A Study On Financial Performance of Axis Bank in Comparison of HDFC Bank and Icici Bank

A
Summer Internship Project Report

On
A study on financial performance of Axis Bank in comparison of HDFC Bank and
ICICI Bank
Submitted to
Institute code: 750

Institute name: S. R. Luthra Institute of Management
Under the guidance of

Ms.Swapna Nair
(Assistant Professor)
In the Partial Fulfilment of the Requirement of the award of the degree of

Master of Business Administration (MBA)
Offered by
Gujarat Technological University
Ahmedabad
Prepared by:
Jenish Modi
187500592063
MBA (Semester - III)
Month & year:
July 2019
COMPANY CERTIFICATE
PLAGIARISM REPORT
INSTITUTE CERTIFICATE
PREFACE
The research is “a study on financial performance analysis of Axis Bank in comparison of
HDFC Bank and ICICI Bank. It will help to understand about the financial performance of
Axis Bank in comparison of HDFC Bank and ICICI Bank.
This study aims that measuring the financial performance of the Axis bank latest five years
and comparing their performance with selected private banks and show the financial
positions of the Axis Bank.
In this research used secondary data so data had been taken from the banks official websites.
The research objective is analysing the data and for the analysis of data MS Excel has been
used.
The entire research work has been divided into different sections. The first section titled
“introduction” deals with introduction to topic, present scenario of banking sector in India,
Recent trend in the banking industry and Indian banking sector in global Perspective.
The second section titled “Review of Literature” deals with analysis of some studies relating
to financial performance analysis related in the past.
The third section titled “Research Methodology” describes the brief introduction of the study.
Last section contains the “Findings, Suggestions and Conclusion”
ACKNOWLEDGEMENT
I would be grateful to Gujarat Technological University to include this Summer
Internship Project as part of curricular of MBA Program that helped me to gain
practical knowledge about corporate world.
I would be thankful to AXIS Bank for giving me an opportunity for pursuing my

summer internship and Mr. Neelesh Bareillia (Branch Manager, Axis bank, Udhna
Branch) for continuous guidance and other staff members of Axis bank Ltd Udhna
Branch who helped me in completion of my project by giving their precious time and
information about their organization.
I would also like to thank Dr. J.M. Kapadia (Director, S.R. Luthra Institute of
Management) for the support and Ms. Swapna Nair (Assistant Professor, S.R. Luthra
Institute of Management) who always helped me in completion of project by giving
her precious guidelines & suggestions regarding the project.
Last but not least would like to express my gratitude to my friends and family
members for their support.
EXECUTIVE SUMMARY
Axis bank is fastest growing private sector bank and Axis bank is third largest private sector
bank in India which better offers products and services to customer for growing the
performance of the bank.
The project is on “A study on financial performance analysis of Axis Bank in comparison of

HDFC Bank and ICICI Bank”. To aim that measures the financial performance of the Axis
bank and showing the financial position of the bank in the sector in comparison to selected
banks.
The study begins with a brief profile of banking industry followed by company profile. The
details of banking insutry at global, national and state level has being included. Similarly
details of company is included in detail.
This study includes descriptive research design, in which secondary data has been used. The
source of the data collection are annual reports of the banks official websites and their other
articles.
In this study, ratio analysis was conducted for measuring the financial performance of Axis
bank in comparison of HDFC bank and ICICI bank. Data was taken for last five years i.e.
from (2015-2019) for analysis. And financial performance of the banks were studied.
In the ratio analysis, the ratios for measuring the financial performance of the bank like
profitability ratio, management efficiency ratio, balance sheet ratio, debt coverage ratio and
leverage ratio like net profit margin, return on net worth, return on assets, cash deposits ratio,
credit deposits ratio, investment deposits ratio, assets turnover ratio, interest spread, current
ratio capital adequacy ratio etc were covered.
After the ratio analysis, it was found that Axis bank has better position in investment
deposits ratio, return on total assets and capital adequacy ratio. HDFC bank has better
position in return on net worth, net profit margin, cash deposits ratio, assets turnover ratio and
current ratios. And ICICI bank has better position in interest spread and credit deposits ratio.
It was found that the overall position of Axis bank is 2 nd position. HDFC bank stands on 1 st
position and ICICI bank has 3rd position in terms of selected parameters.
TABLES OF CONTENTS
 COMPANY CERTIFICATE
 DECLARATION
 EXTERNAL EXAMINAR CERTIFICATE
 PLAGIARISM REPORT
 INSTITUTE’S CERTIFICATE
 PREFACE
 ACKNOWLEDGMENT
 EXECUTIVE SUMMARY
Sr. No. Particulars Page no.

1. Introduction 1
2. Industry Profile of Financial Industry 5
2.1 Global Level Scenario of Banking Sector 6
2.2 National level Scenario of Banking Sector 8
2.3 State level Scenario of Banking Sector 10
2.4 PESTEL Analysis of Banking Sector 12
2.5 Current trends in Banking Sector 15
2.6 Major Players in Banking Sector 17
2.7 Major Offerings in Banking Sector 18
3. Company Profile 21
3.1 Introduction about Axis bank ltd. 22
3.2 Division/Department 25
3.3 SWOT Analysis 26
4. Review of Literature 27
5. Research Methodology 36
5.1 Problem Statement 37
5.2 Research Objective 37
5.3 Research Design 37
5.4 Types of Design 37
5.5 Data Collection 37
5.7 Tool for Analysis 37
5.8 Benefit of Study 37
5.9 Limitation of Study 38
6. Data Analysis and Interpretation 39

7. Finding 78
8. Conclusion 81
9. Recommendation 83
10. Bibliography 84
11. Reference 88
LIST OF TABLES
Sr. No. Particular

Table Page
No. No.
1 Net profit margin ratio of AXIS Bank, HDFC Bank And 1 41
ICICI Bank of latest five year
2 Return on net worth ratio of AXIS Bank, HDFC Bank And 2 42
3 Return on total assets ratio of AXIS Bank, HDFC Bank And 3 43
4 Credit deposit ratio of AXIS Bank, HDFC Bank And ICICI 44
Bank of latest five year 4
5 Investment deposit ratio of AXIS Bank, HDFC Bank And 5 45

6 Cash deposit ratio of AXIS Bank, HDFC Bank And ICICI 6 46
Bank of latest five year
7 Assets turnover ratio of AXIS Bank, HDFC Bank And 7 47
8 Interest spread ratio of AXIS Bank, HDFC Bank And ICICI 8 48
9 Current ratio of AXIS Bank, HDFC Bank And ICICI Bank 9 49
of latest five year
10 Capital adequacy ratio of AXIS Bank, HDFC Bank And 10 50
11 Gross NPAs ratio of AXIS Bank, HDFC Bank And ICICI 11 51
12. Net NPAs ratio of AXIS Bank, HDFC Bank And ICICI 12 52
13 Analysis of mean, standard deviation, co-efficient of13 54
variance of net profit margin
variance of return on net worth
variance of return on total asset
variance of credit deposit ratio
variance of investment deposit ratio
variance of cash deposit ratio
variance of asset turnover ratio
variance of interest spread
variance of current ratio
variance of capital adequacy ratio
variance of Gross NPAs ratio
variance of Net NPAs ratio
25 ANNOVA test net profit margin among selected private25 66
sector bank in India
26 ANNOVA test return on net worth among selected private26 67
27 ANNOVA test return on total asset among selected private27 68
28 ANNOVA test Credit deposit ratio among selected private28 69
29 ANNOVA test Investment deposit ratio among selected29 70
private sector bank in India
30 ANNOVA test cash deposit ratio among selected private30 71
31 ANNOVA test asset turnover ratio among selected private31 72
32 ANNOVA test interest spread among selected private sector32 73
bank in India
33 ANNOVA test current ratio among selected private sector33 74
bank in India
34 ANNOVA test Capital adequacy ratio among selected34 75
private sector bank in India
35 ANNOVA test Gross NPAs selected private sector bank in35 76
India
36 ANNOVA test Net NPAs selected private sector bank in36 77
India
1. INTRODUCTION
1. Introduction
Financial performance is a measurement tool of how firm can use assets for business to
generate revenues. It is also measure the overall financial health over given the period. Firm
use the tool to compare industry or sector. It is called financial performance.
Financial performance analysis is the process of analyse the balance sheet and profit & loss
account to measure the financial status of the firm. It is help to identify the short-term and
long term demand and growth of financial performance analysis. The dictionary meaning of
‘analysis’ is to resolve or separate a thing in to its element or components parts for tracing
their relation to the things as whole and to each other .The analysis of financial statement is a
for analyse the position of the firm and comparing with the other firm and showing the
performance. This analysis may be undertaken by management of the firm or by parties
outside the specifically, owners, creditors, investors.
The analyses of financial statement are three major steps are given below
The first step involves the re-organization of the entire financial data contained the financial
statements. Therefore the financial statements are broke down into individual components
and re-grouped into few principle elements according to their resemblances and affinities.
Thus the balance sheet and profit and loss accounts are completely re-casted and presented in
the condensed form entirely different from their original shape the second step of significant
relationships between the individual elements of record and profit and loss account. This
is done through the appliance tools of monetary analysis like magnitude
relation analysis, analysis, Common size record and comparative record.Finally, the result
obtained by means of application of financial tools is evaluated.
In brief monetary analysis is that the method of choice, relation and analysis of
monetary statements. The tools of researcher used for crucial the investment price of the
business, credit rating and for testing potency of operation.
'Thus monetary analysis helps to spotlight the facts and relationships regarding social
control performance, company potency, monetary strength and weakness and
credit goodness of the corporate
Types of financial performance analysis
There are six types of financial performance analysis
1. Internal analysis
2. External analysis
3. Short term analysis
4. Long term analysis
5. Vertical analysis
6. Horizontal analysis
1. Internal analysis
Internal analysis is created by the highest management executives with the assistance of
Management business person. The finance and accounting department of
the enterprise have direct approach to any or all the relevant money records. Such
analysis on the overall performance of the business concern with the profitability of
various activities and operations
2. External analysis
Shareholders as investors, banks, financial institutions, material suppliers, government

department and tax authorities and the like are doing the external analysis. They are fully
depending upon the published financial statements. The objective of analysis is varying from
one party to another.
3. Short term analysis
The short term analysis of financial statement is primarily concerned with the working
capital analysis so that a forecast may be made of the prospects for future earnings,
ability to pay interest, debt maturities – each current and future and likelihood of a sound
dividend policy.
A business concern has enough funds in hand to meet its current needs and sufficient
borrowing capacity to meet its contingencies. In this aspect, the liquidity position of the
business concern is determined through analysing current assets and current liabilities.
Hence, magnitude relation analysis is extremely helpful for brief term analysis.
4. Long term analysis
There must be a minimum rate of return on investment. It is necessary for the growth and
development of the company and to meet the cost of capital. Financial planning is also
necessary for the continued success of a company. The mounted assets structure, leverage
analysis, possession pattern of securities and also the like are created within the long
run analysis.
5. Vertical analysis
It is otherwise called as static analysis. Under this type of analysis, the ratios are calculated
from the balance sheet of one year and/or from the profit and loss account of one year. It is
used for short term analysis only
6. Horizontal analysis
It is otherwise called as dynamic analysis. When financial statements for a number of years
are viewed and analysed, the analysis is called horizontal analysis.
2. INDUSTRY PROFILE
2. Banking industry profile
Bank is financial institution to provide facilities to customer and it is a financial
intermediary that accepts deposit and channel those deposit into lending activities. Bank
help to customer by giving interest on customer's deposits and increasing their capitals.
2.1 Global level scenario of Banking Industry
The history begins with the primary model banks of merchants of the traditional world,
which made grain loans to farmers and traders who carried goods between cities.
This began around 2000 B.C. in geographical region and Chaldea.
Later, in ancient Ellas and through the empire, lenders based in temples made loans and
added two important innovations: they accepted deposits and changed money.
Archaeology from this era in ancient China and Asian nation additionally shows proof of
cash loaning activity.
The development of banking unfolds from northern Italian Republic throughout the
Holy Empire, and in the 15th and 16th century to northern Europe.This was followed
by variety of necessary innovations that passed in Dutch capital throughout the Dutch
Republic within the seventeenth century, and in London in the 18th century.
During the twentieth century, developments in telecommunications and computing

caused major changes to banks' operations and let banks dramatically increase in size
and geographic spread.
Global banking and capital market services proliferated throughout the Eighties once
deregulating of monetary markets in a very range of nations.
The 1986 'Big Bang' in London permitting banks to access capital markets in new ways
in which, which led to significant changes to the way banks operated and accessed
capital.
It additionally started a trend wherever retail banks began to acquire investment banks
and stock broker’s making universal banks that offered a good vary of banking services.
The early 2000s were marked by consolidation of existing banks and entrance into the
market of different money intermediaries: non-bank financial organization.
Large company players were starting to notice their means into the money service
community, giving competition to established banks
The main services offered enclosed insurance, pension, mutual, market and hedge funds,
loans and credits and securities. Indeed, by the tip of 2001 the capitalization of
theworld’s fifteen largest monetary services suppliers enclosed four non-banks.
The monetary crisis of 2007–2008 caused several bank failures, as well as a number
of the world's largest banks, and aggravated abundant discussion concerning bank
regulation. In 2015, the global banking industry will face large and challenging operating
pressure, and difficulties and differentiated performances will become the key words
There are four scenarios for global banking may look in the year 2020
1. Business as usual
2. Financial issues
3. New markets
4. Change, Change, Change

2.2National level scenario of banking industry
Indian banking is that the lifeline of the state and its folks.
Banking help in developing the important sectors of the economy and start a brand
new dawn of progress on the Indian horizon. Today, Indian banks will with
confidence contend with trendy banks of the planet.
The major step included below the steps
 The Reserve Bank of India, India's central banking authority, was established in April
1935, but was nationalized on 1 January 1949 under the terms of the Reserve bank of
India act
 In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India".
 The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.
For the Indian industry, July 19, 1969, was a landmark day, on which nationalization of
14 major banks was introduced that each had a minimum of Rs 500mn and above of
integrate deposits. In 1980, eight more banks were nationalised. In 1976, the Regional
Rural Banks Act came into being, that allowed the opening of specialized regional rural
banks to exclusively cater to the credit requirements in the rural areas.
Banking in India originated in the first decade of 18th century with The General Bank of
India started its operation in 1786. This was followed by Bank of Hindustan. Both these
banks are now defunct.
The Indian banking system that is ruled by the Banking Regulation Act of Asian nation
1949 are often generally classified into 2 major categories:
 Scheduled Banks
 Non-scheduled banks
Scheduled banks comprise business banks and also the co-operative banks.Interms
of possession; business banks are often additional sorted into nationalized banks,
the depository financial institution of Asian nation and its cluster banks, regional rural
banks and personal sector banks.
The Public Sector Banks (PSBs), that area unit the bottom of the Banking sector in Asian
nation account for over seventy eight per cent of the full banking system assets.
Unfortunately they are burdened with extreme Non-Performing assets (NPAs), lack of
modern technology and massive manpower. On the opposite hand the non-public Sector
Banks area unit creating tremendous progress. They are leaders in web banking, mobile
banking, phone banking, ATMs. As so much as foreign banks area
unit involved they're probably to achieve the Indian banking system.
The first section of economic reforms resulted within the nationalization

of fourteen major banks in 1969 and resulted in an exceedingly shift
from category banking to Mass banking.
The producing sector conjointly grew throughout the Nineteen Seventies in

protected geographical area and also the banking sector was a vital supply. The next
wave of reforms saw the nationalization of half dozen additional industrial banks in
1980.
The industry is currently in a transition phase. On the one hand, the PSBs, that square
measure the mainstay of the Indian banking industry square measure within
the method of shedding their fat in terms of excessive work force, excessive Non-
Performing Assets (NPAS) and excessive governmental equity, whereas on the
opposite hand the non-public sector banks square measure consolidating themselves
through mergers and acquisitions.
By any yardstick, 2016 has been a rollercoaster year for Indian banking. There was no
respite from the growth in bad loans in 2016. In the 1st few months of
2017, there'll be ten little finance banks and eight payments banks change of integrity the
fray. To put this in context, since Independence and till 2014, in 67 years, 12 new banks
were born, but not all of them managed to survive. Meanwhile, the depository financial
institution of India, the nation’s largest lender, will catapult itself into the big league of
the world’s top 50 banks by assets in 2017 by merging its five associate banks.
2.3 Banking industry scenario in Gujarat
The Banks Federation was established in Ahmedabad on 5th March 1975 in accordance with
the provisions of 1961. Banks Federation is the apex body of 244 u banks in Gujarat.
The Banking Sector has been servicing the common man since last 125 years much.
In Gujarat Banks, big & small, have been playing an instrumental role as financial power
houses for the common man in each stage of his life -education, career building as
entrepreneurs, helping buy the dream home, meeting personal needs through gold loans,
setting up industries through term loans, business expansion through working capital limits &
encouraging savings through term deposits.
All through these years and in the context of the recent global meltdown that shook the
Western & European world the Banking Sector has stood the test of time. It continues to
demonstrate that it is a sustainable & viable model offering affordable finance for not only
economic but socio economic up liftment of the common man.
Historically of Banks were started by ordinary people with miniscule capital. To date these
banks represent the common man. These people have a feeling of ownership & pride in their
association. Over time these banks have become financially strong & the assets generated by
these banks also belong to the common people who are their members.
The Federation is currently working on three major areas

 Technology up gradation to help even the tiniest bank acquire capabilities to offer
world class banking.
 Consolidate the co-operative brand ―Proudly Co-operative‖ to provide banks &
other Co-operative Organizations with a uniform identity.
 Carry out research for the sector to develop a road map for 2020 in its endeavor to
constantly prepare banks to meet future challenges.
The declaration of 2012 as the International Year of Co-operatives by UNO has given us a
unique opportunity to go to the public to highlight success stories, various socio-economic
business models & initiatives that the Federation & its member banks have taken.
The Federation has decided to celebrate this year through various initiatives for financial
inclusion & inclusive growth. The details of such initiatives & projects with emphasis on
youth & women are highlighted separately under the title IYC initiatives.
The Federation is committed to serve the common man guided by Cooperative Principles,
Values & Regulation. The Federation continues to be absolutely confident that the Urban Co-
operative Sector of the State is fully geared to raise to the expectations of the common man
and handhold each such individual to a safe, secure & prosperous future.
2.4 PESTEL OF BANKING INDUSTRY

A PESTEL analysis is a strategy tool that involves figuring out what factors influence a
company’s operations in a given market. Fundamentally, PESTEL analysis is a critical
framework which evaluate a company’s internal tasks as absorbed in a competitive
marketplace.
PESTEL analysis of banking sector can be put as a strategic tool that helps to understand the
banking company’s growth or decline.
 Political
Political setting of any country deeply affects all the sectors of that country and
banking isn’t any exception. It additionally affects the investment thanks to future
uncertainty. One should note that the political instability of the country have an effect
on directly the banking sector in Asian nation..
There are major political factors affecting the Banking industry are
 Focus on regulation of government
 Budget and budget measures
 Foreign Direct Investment limits
Indian Government have an effect on the performance of banking sector most by
framing policy government through it is budget have an effect the banking activities
securitization act has given more power to banking sector against defaulting
borrowers.
 Economic
The following factors have been categorized as crucial factors that may have an effect
banks in every part of the world.
The Income of the country and its economic level
It goes without saying that banks grow under economic boom as compared to
recession times. Income flows in an exceedingly country have an effect on banks
in terms of the number of capital they will access and purchasers that ar able
to bank with them.
Income conjointly determines disbursement and borrowing limits thence may be
a crucial issue inside the banking sector. In a country with enough financial gain,
banks that face economic hurdles are often salvaged by their several governments.
Inflation rate
When inflation is high, banks tend to suffer. This is because inflation tends to
influence the value of currency and this often has a ripple effect in the banking sector.
Apart from liquidity structures and processes, inflation also causes instability in
currencies.
 Social
In population is one of the most important factors, which influence the private
sector banks. Banks would open their branches when trying into the population
demographics of the realm.
Literacy rate in Asian nation is incredibly low compared to developed countries.
Illiterate people hesitate to transact with banks which impacts negatively on
banks. But there's positive facet of this also i.e. Illiterate people trust more on
banks for depositing their money, as they do not have market information.
India has been on growth track associated banking Increase being an integral a
part of economy it's to regulate itself thus on compliment and supplement the
expansion of the economy. The shopper’s area unit trying to find electronic modes
of fund transfer beside the non-public bit and skill. In the modern era, the young
generation keep themselves updated and makes well-read call.
 TECHNOLOGICAL
Technology is imperative in the banking industry. It is vital for the competitive
advantage and it also a core driver for globalization. Development in technology
has inspired the bankers to vary the idea of Branch Banking to anyplace Banking.
Technology is imperative in the banking industry. It is vital for the competitive
advantage and it also a core driver for globalization. Development in technology
has inspired the bankers to vary the idea of Branch Banking to anyplace banking.
With the technological advancement, banking has seen vital changes in operations and
has now focused on customer centric approach, universal banking, ATMs, internet
banking, interactive kiosks, core banking, etc. and improved efficiency and
productivity.
Banks are now focusing on paperless and hassle-free working. Establishment of

computers, internet connectivity, RTGS and NEFT, MICR Cheques, ECS were all
significant milestones in past decade. The continuous advancement in technology
modified the approach the bank interacts with consumer.
 Environment
Environmental associate analysis suggests that scanning data regarding an
organization’s internal and external surroundings to set up the organization’s
future course of action. Environmental understanding helps to avoid shocks,
recognize threats and opportunities and improve long-term & short-term planning.
 Legal
Legal issues have unique impact on the banking sector. Securities law, trade structures
and bank note regulation among other legal necessities.
There are major factors determining the legal aspects of the Banking Industry: In
1949, the Banking Regulation Act was enacted which empowered the Reserve Bank
of India (RBI) "to regulate, control, and inspect the banks in India.
The Banking Regulation Act conjointly as long as no new bank or branch
of associate existing bank can be opened while not a license from the tally, and
no 2 banks might have same or common directors.
2.5 CURRENT TRENDS IN BANKING INDUSTRY
Few trends in Banking Industry
 Internet/Mobile Banking
Taking advantage of the vastly improved and innovative telecom solutions, many
banks are able to offer services on internet and mobile telephones. Internet banking
and phone banking are becoming quite common place amongst all groups of banks
that provide customers with ready information on certain banking services.
 Product and Business Collaborations
There is growing collaboration and partnerships amongst banks in promoting new
business, distributing products and services as also in cross selling. Several banks are
distributing insurance products in collaboration with insurance companies. For
Example: Axis Bank has collaborated with TATA AIG Life Insurance.
 Shared Services (ATM Networks)
There is growing trend of pooling of resources for providing some shared services,
such as ATMs.
 NRI Banking/International Services
Banks also provide facilities of money transfer, FOREX, Travelling card, NRI/NRO
account for NRI customers for transferring money & doing payments, etc.
 Cross Selling
It represents additional or extra services offered to existing customers, with a view to
expand banking business. The main benefit is reduction of cost as the cost of
contacting a new customer is much higher than to serve an existing customer. The
existing customer base of the banks is used for the purpose of cross selling.
 Electronic Funds Transfer (EFT)
Electronic Funds Transfer may be a system whereby
anyone will create payment to a different individuals/firms
instructions/authorization to transfer funds directly from his own account to
the checking account of the receiver/beneficiary.
 Electronic Clearing Service (ECS)
Electronic Clearing Service may be retail payment systems that
may be accustomed create payments/receipts of the
same nature particularly wherever every payment is of a repetitive nature and of
relatively smaller amount. This facility is meant for organization & government
departments to make/receive large volumes of payments rather than for funds transfers
by individuals. It is associate electronic clearing system that facilitates paperless
credit/debit group action directly connected to your account and additionally provides for
a quicker technique of effect in periodic and repetitive payments.Through
ECS, you'll pay all of your Utility bills (electricity Mobile bills, credit cards,
etc.), investment company (SIP), premium, Loan Instalments, etc.
 Automated Teller Machine (ATM)

Automated Teller Machine is the most popular machine in India, which helps the
customers to withdraw their money 24X7. It requires an ATM card to perform
banking transactions without interacting with a human teller. In addition to money
withdrawal, ATMs is used for payment of utility bills, funds transfer between
accounts, deposit of cheques and money into accounts, balance enquiry etc.
 Foreign Direct Investment (FDI)
In India Maximum FDI permitted in Indian private sector banks –74 percent, under
the automatic route which includes Portfolio Investment i.e. FII’s and NRI’s, Initial
Public Issue (IPO), Private Placements, ADR/GDRs; and Acquisition of shares from
existing shareholders.
2.6 MAJOR PLAYERS IN BANKING INDUSTRY
There are various players in the market. There are mainly three types of bank which are
distinguished on the basis of ownership. The different players in these segments are as
follows
Foreign
Private Banks Nationalized Banks Co-operative Banks
Bank
Standard Akhand Anand Cooperative Bank
ICICI Bank State Bank of India
Chartered Ltd.
Punjab National
HDFC Bank Citi Bank Financial Cooperative Bank Ltd.
Bank
Panchsheel Mercantile Cooperative

Axis Bank Bank of Maharashtra HSBC
Bank Ltd.
Yes Bank Bank of Baroda Prime Cooperative bank
Dhanlakshmi Surat Mercantile Cooperative Bank

UCO Bank
Bank Ltd.
Surat National Cooperative Bank

Induslnd Bank Canara Bank
Ltd.
Kotak Surat Peoples Cooperative Bank
Dena Bank
Mahindra Bank Ltd.
DCB Bank Syndicate Bank Varachha Cooperative bank Ltd.
Surat District Cooperative Bank

Union Bank of India
Ltd
Bank of India
Indian Overseas
Bank
Oriental Bank of
Commerce
Allahabad Bank
2.7 Major offering in banking industry
 Personal Banking & Corporate Banking

Retail Banking is also knows as Personal banking. It is a type of banking service and
product line offered by banks to retail customers, that is consumers rather than
businesses-man, intermediaries and institutions. It typically include savings and
transaction facilities such as a bank account, debit cards, and a fixed interest deposit
for a specific agreed period (certificates of deposit / term deposit). Corporate Banking
is defined as a custom-tailor made financing services for corporations which is
different from personal banking.
 Priority Banking
The clients that bring a bigger share of business to the Bank expect a differentiated
standard of service. Priority Banking was launched so as cater to the wants of the high
web price customers among the bank.
Its main aim is to retain to customer, acquisition and cross selling. Customers are
provided with advanced services. This type of customer gets priority services with
extra benefits.
Some of features of priority banking are

 Priority Banking Lounge
 Dedicated Relationship Manager for all banking needs
 Enjoy
preferential treatment when you walk into bank or when you call our
Phone Banking Centre
 Get preferential rates on a host of Axis Bank's products and services like
loans, lockers etc.
 Cash back on various products & services.
 Insurance Coverage.
 RTGS/NEFT Facility
Real Time Gross Settlement/ National Electronic Fund Transfer Facility accessible to
the client of the bank. By this facility customer can transfer their balance throughout
India of any Banks. Z
Under this method, peoples, company and corporates will electronically transfer funds
from any bank branch to someone, firm or company having an account with the other
bank branch in the country
 Demand Draft Facility
A demand draft is a one types of tools for bill of exchange. A bank issues a demand
draft to a customer (drawer), directing another bank (drawee) or one of its own
branches to pay the specified party (payee).
 Locker Facility
It is a facility which is provided by bank, in these they provide a metal box like
equipment for storing our precious things like gold, jewelry, etc.
 Cash & Cheque Depositing Machine
It is a electronic way of depositing money to respective account without the need of
the teller. For this type of machines, customer need not have to fill the depositing slip.
 Loan Facilities
There are various types of loans which are offered to customers for satisfying their
needs.
Some of them are
 Home Loan
 Car Loan
 Personal Loan
 Loan Against Property
 Gold Loan
 Investment Facilities
In today’s competitive world, it is very difficult to survive only on basic banking
operations. Bank also has to provide various other financial services which they avail
at some specific financial institution. Now banks have converted to Banc assurance
which means that along with banking services bank also provides insurance & other
financial services like Mutual Funds, Life Insurance, General Insurance, Systematic
Investment Plans, etc.
 FOREX
Forex is commonly known as Foreign Exchange. It helps in providing foreign
currency against Indian rupees for doing foreign transaction or for fulfilling some
specific needs. In short, it helps in converting one currency to another.
3. COMPANY PROFILE
3. Company profile of AXIS Bank
Registered office
The registered office of Axis Bank is located at :
‘Trishul', 3rd Floor,
Opposite Samartheshwar Temple,
Near Law Garden, Ellisbridge,
Ahmedabad, Gujarat – 380 006
Axis Bank is that the third largest non-public sector bank in Asian country. The Bank
offers the entire spectrum of monetary services to customer segments
covering bigger and Medium Corporates, Micro Small Medium Enterprise, Agriculture
and Retail firms.
The Bank has 4050 domestic branches with 11801 ATMs & 4,917 cash recyclers outside
the country as on 31st March, 2019. The overseas operations of the
Bank are meet 9 international offices with branches at Singapore, Hong
Kong, metropolis (at the DIFC), Colombo and Shanghai; representative offices at Dhaka,
Dubai, national capital and a remote subsidiary at London, UK. The international
offices target company disposal, trade finance, syndication, and investment banking and
liability businesses.
Axis Bank is one in every of the primary new generation non-public sector banks to
possess begun operations in 1994. The Bank was promoted in
1993, conjointly by specified enterprise of investment firm of Asian country (SUUTI)
(then called investment firm of India), Life Insurance Corporation of India (LIC),
General Insurance Corporation of Asian country (GIC), social insurance Company Ltd.,
The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and
United India Insurance Company Ltd. The belongings of investment firm of Asian
country were afterwards transferred to SUUTI, associate degree entity established in
2003.
With a balance sheet size of Rs.8,00,997 crores as on thirty first March 2019, Axis Bank
has achieved consistent growth and with a five year CAGR (2013-14 to 2018-19) of 16
PF in Total Assets, 14% inTotal Deposits, 17% in Total Advances.
Committee of Directors
Name of Members Category
Shri S. Vishvanathan Chairman
Shri Amitabh Chaudhry Member
Smt. Ketaki Bhagwati Member
Shri B. Baburao Member
Shri Rajiv Anand Member
Capital structure
The Bank has authorized share capital of Rs. 850 crores . and there are 4,250,000,000 equity
shares of Rs.2/- each. As on 31st March 2018, the Bank has issued, signed and paid equity
capital of Rs. 513.31 crores, beginning 2,56,65,38,936 equity shares of Rs.2/- each. The
Bank’s shares are listed on the National Stock Exchange of India Limited and the BSE
Limited. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE). The
Bonds issued by the Bank are listed on the Singapore Stock Exchange.
Distribution network
The Bank has feature a bigger footprint of 4,050 domestic branches with 11,801 ATMs &
4,917 money recyclers outside the country as on 31st March, 2019. The overseas operations
of the Bank are area units cover nine international offices with branches at Singapore, Hong
Kong, Metropolis (at the DIFC), Colombo and Shanghai; representative offices at Dhaka,
Dubai, United Arab Emirate’s capital and a far off subsidiary at London, UK. The
international offices concentrate on company loaning, trade finance, syndication,
investment banking and liability businesses.
Mission, Vision & Values
Mission
 Customer service and product innovation tuned to diverse needs of peoples and
corporate customers..
 Progressive globalization and achieving international standards.
 Efficiency and effectiveness made on ethical practices.
 Customer Satisfaction through giving the quality service effectively and efficiently.
 Continuous technology up gradating while maintaining human values.
Vision
 To be the preferred financial solutions giver excelling in customer delivery through

information, empowered employees and better use of technology.
 Core Values
 Customer Centricity
 Ethics
 Transparency
 Teamwork
DIVISIONS/ DEPARTMENTS OF AXIS BANK LTD.
Operations Division
It is a division which mainly deals with the regular operations & service work which they
have to perform. Their main task is to help customer by solving their query for the problem
which they are having.
Sales Division
It is a division which focuses on sales. They have to sell account & have to go to customers
home for opening their new account & for collecting several information about the
customers. They are mostly on field for business expansion.
Cheque Clearing Division
It is very small division but very important division for the bank as every customer deposits
cheque in the bank for clearing & transferring their funds from one account to another. So,
the proper work for that should be done & has to see that whose cheque has not been cleared,
whose cheque has been bounced. So, for that this division exists.
SWOT ANALYSIS OF AXIS BANK LTD.
Strength
 The bank has a good image among urban area.
 Sound Technological Platform With Centralized Database And Operations
 The bank is achieving a good growth through their customer services and other
activities
 A largest portfolio of product and services
 Decent discrimination in the rural areas
 One of the largest private sector financer in India for Agriculture loans wiz Retail
Agriculture & Corporate Agriculture.
Weakness
 Higher cost & service charges.
Opportunities
 Expansion in rural areas.

 Can go to foreign markets for exploring the new economies.
Threats
 Threat of new entrant.

 Tough competition of Public, private & Foreign banks
4. REVIEW OF
LITERATURE
4. Literature Review
Alam et al (2011) in their studied A financial performance comparison of public versus
private bank: - The case of commercial banking sector of Pakistan. It highlighted that
compare the financial performance of public and private bank because it is a major
component for commercial bank and concluded that performance of the bank based on
profitability ratio, liquidity ratio, and other ratio. It is a help to rank the performance of the
private bank and public bank.
Matthew and esther (2012) in their studied A financial performance comparison of foreign
bank and local bank in Ghana. It highlighted that the banking sector are more important for
nation economy and financial performance of the bank is develop the world and it is guide for
policy formulation of the bank and it concluded that foreign bank are better in capital, quality
of assets, earning power in terms of interest of net interest margin, liquidity and size of bank
but local bank are more efficient so, it is in their research paper.
Dogan (2013) in this studied comparison of financial performance of domestic and foreign
bank of Turkey was carried out. It highlighted that banking sector are important for develop
the country and which bank are more contribute to developed the country by financial
performance and they are measured by the ratio and concluded that rate of equity, assets
quality and effectiveness of domestic banks are higher performance than foreign banks in
their criteria and foreign bank are better than domestic bank in capital adequacy ratio in the
turkey.
(Haque, 2013) in their article comparison of financial performance of commercial bank: - A

case study in the context of India. It highlighted that they are examine and evaluate the
performance of Indian bank 2009-2013 in order to analyze their performance .the present
study compares the financial position of indigos and foreign schedule commercial bank and
prove viability. And concluded that there is no significant difference of profitability among
various group bank in respect of ROA and NIM, there are difference between peer groups of
ROE.
Sharma and Sharma (2018) in their studied A comparative appraisal of financial

performance of Indian public sector banks It highlighted that there are study on three public
sector bank SBI, PNB and Canara bank. They are compared that profit and loss account and
balance sheet of three public sector bank and analyse their performance by using ratio analyse
like ROA, NIM, NPAS and ROD. And concluded that SBI is outperformed the PNB and
Canara bank and it is useful for people to where to invest their capital and it is helpful for
taking decision and showing the financial status of the bank.
Karim and Alam (2013) in their research an evaluation of financial performance of private
commercial banks in Bangladesh. It highlighted that bank are play a major role to develop
the economy of nation and bank are control the money circulation in the nation and
Bangladesh has largest private sector bank than public sector banks. They are selected five
private sector bank and compared their financial performance by using ratio analysis and
concluded that for the financial performance there are major role play by bank size, credit
risk, operational efficiency and asset management have impact on financial performance of
commercial banking sector.
Haque, (2013) in their article The performance analysis of private conventional banks:- A
case study of Bangladesh. It highlighted that the commercial bank are any relationship
between bank’s year operation and it’s performance during 2006-2011. For the purpose they
are selected different banks from different generation and measured by profitability,
creditability, liquidity and efficiency and concluded that It can be helpful for management of
private bank in Bangladesh to improve their performance and formulate their policies. And
also identify specific area of bank to work and ensure sustainable growth of banks.
Guisse, (2012) in their research financial performance of the Malaysian banking industry:
Domestic vs. foreign banks. In this study the aim to examine the performance of the
Malaysian banking industry and which financial factors are influence to performance of the
banking industry and compared the local and foreign bank performance and they are
measuring profitability by Return on investment and Return on Equity and concluded that
they are collected 8 local bank and 8 foreign bank in the covering period between 2005 and
2011. Comparison study will be carried out possible difference between te categories of bank
ownership from the perspective of profitability and performance.
Ayyappan and Sakthivadiveln (2013) in their research Profitability analysis of selected

public and private sector banks in India in this study banking sector are more important and
back bone of the nation for economy growth and banks are work at globalised level and there
are introduced new private sector bank to more competitive for public sector bank so they
are analyse the banking performance where are they lacking and they are analyse the
financial variable in the balance sheet and P&L account and it is helpful for showing
performance ups and down during the study period time and concluded that in this study
public sector bank have been used profitability variable to measured banking sector
contribution are positive or negative which will help for improve profitability in global
competition.
Jha and Hui (2012) in their research A comparison of financial performance of

commercial banks: A case study of Nepal In this study they are compare to financial
performance of different types of structured ownership commercial bank in Nepal based on
camel model. and they are taking 18 commercial bank for analysis in given period time 2005
to 2010. They are formulated two regression model was used to analyse net profit margin,
non-performing asset, capital ratio and credit to deposit ratio on financial profitability of
those banks, and concluded that public sector bank are less important efficiency than private
sector bank and private sector bank are also equal efficient to foreign bank. Financial
performances are depending on return on equity and return on assets.
Kumbirai and webb (2010) in their research A financial ratio analysis of commercial bank
performance in South Africa. In highlighted that they are analyse the five years performance
of commercial bank of South Africa during 2005 to 2009. they are employed to measure the
profitability, creditability and liquidity performance of 5 large commercial bank by using
financial ratio. And concluded that in research starting two year increased the performance of
the bank after in 2007 there are globalised financial crisis so result are falling profitability,
low liquidity and deteriorating credit quality in South Africa, reaching its peak during 2008-
2009.
(Akhtar et al, 2011) in their article Liquidity risk management: A comparative study between
conventional and Islamic banks of Pakistan. Bank is a financial intermediaries, deposit
acceptor, facilitator and supporter. This study objective is a liquidity risk associated with
solvency of financial institution and main purpose of evaluation through liquidity risk
management comparative analysis between conventional and Islamic bank of Pakistan. and
concluded that they found positive but insignificant difference between size of bank and
networking capital and there are significant difference between capital ratio and return on
assets is found to positive.
Hanif et al (2012) in their research comparative performance: study of conventional bank

and Islamic bank in Pakistan. In highlighted that they are analyse and compare their banks
and see that which banks are most efficient than other bank. They are taking Islamic bank and
conventional bank and the performance of bank in depth and they are analyse the customer’s
behaviour and perception towards bank and find out the financial performance of bank in
term of profitability, liquidity and credit risk. And concluded that conventional banks are lead
in the profitability and liquidity, but Islamic bank are lead in the credit risk.
Johnes et al (2012) in their article A comparison of performance of Islamic bank and

conventional bank. In highlighted that they are using data environment analysis and they are
analyse financial performance of the conventional bank and Islamic bank during 2004 to
2009 financial crisis. When efficiency is measured to relative a common factor, there is no
significant difference between two banks. When efficiency is measured to relative meta
frontier, there is significant difference between two banks. And concluded that Islamic banks
are perform standardised system but conventional banks are underperforming relatives to
Islamic bank.
Ongore and Kusa (2013) in their article Determinant of financial performance of

commercial bank in Kenya. In highlighted that there are moderating effect of ownership
structure of bank performance and they are used linear regression model and generalised least
panel to find out financial performance of commercial bank in Kenya and concluded that
there are financial performance of commercial bank driven by board and management
decision while macroeconomic factor have no important contribution.
Fayed (2013) in their research Comparative performance: study of conventional bank and
Islamic bank in Egypt. It highlighted that they are doing empirical study is to analyse and
compare the financial performance of three conventional and three Islamic bank and
measured by financial ratio and bank-o-meter and find out financial performance of selected
bank during 2008 to 2010. Concluded those conventional banks are better than Islamic bank
in profitability, liquidity and credit risk as well as solvency.
Singh and Tondon (2012) in their research a study of financial performance: A comparative
analysis of State bank of India and ICICI bank. In highlighted that banking sector is play a
important role for growth and development of Indian economy. SBI is a leading bank of India
in public sector bank and ICICI bank is a second largest bank of India in private sector bank.
So they are comparing and analyse the performance by measured ratio such as credit ratio,
net deposit etc. concluded that SBI is a performing well financially but ICICI bank is better in
management efficiency than SBI bank.
Srinivas and Saroja (2013) in their research Comparative financial performance of HDFC
bank and ICICI bank. In highlighted that they are study the two largest private sector bank
and their aim to analyse and comparing the financial performance and improve the efficiency
of their performance by measuring liquidity, net profit, NPA, capital, loan and net worth etc.
and concluded that there is no significant difference between HDFC bank and ICICI bank’s
financial performance but there is slightly less performance of ICICI bank than HDFC bank.
Taqi and Mustafa (2018) in their research Financial analysis of public and private sector
banks of India: A comparative study of Punjab National bank and HDFC Bank. In highlighted
that banking sector play a major role to mobilize general saving of general public and
banking sector main objective is a generate profit with other various factor. Liquidity is
required for customer’s cash demand and profitability is required for meet the expenses of the
bank. HDFC bank and PNB is a largest banking sector of India. They are comparing and
analyse the financial performance of 10 years (2006-07 to 2016-17). It is find out
performance by using ratio and concluded that PNB is financially better than HDFC bank but
HDFC bank is better than PNB in deposit and expenditure.
Khuskhelly, (2015) in their research Comparative analysis of performance of Islamic vs.

conventional banking of Pakistan during global finance crisis 2007 – 2010. In highlighted
that they are find out the financial performance during financial crisis 2007 to 2010 and
comparing and analyse the performance of Islamic bank and conventional bank by these three
parameter profitability, liquidity and soundness and concluded that cost of deposit are
increased conventional bank as compared as Islamic bank. Non-performing loan are
increased when stability and control on health loan after multi years on conventional bank.
Tahiri (2018) in their research A study on financial performance du Afghanistan bank 2015
and 2016. It highlighted that there is showing the financial performance difference the period
2015 to 2016. There are taking help of financial ratio analysis for measuring the performance
and find out that banking performance is depend on management strategies and management
implementation of the strategies and concluded that management is improve the strategies
and formulation of policies that will improve their performance.
Maheswari (2012) in their article performance evaluation of public and private sector bank
in India: A comparative study. In highlighted that financial performance evaluation of
banking sector is play major role in growth of the economy and there are selected five public
sector bank and five private sector bank for study of 10years performance(1999-00 to 2008-
09). It is measured dispersion of standard deviation and co efficient of variation to evaluate
the performance and concluded that public sector has under gone a significant facelift in
recent year among select private sector are in top ranked.
Vats and Pandya (2015) In their research Financial performance of Indian public, private
and Foreign sector bank after second phase of economic reform. It highlighted that after
economy the banking sector has change a lot new technology, new services and
professionalism has diversified the banking industry and it is find out overall efficiency of
Indian bank categorized in public, private and foreign sector with three parameter
productivity, profitability and efficiency and concluded that foreign bank are beter in
profitability than private and public after respectively
Jha, (2018) in their research Analysing financial performance of public sector banks (PNB)
and private sector bank in India in highlighted that banking sector is the principal constituent
of financial system and it is affected the Indian economy and it is study on PNB and ICICI
bank financial report during 2011-12 to 2017-18. It is compared the both banks expenses and
interest income or net income. It is measured by dividend payout ratio, debt equity ratio and
interest expended to interest earned and concluded that ICICI bank has performed sounder as
compared as PNB.
Garg and Kumari (2015) in their article An empirical analysis of profitability position of
selected private banks in India. In highlighted that profitability analysis is show the existence
of the firm. Profitability is a show the success of the firm, in this paper they are study the
private sector bank during 2004 to 2014 and it is measured Annova test and concluded that in
private sector bank HDFC is leading in profitability and private sector bank.
Gupta and Sundram,( 2015) in their research comparative study of public and private sector
banks in India: an empirical analysis. In highlighted that there are major role play of banking
sector in Indian economy growth. They are taking 2009-10 to 2013-14 financial data of their
selected banks. They are taking three private sector bank (HDFC bank, ICICI bank and Axis
bank) and three public sector bank (bank of baroda, Punjab national bank and centrak bank of
India). And there are taking annual report on their official website after they are measured
performance of public and private sector bank usin g ratio analysis and concluded that private
sector bank performance are better than public sector bank.
sharma and sharma (2017) in their research Comparison and analysis of profitability of top
3 Indian private sector banks. In highlighted that banks profitability is show the financial
performance of the banks. They are tried to study on the basis of 4 financial parameter and
compared their financial performance of three private sector bank by using ANNOVA. They
are also finding out cost to income ratio and net worth. And concluded that there are
differences of banks in 2 parameter out of 4 parameter.
Pinto and Al-Shawesh ( 2018) in their article Financial performance of private sector bank
with reference to ICICI bank and selected private sector banks. in highlighted that they are
the compare the ICICI bank performance with selected banks like HDFC bank, KOTAK
bank and AXIS bank and they are finding that for measuring interest spread, nat margin ratio,
cash and credit deposit ratio and liquid assets to demand deposits. and they are taking 5 years
sample (2012 to 2017) and also measuring by ANNOVA test and concluded that ICICI bank
has better position in net profit margin and debt coverage ratio compared to selected bank.
And also find that the recommendation of the merger of Axis bank and ICICI bank are
perform in term of net worth and ROA. And that merger will be greatest private sector Bank
in India and the country.
Kumar and Anjum (2017) in their research Performance of Banking sector in India: A
comparative study of SBI, ICICI and CITI bank. In highlighted that banking sector is no
doubt important roles play in the Indian economy and growth. After the despite of 2008
recession period every banking sector wonderfully changes. There are merger between weak
banks to larger banks and established the new banks for competition in this sector. And they
are taking SBI, ICICI and CITI bank for financial analysis for the year 2013-14 to 2015-16
with the help of capital adequacy ratio, net profit and total expense and income. And
conclude that all bank have to maintain their capital adequacy ratio example they are
adopting and securing the banks for future risk.
Ashokan and menon ( 2016) in their research A study on operational efficiency of public
and private sector bank in India. In highlighted that there are operational efficiency of India
with objectives of comparative performance of public and private sector bank and their
profitability position of banking sector challenges faced by public sector bank in India. And
they are measuring by their branches and no. of employees strength. And conclude that on
base of study revealed that business per employees and profit per employee is maximum in
case of nationalised bank in study period.
parashuramulu (2018) in their research Profitability and Efficiency analysis of public sector
banks in India – A study of select banks .In highlighted that profitability is important
for banking sector. In this case most important component of bank is profit management of
bank and their risk or method for the analysis and the financial performance analysis main
purpose is to increase the profit based on reduced the expenses and generate revenue. They
are analyse the performance period 2012-13 to 2016-17.by using profit ratio , solvency ratio,
and liquidity ratio. And concluded that profit earning capacity ratio and profitability ratio
remain under pressure due to increase non-performing assets of the bank .
5. RESEARCH
METHODOLOGY
5. Research Methodology
5.1 Problem Statement
What is the position of Axis bank in comparison to other selected private sector banks?
5.2 Objectives
 To study the financial performance of Axis Bank, HDFC Bank and ICICI Bank
 To compare the financial performance of Axis bank in comparison to other selected
banks.
5.3 Research Design
The arrangement of condition suitable for collection and analysis of data varies depending
upon the types of research study. For this research Descriptive research design has been
conducted.
Types of design
The research design is method and process for conducting particular study. It can be
grouped in the three main categories – Exploratory, Descriptive and Causal. In this
study descriptive research design.
Data collection
Types of data used: Secondary data.
The types of study is purely secondary data where data is collection on introduction,
literature review, and data collected from bank website, articles and different research
paper, newspaper.
Tools and technique of data analysis:
The data collected are analysed through descriptive statistics, Ratio Analysis and
ANNOVA
Benefits of study
The study helps to compare the performance of three leading private sector
banks in terms of profitability, solvency, liquidity and coverage ratios.
Limitation of the study
The study is limited to only three private sector bank.
The study is restricted for 5 years.

6. DATA ANALYSIS
6. Analysis of the data

1) Mean:
Mean is the central value of a discrete set of numbers.
2) Standard deviation (SD)

Standard deviation could be a live that's wont to quantify the quantity of variation or
dispersion of a group of information values. A low variance indicates that the
information points tend to be on the brink of the mean (also referred to as the arithmetic
mean of the set, whereas a high variance indicates that the information points square
measure detached over a wider vary of values.
3) Co efficient of variance (CV)
The co efficient of variation (CV) could be a live of relative variability. It is

the quantitative relation of the quality deviation to the mean (average)
6.1 FINANCIAL RATIOS
1) Net Profit Margin

The net gross margin is adequate to what proportion income or profit is generated as
a share of revenue.Net profit margin is that the quantitative relation of web profits to
revenues for an organization or business section.Net profit margin is typically expressed
as a percentage but can also be represented in decimal form. The net profit margin
illustrates how much of each dollar in revenue collected by a company translates into
profit.
Formula:
Net profit margin ratio = (Net income/ revenue)*100
(In percentage)
Average
Bank Mar 19 Mar 18 Mar 17 Mar 16 Mar 15
6.86 0.48 6.54 16.32 16.78
Axis Bank 9.4
18.07 18.31 17.82 17.32 17.77

HDFC 17.86
Bank
4.31
ICICI 9.36 13.30 14.29 18.24 11.9
Bank
(Table 1: Net profit margin of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
An Axis Bank net profit margin has declined from 16.78% to 6.86% in past five years.
Moreover those Axis bank net profit margins are continuously decreased. HDFC bank net
profit margin has increased 17.17% to 18.07% in Mar 19. So it shows that HDFC Bank’s net
profit margins are continuously increased. And ICICI Bank’s net profit margin has declined
18.24% and 4.31%. So it is show that ICICI bank’s net profit margin is continuously
decreased
HDFC Bank’s net profit ratio is better than other two banks.
2) Return on net worth
Return on Net worth is a ratio developed from the perspective of the investor and not the
company. By looking at this, the investor sees if entire net profit was passed on to him, how
much return he would be getting. It explains the efficiency of the shareholders’ capital to
generate profit.
Formula
Return on net worth = Net Income / Shareholders’ Equity
Bank Mar-19 Mar-18 Mar-17 Mar-16 Mar-15 Average

Axis
10.01
bank 9.09 0.53 7.68 17.25 15.51
HDFC
29.09
bank 38.69 33.69 28.38 24.31 20.37
ICICI 2.59 8.36 9.63
6.85
bank 5.27 8.41
(Table 2: Return on Net worth of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis Bank return on net worth has declined from 15.51 to 9.09 so it is show that Axis bank
returns on net worth are continuously decreased. HDFC bank’s return on net worth has 20.37
to 38.69. So it shows that HDFC Bank’s returns on net worth are continuously increased. And
ICICI Bank’s return on net worth has 9.63 to 2.59. So it is show that ICICI bank’s net profit
margins are continuously decreased.
HDFC Bank’s return on net worth ratio is better than other two banks.
3) Return on total assets
The return on total assets may be a profit quantitative relation that measures net financial
gain created by total assets throughout amount by examination earnings to the
common total assets. In alternative words, the return on assets quantitative relation or
ROA measures however expeditiously an organization will manage its assets to
provide profits throughout amount.
Formula:
Return on total assets = Net income/ total assets

Axis
439.33
Bank 583.8 398.8 611.72 156.50 159.28
HDFC 169.37 164.35 168.43 173.47 173
169.73
Bank
ICICI 34.87 77.09 126.99 134.96 172.96
109.37
Bank
(Table 3: Return on total assets of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis bank returns on total asset has increased by159.28% in Mar 15 it is increased 611.72%
in mar17 and after in Mar 19 it is decreased 583.8% in return on total assets. HDFC bank
return on total asset has 173% to 169.37 %. So it means that HDFC bank’s return on assets
ratio is continuously decreased. An ICICI bank return on total asset has 172.96% to 34.87%
So it means that ICICI bank’s return on assets ratios is continuously decreased.
Axis Bank’s return on total assets ratio is better than other two banks.
4) Credit deposit ratio
It is the quantitative relation of what proportion a bank lends out of the

deposits it's mobilised. It indicates how much of a bank's core funds are being used for
lending, the main banking activity. A higher quantitative
relation indicates additional reliance on deposits for disposal and vice-versa.
Formula:
Credit deposit ratio = loans and advances/ deposits

Axis
91.79
bank 90.21 96.91 90.03 94.63 87.17
HDFC 88.76 83.46 86.16 85.02 81.07
84.89
bank
ICICI 89.84 91.34 94.73 97.28 98.17
97.27
bank
(Table 4: credit deposit ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis bank has 87.17% credit deposit ratio in Mar15, 96.91% in mar18 and 90.21% in
mar19.it is show that Axis bank’s credit deposit ratio is increased during mar15 to mar18 but
in mar19 it is decreased. HDFC bank has 81.07% credit deposit ratio in mar15 and 88.76% in
mar19. So it is increased. ICICI bank has 98.17% credit deposit ratio in mar15 and 89.84% in
mar19. So it is continuously decreased.
ICICI Bank’s credit deposit ratio is better than other two banks.
5) Investment deposits ratio
There is a separate loan to deposits ratio the meaning of investments becomes securities (like
bonds, notes, bills and purchased (owned) short-term debt paper). Typically the major asset
(investment) of a bank is loans. So, the investments to deposits ratio do not want to be
maximized but instead a reasonable (for example 15%) amount is in investments. This
provides a return (income) and some liquidity to meet demands of customer withdrawals.
Formula:
Investment deposits ratio = Investment/ deposits

Axis
0.34
bank 0.31 0.33 0.31 0.34 0.41
HDFC 0.31 0.31 0.33 0.30 0.37
0.32
bank
ICICI 0.32 0.36 0.33 0.38 0.52
0.38
bank
(Table 5: Investment deposit ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis bank investment deposit ratio has decreased by 0.41% to 0.31%. So it is continuously
decreased. HDFC bank investment deposit ratio has declined by 0.37% to 0.31% so it is
continuously decreased. ICICI bank has 0.52% investment deposit ratio in mar15 and 0.32 in
mar-19. So it is continuously decreased.
ICICI Bank’s investment deposits ratio is better than other two banks.
6) Cash deposits ratio
Cash Deposit magnitude relation (CDR) is that the magnitude relation of what quantity a
bank lends out of the deposits it has mobilised. It indicates how much of a banks core
funds are being used for lending, the main banking activity. It also can be outlined as
Total of money in hand and Balances with run divided by Total deposits.
Formula:
Cash deposits ratio = total cash/ total liabilities.

Axis 0.63 0.78 7.44 6.24 6.14
3.4
bank
HDFC 5.06 13.27 5.89 5.50 6.11
7.16
bank
ICICI
6.33
bank 5.79 5.90 6.46 6.43 7.09
(Table 6: Cash deposit ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis bank has 6.14% cash deposit ratio in mar15, 7.44% in mar17 and 0.63% in mar19. So it
is show that Axis bank’s cash deposit ratio is increased in mar15 to mar17 after it is
decreased. HDFC bank’s cash deposit ratio is decreased because in mar15 it is 6.11% and
mar17 5.89% but it is increased in mar18 13.27% after in mar 19 5.06% it is decreased. ICICI
bank has 7.09% cash deposit ratio in mar15 and 5.79% in mar19. So it is continuously
decreased.
High Cash ratio indicates that company can pay off its debt easily. As HDFC Bank has
highest cash deposit ratio amongst other two banks. HDFC Bank is better than Axis Bank and
ICICI Bank on the basis of cash deposit ratio.
7) Assets turnover ratio
The assets turnover quantitative relation is A potency quantitative relation that measures
a company's ability to get sales from its assets by examination income with average total
assets. In different words, this quantitative relation shows however with efficiency an
organization will use its assets to get sales.
Formula:
Assets turnover ratio = net sales/ total assets

Axis 1.02 0.89 1.01 0.94 0.98 0.97
bank
HDFC 0.78 0.89 0.91 0.97 0.92
0.89
bank
ICICI 0.71 0.68 0.73 0.75 0.76
0.73
bank
(Table 7: Asset turnover ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation
Axis bank’s asset turnover ratio increased from 0.98 in Mar’15 to 1.02 in Mar’19. Gradually
asset turnover ratio increased over the period of time.
HDFC bank’s asset turnover ratio is constantly in decreasing trend. It was decreased from
0.98 in March’15 to 0.78 in March’19.
ICICI Bank’s asset turnover ratio remain constant for the period of five years.
Overall asset turnover ratio of HDFC bank is good.
8) Interest spread
Net interest spread refers to the distinction in borrowing and disposal rates of
economic establishments (such as banks) in nominal terms. It is thought of analogous to
the profit margin of non-financial firms.
Formula:
Interest spread = (interest income/ interest earning assets) – (interest expense /cost of funds)

Axis bank 4.17 4.80 5.02 1.01 3.11 3.52
HDFC 1.67 1.79 1.23 1.13 2.11
1.59
bank
ICICI 4.38 4.62 4.41 5.64 15.90
6.99
bank
(Table 8: Interest spread of AXIS, HDFC and ICICI bank of latest five year)
Interpretation
Axis Banks’s interest spread increased from 3.11 in March 2015 to 4.17 in March. This shows
increase of interest income from interest earning assts.
HDFC banks interest spread is continuous in decreasing trend. Interest spread for bank is
decreased 21% over the last five year.
ICICI bank’s interest spread is 15.90 in March’15. It is the exceptional year for the bank.
Then after bank continue with average 4.79%.
For the interest spread ICICI bank has outperformed other banks.
9) Current ratio
The current ratio relation could be a liquidity and potency magnitude relation that
measures a firm’s ability to pay off its short liabilities with its current assets. The
current magnitude relation is a very important live of liquidity as a result
of short liabilities area unit due inside successive year.
Formula:
Current ratio = current assets/ current liabilities
Axis 1.81 1.91 1.73 1.84 0.65 1.59

bank
HDFC
bank 0.89 0.80 0.74 1.03 0.58 0.80
ICICI 2.16 2.37 1.82 1.65 0.78 1.76

bank
(Table 9: Current ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation
Axis Bank’s current ratio was 0.65 for the year March’15. It was exceptional case for the
bank. Then afterwards company maintain current ratio 1.82 on the average basis. This is good
for the bank.
HDFC Bank’s current ratio is very low in comparison with standard current ratio for any
firm. Over the span of five year current ratio increased 53%.
ICICI bank’s current ratio is 0.78 for the year March’15 to 2.16 for the year March’19. ICICI
bank continuously working on current ratio to increase.
Within above three banks ICICI bank outperformed HDFC Bank and Axis Bank.
10) Capital adequacy ratio:
The capital adequacy is a major indicate of the financial health of banks it indicates
whether the banks has enough capital to absorb unexpected losses. It reflects the overall
position of the banks and also ability of the management to meet the need for additional
capital and also to maintain depositor’s confidence and preventing the bank from going
bankrupt.

Axis
bank 16 17 15 15 15 15.6
HDFC
16
bank 17 15 15 16 17
ICICI
bank 17 18 17 17 17 17.2
(Table 10: Capital adequacy ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis bank has 15% capital adequacy ratio in Mar15 which was constant for 3 years and after
that it was increase gradually. It shows that bank is increasing their ability of fighting against
unexpected loss.
HDFC bank has 17% capital adequacy ratio in year 2015 and has decreased up to 15% up to
2018 and in 2019 it has achieved 17% in mar18. It shows that bank was having fluctuation in
adequacy ratio but now is in better position.
ICICI bank has an average of 17.2% of capital adequacy ratio for last 5 years, which shows
that bank has sustainable capital adequacy ratio which has shown growth in banking industry
for ICICI bank.
11) Gross NPA Ratio
Gross NPAs are the sum total of all loan assets that are classified as NPAs as per RBI
guidelines as on balance sheet dates. Gross NPAs reflects the quality of loans made by banks.
It consists of all the nonstandard assets like as sub-standard, doubtful, and loss assets. It can
be calculated with the help of following ratio
Formula:
Gross NPAs ratio = Gross NPA*100/ Gross advances

Axis
4.55
Bank 6.02 7.78 5.70 1.79 1.46
HDFC 1.36 1.30 1.06 0.94 0.94
1.12
bank
ICICI 7.89 10.39 9.08 6.02 3.89
7.45
bank
(Table 11: Gross NPAs ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
Axis Bank’s Gross NPA for year Mar’15 is 1.46 while in March’19 it was 6.02. There is a
frequent rise in gross NPA. Gross NPA increased for 4.12 times. This is not good for bank.
HDFC Bank’s Gross NPA for year march’15 was 0.94 while in year March’19 it was 1.36. In
the case of HDFC Bank Gross NPA were also increases.
ICICI Bank’s Gross NPA for March’15 was 3.89 while in March’19 it was 7.89. In the year
March’19 Gross NPA were decrease by 2.5%. This shows good performance for year
March’19. Overall performance was not good.
All above bank’s Gross NPA were increasing over the period of time. Axis Bank’s
performance was very bad in compare to HDFC Bank and ICICI bank. Overall HDFC Bank’s
performance was good in terms of Gross NPA. This will reflect in its balance sheet which
makes it stronger than other banks.
12) Net NPAs Ratio
Net NPAs are those of NPAs in which the bank has deducted provision regarding the NPAs.
Net NPAs show the actual burden of the banks. Since in India, bank balance sheet contain a
huge amount of NPAs and the process of recovery write off loans is very consuming, the
provisions of banks have to make against the NPAs according to central bank guidelines are
quite significant that is why the difference between gross and net NPA is quite high. It can be
calculated by following.
Formula:
Net NPAs Ratio = Gross NPAs – provisions *100/ Gross advance – provisions

Axis
-5.89
bank -6.68 -5.96 -7.04 -4.45 -5.35
HDFC -5.74 -6.06 -10.20 -7.55 -8.72
-7.65
bank
ICICI 1.53 4.77 1.84 -2.12 -4.67
0.27
bank
(Table 12: Net NPAs ratio of AXIS, HDFC and ICICI bank of latest five year)
Interpretation:
The above table shows that all NPAs ratio are negatives in last five years of the Axis Bank.
The provision made by bank against gross NPAs is very much higher. Hence this indicates
there is huge difference between Gross and Net NPAs.
Interpretation:
In the table we can see that average net profit margin of Axis bank is lowest than ICICI bank
and HDFC bank and there are HDFC bank has highest average net profit margin. In the table
Average return of net worth of HDFC bank is higher to compare with Axis bank and ICICI
bank, and Axis bank, Though Axis bank is second in line for return on net worth. It is clear
show that Axis bank has highest average return on total assets so indicate that Axis bank has
better position compared to HDFC bank and ICICI bank. Axis bank has got higher average
interest spread compared to HDFC bank and got lower average interest spread compared to
ICICI bank. So it indicates weakness of Axis bank in total interest income and expenses to
average working fund.
Axis bank has lowest average credit deposit ratio in comparison of HDFC bank and ICICI
bank. It is show that Axis bank need to generate more loans for deposits. Axis bank has
highest investment deposits ratio so it is indicated that it has strong position in comparison of
HDFC bank and ICICI bank. Axis bank has lowest average cash deposit ratio compared to
HDFC bank And ICICI bank. HDFC bank has highest average total asset turnover ratio
compared to ICICI bank and Axis bank. It shows that Axis bank is less efficient in generating
revenue from their assets. Axis bank has highest average capital adequacy ratio in comparison
of HDFC bank and ICICI bank so it is indicate that Axis bank is considered safe and likely to
meet its financial obligation. Axis bank has highest gross NPA and Net NPA ratio in
comparison of HDFC bank and ICICI bank so it is indicate that it has more non-performing
asset.
6.2 Mean, standard deviation and CV of all ratios:
TABLE: - 13 Analysis of mean, standard deviation, co-efficient of variance of net profit margin
Net profit margin
MEAN SD CV
Bank
9.40 6.68 71.12

Axis
17.86 0.003 0.02

HDFC
11.90 0.05 0.44

ICICI
Interpretation:
In the table we show that Axis bank has lowest mean value of net profit margin in
comparison of HDFC bank And ICICI bank. HDFC bank has highest mean value of net profit
margin. Axis bank has highest standard deviation and high co efficient of variance in
comparison of HDFC bank and ICICI bank. So its indicate that Axis bank has low mean
value of net profit margin with highest standard deviation and high coefficient of variance.
Low average mean of net profit margin for the span of 5 year for Axis Bank shows that those
years was not that much good for the bank. For Axis Bank standard deviation is also high
which suggest that bank’s net profit margin was variable and volatile for the period.
On the other hand HDFC Bank and ICICI Bank’s net profit margin were higher for the same
period. There is very less standard deviation for both banks for net profit margin.
In comparison with HDFC and ICICI bank, AXIS Bank underperforms both banks on the
basis of net profit margin.
TABLE: - 14 Analysis of mean, standard deviation, co-efficient of variance of Return on net worth
return on net worth
MEAN SD CV
Bank
10.02 577.43 57.64

Axis
29.09 7.29 0.25

HDFC
6.85 2.87 0.42

ICICI
Interpretation:
From the table we show that mean value of the return on net worth of HDFC bank is higher
than Axis bank and ICICI bank and Axis bank is second inline. And Axis bank has highest
standard deviation with high co efficient of variance. So Axis bank has low mean value of net
worth with highest standard deviation and high co efficient of variance.
Mean of return on net worth for Axis bank is 10.02 while for HDFC bank it is 29.09 and for
ICICI Bank it is 6.85. On the basis of return on net worth’s mean Axis Bank outperformed
ICICI Bank and underperformed HDFC Bank.
TABLE: - 15 Analysis of mean, standard deviation, co-efficient of variance of return on asset
return on total assets
MEAN SD CV
Bank
439.33 0.006788 0.15

Axis
.
169.73 0.000372
0.02
HDFC
109.37 0.005385 0.49

ICICI
Interpretation:
From the table, Axis bank has highest mean value of return on total assets compared to
HDFC bank and ICICI bank. And Axis bank has high standard deviation and moderate co
efficient of variance so it is indicate that Axis bank has highest mean value of return on total
assets with high standard deviation with moderate co efficient of variance.
Standard Deviation for return on total asset ratio for Axis Bank, HDFC Bank and ICICI Bank
was 0.006788, 0.000372, 0.005385 respectively. This represents that there is very minor or nil
deviation for return on total asset ratio.
TABLE: - 16 Analysis of mean, standard deviation, co-efficient of variance of credit deposits
ratio
credit deposits ratio
MEAN SD CV
Bank
91.7932 0.39153 0.01

Axis
84.8978 0.28809 0.03

HDFC
97.2774 0.75997 0.08

ICICI
Interpretation:
From the table we show that ICICI bank has highest mean value of credit deposit ratio And
Axis bank is second in line. Axis bank has moderate standard deviation with low co efficient
of variance. So it is clear that Axis bank has moderate mean value of credit deposit ratio with
moderate standard deviation with low co efficient of variance.
Credit Deposit ratio’s mean for Axis Bank, HDFC Bank, ICICI Bank are 45.89, 84.89, 97.27
respectively.
Higher Credit Deposit ratio shows high reliance on deposits for lending. Axis Bank has least
credit deposit ratio amongst all mentioned bank. This proves that Axis bank is not very much
rely upon deposits for lending money to others.
TABLE: - 17 Analysis of mean, standard deviation, co-efficient of variance of investment
deposits ratio
investment deposits ratio

MEAN SD CV
Bank
0.340309 0.039284 0.02
Axis
0.324846 0.027753 0.09
HDFC
0.381255 0.079364 0.21
ICICI
Interpretation:-
From the table we can show that Axis bank has high mean value of investment deposits ratio
in comparison of HDFC bank and ICICI bank. ICICI bank has highest standard deviation
compared to Axis bank and HDFC bank. And Axis bank has moderate standard deviation
with low co efficient of variance.
Deviation for investment deposits are 0.039, 0.027, 0.079 for Axis ban, HDFC Bank, ICICI
Bank respectively. As the standard deviation for all banks less than 0.5 it is good for all the
banks.
TABLE: - 18 Analysis of mean, standard deviation, co-efficient of variance of cash deposits
ratio
cash deposit ratio
MEAN SD CV
Bank
3.4061 0.007673 0.02

Axis
7.1654 0.034354 0.48

HDFC
6.3391 0.0052 0.08

ICICI
Interpretation:-
From the table we can show that Axis bank has lowest mean value of cash deposit ratiio in
comparison of HDFC bank and ICICI bank. HDFC bank has highest mean value of cash
deposit ratio. HDFC bank has highest standard deviation in compared to ICICI bank and Axis
bank and Axis bank has moderate standard deviation and low co efficient of variance so it is
indicated that Axis bank has low mean value of cash deposit ratio with moderate standard
deviation with low co efficient of variance.
Co efficient of variance value is 0.02, 0.48, 0.08 for Axis Bank, HDFC Bank, ICICI Bank
respectively. Lowest CV is for Axis Bank and highest CV is for HDFC Bank. Lowest CV
determines exact more accuracy.Thus, Axis Bank gave accurate performance for cash deposit
ratio.
TABLE: - 19 Analysis of mean, standard deviation, co-efficient of variance of assets turnover
ratio
assets turnover ratio
MEAN SD CV
Bank
0.975306 0.051225 0.01

Axis
0.898992 0.072064 0.08

HDFC
0.732903 0.030342 0.04

ICICI
Interpretation:-
In this table, it is clear that Axis bank has low mean value of assets turnover ratio in
compared to ICICI bank and HDFC bank. And Axis bank has moderate standard deviation
and low co efficient of variance. So it is show that axis bank has low mean value of assets
turnover ratio with moderate standard deviation and low co efficient of variance.
Co efficient of variance value for asset turnover ratio is 0.01, 0.08, 0.04 for Axis Bank,
HDFC Bank, ICICI Bank respectively. Lowest CV is for Axis Bank and highest CV is for
HDFC Bank. Lowest CV determines more accuracy. In this case also Axis Bank gave
accurate performance.
TABLE: - 20 Analysis of mean, standard deviation, co-efficient of variance of interest spread

interest spread
MEAN SD CV
Bank
Axis 3.529002 1.14617 0.20
1.591419 0.407345 0.26
HDFC
0.71963 0.489519 0.68
ICICI
Interpretation:
In this table we can show that Axis bank has highest mean value of interest spread in
comparison of HDFC bank and Axis bank. Axis bank has also high standard deviation and
low co efficient of variance in compared HDFC bank and ICICI bank. So it is indicate that
Axis bank has high mean value of interest spread with high standard deviation and low co
efficient.
Mean of interest spread for Axis Bank, HDFC Bank, ICICI bank is 3.52, 1.59, 0.71
respectively. With highest mean standard deviation is also high for Axis bank but CV is
lowest for Axis Bank. This represents Axis bank’s good performance in terms of interest
spread.
TABLE: - 21 Analysis of mean, standard deviation, co-efficient of variance of current ratio
current ratio
MEAN SD CV
Bank
1.597137 0.527598 0.07

Axis
0.813639 0.167433 0.21

HDFC
1.761972 0.612385 0.35

ICICI
Interpretation:
From the table we can show that Axis bank has high mean value of current ratio in compared
to ICICI bank and HDFC bank. Axis bank has moderate value of standard deviation and low
co efficient of variance compared to HDFC bank and ICICI bank. So it is indicating that Axis
bank has high mean value of current ratio with moderate standard deviation and low co
efficient of variance.
Mean of current ratio for Axis Bank, HDFC Bank, ICICI bank is 5.52, 1.59, 0.71
lowest for Axis Bank. This represents Axis bank’s good performance in terms of current ratio.
TABLE: - 22 Analysis of mean, standard deviation, co-efficient of variance of capital

adequacy ratio
capital adequacy ratio
MEAN SD CV
Bank
15.6 0.894427 0.01

Axis
16 1 0.06
HDFC
17.2 0.447214 0.03

ICICI
Interpretation:
From the table we can show that Axis bank has high mean value of capital adequacy ratio in
comparison of HDFC bank and ICICI bank. Axis bank has moderate standard deviation and
low co efficient of variance, so it is indicate that Axis bank has high mean value of capital
adequacy ratio and moderate standard deviation and low co efficient of variance.
Capital Adequacy Ratio’s mean value is 15.6, 16, 17.2 for Axis Bank, HDFC Bank, ICICI
bank respectively. This represents Axis Bank has more adequacy to put capital in case of any
losses to other respected banks.
While HDFC Bank has least mean value for capital adequacy with respected banks. Though
from the past it was seen HDFC bank has never state loss in their quarterly or yearly results.
So it can be concluded that HDFC bank’s management is capable to manage their adequacy
to maintain balance with low mean value for capital adequacy with respected banks.
TABLE: - 23 Analysis of mean, standard deviation, co-efficient of variance of Gross NPAs

ratio
Gross NPAs ratio
MEAN SD CV
Bank
4..55 2.78 0.12
Axis
1.12 0.20 0.17
HDFC
7.45 2.55 0.34
ICICI
Interpretation
In this table Axis bank has Highest mean value of average Gross NPAs ratio in comparison of
ICICI bank and HDFC bank. Axis bank has highest standard deviation and low co efficient of
variance so it is show that Axis bank has high mean value of average gross NPAs ratio with
high standard deviation and low co efficient of variance.
Gross NPA’s mean value is 4.55, 1.12, 7.45 for Axis Bank, HDFC Bank, ICICI bank
respectively. This represents Axis Bank has Gross NPA with respected banks. Axis Bank’s
Gross NPA’s are 20.33 times, 3.06 times than HDFC Bank and ICICI Bank respectively.
HDFC bank has least gross NPAs amongst Axis bank, ICICI Bank and HDFC bank itself.
TABLE: - 24 Analysis of mean, standard deviation, co-efficient of variance of Net NPAs ratio
Net NPAs ratio

MEAN SD CV
Bank
-5.89 1.03 -0.03

Axis
1.86
-7.65 -0.24
HDFC
0.27 3.69 13.56

ICICI
Interpretation
Axis bank has low mean value of net NPAs ratio in comparison of HDFC bank and ICICI
bank. Axis bank has low standard deviation and moderate co efficient of variance in
comparison of HDFC bank and ICICI bank. So it is indicate that Axis bank has low mean
value of average net NPAs ratio with low standard deviation and moderate co efficient of
variance.
Axis Banks mean value for Net NPA is -5.89 HDFC Bank mean value for Net NPA is -7.65
while ICICI Bank’s mean value for Net NPA is 0.27.
Above negative data represents that Axis Bank and HDFC Bank made more provisions for
their NPA account. They believe that more NPA can be happen over the period. While ICICI
Bank has positive value for its mean value for Net NPA which suggests that they don’t made
adequate provisions for NPA accounts.
6.3 ANNOVA TEST
1) H0: there is no significant difference net profit margin among selected private sector bank in
India
ANOVA net profit margin

Source of SS df MS F P-value F crit
Variation
Between
Groups 161.522 4 40.38051 1.200169 0.369137 3.47805
Within Groups 336.4569 10 33.64569
Total 497.979 14
Interpretation
As per the table the calculated value of f test 1.20 is less than table value 3.47, hence null
hypothesis is fails to reject and conclude that there is no significant difference between net
profit margin among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
2) H0: there is no significant difference return on net worth among selected private
Source of
Variation SS df MS F P-value F crit
Between
Groups 26.47096 4 6.61774 0.035862 0.997111 3.47805
Within
Groups 1845.338 10 184.5338
Total 1871.809 14
Interpretation
hypothesis is fails to reject and conclude that there is no significant difference between
Return on net worth among Axis Bank, ICICI Bank and HDFC bank Private sector bank in
India.
3) H0: there is no significant difference return on total assets among selected private sector
bank in India
Source of
Between
Groups 46619.86 4 11654.97 0.319886 0.858353 3.47805
Within
Groups 364347.3 10 36434.73
Total 410967.2 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between return
on total assets among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
4) H0: there is no significant difference credit deposit ratio among selected private sector
bank in India
Source of
Between
Groups 20.50668 4 5.126671 0.141331 0.962824 3.47805
Within
Groups 362.7433 10 36.27433
Total 383.25 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between Credit
deposit ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
5) H0: There is no significant difference investment deposit ratio among selected private sector
bank in India
Source of
Between
Groups 0.028107 4 0.007027 4.166008 0.030604 3.47805
Within
Groups 0.016867 10 0.001687
Total 0.044973 14
Interpretation
As per the table the calculated value of f test 4.16 is more than table value 3.47, hence null
hypothesis is rejected and conclude that there is significant difference between investment
deposit ration among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
6) H0: There is no significant difference cash deposit ratio among selected private sector bank
in India
Source of
Between
Groups 17.00631 4 4.251577 0.439341 0.77773 3.47805
Within
Groups 96.77167 10 9.677167
Total 113.778 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between cash
deposit ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
7) H0: There is no significant difference asset turnover ratio among selected private sector
bank in India
Source of
Between
Groups 0.012227 4 0.003057 0.172823 0.947341 3.47805
Within
Groups 0.176867 10 0.017687
Total 0.189093 14
Interpretation
hypothesis is fails to reject and conclude that there is no significant difference between asset
turnover ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
08) H0: There is no significant difference interest spread among selected private sector bank in
India
Source of
Between Groups35.45829 4 8.864573 0.58819 0.678783 3.47805
Within Groups 150.7093 10 15.07093
Total 186.1676 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between interest
spread among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
9) H0: There is no significant difference current ratio along selected private sector bank in India
Source of
Between
Groups 2.035027 4 0.508757 1.560061 0.258585 3.47805
Within
Groups 3.261133 10 0.326113
Total 5.29616 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between current
ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
10) H0: There is no significant difference capital adequacy among selected private sector
bank in India
Source of
Between
Groups 2.266667 4 0.566667 0.447368 0.772282 3.47805
Within
Groups 12.66667 10 1.266667
Total 14.93333 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between capital
adequacy ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India.
11) H0: There is no significant difference Gross NPAs ratio among selected private sector
bank in India
Source of
Between
Groups 39.36304 4 9.84076 0.829608 0.535928 3.47805
Within
Groups 118.6193 10 11.86193
Total 157.9824 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between Gross
NPAs ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India
12) H0: There is no significant difference Net NPAs ratio among selected private sector bank in
India
Source of
Between
Groups 25.69487 4 6.423717 0.291934 0.876641 3.47805
Within
Groups 220.0399 10 22.00399
Total 245.7347 14
Interpretation
hypothesis is fail to reject and conclude that there is no significant difference between Net
NPAs ratio among Axis Bank, ICICI Bank and HDFC bank Private sector bank in India
7. Findings
7. Findings
Axis bank is outperformed in this ratio Return on total assets, Asset turnover ratio and current
ratio than ICICI bank and HDFC bank.
HDFC bank is outperformed in this ratio net profit margin, return on net worth, cash deposit
ratio, gross NPAs ratio and net NPAs ration in comparison of Axis bank and ICICI bank.
ICICI bank is outperformed in this ratio credit deposit ratio, investment deposit ratio, interest
spread and capital adequacy ratio in comparison of Axis bank and HDFC bank.
Axis bank is underperformed in this ratio net profit margin, cash deposit ratio, credit deposit
ratio and capital adequacy ratio in comparison of ICICI bank and HDFC bank.
Analysis of Variances
In comparison with HDFC and ICICI bank, AXIS Bank underperforms both banks on the
basis of net profit margin.
Mean of return on net worth for Axis bank is 10.02 while for HDFC bank it is 29.09 and for
ICICI Bank it is 6.85. On the basis of return on net worth’s mean Axis Bank outperformed
ICICI Bank and underperformed HDFC Bank.
Standard Deviation for return on total asset ratio for Axis Bank, HDFC Bank and ICICI Bank
was 0.006788, 0.000372, 0.005385 respectively. This represents that there is very minor or nil
deviation for return on total asset ratio.
Higher Credit Deposit ratio shows high reliance on deposits for lending. Axis Bank has least
credit deposit ratio amongst all mentioned bank. This proves that Axis bank is not very much
rely upon deposits for lending money to others.
Deviation for investment deposits are 0.039, 0.027, 0.079 for Axis ban, HDFC Bank, ICICI
Bank respectively. As the standard deviation for all banks less than 0.5 it is good for all the
banks.
Co efficient of variance value is 0.02, 0.48, 0.08 for Axis Bank, HDFC Bank, ICICI Bank
respectively. Lowest CV is for Axis Bank and highest CV is for HDFC Bank. Lowest CV
determines exact more accuracy.Thus, Axis Bank gave accurate performance for cash deposit
ratio.
Co efficient of variance value for asset turnover ratio is 0.01, 0.08, 0.04 for Axis Bank,
HDFC Bank, ICICI Bank respectively. Lowest CV is for Axis Bank and highest CV is for
HDFC Bank. Lowest CV determines more accuracy.
Mean of interest spread for Axis Bank, HDFC Bank, ICICI bank is 5.52, 1.59, 0.71
lowest for Axis Bank
Mean of current ratio for Axis Bank, HDFC Bank, ICICI bank is 5.52, 1.59, 0.71
lowest for Axis Bank.
They believe that more NPA can be happen over the period. While ICICI Bank has positive
value for its mean value for Net NPA which suggests that they don’t made adequate
provisions for NPA accounts.
There is no significant difference between net profit margin, return on net worth, return on
total assets, credit deposit ratio, cash deposit ratio, interest spread, current ratio, asset
turnover ratio, capital adequacy ratio, gross NPAs ratio and net NPAs ratio among AXIS,
HDFC and ICICI private sector bank in India, since the calculated value of F is less than the
table value. We fail to reject null hypothesis. The alternative hypothesis there is a difference
between Investment deposits ratio among AXIS, HDFC and ICICI private sector bank in
India, Since the calculated value is higher than table value. We reject null hypothesis and fail
to reject alternative hypothesis. This clearly indicates that there are negative differences in
comparison of Axis Bank and selected private sector bank.
8. Conclusion
8. Conclusion
With the various techniques applied in finding the financial performance of the Axis bank in
comparison of HDFC bank and ICICI bank, we find that Axis bank has got the highest return
on total assets, investment deposit ratio and capital adequacy ratio with positive difference in
term of the variances. Overall Axis bank has got satisfactory financial position irrespective of
having moderate and lowest ratio in term of return on net worth, current ratio, interest spread,
net profit margin, credit deposit ratio, cash deposit ratio and asset turnover ratio. In order to
achieve better financial position focus should be given to increase net profit margin, increase
return on share capital, current assets which will provide better liquidity position. Overall
HDFC Bank stands on first position followed by AXIS Bank and ICICI Bank in terms of
financial performance.
9. Recommendation
In order to achieve better financial position focus should be given to increase net
profit margin, increase return on share capital, current asset ratio which will lead to
better position of bank in comparison to its competitors.
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Web links
 Axis Bank. <http://www.axisbank.com>.

 https://www.axisbank.com/about-us/corporate-profile
 https://www.hdfcbank.com/aboutus/cg/annual_reports.htm
 https://www.icicibank.com/aboutus/annual.page
 Shodh Ganga
<http://shodhganga.inflibnet.ac.in/bitstream/10603/2299/10/10_chapter
%20 1.pdf>
 https://www.hdfcbank.com/
 https://www.icicibank.com/

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A

Summer Internship Project Report

Institute code: 750

Under the guidance of

In the Partial Fulfilment of the Requirement of the award of the degree of

Last section contains the “Findings, Suggestions and Conclusion”

I would be thankful to AXIS Bank for giving me an opportunity for pursuing my

The project is on “A study on financial performance analysis of Axis Bank in comparison of

 EXTERNAL EXAMINAR CERTIFICATE

Sr. No. Particulars Page no.

6. Data Analysis and Interpretation 39

Sr. No. Particular

5 Investment deposit ratio of AXIS Bank, HDFC Bank And 5 45

There are six types of financial performance analysis

Shareholders as investors, banks, financial institutions, material suppliers, government

3. Short term analysis

2.1 Global level scenario of Banking Industry

This began around 2000 B.C. in geographical region and Chaldea.

During the twentieth century, developments in telecommunications and computing

4. Change, Change, Change

The major step included below the steps

The first section of economic reforms resulted within the nationalization

The producing sector conjointly grew throughout the Nineteen Seventies in

The Federation is currently working on three major areas

2.4 PESTEL OF BANKING INDUSTRY

Banks are now focusing on paperless and hassle-free working. Establishment of

2.5 CURRENT TRENDS IN BANKING INDUSTRY

Few trends in Banking Industry

 Automated Teller Machine (ATM)

2.6 MAJOR PLAYERS IN BANKING INDUSTRY

Panchsheel Mercantile Cooperative

Yes Bank Bank of Baroda Prime Cooperative bank

Dhanlakshmi Surat Mercantile Cooperative Bank

Surat National Cooperative Bank

DCB Bank Syndicate Bank Varachha Cooperative bank Ltd.

Surat District Cooperative Bank

2.7 Major offering in banking industry

 Personal Banking & Corporate Banking

Some of features of priority banking are

The registered office of Axis Bank is located at :

‘Trishul', 3rd Floor,

Opposite Samartheshwar Temple,

Near Law Garden, Ellisbridge,

Ahmedabad, Gujarat – 380 006

Mission, Vision & Values

 To be the preferred financial solutions giver excelling in customer delivery through

DIVISIONS/ DEPARTMENTS OF AXIS BANK LTD.

Cheque Clearing Division

SWOT ANALYSIS OF AXIS BANK LTD.

 Higher cost & service charges.

 Expansion in rural areas.

 Threat of new entrant.

(Haque, 2013) in their article comparison of financial performance of commercial bank: - A

Sharma and Sharma (2018) in their studied A comparative appraisal of financial

Ayyappan and Sakthivadiveln (2013) in their research Profitability analysis of selected

Jha and Hui (2012) in their research A comparison of financial performance of

Hanif et al (2012) in their research comparative performance: study of conventional bank

Johnes et al (2012) in their article A comparison of performance of Islamic bank and