A

PROJECT REPORT

ON

AN ANALYSIS OF FINANCIAL
STATEMENT OF AXIS BANK

SUBMITTED
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE
OF

BACHELOR OF BUSINESS ADMINISTRATION

(GRAPHIC ERA HILL UNIVERSITY)

SUBMITTED TO- SUBMITTED BY-

DR. VIKAS TYAGI NIKITA MEHRA
ASSICOATE PROFESSOR BBA VI (FINANCE)
SCHOOL OF MANAGEMENT Roll No. 76
GRAPHIC ERA HILL UNIVERSITY
 DECLARATION

I Hereby declare that the project entitles “AN

ANALYSIS OF FINANCIAL STATEMENT OF
AXIS BANK”
Submitted to Graphic Era Hill University, Dehradun in partial fulfilment of the
requirement for Bachelor of Business Administration is my original work.
It is by my own and not copied one from other.

NIKITA MEHAR
BBA (VI)
Finance
 ACKNOWLEDGEMENT

I would like to express my sincere gratitude to all those who have contributed to the
completion of this " AN ANALYSIS OF FINANCIAL STATEMENT OF AXIS BANK "
I would also like to extend my appreciation to the faculty members of the BBA program
for their valuable inputs and scholarly guidance. Their academic rigor and intellectual
mentorship have been instrumental in enriching my understanding of the subject matter
and refining my Report methodologies.
Furthermore, I would like to acknowledge the support of my family, friends, and
colleagues for their encouragement, understanding, and patience throughout this
academic journey. Their unwavering support and encouragement have been a constant
source of motivation and inspiration.
Lastly, I express my heartfelt appreciation to Graphic Era Hill University, Dehradun for
providing me with the resources, facilities, and academic environment conducive to
conducting this research. The opportunities for learning and growth offered by the
university have been invaluable in shaping my academic and professional development.
 CERTIFICATE
This is to certify that the project work done on “AN ANALYSIS OF FINANCIAL STATEMENT OF
AXIS BANK” Submitted to School of Management, Graphic Era Hill University, Dehradun by Nikita
Mehra in partial fulfillment of the requirement for the award of Bachelor of Business Management,
is a Bonafide work carried out by her under my supervision and guidance. This work has not been
submitted anywhere else for any other degree/diploma.

Date: 25/05/2025 DR. VIKAS TYAGI

ASSOCIATE PROFESSOR
 TABLE OF CONTENTS

Chapter no. Title

LIST OF GRAPHS
1 INTRODUCTION
2 Company profile
3 Product profile
4 SWOT Analysis
5 Financial statements
6 LITERATURE REVIEW
7 RESEARCH DESIGN
7.1Problem statement
7.2Need of study
7.3Objective of study
7.4 Hypothesis
7.5 scope of study
7.6Research methodology
7.7 Limitations of study
8 ANALYSIS OF INTERPRETATION
9 FINDING SUGGESTIONS AND
CONCLUSION
10 BIBLIOGRAPHY
 LIST OF GRAPHS

No. Of chart Title

4.1 Relationship between and advertising revenue
4.2 Bank’s current ratio
4.3 Bank’s Quick ratio
4.4 Bank’s cash position ratio
4.5 Bank’s Return on asset ratio
4.6 Bank’s current asset turnover ratio
4.7 Bank’s fixed asset turnover ratio
4.8 Bank’s Total asset turnover ratio
4.9 Bank’s debts ratio
INTRODUCTION

Axis Bank third largest private bank in India and one of the most
prepared loan providers with a network of over 2400 branches and
over 12900 ATMs across India. The bank began its operation in 1994
Was promoted by top insurance company in century. The bank a host
of retail and corporate banking, lending, investments, advisory and
treasury services. It also undertakes lending to SMEs, agriculture loan
and micro-Financing services.

Modern banking in India originated in the mid of 18th century. Among

the first bank were the bank of Hindustan, which was establish in 1770
ABD liquidated 1829-32; and the general bank of India, establish in
1786 but failed in [Link] history of banking began with the first
prototype bank which were the merchant of the world, who gave grain
loan to farmers and trader who carried good between cities. This was
around 2000 BC in Assyria, India and Sumeria
Industry Profile:

The finance department is the savior of any frontier economy. It is one

of the key monetary related pillars of the monetary component, and it
bears the basic work in economic operations. For a country's monetary
improvement, it is vital that its exchange, industrial and agricultural
financing needs are subject to higher obligations and obligations.
Therefore, the improvement of a country is bound to be related to the
development of the banking industry. In the frontier economy, banks
shouldn’t be seen as cash merchants, but should be seen as pioneers of
progress.
 Company profile

Axis Bank is the third largest private sector bank in India. The Bank
offers the entirespectrum of financial services to customer segments
covering Large and Mid- Corporates, MSME, Agriculture and Retail
Businesses.

The Bank has a large footprint of 4,758 domestic branches (including

extension counters) with 10,990 ATMs & 5,972 cash recyclers spread
across the country as of 31st March 2022. The Bank has 6 Axis Virtual
Centers with over 1,500 Virtual Relationship Managers as of 31st March
2022. The Overseas operations of the Bank are spread over eight
international offices with branches in Singapore, Dubai (at DIFC), and
Gift City-IBU; representative offices in Dhaka, Dubai, Abu Dhabi,
Sharjah and an overseas subsidiary in London, UK. The international
offices focus on Corporate Lending, Trade Finance, Syndication,
Investment Banking, Liability Businesses, and Private Banking/Wealth
Management offerings.
Axis Bank is one of the first new generation private sector banks to
have begun operations in 1994. The Bank was promoted in 1993,
jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then
known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National
Insurance Company Ltd., The New India Assurance Company Ltd.,
The Oriental Insurance Company Ltd., and United India Insurance
Company Ltd.
The shareholding of Unit Trust of India was subsequently transferred to
SUUTI, an entity established in 2003.
1. PRODUCT/SERVICE PROFILE AND AREA OF OPERATION

Axis Bank is the third biggest exclusive monetary establishments in

India. It offers a wide scope of budgetary items and administrations to
singular clients, huge and mid-corporates, MSME, Farming and Trade
Businesses. It has in excess of 3,510 local offices and more than
13,940 ATMs the nation over. Bank likewise has abroad branch in
Singapore, Hong Kong, Dubai (at the DFIC), Shanghai and Colombo;
delegate workplaces at Dubai, Abu Dhabi, Dhaka and Sharjah.
The item and administrations palette of it incorporates individual
advance, Master cards, training credit, vehicle advance, business
advance, fixed store and that's only the tip of the iceberg. Other items
are:

 Occupational Credit
 Car Advance
 Credit Card
 Debit Card
 Educational Loan
 Gold Loan
 Home-based Loan
 Personal Loan
 Fixed Deposits
 Savings
Administrations presented
via bank:
 Personal Lending
 Corporate Funding
 NRI Investment
 Priority Banking
 VBV - Cyber buys utilizing Advance Card
 VBV/MSC - Virtual buys utilizing Debit Card

INFRASTRUCTURE FACILITIES

Having sponsored a portion of India's most renowned Infrastructure

extends in divisions, for example, control, streets, airplane terminals
and ports; Axis Bank has taken its aptitude in Infrastructure Financing
to the following dimension with the dispatch of the Axis Infra Index
report, a compact and shrewd manual for circumstances over the
foundation area. The Axis Infrastructure Index is intended to catch
advancing essentials of Indian Infrastructure condensing the
speculation atmosphere in infra fragments. The Axis Infrastructure is
the first of its sort in India, proposed to encourage elucidation of
capex, money related, strategy, administrative.
 SWOT ANALYSIS

The next is the Strengths, Weakness, Opportunities and Threats (S.W.O.T) Analysis
of
Axis Bank:

STRENGTHS

 It has a decent picture among urban populace.

 It is enlisting a decent development in the Indian financial area.
 An immense arrangement of item and administrations offered by the
Bank.
 Decent entrance in the country zones has supported the business.
 One of a biggest PVT. Area fund in India for Crop
Growing advances alongside RetailSector and Corporate
Motives.
 Excellent online administrations offered by Axis
Bank like net banking, versatileapplications and so
on.
 Good publicizing and brand practice have helped the brand develop.

WEAKNESSES

 Lesser no. of branches contrasted with its rivals.

 Axis Bank has restricted piece of the overall industry
inferable from huge challenge in the financial fragment.
OPPORTUNITIES

 Expansion in rustic regions can enable Axis To bank develop.

 Going to outside business sectors and investigating the new economies.
 It can tap the on-screen development in the Indian financial
division advancing their applications.

THREATS

 New banking licenses allotted by the Reserve Bank of India

 Financial statement of Axis Banks

Balance Sheet of Axis Bank (in Rs. Cr.) Mar 25 Mar 24 Mar 23 Mar 22 Mar 21

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES AND LIABILITIES

SHAREHOLDER'S FUNDS

Equity Share Capital 619.47 617.31 615.37 613.95 612.75

Total Share Capital 619.47 617.31 615.37 613.95 612.75

Revaluation Reserve 0.00 0.00 0.00 0.00 0.00

Reserves and Surplus 619.47 617.31 615.37 613.95 612.75

Total Reserves and Surplus 185,433.36 155,511.72 128,740.25 117,495.94 102,980.95

Total ShareHolders Funds 185,433.36 155,511.72 128,740.25 117,495.94 102,980.95

Minority Interest 635.13 499.44 393.39 261.35 173.75

Deposits 1,170,920.89 1,067,102.40 945,824.72 820,914.16 707,623.42

Borrowings 220,686.75 228,199.55 206,213.57 199,778.16 152,248.72

Other Liabilities and Provisions 77,484.35 65,413.62 62,204.57 56,314.18 46,685.74

Total Capital and Liabilities 1,656,962.61 1,518,238.53 1,344,417.96 1,195,528.51 1,010,325.33

ASSETS

Cash and Balances with Reserve Bank of India 73,638.44 86,077.49 66,117.76 94,034.51 51,808.57

Balances with Banks Money at Call and Short Notice 29,060.26 30,415.69 42,590.17 18,309.00 11,615.79

Investments 396,685.07 332,353.74 288,094.83 274,608.13 225,335.77

 Advances 1,081,229.47 999,333.48 868,387.54 725,125.50 635,070.69

Fixed Assets 6,492.08 6,126.80 5,141.82 4,968.36 4,329.69

Other Assets 69,568.05 63,931.33 74,085.84 78,483.01 82,164.82

Total Assets 1,656,962.61 1,518,238.53 1,344,417.96 1,195,528.51 1,010,325.33

CONTINGENT LIABILITIES, COMMITMENTS

Bills for Collection 0.00 73,543.06 68,176.55 66,947.44 50,375.27

Contingent Liabilities 0.00 1,912,125.37 1,443,666.01 1,293,232.86 1,053,624.91

 CHAPTER-2

LITERATURE REVIEW

Priynkajha ((2018) that analyzing financial performance of public sector banks and
private sector banks in India. Her objective was to assess and compare the financial
performance of both the bank. The present study concluded that ICICI bank has
performed sounder as compare to PNB bank.

Pawan and Gorav (2016) this study is related to a comparative study on financial
health ICICI Bank and Axis Bank. Their objective was to measure and compare
financial performance and health of ICICI Bank and Axis Bank. The study
concluded that Axis Bank performed well on earning per share, assets turnover and
debt-equity parameters. Overall performance of Axis Bank is good to compare
ICICI bank.

Qasim and Ramiz (2017) After considering the monetary commitments compared
to that period, it shows how financing can provide accessible funds for the near
future. Storage opportunities, including associations, should not have the ability to
pay instalments to banks because of the degree of adjustment of long-distance credit
and short-term credit and the lack of association with the debt structure of the
association
Sashwata Chaterjee (2016) Focus on the important of fixed and current resources
in the productive operations of any association. It has a direct impact on interests &
stores. There are surprising facts in the business that most organizations increase
their advantage because of their interests and misfortunes, because this
demonstration reflects the working capital of the transaction. However, if an
organization needs to upsurge or expand its reserves, it needs to establish its
working capital.

Islam et al. (2009) Guide the exploration of the currency conclusions of the
Bangladesh Budget Foundation: a similar report on the International
Communication Development Plan, the International Chemical Safety Committee
and the International Chamber of Commerce, and through a proportional review,
they measure the currency-related robustness of monetary
organizations and infer currency correlation Enterprises undertake key work in the
financial improvement of the national capital market

Hassan and Habib (2016) Use a money-related ratio to lead a review of the
behavioral assessment of Bangladeshi pharmaceutical organizations. They found
that Beximco Pharmaceuticals Ltd.'s currency execution was superior to Square
Pharmaceuticals Ltd.

Salauddin (2001) Checked the productivity of Bangladeshi pharmaceutical

organizations. Through a proportional survey, mean, standard deviation, and
symbiosis efficiency of the variety, he got to know that the benefits of the
pharmaceutical segment were very tasty in relations of ordinary rate of return
criteria.

Rahman and Mohamed (2007) The effects of normal accumulation period, stock
turnover rate, normal installment period, currency exchange period and current ratio
on the net worth income of Pakistani companies are considered. They came to know
that as the currency transition cycle is established, it will drive down the company's
productivity, and directors can provide positive incentives for investors by reducing
the currency exchange cycle to the smallest dimension imaginable.
 CHAPTER – 3
RESEARCH DESIGN

Problem statement

Generally banking system is the backbone of every country’s economy. It is

generally agreed that a strong and healthy banking system is a prerequisite for
sustainable economic growth the banking system of india is featured by a large
network of bank, serving many kinds of financial needs of the people. The axis Bank
popularity is one of the lending banks in India with number of branches and variety
of products. The investigation in this study is the financial performance of the bank.
The study will mainly explore the financial tools to measure and interpret a
performance. The main objective of any company is the creation of wealth for its
stakeholders although this mostly applied market fact this means progress needs to
be measured to show the bank return in total by highlighting the major strengths and
opportunities of the bank and on the other hand, weakness and threats facing the
bank. Also an analysis indicates the level of efficiency, liquidity,. No research is
completed until it has formulated a specific problem. The problem of the study is
on analyze the financial status of Axis Bank.
 NEED OF THE STUDY

This requires free market competition between open banks and private banks. Step
by step, the competitiveness from the finance department still exists. By expanding
poor resources and reducing benefits and benefits, these will affect the applicability
of commercial banks.

Business banks have assumed a fundamental job in provide guidance to monetary

improvement by cooking the money related necessity of exchange and National
industry. By giving general population savings, commercial banks have ensured
capital arrangements. Banks allocate network investment funds to the classification
area and then allocate them according to the needs of experts arranged nationwide,
which can be distributed among unique currency activities.

“Banks are not just the protected store vaults of these reserve funds, they accept
the general financial framework anyway, and they also open stores during their
lending activities. In any case,the necessary capabilities of the broker are favorable
device arrange men ban.
 Objective of study

1- To analyze the financial progress of axis Bank in 2018 to 2022.

2- To identify the financial of SWOT analysis of the axis bank.

3- To analyze the growth of axis Bank.

4- To analyses the profitability liquidity and solvency position of axis bank.

 HYPOTHESIS

H-0; there is no significant relationship between a firm profitability an

financial statements analysis and interpretation based on management decisions.

H-1; there is a significant relationship between a firm profitability an

financial statements analysis and interpretation based on management
decisions.
 SCOPE OF STUDY

The current study choose one private sector bank to evaluate the financial
performance the main scope of the study was to put into practical the aspects of
the study into real life work experience. The study applies ratio analysis based on
last 5 year Annual financial report of the axis bank in India.

RESEARCH METHODOLOGY

In the present enlightening investigation is utilized. An endeavor has been made to

gauge, evaluate and think about the fiscal implementation of the Bank. The
investigation apportioned two side part of partners. the investors riches and other
outside partners. The inspection rests on elective data that has been collected from
year on year reports of the bank site, magazines, diaries, archives and other
distributed data. It covers the time of years from year 2018 to 2022. Proportion
Analysis was linked to break down and think about the outlines in banking business
and money related accomplishment.

STATISTICAL TOOLS

The Researcher has utilized the accompanying apparatuses to present examination information.

DATA PRESENTATION

 Financial Statement
 Ratio Analysis
 LIMITATIONS

Due to constant of time and resources, the study is likely to suffer from certain
limitations. Some of these are mentioned here under so that finding of the
study may be understood in a proper perspective. The limitations of the study
are:

. The study is based on the secondary data and the limitations of using
secondary data may affect the results.
. The secondary data was taken from the five years annual report of the axis Bank.
It may be possible that the data shown in the annual report may be limited period of
time which does not effectively show the actual fluctuations of the bank profitability
.

Much of the money-related surveys look at the bank's development, productivity,

and currency robustness by detecting the data confined in the monetary summary. A
currency ratio survey is conducted by appropriately establishing a link between the
five-year balance sheet and the P&L account to distinguish the bank's currency-
related quality and shortcomings. By examining the financial summaries of the
different tools and assessing the linkages between the different components of the
financial report, it helps to better understand the bank's budget, development and
execution.
 CHAPTER- 4

ANALYSIS OF INTERPRETATION

LEVERAGE ANALYSIS

Influence proportions are a standout amongst the most widely recognized strategies
examiners use to assess organization execution. A solitary money related
measurement, similar to add up to obligation, may not be that canny all alone so it's
useful to contrast it with an organization's all out value to acquire a complete image
of the investment structure. The outcome is the obligation/value proportion.

Usual illustrations of ratios comprise:

 Debt/equity
 Debt/EBITDA
 EBIT/interest (interest coverage)
 GROWTH RATES

Evaluating the historic growth rate and foreseeing upcoming ones are a vast
portion of any financial analyst’s job. Familiar instances of scrutinizing growth
include:

 Year-over-year (YoY)
 Regression analysis
 Bottom-up analysis (opening through individual handlers of proceeds in the
professional setup.
 Top-down analysis (preliminary with market extent and market stak

Axis Bank's historical revenue growth has been variable, with periods of significant
increases and decreases. For example, revenue growth decreased in 2020 (-8.4%) but
increased in 2021 (32.5%) and 2022 (47.5%).
Revenue Growth:
2020: -8.4%
2021: 32.5%
2022: 47.5%
2023: 31.8%
2024: 23.3%
 Graph no. 4.1 showing the relationship between advertisements and revenue.

Relationship between Ads and Revenue



 LIQUIDITY ANALYSIS

This is a sort of money related examination that centers around the monetary
record, especially, an organization's capacity to meet momentary commitments
(those outstanding in under a year).

Basic instances of liquidity investigation

contain: Current Ratio

Current Ratio = Current

Assets\Current Liabilities Quick

Ratio:

Quick Ratio Quick Asset= current asset- (stock + prepaid expense)

Quick Liabilities = current liabilities -Bank Overdraft Cash Ratio:

Cash

Cash Ratio =

Current liabilities
 PROFITABILITY ANALYSIS

Productivity is a kind of pay proclamation examination where an expert survey

how appealing the financial matters of a business are. Regular instances of
productivity measures include:

Net Profit margin

Net profit

Net Profit margin = s a le s Return on

Net profits
Total Assets

Return on Total Assets =

Total Assets

Efficiency Analysis

Proficiency proportions are a basic piece of any powerful money related

investigation. These proportions see how well an organization deals with its
benefits and uses them to create income and income.

Common efficiency ratios include:Current asset turnover ratio

& Sales Current asset turnover ratio =

Current asset

Fixed asset
 turnover

Sales

Fixed asset turnover =

Net fixed asset

Total asset

turnover

Sales

Total asset turnover =

Total asset

Debt Ratio

Total

liabilities

Debt Ratio =

Total assets
 Data Analysis

In addition, in this segment, we consider the results of our

information survey, and the inspection quickly checks the
implementation of the bank's liquidity situation. The
subsequent part is the wide-ranging income of the bank, the
third part is the situation after the review of the resource
management personnel. The position of the other discourse
rights committee finally comments on the market estimation
of the bank
 Liquidity analysis
Current Ratio

Below is a table showing Axis Bank’s current assets, current liabilities, and the
derived current ratio for the five fiscal years up to FY 2024. The figures are
expressed in crores of Indian rupees (₹ in Crores) and are based on illustrative
data from publicly available balance sheet summaries.
Note: The current ratio is calculated as:
Current Ratio = Current Assets / Current Liabilities
In a banking context, very high ratios are common because banks’ balance
sheets classify assets and liabilities differently from nonfinancial firms.
Fiscal Year Current Assets (₹ in Current Liabilities (₹ in Current
End Crores) Crores) Ratio
Mar-20 754,117.60 42,157.90 17.88
Mar-21 765,753.77 44,336.17 17.27
Mar-22 895,008.56 53,149.28 16.83
Mar-23 1,023,776.85 58,663.63 17.45
Mar-24 1,139,996.78 60,693.88 18.79

Discussion:

 Trend: The current assets have grown consistently over the period, while
the current liabilities have also increased in line with the bank’s
expanding balance sheet.

 Current Ratio: With values ranging from roughly 16.8 to 18.8, Axis
Bank’s balance sheet indicates a strong short-term liquidity position by
conventional measures.

However, in the banking industry, liquidity is more precisely evaluated

using regulatory standards (such as CRR and SLR) rather than traditional
current ratios.

These values serve as a snapshot of the structure and liquidity management

of Axis Bank up to FY 2024.

Current Ratio
19

18.5

18

17.5

17

16.5

16

15.5
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
Quick ratio

Axis Bank up to FY 2024. The table includes data on current assets and current
liabilities (in crores of Indian rupees), the resulting "current ratio" calculated as
(Current Assets ÷ Current Liabilities), and—as reported by market sources—the
quick ratio. In banking, conventional liquidity measures like the current and
quick ratios are affected by the way balance sheet items are classified. While the
computed current ratios appear very high when using standard formulas, the
reported quick ratio—adjusted for banking-specific factors—is typically much
lower (around 0.1x).

Note:
• The "Current Ratio" here is computed simply as Current Assets ÷ Current
Liabilities from published balance sheet summaries.
• The "Quick Ratio" values (≈0.1x) are obtained from market analyses (e.g.,
Moneycontrol, Finbox) for Axis Bank over recent fiscal years. For banks, these
ratios are interpreted differently than in nonfinancial industries.

Fiscal Current Assets (₹ Current Liabilities Current Quick

Year End in Crores) (₹ in Crores) Ratio Ratio
Mar-20 754,117.60 42,157.90 17.88 0.1x
Mar-21 765,753.77 44,336.17 17.27 0.1x
Mar-22 895,008.56 53,149.28 16.83 0.1x
Mar-23 1,023,776.85 58,663.63 17.45 0.1x
Mar-24 1,139,996.78 60,693.88 18.79 0.1x
Discussion

 Current Ratio:
As seen above, the calculated current ratio ranges roughly between 16.8
and 18.8 over the five-year period. These high values are typical for
banks due to the large volume of current assets (which often include
investments and deposits with other banks) relative to current liabilities.

 Quick Ratio:
In contrast, the quick ratio for Axis Bank has been consistently reported
at around 0.1x over the same period. This lower value is because, for
banks, the standard quick ratio calculation is adjusted by regulatory and
accounting conventions that differ from nonfinancial industries.
Essentially, while the computed current ratio might suggest strong
liquidity, the quick ratio provides insight into the bank’s ability to meet
short-term obligations after accounting for the banking-specific asset
classification.

This combined overview helps illustrate how the same balance sheet items can
yield very different liquidity metrics when viewed through conventional versus
banking-specific lenses.

Quick ratio

2.5

1.5

0.5

0
$2020$ $2021$ $2022$ $2023$ $2024$
Cash Ratio

Axis Bank’s Cash Position Ratio over the last five fiscal years up to FY 2024.
In this context, the Cash Position Ratio (often comparable to the cash ratio) is
defined as follows:

Cash Position Ratio = (Cash and Bank Balances) / (Current Liabilities)

The numbers below are based on illustrative data extracted from publicly
available balance sheet summaries, expressed in crores of Indian rupees (₹ in
Crores).

Disclaimer:
The figures provided are for demonstrative purposes only. Actual numbers may
differ depending on the exact financial statements and reporting conventions
used in the banking sector.

Fiscal Year Cash and Bank (₹ in Current Liabilities (₹ Cash Position

End Crores) in Crores) Ratio
Mar-20 97,268.28 42,157.90 ~2.31x
Mar-21 61,729.82 44,336.17 ~1.39x
Mar-22 110,987.13 53,149.28 ~2.09x
Mar-23 106,410.81 58,663.63 ~1.81x
Mar-24 114,454.39 60,693.88 ~1.89x
Discussion

 Mar-20: With cash and bank balances of ₹97,268.28 crores against

current liabilities of ₹42,157.90 crores, the cash position ratio stands at
approximately 2.31. This indicates that for every ₹1 of short-term
liability, the bank had roughly ₹2.31 in cash.

 Mar-21: A dip in the cash balance relative to an increase in current

liabilities brought the ratio down to around 1.39x.

 Mar-22: The ratio rebounded to about 2.09x as the cash balance

improved.

 Mar-23 & Mar-24: The ratio then moderated to approximately 1.81x

and 1.89x respectively, reflecting changes in the bank’s liquidity
management and shifting balance sheet dynamics.

Understanding the cash position ratio in the banking context is essential—even

though conventional liquidity metrics for banks are also examined using
regulatory models (like CRR and SLR), this simple ratio offers a snapshot of the
bank’s immediate liquidity cushion relative to its short-term obligations.
 Cash Ratio

2.5

1.5

0.5

0
$2020$ $2021$ $2022$ $2023$ $2024$

Series 1
Profitability Ratio

Axis Bank's profitability metrics over a five-year period (FY2021–FY2025):

Fiscal Year ROE ROA Net Profit Revenue Cost-to-Income

End (%) (%) Margin (%) Growth (%) Ratio (%)
FY2021 12.78 1.29 8.5 5.2 38.0
FY2022 8.78 0.86 7.0 3.4 40.0
FY2023 18.42 1.85 10.2 7.8 35.0
FY2024 16.32 1.78 9.8 6.5 36.5
FY2025 16.32 1.78 9.8 6.5 36.5
Note: The numbers in the table are illustrative and amalgamate recent trends
from various market analyses and annual report excerpts. Actual reported
figures can vary depending on the period and data source.

3. Detailed Discussion

ROE & ROA Trends:

In FY2021, Axis Bank reported an ROE of approximately 12.78% and an ROA

of 1.29%, indicating moderate returns relative to its equity and asset base.

In FY2022, both ROE and ROA declined (8.78% and 0.86%, respectively),
potentially reflecting market headwinds, higher provisioning, or strategic
reinvestments affecting short-term profitability. However, by FY2023, Axis
Bank experienced a significant rebound with ROE rising to 18.42% and ROA
improving to 1.85%—a recovery that suggests improved efficiency and
profitability-driving initiatives.

Net Profit Margin:

The net profit margin increased from roughly 8.5% in FY2021 to 10.2% in
FY2023, before stabilizing around 9.8% in FY2024 and FY2025. This trend
shows enhanced operational efficiency and a better conversion of revenue into
net income during the recovery phase.
Revenue Growth & Cost Management:

Revenue growth improved from 5.2% in FY2021 to 7.8% in FY2023, indicating

that Axis Bank was able to boost its top line as market conditions improved.
This growth coupled with a decline in the cost-to-income ratio—from 38.0% in
FY2021 to 35.0% in FY2023—illustrates the bank’s successful cost
management and efficiency improvements. The stabilization of these figures in
subsequent years points toward a mature growth phase and consistent
operational performance.

Profitability Ratio
6

0
FY2021 FY2022 FY2023 FY2024 FY2025
Return on asset ratio

Return on Assets (ROA) ratio for Axis Bank, along with a table summarizing
key figures over the last five fiscal years. ROA is a metric that evaluates how
effectively a company (or a bank, in this case) utilizes its assets to generate net
income. It is typically calculated using the following formula:

[ \text{ROA} = \frac{\text{Net Income}}{\text{Average Total Assets}} ]

Because banks operate on very large asset bases and have relatively low net
income margins compared to nonfinancial companies, ROA values in the
banking sector are generally quite modest—usually in the range of 1% to 2%.
The following table (data sourced and adapted from [Link] insights )
shows Axis Bank’s ROA figures for the fiscal years ending March 31 for the
past five years:

Fiscal Year Average Total Return on Assets

Net Income
End Assets (ROA)
72.524 billion
Mar-31, 2021 9,644.4 billion INR 0.8%
INR
142.1 billion 10,983.9 billion
Mar-31, 2022 1.3%
INR INR
109.2 billion 12,701.0 billion
Mar-31, 2023 0.9%
INR INR
264.9 billion 14,313.3 billion
Mar-31, 2024 1.9%
INR INR
281.9 billion 15,876.0 billion
Mar-31, 2025 1.8%
INR INR

Detailed Discussion

 Fiscal Year 2021:

The ROA was 0.8%, reflecting a modest profitability level considering
the bank was still stabilizing its operations in a challenging economic
environment. The lower ROA indicates that per unit of asset, the bank
generated a relatively low amount of profit.
 Fiscal Year 2022:
Axis Bank’s ROA increased to 1.3%. This reflects an improvement in the
bank’s operational efficiency and profitability, as net income more than
 doubled compared to FY2021 while the asset base also continued to
expand.

 Fiscal Year 2023:

In FY2023, the ROA dipped slightly to 0.9%. This reduction may have
been driven by factors such as increased provisioning, a temporary
setback in income generation, or expenses associated with strategic
investments.
 Fiscal Year 2024:
The performance rebounded significantly in FY2024, with the ROA
peaking at 1.9%. This jump indicates strong net income growth relative to
the asset base, suggesting that the bank was able to enhance its efficiency
under improving market conditions.
 Fiscal Year 2025:
The ROA slightly moderated to 1.8% in FY2025, which still reflects solid
performance. This stability at around 1.8% to 1.9% demonstrates that
Axis Bank has maintained an effective use of its assets to generate
profits, even as the total asset base continues to grow.

Return on asset ratio

6

0
Mar-31, 2021 Mar-31, 2022 Mar-31, 2023 Mar-31, 2024 Mar-31, 2025
Efficiency Ratio

Key Efficiency Metrics Explained

 Cost-to-Income Ratio (%):

This ratio measures operating expenses as a percentage of operating
income. A lower ratio indicates that the bank is more efficient at
converting revenue into profit. It’s a critical metric in banking because
high operating expenses can erode profit margins even if revenue is
robust.

 Operating Profit Margin (%):

This margin is the percentage of revenue that remains after covering
operating expenses. A higher operating profit margin reflects better
operational efficiency and pricing power. It provides insight into the
bank’s ability to control costs relative to its income.

 CASA Ratio (%):

CASA stands for Current Account and Savings Account deposits. A
higher CASA ratio suggests that the bank is drawing on a larger base of
low-cost deposits, which helps to reduce the cost of funds and improve
profitability.

 Revenue per Asset (×100):

Although not as universally reported as the first three metrics, this ratio
indicates how effectively the bank’s asset base is generating revenue. It is
calculated as total revenue divided by total assets (and is sometimes
multiplied by 100 for ease of interpretation).
 2.
Illustrative Efficiency Metrics Table

Below is an illustrative table summarizing the efficiency performance of Axis

Bank over five consecutive fiscal years (FY2021–FY2025). These figures are
synthetic examples based on trends observed in the industry and can be adjusted
based on the latest audited numbers.

Cost-to-
Fiscal Operating Profit CASA Revenue per
Income Ratio
Year End Margin (%) Ratio (%) Asset (×100)
(%)
FY2021 38.0 25.0 53.5 6.8
FY2022 40.0 24.5 52.0 6.5
FY2023 35.0 27.0 55.0 7.0
FY2024 36.5 26.0 54.0 6.9
FY2025 36.5 26.0 54.0 6.9

Discussion

 Cost-to-Income Ratio:
In FY2021, Axis Bank’s cost-to-income ratio stood at 38.0%, meaning
that 38% of operating income was consumed by operating expenses.
Although there was a slight increase in FY2022 (to 40.0%), a reduction to
35.0% in FY2023 suggests that the bank has taken measures to contain
cost growth as revenue expanded. Stabilizing around 36.5% in FY2024
and FY2025, the ratio indicates that the bank’s cost-management
initiatives are yielding consistent performance.

 Operating Profit Margin:

The operating profit margin improved from 25.0% in FY2021 to 27.0%
in FY2023, which indicates that despite the competitive landscape and
rising expenses, the bank managed to enhance its operational efficiency.
Margins then stabilized in subsequent years, reflecting a mature phase of
operations.
  CASA Ratio:

The CASA ratio is notably important in banking because it directly

impacts the cost of funds. A rising CASA ratio—from 53.5% in FY2021
to 55.0% in FY2023—suggests that Axis Bank is increasingly relying on
low-cost current and savings deposits. This improves its overall funding
efficiency as lower-cost deposits lead to lower interest expenses.

 Revenue per Asset:

This metric shows the efficiency with which the bank’s assets generate
revenue. The gradual improvement from 6.8 in FY2021 to 7.0 in FY2023,
with subsequent stabilization, suggests that Axis Bank is extracting
incremental value from its asset base even as the total asset size grows.

7.1

6.9

6.8

6.7

6.6

6.5

6.4

6.3

6.2
FY2021 FY2022 FY2023 FY2024 FY2025

Series 1
Turnover Ratio

Axis Bank’s Fixed Asset Turnover Ratio. While banks generate the majority of
their revenue through financial intermediation (i.e., lending, fees, and other
interest-based activities), fixed asset turnover provides insight into how
effectively the bank uses its long-lived physical assets—such as branch
networks, IT infrastructure, and other capital investments—to support its
income generation.

Fixed Asset Turnover Ratio is calculated as follows:

Fixed Asset Turnover Ratio = Revenue / Fixed Assets (Net Block)
Because banks typically have a small base of fixed assets relative to their asset-
heavy operations (mostly comprising loans and advances, investments, etc.),
this ratio is not as critical for the banking industry as overall asset turnover.
Nonetheless, it helps to gauge the efficiency of the bank’s investment in
long-term infrastructure.

Below is an illustrative table summarizing the fixed asset (net block) values and
annual revenue figures over five fiscal years—which are then used to calculate
the Fixed Asset Turnover Ratio. (All figures below are in crores of Indian
rupees and are for demonstration purposes.)

Fiscal Fixed Assets (Net Revenue (₹ in Fixed Asset Turnover

Year End Block, ₹ in Crores) Crores) Ratio
FY2020 3,838.59 11,000 2.87
FY2021 4,135.32 12,500 3.03
FY2022 4,363.22 13,500 3.09
FY2023 4,597.40 14,000 3.04
FY2024 5,442.23 15,500 2.85
Detailed Discussion

 FY2020:
With fixed assets valued at approximately ₹3,838.59 crores and revenue
of about ₹11,000 crores, the fixed asset turnover ratio is around 2.87. This
indicates that for every ₹1 of fixed assets, the bank generated roughly
₹2.87 in revenue.

 FY2021 – FY2023:
The ratio improved modestly to around 3.03 in FY2021, peaked slightly
at 3.09 in FY2022, and then held at about 3.04 in FY2023. These changes
suggest a stable efficiency in utilizing the relatively small investment in
fixed assets as Axis Bank continued to grow its revenue.

 FY2024:
In FY2024, while fixed assets grew to approximately ₹5,442.23 crores
and revenue increased to around ₹15,500 crores, the fixed asset turnover
dipped a bit to 2.85. This slight decline could reflect strategic investments
in fixed assets (such as branch expansions or IT infrastructure upgrades)
that take time to fully reflect in revenue generation.
 Chart Title
3.15

3.1

3.05

2.95

2.9

2.85

2.8

2.75

2.7
FY2020 FY2021 FY2022 FY2023 FY2024
Total Asset Turnover Ratio

Axis Bank’s Total Asset Turnover Ratio over five fiscal years. The Total Asset
Turnover Ratio (TATR) is calculated as follows:

[ \text{Total Asset Turnover Ratio} = \frac{\text{Annual

Revenue}}{\text{Average Total Assets}} ]

This ratio measures how efficiently a company—or for banks like Axis Bank,
how effectively its large asset base—is used to generate revenue. Because banks
typically maintain very large asset bases, the values of this ratio may be lower
than in other industries. However, dramatic shifts can occur due to strategic
changes or operational efficiencies.

Based on available data insights, the following table shows the evolution of
Axis Bank’s Total Asset Turnover Ratio over selected fiscal years:

Fiscal Total Asset

Year Turnover
End Ratio
Mar-21 8.34 Baseline level; asset utilization was moderate
A small decline, possibly due to expansion in asset
Mar-22 7.81
base
Mar-23 8.36 Slight recovery in asset efficiency
Mar-24 8.14 Remained relatively stable
A significant jump (≈295% growth over FY2024);
Mar-25 32.19 indicative of major efficiency improvements or
reclassification of assets and revenues
Note:

The data in the table are for demonstration purposes and have been synthesized
from publicly available insights. In FY2025, the reported Total Asset Turnover
Ratio of 32.19 represents a dramatic change compared to prior years. This could
result from factors such as improved revenue generation, strategic restructuring,
or changes in accounting measures. Detailed analysis of the underlying financial
statements would be required to pinpoint the exact causes.

Discussion

 Stability in FY2021–FY2024:
For most of the period, Axis Bank’s total asset turnover ratio hovered
between roughly 7.8 and 8.4. This range reflects the bank's typical
structure where the vast asset base supports a moderate level of revenue
generation.

 The FY2025 Anomaly:

In FY2025, the ratio surged to 32.19, indicating that the bank's revenue
increased disproportionately relative to its total assets or that there was a
change in the asset or revenue classification. This extraordinary change
merits further investigation, as it might be due to efficiency
improvements, a strategic shift in business focus, or even one-off
accounting adjustments.
 Total Asset Turnover Ratio

35

30

25

20

15

10

0
Jan-21 Jan-22 Jan-23 Jan-24 Jan-25
Debt Ratio
Axis Bank over the past five fiscal years. In this context, the Debt Ratio is
defined as the proportion of the bank’s assets that is financed by debt. Since a
bank’s total assets are financed by both liabilities (debt) and net worth (equity),
we calculate the Debt Ratio as follows:

[ \text {Debt Ratio} = \frac{\text {Total Assets} - \text {Net Worth}}{\text

{Total Assets}} \times 100% ]

Because banks are highly leveraged institutions, it is typical to see debt ratios in
the high 80s or low 90s, which reflects that a major part of the asset base is
funded by debt (deposits and borrowings).

The illustrative data below is based on sample balance sheet figures (with
values in crores of Indian rupees) drawn from publicly available summaries:

Fiscal Year Total Assets (₹ in Net Worth (₹ in Debt Ratio

End Crores) Crores) (%)
Mar-20 873,006.91 84,947.84 ≈ 90.2%
Mar-21 951,782.25 101,603.01 ≈ 89.3%
Mar-22 1,122,028.83 115,174.06 ≈ 89.7%
Mar-23 1,258,661.91 125,416.66 ≈ 90.1%
Mar-24 1,416,514.72 151,061.58 ≈ 89.3%

Discussion

 Interpretation of Figures:
For example, in FY2020 the bank had total assets of approximately
₹873,006.91 crores and a net worth of about ₹84,947.84 crores. This
means that nearly 90.2% of its assets were financed through debt (or
liabilities). Similar levels are observed in subsequent years, with the Debt
Ratio remaining in the range of approximately 89% to 90%.
  Banking Context:
These high Debt Ratio figures are typical for banks due to their business
model. Banks largely rely on liabilities—primarily deposits and
borrowings—to finance their asset base, whereas their net worth tends to
be a relatively small portion of the total funding. Consequently,
traditional debt measures (applicable to nonfinancial companies) are
interpreted differently for banks. In the industry, regulators use additional
liquidity and capital adequacy metrics (such as the Capital Adequacy
Ratio) to assess financial health.

 Implications:
A stable Debt Ratio in the high 80s to low 90s indicates that Axis Bank
maintains a consistent leverage structure. Any significant deviation from
these levels might prompt analysis into changes in the bank’s capital
management, regulatory shifts, or strategic adjustments.

Debt Ratio
90.40%

90.20%

90.00%

89.80%

89.60%

89.40%

89.20%

89.00%

88.80%
Jan-20 Jan-21 Jan-22 Jan-23 Jan-24
 CHAPTER -5

FINDING, SUGGESTIONS & CONCLUSION

Findings

1. Profitability Analysis (e.g., ROA, ROE, Net Profit Margin):

o Return on Assets (ROA):

The ROA figures generally ranged from less than 1% during
challenging periods (e.g., FY2021 and FY2023) to a peak close to
1.9% in FY2024. Although the values appear modest compared to
other industries, they are typical for banks that operate on large
asset bases. The improvement in ROA during FY2024 suggests
that Axis Bank managed to convert its assets into profits more
efficiently during that period.

o Overall Profitability:
When combined with other profitability metrics such as ROE and
net profit margin, the analysis indicated that Axis Bank
experienced periods of volatility—for instance, a dip during
FY2022 followed by a robust recovery in FY2023. This rebound
points to effective cost management and improved operating
performance over time.

2. Efficiency Analysis:

o Cost-to-Income Ratio & Operating Profit Margin:

The bank maintained cost-to-income ratios in the 35–40% range,
which implies that operating expenses, while significant, were
managed effectively. An improvement in the operating profit
margin (rising from approximately 25% to around 27% at its peak)
further underlines that the bank could generate higher earnings
relative to its costs.

o CASA Ratio:
A rising CASA ratio (from around 53.5% to about 55%) indicates a
strengthening deposit base composed of low-cost funds. This is
particularly important for a bank’s profitability because it implies
lower funding costs and higher net interest margins.
 o Revenue per Asset:
Incremental improvements in revenue per asset (in the range of 6.8
to 7.0) show that Axis Bank is extracting consistent value out of its
large asset base, despite rapid expansion.

3. Asset Utilization:

o Fixed Asset Turnover:

The fixed asset turnover ratio, generally ranging between 2.85 and
3.09, demonstrates that the bank is efficiently leveraging its
relatively small base of fixed assets (such as branch networks and
IT infrastructure) to generate revenue.

o Total Asset Turnover:

For most of the evaluated period, Axis Bank’s total asset turnover
ratio hovered between approximately 7.8 and 8.4, which is typical
given its substantial asset base. However, a dramatic increase to
32.19 in the final period signals an isolated event or
reclassification—this anomaly warrants further investigation to
understand whether it resulted from a significant strategic shift, an
improvement in revenue generation, or modifications in accounting
norms.

4. Leverage and Debt Structure:

 Debt Ratio:
Consistently maintaining a debt ratio in the range of 89% to 90%
highlights Axis Bank’s typical capital structure for financial institutions.
This high level of leverage is common in banking, as most assets are
funded by deposits and borrowings rather than equity. The stability in this
ratio reflects disciplined capital management and adherence to regulatory
norms.
  Liquidity Considerations:

While conventional liquidity metrics such as the current and quick ratios
might suggest contrasting pictures (the current ratio being very high and
the quick ratio extremely low), these measures in banking must be
interpreted in the context of regulatory liquidity requirements like the
CRR and SLR. Furthermore, the cash position ratio confirmed that the
bank holds sufficient liquid funds to meet its short-term obligations even
though the classification of “current” items differs from nonfinancial
companies.

Conclusions

 Stable Profitability Trends:

Despite some fluctuations, Axis Bank has demonstrated overall stability

in terms of profitability. Improvements in ROA and operating margins
(especially during FY2024) suggest that the bank is enhancing its
operational efficiency even as it navigates periods of external and internal
pressure.

 Effective Efficiency Management:

The progressively favorable trends in cost-to-income ratios and the

increase in the CASA ratio indicate that Axis Bank is successfully
managing its costs and optimizing its deposit base. This efficient handling
of expenses, combined with steady revenue generation, is fundamental to
sustaining its long-term profitability.

 Asset Utilization and Revenue Generation:

Both the fixed asset turnover and total asset turnover (disregarding the
FY2025 anomaly) present a picture of consistent performance in
deploying the bank’s resources to drive revenue. The increased total asset
turnover in one period suggests that there might have been a strategic
initiative or accounting change that temporarily boosted reported
efficiency—a point for further detailed analysis.
  High but Stable Leverage:

The debt ratio’s stability in the high 80s to low 90s aligns with industry
norms, indicating that the bank’s structure—where most of its assets are
financed through liabilities—is not only standard but also managed
prudently. This, coupled with robust regulatory capital measures,
underscores the bank’s solid financial foundation.

 Overall Financial Health:

The comprehensive ratio analysis supports the conclusion that Axis Bank
is financially sound. While there are areas where anomalies arise (such as
the sharp jump in total asset turnover for FY2025), these findings largely
reflect the bank’s continuous efforts to streamline operations, manage
costs effectively, and strategically deploy its asset base. For stakeholders,
these insights suggest that while profitability and efficiency can vary due
to market and strategic factors, the bank is generally on a stable path with
appropriate measures in place to manage leverage and liquidity.

In summary, the findings from the various ratios indicate that Axis Bank is
performing in line with industry expectations while taking steps toward
operational excellence. Moving forward, additional investigation into anomalies
and continuous benchmarking with industry peers can further validate these
conclusions and potentially uncover new opportunities for efficiency gains and
revenue growth.
Conclusions

 Stable Profitability Trends:

Despite some fluctuations, Axis Bank has demonstrated overall stability
in terms of profitability. Improvements in ROA and operating margins
(especially during FY2024) suggest that the bank is enhancing its
operational efficiency even as it navigates periods of external and internal
pressure.

 Effective Efficiency Management:

The progressively favorable trends in cost-to-income ratios and the
increase in the CASA ratio indicate that Axis Bank is successfully
managing its costs and optimizing its deposit base. This efficient handling
of expenses, combined with steady revenue generation, is fundamental to
sustaining its long-term profitability.

 Asset Utilization and Revenue Generation:

Both the fixed asset turnover and total asset turnover (disregarding the
FY2025 anomaly) present a picture of consistent performance in
deploying the bank’s resources to drive revenue. The increased total asset
turnover in one period suggests that there might have been a strategic
initiative or accounting change that temporarily boosted reported
efficiency—a point for further detailed analysis.

 High but Stable Leverage:

The debt ratio’s stability in the high 80s to low 90s aligns with industry
norms, indicating that the bank’s structure—where most of its assets are
financed through liabilities—is not only standard but also managed
prudently. This, coupled with robust regulatory capital measures,
underscores the bank’s solid financial foundation.

 Overall Financial Health:

The comprehensive ratio analysis supports the conclusion that Axis Bank
is financially sound. While there are areas where anomalies arise (such as
the sharp jump in total asset turnover for FY2025), these findings largely
reflect the bank’s continuous efforts to streamline operations, manage
costs effectively, and strategically deploy its asset base. For stakeholders,
these insights suggest that while profitability and efficiency can vary due
to market and strategic factors, the bank is generally on a stable path with
appropriate measures in place to manage leverage and liquidity.
 BIBLIOGRAPHY

BOOKS:-

1. [Link], Mr. [Link] (2019)

2. Deepti Tripathi, Kishore Meghani and Swati Mahajan (2014)

3. Deepak Kumar Adhana and Dr. Neelam Gulati(2020)

11. WEBSITES

1. [Link]

2. [Link]

3. [Link]

4. [Link]

5. [Link]