. DIVIDEND EPS = NO. OF EQUITY SHARES X 100

C) GROSS PROFIT RATIO: The gross profit reflects the efficiency with which management produces each unit of product. This ratio indicates the average spread between the cost of goods sold and sale revenue. A high gross profit is a sign of good management. NET PROFIT GROSS PROFIT RATIO = SALES

39

D) NET PROFIT MARGIN:

Net profit is obtained when operating expenses interest and taxes are subtracted from gross profit. This ratio establishes relationship between new profit and sales indicates management efficiency in manufacturing administering and selling the products. This ratio is over all measures of the firms ability to turn each Rupee sales into net profit. NET PROFIT NET PROFIT RATIO = SALES

E) RETURN ON EQUITY CAPITAL RATIO:

In the real sense, ordinary share holders are the real owners of the company, they assume the highest risk performance share holders have a preference over ordinary share holders in the payment of dividend as well as capital preference share holders get a fixed rate of dividend irrespective of the quantum of profits of the company. The rate of dividend varies with the availability of profits in case of the ordinary shares only thus the ordinary share holders are more interested in the profitability of a company and the performance of the company should be judged on the basis of return on equity capital of the company return on equity capital is the relation between profits of a company and its equity capital it can be calculated by follows. NET PROFIT AFTER TAX - PREF ROLE = EQUITY SHARE CAPITAL

F) RETURN ON INVESTMENT
Capital turn over ratio (or) return as share holders investment popularly know has ROI is the relationship between net sales and the capital employed. It is calculated to measure the efficiency with which a firm utilizes its resources.

40

As capital is invested in a business to make sales and profits, this ratio is a good indicator of profitability of a firm. SALES RETURN ON INVESTMENT RATIO = APITAL EMPLOYED

FINANCIAL PERFORMANCE OF AXIS BANK COMPARATIVE ANALYSIS

Comparative Balance Sheet of March 31-03-2007 and 31-03-2008.

S. No.

Year ending March Liabilities

Increase Decrease Amount

/ Increase Decrease Percentage

2007 14318 137385 102482 36484 5361 8277 304307 88763 74161 38046 70764 31790 in 423 304307

2008 15980 163,611 110667 45845 7363 6566 350032 112941 90205 46222 67906 32409 349 350032

1 2 3 4 5 6 1 2 3 4 5 6

Share Capital Deposits Reserves Borrowings Payables Profits Total Liabilities Assets Advances Investments Properties Stocks Receivables Cash Hand&AXIS Bank Total Assets

1662 26226 8185 9361 2002 -1711 45725 24178 16044 7816 (-) 2858 619 -74 45725

11.60 19.08 7.98 25.65 37.34 20.67 15.02 27.23 21.63 20.35 4.03 1.94 17.49 15.02

Comparative Balance Sheet of March 31-03-2008 and 31-03-2009.

41

S. No.

Year ending March 31 Liabilities

Increase Decrease Amount

/ Increase Decrease Percentage

2008 15980 163611 110667 45845 7363 6566 350032 112941 90205 46222 67906 32409 349 350032

2009 16957 178645 133830 20000 12388 10155 371975 125753 142677 48399 35902 18830 414 371975

1 2 3 4 5 6 1 2 3 4 5 6

Share Capital Deposits Reserves Borrowings Payables Profits Total Liabilities Assets Advances Investments Properties Stocks Receivables Cash in hand &AXIS Bank Total Assets

977 15034 23163 -25845 5025 3589 21943 12812 52472 2177 -32004 -13579 65 21943

6.11 9.18 20.93 56.37 69.01 54.66 6.26 11.34 58.16 4.70 -47.12 -41.89 18.62 6.26

Comparative Balance Sheet of March 31-03-2009 and 31-03-2010.

Year ending March 31 Liabilities Increase Decrease Amount / Increase Decrease Percentage /

S. No.

2009 16957 178645

42

2010 18210 182289

1 2

Share Capital Deposits

1253 3644

7.38 2.03

3 4 5 6 1 2 3 4 5 6

Reserves Borrowings Payables Profits Total Liabilities Assets Advances Investments Properties Stocks Receivables Cash in hand &AXIS Bank Total Assets

133830 20000 12388 10155 371975 125753 142677 48399 35902 18830 414 371975

142392 37464 12545 9813 402713 134977 134718 49449 54276 28730 563 402713

8562 17464 157 -342 30738 9224 -7959 1050 18374 9900 149 30738

6.39 87.32 1.26 3.36 8.26 7.33 5.57 2.16 51.17 52.57 35.99 8.26

Comparative Balance Sheet of March 31-03-2010 and 31-03-2011.

Year ending March 31 Liabilities Increase Decrease Amount / Increase Decrease Percentage /

S. No.

2010 18210 182289 14392 37464 12545 9813 402713 134977

43

2011 19494 194020 164485 53858 12658 10555 455070 146047

1 2 3 4 5 6 1

Share Capital Deposits Reserves Borrowings Payables Profits Total Liabilities Assets Advances

1284 11731 22093 16394 113 742 52357 11070

7.05 6.43 15.51 43.75 0.9 7.56 13.00 8.20

2 3 4 5 6

Investments Properties Stocks Receivables Cash in &AXIS Bank Total Assets

134718 49449 54276 28730 hand 563 402713

144331 52875 57676 52759 1382 455070

9613 3426 3400 24029 819 52357

7.13 6.92 6.26 83.63 145.47 13.00

Comparative Balance Sheet of March 31-03-2011 and 31-03-2012.

Year ending March 31 Liabilities Increase Decrease Amount / Increase Decrease Percentage /

S. No.

2011 19494 194020 164485 53858 12658 10555 455070 146047 144331 52875 57676 52759 1382

2012 22195 145535 189409 160694 21544 10973 550350 168315 153768 69307 81341 77171 448

1 2 3 4 5 6 1 2 3 4 5 6

Share Capital Deposits Reserves Borrowings Payables Profits Total Liabilities Assets Advances Investments Properties Stocks Receivables Cash in hand &AXIS Bank

2701 -48485 24924 106836 8886 418 95280 22268 9437 16432 23665 24412 -934

13.85 -24.98 15.15 198.36 70.20 3.96 20.93 15.24 6.53 31.07 41.03 46.27 -67.58

44

Total Assets

455070

550350

95280

20.93

Comparative Balance Sheet of March 31-03-2012 and 31-03-2013.

Year ending March 31 Liabilities Increase Decrease Amount / Increase Decrease Percentage /

S. No.

2012 22195 145535 189409 160694 21544 10973 550350 168315 153768 69307 81341 77171 448 550350

2013 23805 145498 216045 208818 21053 10431 625650 209200 143783 80303 136935 54219 1210 625650

1 2 3 4 5 6 1 2 3 4 5 6

Share Capital Deposits Reserves Borrowings Payables Profits Total Liabilities Assets Advances Investments Properties Stocks Receivables Cash in hand &AXIS Bank Total Assets

1610 -37 26636 48124 -491 -542 75300 40885 -9985 10996 55594 -22952 762 75300

7.25 -0.025 14.06 29.94 -2.27 -4.93 13.68 24.29 -6.49 15.86 68.34 -29.74 170.08 13.68

45

RATIO ANALYSIS
CURRENT RATIO CURRENT RATIO=CURRENT ASSETS/CURRENT LIABILITIES Current Ratio

Table-I
Year Current Assets Current Liabilities Current Ratio

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Average Here:

151174307.30 110019874.20 133152215.10 160141386.10 217585014.40 260494715 172094585.4

48350148.35 31427868.90 47825733.53 60592119.34 831347724.26 110247969.80 1129791564

3.12 3.50 2.78 2.64 2.61 2.36 2.83

Current Assets

Cash and AXIS Bank Balance + short Term loans+Receivables+stock(closing)

Current Liabilities

Short term Debts + Payables

46

GRAPH-I
Current Ratio 4 3.5 3 2.5 2 1.5 1 0.5 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Current Ratio

INTERPRETATATION
AXIS Bankers rule of thumb or arbitrary standard of liquidity for a firm is 2:1 i.e. current assets doubles current liabilities. The current ratio of society is very good, except 2005-06 it fell down to 2.36% and very exceptional in the year 2008-09 at 3.50% The average current ratio registered is 2.83% during the review period. The current ratio in the beginning year of the study i.e. 2007-08 is 3.12% and has decreased to 2.36% of last year of the study i.e. 2009-10.

47

QUICK RATIO
Quick Ratio = Quick Assets/Current Liabilities

TABLE-II
Year Quick Assets Current Liabilities Ratios

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Average

83268307.30 74118233.20 78876410.10 102465816.10 136244504.40 123559985 99755542.7

48350148.35 31427868.90 47825733.53 60592119.34 83134724.26 110247969.80 1129791564

1.72 2.35 1.64 1.69 1.63 1.12 1.69

Here:
Quick Assets = Current Assets (Closing stock + prepaid expenses)

GRAPH-II
48

Ratios 2.5 2 1.5 Ratios 1 0.5 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Interpretation
An observation of table reveals the year highest ratio is 2.35 during the year 2008-09 and lowest ratio is 1.12 during the period 2012-13. Average ratio is 1.69 during the six years period. Quick ratio represents a satisfactory liquidity financial condition. A quick ratio of 1:1 (or) more does not necessarily imply sound liquidity position. By observing the liquid position is satisfied and it is very good.

DEBT EQUITY RATIO

49

DEBT-EQUITY RATIO = External Equity / Internal Equity

TABLE-III
Year Debt Equity Ratio

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Average

209456000 198645000 219753000 247878000 306229000 354315866.5

256046144.4

133213000 160942000 170415000 194534000 222577000 250280699.9

188660283.3

1.57 1.23 1.28 1.27 1.37 1.41 1.35

Here:
Debt = Deposits + Borrowings Equity = Share capital + undistributed profits + Reserves

GRAPH-III

50

Ratio 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Ratio

INTERPRETATION
According the above table there is balance between external sources and internal sources in six years. Hence it can be understood that the AXIS Bank was able to use the lost cost of external funds to magnify these earnings. The rule of thumb for debt-equity ratio is 2:1

RETURN ON SHARE HOLDERS INVESTMENT

51

Return on Shareholders Investment = Net Profit / Shareholders Funds TABLE-IV

Year

Net Profit

Shareholders Funds

Ratios

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Average

6565807.39 10155310.94 9813047.66 10555010.36 10973266.17 10430929.45 9748895.328

133213000 160942000 170415000 194534000 222577000 250280699.9 188660283.3

0.049 0.063 0.057 0.054 0.049 0.041 0.052

Here:
Share Holders funds = Share Capital + Reserves + Undistributed profits

GRAPH-IV
52

Ratios 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Ratios

INTERPRETATION
An observation at the table reveals that the ratio was shown fluctuating trend during the six years period. The ratio was registered at 0.063 during the 2001-02 and declined to 0.049, 0.049 and 0.041in the years 2007-08, 20011-12 and 2012-13 respectively. An average the ratio was observed at 0.052 during the study period which indicated that return on shareholders study is very poor.

RETURN ON TOTAL ASSETS RATIO:

53

Return on Total Assets Ratio = Net Profit / Total Assets TABLE-V Year Net Profit Total Assets Ratios

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 Average

6565807.39 10155310.94 9813047.66 10555010.36 10973266.17 10430929.45 9748895.328

350032000 371974000 402712000 455070000 550350000 625639932.21 459296322

0.18 0.027 0.024 0.023 0.019 0.016 0.0481

GRAPH-V

54

Ratios 0.2 0.18 0.16 0.14 0.12 0.1 0.08 0.06 0.04 0.02 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Ratios

INTERPRETATION
By observing the table the highest ratio is 0.0027 during the period 2008-09. The ratio declined to 0.018% during 2008-09 and the average ratio for the period of study is 0.048

FINDINGS
55

The enrollments of shareholders are very good. There are 6202 share holders during the year 2012-13. The share has increased by 38% than the first year of study i.e., in the year 2010-11. It reveals that society is following members beneficial oriented policies and that is leading to more enrollments.

The current ratio and quick ratio of the AXIS Bank is above the ideal ratios i.e., 2:1 and 1:1 indicating the AXIS Bank maintain sufficient current assets to meet its current liabilities at a particular point of time and liquidity position is satisfactory.

The return on total assets ratio was observed at very poor. The current ratio and quick ratio of the AXIS Bank is above the ideal ratios i.e., 2:1 and 1:1 indicating the AXIS Bank maintain sufficient current assets to meet its current liabilities at a particular point of time and liquidity position is satisfactory.

CONCLUSIONS
56

The society have been very much successful in mobilizing the deposits; it has been following positive policies by giving its member various options of depositing, their saving as discussed in earlier chapter, the present deposits are 145498000.Profitability of a concern depends on its income generation as advances are source of income as they earn interest, more advances means more interest and that would mean more income generation, societys has advances in the year 2012-13 is 209200000. As among deposited by members in society are increasing, it is advancing loans for development purpose and the amount of loans has increased 2 times from the first year of study. The current ratio and quick ratio of the AXIS Bank is above the ideal ratios i.e., 2:1 and 1:1 indicating the AXIS Bank maintain sufficient current assets to meet its current liabilities at a particular point of time and liquidity position is satisfactory. The return on total assets ratio was observed at very poor. The current assets are more than the shareholders funds. It indicates that the current assets at the AXIS Bank are financed from the outsiders funds. The AXIS Bank has utilized the total assets effectively. The overall financial position of the society is good.

SUGGESTIONS
57

The society should take some corrective measures to control its productive cost to increase its profits. The society should decrease its unrecovered percentage of loans and advances. It should study the credit worth for the member and based on this should advance loans. If the society starts recording its non-performing asset (NPA). It could understand the current financial position of its at the end of the year and it could take necessary to control NPAS as these are productive.

The society should try to see that the investments are not followed in current assets, as it is observed that it is maintaining the a high current ratio when compared with ideal ratio.

BIBLIOGRAPHY
58

BOOKS
Financial management Financial management Financial management Management accountancy Management accounting

AUTHORES
Khan & jain I.m.pandey Prasannchandra S.N. Maheshwari R.K. Sharma & Shesh K. Gupta

Websites
www.Axis.com www.google.co.in

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