PROJECT WORK Axis and Sbi
PROJECT WORK Axis and Sbi
PROJECT WORK Axis and Sbi
By
SOURAV MANDAL
Faculty of Commerce
CERTIFICATE OF APPROVAL
was a source of immense knowledge to me. I would like to expressmy sincere gratitude
to my project supervisor Dr. G. Vijayalakshmi,
for his guidance and valuable support, inspiring discussions andconstant supervision
throughout the course of this work.
I am also thankful to my Honourable Principal Dr. Mohammad Riyaz for his inspiration. I am
also thankful to our H.O.D. Dr. Aftab Alam Ansari for his help during my project work.
I acknowledge with a deep sense of gratitude, the encouragement and interpretations received
from our faculty members and colleagues. I would also like to thank my parents for their love
and support.
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CONTENTS
TABLE OF CONTENT
List Of Table (i)
List of Graphs (ii)
References…………………………..…………………...…………….52
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(i) LIST OF TABLES
SL.NO NAME OF TITLE PAGE
NO
4.1 Balance Sheet of SBI 36
4.2 Income Statement of SBI 37
4.3 Balance sheet of AXIS Bank 38
4.4 Profit and Loss of AXIS Bank 39
4.5 Sustainable Earnings of SBI 41
4.6 Net profit ratio 42
4.7 Operating Profit Ratio 42
4.8 Return on Shareholder’s 43
Investment or Net Worth Ratio
4.9 Earnings Per Share 43
4.10 Total Assets Turnover Ratio 44
4.11 Dividend Pay-Out Ratio 44
4.12 Debt-Equity Ratio 45
4.13 Interest expended to Interest 45
Earned Ratio
4.14 Result 46
4.15 Consolidated Values of Mean 46-47
and Standard Deviation of SBI
for 2018-2019
4.16 Consolidated Values of Mean 47-48
and Standard Deviation of Axis
Bank for 2018-2019
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1.1 INTRODUCTION
1.2 FINANCIAL STATEMENT
1.3 OBEJECTIVE OF THE
STUDY
1.4 STATEMENT OF
PROBLEM
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Abstract: The project provides how theoretical knowledge should apply on the practical work field. So, it helps
to earn the work experience on chosen topic. Project is a good platform to understand the practical experience
in our life and it is one of the boosts in our CV on work experience and also benefits to understanding the
organizational culture. It provides the good scope for understanding the practical work experience. It offers the
practical knowledge to gain the work experience. The project helps to get knowledge about the company
thoroughly and various process involved in the company. Project helps to know the in-depth information about
the different verticals of the company and also to inculcate working related skills
INTRODUCTION
This study has been conducted to analyse the financial positions of the company, whether it’s growing
according to its need and to analyse the impact what the bank has on the profitability and financial position in
the banking sector. The project provides how theoretical knowledge should apply on the practical work field.
So, it helps to earn the work experience on chosen topic. Project is a good platform to understand the practical
experience in our life and it is one of the boosts in our CV on work experience and also benefits to
understanding the organizational culture. It provides the good scope for understanding the practical work
experience. It offers the practical knowledge to gain the work experience. The project helps to get knowledge
about the company thoroughly and various process involved in the company. Project helps to know the in-
depth information about the different verticals of the company and also to inculcate working related skills. This
project work was undertaken for a period of 6 weeks.
• A comparative statement is a document that compares a particular financial statement with prior period
statements.
• Previous financials are presented alongside the latest figures in side-by-side columns, enabling investors
to easily track a company’s progress and compare it with peers.
• The Securities and Exchange Commission (SEC) requires public companies to publish comparative
statements in 10-K and 10-Q reports.
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FINANCIAL STATEMENTS
Meaning of Financial Statements:
Financial statements are the source of the information on the basis of which conclusions are drawn about the
profitability and liquidity position of a business enterprise at the end of financial year. They are the major
means employed by firms to present their financial situation to owners, creditors and the general public.
Financial statements are the end products of financial accounting, prepared by the accountant that purport to
reveal the financial position of the enterprise, the result of its recent activities and an analysis of what has been
done with the earnings .According to John.N.Myer “The financial statements provide a summary of the
accounts of a business enterprise, the balance sheet reflecting the assets, liabilities and capital as on a certain
date and the income statement showing the results of operation during a certain period”. Financial statements
are also called financial reports.
OBJECTIVE OF THE STUDY: -
1. To know the strength and weakness of State Bank of India and Axis Bank through Ratio analysis.
2. To evaluate the performance of the companies.
3. To understand the liquidity, profitability and efficiency positions of the companies.
4. To make comparison between the ratios during different periods.
5. To understand the analysis of risk and return of selected banks (SBI and AXIS).
6. To provide adequate information to investors to judge their investment decisions on the basis of Beta.
7. To impart knowledge to the investors with conceptual clarity of equities for investment.
8. To compare the financial performance of SBI and Axis Bank.
9. To compare the profitability position and managerial efficiency of SBI and Axis Bank.
The financial execution of SBI and AXIS banks are the major elements of the country’s financial progress.
The basic objective of Banking industry is to upgrade the performance and profitability. Moreover, today
managers of bank are striving to develop their performance based on financial views which evaluate overall
performance of organization and presenting effective feedback. The performances of bank have two be
measured through two aspects, financial and human. The financial performance and their efficiency of banks
act as a parameter that assists customers, mangers, regulators and supervisors in decision making. For the
analysis of data, the following ratios are considered viz., Profitability ratio, Solvency ratio, and Management
efficiency ratios of SBI and AXIS Bank.
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LIMITATIONS OF THE STUDY
However I tried my level best in collecting the relevant information for my research report, yet there are
always some problems faced by the researcher. The prime difficulties I faced in collection of information are
discussed below:
• Analysis of the study was depended only on the information available in theinternet.
• Study was restricted to the period of 5 years.
• Detail study was not possible because of time constraints.
• Study process was restricted to the company’s rules and regulations.
BALANCE SHEET
A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholders' equity at a specific point in time, and provides a basis for computing rates of
return and evaluating its capital structure. It is a financial statement that provides a snapshot of
what a company owns and owes, as well as the amount invested by shareholders.
The balance sheet is used alongside other important financial statements such as the income
statement and statement of cash flows in conducting fundamental analysis or calculating
financial ratios.
• A balance sheet is a financial statement that reports a company's assets, liabilities and
shareholders' equity.
• The balance sheet is one of the three (income statement and statement of cash flows being the
other two) core financial statements used to evaluate a business.
• The balance sheet is a snapshot, representing the state of a company's finances (what it owns and
owes) as of the date of publication.
• Fundamental analysts use balance sheets, in conjunction with other financial statements, to
calculate financial ratios.
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The balance sheet is a snapshot representing the state of a company's finances at a moment in time. By itself,
it cannot give a sense of the trends that are playing out over a longer period. For this reason, the balance sheet
should be compared with those of previous periods. It should also be compared with those of other businesses
in the same industry since different industries have unique approaches to financing.
A number of ratios can be derived from the balance sheet, helping investors get a sense of how healthy a
company is. These include the debt-to-equity ratio and the acid-test ratio, along with many others. The income
statement and statement of cash flows also provide valuable context for assessing a company's finances, as do
any notes or addenda in an earnings report that might refer back to the balance sheet.
The profit and loss (P&L) statement is a financial statement that summarizes the revenues, costs, and expenses
incurred during a specified period, usually a fiscal quarter or year. The P&L statement is synonymous with
the income statement.
These records provide information about a company's ability or inability to generate profit by increasing
revenue, reducing costs, or both. Some refer to the P&L statement as a statement of profit and loss, income
statement, statement of operations, statement of financial results or income, earnings statement, or expense
statement.
For non-profit organizations, revenues and expenses are generally tracked in a financial report called the
statement of activities (sometimes called statement of financial activities or statement of support).
P&L management refers to how a company handles its P&L statement through revenue and cost management.
• The P&L statement is a financial statement that summarizes the revenues, costs, and expenses incurred
during a specified period.
• The P&L statement is one of three financial statements every public company issues quarterly and
annually, along with the balance sheet and the cash flow statement.
• It is important to compare P&L statements from different accounting periods, as the changes in revenues,
operating costs, R&D spending, and net earnings over time are more meaningful than the numbers
themselves.
• Together with the balance sheet and cash flow statement, the P&L statement provides an in-depth look at
a company's financial performance.
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Understanding a Profit and Loss Statement (P&L)
• The P&L statement is one of three financial statements every public company issues quarterly and
annually, along with the balance sheet and the cash flow statement. It is often the most popular and
common financial statement in a business plan as it quickly shows how much profit or loss was generated
by a business.
• The income statement, like the cash flow statement, shows changes in accounts over a set period. The
balance sheet, on the other hand, is a snapshot, showing what the company owns and owes at a single
moment. It is important to compare the income statement with the cash flow statement since, under the
accrual method of accounting, a company can log revenues and expenses before cash changes hands.
• The income statement follows a general form as seen in the example below. It begins with an entry for
revenue, known as the top line, and subtracts the costs of doing business, including the cost of goods
sold, operating expenses, tax expenses, and interest expenses. The difference, known as the bottom line,
is net income, also referred to as profit or earnings. You can find many templates for creating a personal
or business P&L statement online for free.
• It is important to compare income statements from different accounting periods, as the changes in
revenues, operating costs, research and development spending, and net earnings over time are more
meaningful than the numbers themselves. For example, a company's revenues may grow, but its expenses
might grow at a faster rate.
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CHAPTER SCHEME
CHAPTER 1 INTRODUCTION
This chapter relates to the Introduction, Financial statement , objective , Statement of problem, limitation of
the study, balance sheet, Profit & loss, Scope of the study.
This chapter relates to the Company Profile, Promoters, Vision, Mission & Quality Policy, Awards,
Milestones, Product/Service Profile and area of Operation, Infrastructure Facilities, Competitors Information,
SWOT Analysis, Future Growth and prospectus and Financial Statement of the company.
This chapter consists of Research Methodology, Method of Data collection ,Balance Sheet, Profit & loss and
Data Analysis and interpretation
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It show the company profile of SBI
and Axis Bank.
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STATE BANK OF INDIA PROFILE
State Bank of India (SBI) a Fortune 500 company, is an Indian Multinational, Public Sector Banking and
Financial services statutory body headquartered in Mumbai. The rich heritage and legacy of over 200 years,
accredits SBI as the most trusted Bank by Indians through generations.
SBI, the largest Indian Bank with 1/4th market share, serves over 44 crore customers through its vast network
of over 22,000 branches, 58,500 ATMs, 66,000 BC outlets, with an undeterred focus on innovation, and
customer centricity, which stems from the core values of the Bank - Service, Transparency, Ethics, Politeness
and Sustainability.
The Bank has successfully diversified businesses through its 11 subsidiaries i.e. SBI General Insurance, SBI
Life Insurance, SBI Mutual Fund, SBI Card, etc. It has spread its presence globally and operates across time
zones through 233 offices in 32 foreign countries.
Growing with times, SBI continues to redefine banking in India, as it aims to offer responsible and sustainable
Banking solutions.
State Bank of India is an Indian multinational, Public Sector banking and financial services company. It is a
government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2013, it had
assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and
financial services company in India by assets.
State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab National Bank
and Bank of India.
The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, of
the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged
into the other two "presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the
Imperial Bank of India, which in turn became the State Bank of India. Government of India owned the Imperial
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Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it
the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.
State Bank of India is a regional banking behemoth and has 20% market share in deposits and loans among
Indian commercial banks.
The roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of Calcutta, later
renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency
banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras
(incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and
were the result of royal charters. These three banks received the exclusive right to issue paper currency till
1861 when, with the Paper Currency Act, the right was taken over by the Government of India. The Presidency
banks amalgamated on 27 January 1921, and the re-organised banking entity took as its name Imperial Bank
of India. The Imperial Bank of India remained a joint stock company but without Government participation.
Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's
central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the Imperial Bank
of India became the State Bank of India. In 2008, the government of India acquired the Reserve Bank of India's
stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory
authority.
In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made SBI subsidiaries
of eight that had belonged to princely states prior to their nationalization and operational take-over between
September 1959 and October 1960, which made eight state banks associates of SBI. This acquisition was in
tune with the first Five Year Plan, which prioritised the development of rural India. The government integrated
these banks into the State Bank of India system to expand its rural outreach. In 1963 SBI merged State Bank
of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).
SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI acquired in
1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which
had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been
established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had
been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was
Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI
was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.
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There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline
the group's operations. The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then on 19
June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in State Bank of
Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.7%.)
The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also,
following the acquisition, SBI's total assets will inch very close to the 10 trillion mark (10 billion long
scale). The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009.
The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches
started functioning as SBI branches on 26 August 2010. On October 7, 2013, Arundhati Bhattacharya
became the first woman to be appointed Chairperson of the bank.
❖ 1809: The bank receives a charter from the imperial government and changes its name to
Bank of Bengal.
❖ 1840: A sister bank, Bank of Bombay, is formed.
❖ 1843: Another sister bank is formed: Bank of Madras, which, together with Bank of
Bengal and Bank of Bombay become known as the presidency banks, which had the right
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to issue currency in their regions.
❖ 1861: The Presidency Banks Act takes away currency issuing privileges but offers
incentives to begin rapid expansion, and the three banks open nearly 50 branches among
them by the mid-1870s.
❖ 1876: The creation of Central Treasuries ends the expansion phase of the presidency
banks.
❖ 1921: The presidency banks are merged to form a single entity, Imperial Bank of India.
❖ 1955: The nationalization of Imperial Bank of India results in the formation of the State
Bank of India, which then becomes a primary factor behind the country's industrial,
agricultural, and rural development.
❖ 1969: The Indian government establishes a monopoly over the banking sector.
❖ 1972: SBI begins offering merchant banking services.
❖ 1995: SBI Commercial and International Bank Ltd. are launched as part of SBI's stepped-
up international banking operations.
❖ 1998: SBI launches credit cards in partnership with GE Capital.
❖ 2005: Raj Travels joins hands with SBI for travel loans. SBI opens branch at Vadakara.
SBI enters into agreement for bilateral sharing of ATMs with PNB on May 10, 2005.
❖ 2006: State Bank of India (SBI) has informed that Shri. Yogesh Agarwal has been
appointed as Managing Director on the Board of the Bank with effect from October 10,
2006 to the June 30, 2010
❖ 2007: The State Bank of India (SBI) has become the first foreign bank to set up a branch
in the Israel's diamond exchange. Besides diamonds, they also see huge potential in
telecommunications, hi-tech, chemicals, textiles, agriculture and water management, food
processing, pharma and health care.
❖ 2008: State Bank of India (SBI) has informed that the Central Government, in
consultation with the Reserve Bank of India and in pursuance of clause (d) of Section
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19 of the State Bank of India Act, 1955 (23 of 1955), has nominated Dr. (Mrs.) Vasantha
Bharucha as a part-time non-official Director on the Central Board of State Bank of India
for a period of three years with effect from February 25, 2008, vice Shri Piyush Goel.
❖ 2009: State Bank of India, entered into an agreement with the government of Gujarat to
create a fund of Rs 5,000 crore for investing in equity of infrastructure projects.
❖ 2010: State Bank of India, with a debit card base of over 70 million, comprising SBI
Cash Plus, SBI Gold Debit Card and SBI Yuva Card, has added chip and PIN-based
Platinum Debit Card to its bouquet on March 26.
❖ 2011: SBI - Acquisition of SBICI Bank. P Choudhary has been appointed as the new
chairman of State Bank of India after getting clearance from the government.
❖ 2012: SBI launched virtual debit cards to check online fraud and promote Ecommerce
❖ 2013: India's leading Public Sector lender the State Bank of India (SBI) is stepping up
efforts to expand its presence in the world's second biggest economy with the lender set
to launch its second branch in China.
Awards
3. State Bank Bhavan awarded the Performance Challenge Award 2020 by Indian Green Building
Council (IGBC).
4. SBI wins three awards at Digixx 2020 Virtual Summit
• Winner of “Most Innovative Project” category for CHAPDEX (Customer Happiness Index)
• Winner of the “Best Technology Bank of the Year (Large Bank”) category.
• Winner of the “Best Financial Inclusion Initiatives” category.
• Winner of the “The Most Innovative Project using Technology” category.
• My SBI.
• My customer first.
• My SBI: First in customer satisfaction.
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Mission
• We will be prompt, polite and proactive with our customers.
• We will speak the language of young India.
• We will create products and services that help our customers achieve their goals.
• We will go beyond the call of duty to make our customers feel valued.
• We will be of service even in the remotest part of our country.
• We will offer excellence in services to those abroad as much as we do to those in India.
• We will imbibe state of the art technology to drive excellence.
Values
“To emerge as the leading company offering a comprehension range of banking and finance
products at competitive prices, ensuring high standards of customer satisfaction and world class
operating efficiency thereby becoming a model banking sector in India in the post liberalization
period”.
SWOT Analysis
Strength
3. Biggest branch network in the country
4. First public sector to move to CBS
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AXIS BANK
INDUSTRY PROFILE
Axis Bank Limited provides a suite of corporate and retail banking products. The Bank operates through four
segments: Treasury, Retail Banking, Corporate/Wholesale Banking and Other Banking Business. Its Treasury
operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations,
derivative trading and foreign exchange operations on the proprietary account and for customers. Its Retail
Banking constitutes lending to individuals/small businesses and activities include liability products, card
services, Internet banking, mobile banking and financial advisory services among others. Its
Corporate/Wholesale Banking includes corporate relationships not included under Retail Banking, corporate
advisory services, placements and syndication, project appraisals, capital market related services and cash
management services. Its Other Banking Business includes Para banking activities, such as third-party product
distribution and other banking transactions.
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial
services to customer segments covering Large and Mid-Corporate, MSME, Agriculture and Retail Businesses.
The Bank has a large footprint of 2589 domestic branches (including extension counters) and 12,355 ATMs
spread across the country as on 31st March 2015. The overseas operations of the Bank are spread over nine
international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai;
representative offices at Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The
international offices focus on corporate lending, trade finance, syndication, and investment banking and
liability businesses.
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 Bank Ltd., The New India Assurance Bank Ltd., The Oriental Insurance Bank Ltd. and
United India Insurance Bank Ltd. The shareholding of Unit Trust of India was subsequently transferred to
SUUTI, an entity established in 2003.
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With a balance sheet size of Rs. 4, 61,932crores as on 31st March 2015, Axis Bank has achieved consistent
growth and stable asset quality with a 5-year CAGR (2010-11 to 2014-15) of 21% in Total Assets, 18% in Total
Deposits, 22% in Total Advances and 24% in Net Profit.
VISION
To be the favoured budgetary administrations provider outshining customer administration transfer through
insight, empowered personnel and clever usage of technology.
MISSION
• Client services & products revolution tuned to varied personal needs and corporate patrons.
CORE VALUES
The core values that echo across the guiding principle and conclusion of the Bank consist of:
• User Centered
• Conscience
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• Unambiguousness
• Solidarity
• Proprietorship
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 Deposits
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Administrations presented via bank:
• Personal Lending
• Corporate Funding
• NRI Investment
• Priority Banking
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, 9 administrative, charge and other related advancements which impact financial specialist certainty.
COMPETITORS INFORMATION
• ICICI Bank.
• HDFC Bank.
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Awards
2010
2011
2012
2013
2014
2015
• Axis Bank has been adjudged winner in the Best Bank Category, Outlook Money Awards 2015
• Axis Bank awarded for the Best Security among Private Sector Banks in India by Data Security
Council of India (DSCI).
• Best Domestic Bank in India – Asia money Best Banks 2015
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• Axis Bank has been featured in Limca Book of Records 2015 for creating a National Record for its
campaign – 'Plant a Sapling'
• No. 1 Promising Banking Brand of 2015, Economic Times Awards 2015.
SWOT ANALYSIS:
Strengths
• Axis bank has been given the rating as one of top three positions in terms of fastest growth in private
sector banks
• Financial express has given number two position and BT-KPMG has rated AXIS bank as the best bank
with some 26 parameters
• The bank has a network of 1,493 domestic branches and 8,324 ATMs
• The bank has its presence in 971 cities and towns
• The banks financial positions grows at a rate of 20% every year which is a major positive sign for any
bank
• The bank’s net profit is Q3FY12 is 1,102.27 which has an increase of 25.19% growth compared to 2011
Weaknesses
• Gaps – Majorly they concentrated in corporate, wholesale banking, treasury services, retail banking
• Foreign branches constitute only 8% of total assets
• Very recently the bank started focusing its attention towards personal banking and rural areas
• The share rates of AXIS bank is constantly fluctuating in higher margins which makes investors in an
uncomfortable position most of the time
• There are lot of financial product gaps in terms of performance as well as reaching out to the customer
• There are many fraudulent activities involved in credit cards as the banks process credit card approval
even without verification of original documents
• Their financial consultants are not wise enough to guide the customers towards right investments
• Customer service has to improve a lot in order to be in race with other major players
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Opportunities
• Acquisitions to fill gap
• In 2009, Alliance with MotilalOswal for online trading for 10 million customers
• In 2010, acquired Enam Securities Pvt Ltd – broking and investment banking
• In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
• No. of e-transactions increased from 0.7 million to around 2 million
• Geographical expansion to rural market – 80% of them have no access to formal lending
• 46% use informal lending channels
• 24% unregulated money lenders
• Now number of branches increased to 1493 from 339.
• Last quarter there were 48 new branches opened across the Nation
• Since it’s a new age banking there are lot of opportunities to have the advance technicalities in banking
solutions compared to existing major players.
• The assets in their international operations are growing at a very faster pace with a growth rate of 9%.
• The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response in terms of
attracting new customers in personal banking segment
Threats
• Since 2009, RBI has increased CRR by 100 basis points
• Increased repo rate reverse repo rate by 50 points – 11 times of late
• Increasing popularity of QIPs due to ease in fund raising
• RBI allowed foreign banks to invest up to 74% in Indian banking
• Government schemes are most often serviced only by govern banks like SBI ,Indian Banks, Punjab
National Bank etc
• ICICI and HDFC are imposing strong threats in terms of their expansion in customer base by their
aggressive marketing strategies.
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial
services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.
The Bank has a large footprint of 4,594 domestic branches (including extension counters) with 11,333 ATMs
& 5,710 cash recyclers spread across the country as on 31st March, 2021. The Bank has 6 Virtual Centres and
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has over 1500 Virtual Relationship Managers as on 31st March 2021.The Overseas operations of the Bank are
spread over eight international offices with branches at Singapore, Dubai (at DIFC) and Gift City-IBU;
representative offices at Dhaka, Dubai, Abu Dhabi, Sharjah and an Overseas subsidiary at London, UK. The
international offices focus on Corporate Lending, Trade Finance, Syndication, Investment Banking and
Liability Businesses.
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.
With a balance sheet size of Rs. 9,96,118 crores as on 31st March 2021, Axis Bank has achieved consistent
growth and with a 5year CAGR (2015-16 to 2020-21) of 13% each in Total Assets & Advances and 15% in
Deposits.
P a g e 28 | 53
It provides information about the
REVIEW OF
LITERATURE
P a g e 29 | 53
1. Jagan Mohan Rao (1993) in „Financial appraisal of Indian Automotive Tyre Industry‟ studied the
financial appraisal of Indian automotive tyre industry. The study was intended to probe into the financial
condition-financial strength and weakness-of the Indian tyre industry. To this end a modest attempt has
been made to measure and evaluate the financial performance through inter-company and inter-sectoral
analysis over a given period of time (1981-1988). The main findings are that fixed assets utilisation in many
of the tyre undertakings was not as productive as expected and inventory was managed fairly well. The tyre
industry's overall profit performance was subjected to inconsistency and ineffective.
2. Dr. Anurag B Singh and Ms.Priyanka Tandon (2012): The researcher has mentioned the importance of
the banking sector in the economic development of the country. In India banking system is featured by
large network of Bank branches, serving many kinds of financial services of the people. The research
Methodology used by there is a comparative analysis of both the banks based on the mean and compound
growth rate (CGR). The study is based on secondary data collected from magazines, journals & other
published documents. Which was a limitation since it’s difficult to prove the geniuses of the data.
3. Pai, Vadivel and Kamala (1995) studied the diversified companies and financial performance: A study.
An effort was made to study the relationship between diversified firms and their financial performance.
Seven large firms having different products-both related and otherwise-in their portfolio and operating in
diverse industries were analyzed. A set of 32 performance measures / ratios was employed to determine the
level of financial performance. The results reveal that the diversified firms studied have been healthy
financial performance. However, variation in performance from one firm to another has been observed and
statistically established.
4. E. Gordon and K. Natrajan (2014): The economic development of any country depends on the existence
of a well-organized financial system. It includes financial markets and financial institutions which support
the system. Financial system provides the intermediation between savings and investment and promoters
faster economic development
5. Dr. (Mrs.) Anita (2014): It is very important for the customer to spend some of their time in banks to avail
all services. Relationship marketing should be emphasized on the co-operate staff members and special
training should be provided also private banks are ahead of public banks in the strategic intent. Also in
P a g e 30 | 53
order to keep the customer satisfied the infrastructure of the banks decor sitting facility are adequate also
overall improvement of the banks is necessary by making the customers available with the latest technology
and services. Naloni studied the service quality model for customers in PSB's she stated that the entry of
new private sector banks has led to improve customer service and products.
6. Renu Bagoria (2014): The main objective of this paper is to make a comparative study between private
sector banks and public sector banks and the adoption of various services provided by this bank. The
different services provided by these banks are M-Banking, Net banking, ATM, etc. One of the services
provided by the bank i.e. Mobile banking helps us to conduct numerous financial transactions through
mobile phone or personal digital assistant (pda). Data analysis had been made in private sector banks like
ICICI Bank, INDUSSIND Bank, HDFC Bank, Axis Bank and public sector banks like SBI Bank, SBBJ,
IDBI and OBC Bank. These banks also provide Mobile Banking service. The overall study showed that the
transaction of Mobile banking through public sector bank is higher than private sector.
7. Sathya Swaroop Debasish(2006) analyzed efficiency performance in Indian banking sector. This study
measure the relative efficiency of banks segmented on the basis of bank size, ownership structure and new
economy/old economy banks. The current study does not include a few of the important banking efficiency
parameters like non-performing asset, capital adequacy figures, customer satisfaction index and other
service quality variables.
9. Fadzlan Sufian and Mohamad Akbar Noor Mohamad Noor (2012) the study determines the Bank
Performance in a Developing Economy and focuses on relationship between bank profitability and
Explanatory variables. The study identified that impact of Indian bank’s profitability on the development
of economy is negative.
P a g e 31 | 53
10. Jaynal Ud-din Ahmed(2015) the study focused on evaluating the performance of Regional Rural Banks.
The study analyzes the development on every sector and deployment of credit ofRRBs over the years. This
study found that RRBs are not in a position to deploy credit for socio-economic development unlike Indian
Commercial Banks.
11. Poonam Singh and Kanhaiya Singh(2015) analyzed the Parameters to determine the efficiency of Indian
Public Sector Banks. The study observed efficiency of rural variable among all the operational performance
variables.
12. Hannes Koster and Matthias Pelster(2017) conducted a study. The study focused on financial penalties
and its impact on profitability and stock performances of bank. The study focuses on profits of banks
deposits and loans.
13. Raj S. Dhankar (1998) has given a new look at the criteria of performance measurement for business
enterprises in India-a study of public sector undertakings. The author gives a new model for measuring the
performance of a business enterprise in India, wherein, the basis is to compare its actual rate of return with
its expected risk adjusted rate of return. Realizing the importance and controversy of public sector in India,
an attempt was made to measure the performance of all public sector undertakings, which were started up
to 1964 and were in operation until 1983. It is shocking to know that half of them on an average want to
talk of making excess returns, have not been able to earn equal to their cost of capital.
14. Juliet D’Souza and William L.Megginson (1999) have studied the financial and operating performance
of privatized firms during the 1990s. This study compares the pre and post privatization financial and
operating performance of 85 companies from 28 industrialized countries that were privatized through
public share offerings for the period from 1990 through 1996. The significant increases in profitability,
output, operating efficiency, dividend payments and significant decreases in leverage ratios for the full
sample of firms after privatization were noticed. Capital expenditures increase significantly in absolute
terms, but not relative to sales. Employment declines, but insignificantly. The findings of the study strongly
suggest that privatization yields significant performance improvements.
P a g e 32 | 53
This chapter consists of research
4.1 RESEARCH
METHODLOHY
RESEARCH
4.2 DATA ANALYSIS AND
INTERPRETATION
METHODLOGY 4.3 DATA ANALYSIS AND
INTERPRETATION
AND DATA
ANALYSIS
P a g e 33 | 53
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It may be understood as a science
of studying how research is done scientifically. So, the research methodology not only talks about the research
methods but also considers the logic behind the method used in the context of the research study.
1. Research Design
Descriptive research is used in this study because it will ensure the minimization of bias and maximization of
reliability of data collected. The researcher had to use fact and information already available through financial
statements of earlier years and analyse these to make critical evaluation of the available material. Hence by
making the type of the research conducted to be both
Descriptive and Analytical in nature.
From the study, the type of data to be collected and the procedure to be used for this purpose were decided.
The present study is based on secondary data. The analysis is based on two banks,
Balance sheet, ratio, profit &loss which are calculated with the help of data from financial statements of the
State Bank of India and Axis Bank . All the related to State Bank of India and Axis Bank Auditors reports,
Internet, Books, Journals, Magazines and the like.
2. Data Collection
The required data for the study are basically secondary in nature and the data are collected from the audited
reports of the company.
Sources of Data:
The sources of data are from the annual reports of the company from the year 2013-2014 to 2019-2020.
Data is the fact, figures and other relevant materials, past and present, serving as basis for the study and
analysis. The design of the data collecting method is the backbone of research design. The sources of data are
varied. It depends upon the nature of the study. Data can be distinguished as:
Secondary Data: Secondary data is the data which is already collected. In this case the sources are collected
through websites, catalogues of bank, newspapers, books, magazines etc.
P a g e 34 | 53
Data collection
To analyze the performance of both SBI and AXIS Bank the data was collected through annual report from
sources of secondary data such as Internet, Magazines, Websites, Books, and Journals.
EQUITY ANALYSIS:
From the review of literatures, the topic ‘Equity Analysis’ is chosen to carry out the study. Equity Analysis is
the process of analyzing the equity shares of different organizations listed on the stock market, and suggesting
the investors to invest in the equities that give high returns.
1. To understand the analysis of risk and return of selected banks (SBI and AXIS Bank).
2. To provide adequate information to investors to judge their investment decisions basing on Beta values.
The data collected were edited, classified and tabulated for analysis. The analytical tools used in this study.
a) Analytical Tool Applied
Deposits 1,730,722.44 100 2,044,751. 118.1 2,706,343. 156.37 2,911,386. 168.22 3,241,62 187.3
39 4 29 01 0.73
Borrowings 323,344.59 100 317,693.6 98.2 362,142.07 111.99 403,017.1 124.64 314,655. 97.31
6 5 2 65
Liabilities 159,276.08 100 155,235.1 97.4 167,138.08 104.94 145,597.3 91.41 163,110. 102.41
& 9 6 0 10
Provisions
Total 2,357,617.54 100 2,705,966. 114.7 3,454,752. 146.53 3,680,914. 156.13 3,951,39 167.6
Liabilitie 30 8 00 25 3.92
s
Assets:
Fixed Assets 10,389.28 100 42,918.92 413. 39,992.25 384.94 39,197.57 377.29 38,439.2 369.99
1 8
Loans 1,463,700.42 100 1,571,078. 107.3 1,934,880. 132.19 2,185,876. 149.34 2,325,28 158.86
38 4 19 92 9.56
& Advances
Investments 575,651.78 100 765,989.6 133.0 1,060,986. 184.31 967,021.9 167.99 1,046,95 181.87
3 6 72 5 4.52
Other Assets 307,876.07 100 325,979.3 105.8 418,892.84 136.06 488,817.8 158.77 540,710. 175.63
7 8 1 56
Total Assets 2,357,617.54 100 2,705,966. 114.7 3,454,752. 146.53 3,680,914. 156.13 3,951,39 167.6
30 8 00 25 3.92
Other Info:
P a g e 36 | 53
Inference:
From the above balance sheet, it can be determined that, the company’s share capital is constant in the year
2017-18, 2018-19 and 2019-20. Reserves and surplus and deposits are increasing year to year. During 5 years
the borrowings are highest in the year 2019. Deposits are more than the loans and advances. Borrowings are
highest in the year 2019.
Annual 2015-16 2016-17 2017-18 2018-19 2019-20 T.A T.A T.A T.A T.A
2015- 2016- 2017- 2018- 2019-
16 17 18 19 20
Intere 163,998 175,518.24 220,499.32 242,868.65 257,323.59 100.00 107.02 134.45 148.09 156.91
st .30
Earne
d
Other 27,845.37 35,460.93 44,600.69 36,774.89 45,221.48 100.00 127.35 160.17 132.07 162.40
Inco
me
Total 191,843.67 210,979.17 265,100.01 279,643.54 302,545.08 100.00 109.97 138.19 145.77 157.70
Inco
me
Total 148,585.85 160,131.27 205,589.05 224,207.52 234,412.46 100.00 107.77 138.36 150.89 157.76
Expenditur
e
Operating 43,257.82 50,847.90 59,510.96 55,436.02 68,132.62 100.00 117.55 137.57 128.15 157.50
Profit
Provisions 29,483.75 35,992.72 75,039.20 53,828.55 43,330.37 100.00 122.08 254.51 182.57 146.96
&
Contigencie
s
PBT 13,774.07 14,855.18 - 1,607.47 24,802.25 100.00 107.85 -112.74 11.67 180.06
15,528.24
Tax 3,823.40 4,371.07 -8,980.79 745.25 10,314.13 100.00 114.32 -234.89 19.49 269.76
Net Profit 9,950.67 10,484.11 -6,547.45 862.22 14,488.12 100.00 105.36 -65.80 8.66 145.60
NPA
Gross NPA 98,172.80 112,342.99 223,427.46 172,753.60 149,091.85 100.00 114.43 227.59 175.97 151.87
Gross 7 7 11 8 6 100 100 157.14 114.29 85.7143
NPA (%)
Net NPA 55,807.02 58,277.38 110,854.70 658,947.40 51,871.30 100.00 104.43 198.64 114.29 92.95
Net 4 4 6 3 2.23 100 100 150 75 55.75
NPA
(%)
P a g e 37 | 53
Inference:
From the above Income Statement, it can be analyzed that the Interest Earned is increased by 7% in the year
2015-16 and increased up to 56% in the year 2019-20 during 5 years. During 5 years the total income is less
than the total expenditure. Operating profit is increased by 57% in the year 2019-20. Provisions and
contingencies are highest in the year 2017-18 i.e. 254.52 and it was gradually decreased to 146.96. Profit
before tax is lesser in the year 2017-18. Tax is highest in the year 2019-20. Net profit is increased by 45% in
the year 2019-20 and it is lowest in the year 2017-18 during the study period.
TABLE 4.3 AXIS BANK BALANCE SHEET AS ON 31ST MARCH (in Rs.)
Reserves &
442,024,1060 377,506,4190 326,399,0540 223,953,3840 185,882,7970
Surplus
Total
446,765,1500 382,204,8650 331,078,5990 228,085,4230 189,988,2550
Capital
total
3,374,976,103 2,947,334,592 2,635,017,001 2,287,475,790 1,974,466,637
Current Liabilities 0 0 0 0 0
ASSETS
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Cash and Balances with
Reserve Bank
of India
198,188,3970 170,413,1960 147,920,8830 107,029,2140 138,861,6300
total cash on
360,990,3180 282,386,9460 204,349,5990 139,339,1570 214,086,5590
hand
Current 0 0 0 0 0
Asset
TABLE 4.4 Axis Bank Profit and Loss Account for the Year Ending 31st March (in
Rs.)
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Total income 1978693960 2741486370 3373368070 3804638010 4384364350
2 Expenditure
Interest expended 859182300 1397690240 1751631110 186895220 2125445950
Operating expenses 477942810 600709950 691423750 790077390 920374560
Provisions and 302719790 318865640 412369920 523841760 602761610
contingencies
Total exp 1639844900 2317265830 2855424780 3182871350 3648582120
3 NET PROFIT FOR 338849060 424220540 517943290 621766660 735782230
THE YEAR (1-2)
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4.5 SUSTAINABLE EARNINGS OF STATE BANK OF INDIA:
II. Expenditure
rounding
off 8857
P a g e 41 | 53
1. Net Profit Ratio
Table 4.6 illustrates that the period of study, Net profit ratio of both SBI and AXIS Banks are fluctuated. The
highest Net Profit Ratio of SBI was 8.59% in 2014-15 and for AXIS bank it was 20.74% in 2014-15. However,
the lowest Net Profit Ratio of SBI was -2.97% in 2017-18 and 0.60% for AXIS bank in 2017-18.
P a g e 42 | 53
Table 4.8 illustrates that the period of study, Net Worth Ratio of both SBI and AXIS Banks are fluctuated.
The highest Net Worth Ratio of SBI was 10.20% in 2014-15 and for AXIS bank it was 16.46% in 2014-15.
However, the lowest Net Worth Ratio of SBI was -2.98% in 2017-18and 0.43% for AXIS bank in 2017-18.
The table says that the Net Worth Ratio of SBI is went to negative values the return of shareholders investment
went on losses.
1. However, the lowest EPS of SBI was -7.33% in 2017-18 and 0.53% for AXIS bank in2017-18. The
table says that the EPS of SBI is gone to negative value.
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5. Total Assets Turnover Ratio
Table 4.10 illustrates that the period of study, Total Assets Turnover Ratio of both SBI and AXIS Banks are
fluctuated. The highest Total Assets Turnover Ratio of SBI was 7.60% in 2013-14 and for AXIS bank it was
7.99% in 2013-14. However, the lowest Total Assets Turnover Ratio of SBI was 6.42% in 2017-18 and 6.62%
for AXIS bank in 2017-18.
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7.Debt-Equity Ratio
Table 4.12 illustrates that the period of study, Debt-Equity Ratio of both SBI and AXIS Banks are fluctuated.
The highest Debt-Equity Ratio of SBI was 16.34% in 2015-16 and for AXIS bank it was 10.89% in 2017-18.
However, the lowest Debt-Equity Ratio of SBI was 14.2% in 2016-17 and 9.88% for AXIS bank in 2015-16.
SBI AXIS
Year Interest Expended / Interest Earned Interest Expended / Interest
Earned
2013 - 2014 63.86 60.99
2014 - 2015 63.9 59.91
2015 - 2016 65.12 58.93
2016 - 2017 64.76 59.38
2017 - 2018 66.05 59.33
P a g e 45 | 53
RESULTS
Table 4.14
Table 4.14 demonstrates the Performance of SBI and AXIS Bank in terms of Deposits,Advances,
Investments, Net Profit, and Total Assets by applying the t- test
The calculated value of Deposits 3.35 is greater than the table value 2.236. Therefore, H01is rejected.
The calculated value of Advances 2.59 is greater than the table value 2.236. Therefore,H02 is rejected.
The calculated value of Investments 1.58 is less than the table value 2.236. Therefore,H03 is rejected.
The calculated value of Net Profit 1.58 is less than the table value 2.236. Therefore, H04is rejected.
The calculated value of Total Assets 4.2 is greater than the table value 2.236. Therefore,H05 is rejected.
Table4.15: Consolidated Values of Mean and Standard Deviation of SBI for 2018:
SBI 2018
Mont January Februar Marc Apri Ma June July Augus Septembe October Novembe Decembe
h y h l y t r r r
Mean 0.19 0.18 0.4 - 0 -0.24 0.6 -0.54 -0.42 1.1 0.23 -0.15
0.06 4
SD 1.94 1.17 1.26 1.3 1.76 1.07 1.2 1.71 0.99 6.44 2.4 1.31
2
Graph 4.A: Graph Showing Risk and Return of SBI 2018
P a g e 46 | 53
Interpretation: The graph depicts that, the Standard Deviation which indicates the risk is more in the month
of October with a value of 6.44. The Mean which indicates the return, is also high in the month of October
with a value of 1.1. The existence of the risk is much higher than the returns on the whole.
Table 4.16: Consolidated Values of Mean and Standard Deviation of SBI for 2019:
SBI 2019
Month Januar Februar March Apri Ma June July Augus Septembe Octobe Novembe Decembe
y y l y t r r r r
Mean 0.06 -0.8 -0.34 - 0.42 -0.17 0.5 0.27 -0.83 0.32 0.06 0.2
0.05 8
SD 2.02 1.84 2.39 1.86 1.87 1.58 1.9 1.98 1.73 3.29 1.6 1.28
1
Interpretation: The graph depicts that, Mean is more in the month of July, which is 0.58. The Standard
Deviation is high in the month of October, which is 3.29. On the whole, for the year 2018, the existence of
risk is higher than the returns.
Table 4.17: Consolidated Values of Mean and Standard Deviation of AXIS for 2018:
AXIS 2018
Mont Januar Februar Marc Apri Ma Jun July Augus Septembe Octobe Novembe December
h y y h l y e t r r r
P a g e 47 | 53
Mean 0.19 0.46 -0.13 0.22 0.05 0.04 0.0 -0.18 0.09 0.19 0.12 0.27
3
SD 2.1 1.98 1.42 1.58 1.6 1.35 1.4 1.09 1.43 3.26 1.52 1.05
9
Graph 4.C: Graph Showing Risk and Return of AXIS Bank 2018
Table 4.18: Consolidated Values of Mean and Standard Deviation of AXIS for 2019:
AXIS 2019
Mont Januar Februar Marc Apri Ma Jun July Augus Septembe Octobe Novembe December
h y y h l y e t r r r
Mean 0.24 -0.59 -0.17 0.1 0.25 -0.3 0.3 0.8 -0.3 -0.2 0.37 -0.03
5
SD 1.48 1.86 1.68 2.98 1.41 1.19 1.7 1.82 1.71 2.87 1.7 1.59
8
Graph 4.D: Graph Showing Risk and Return of AXIS Bank 2019
1
Interpretation: The graph depicts that, returns are high in the month of July with a value of 0.35. The risk is
high in the month of October, which is 2.87. On the whole, the risk is prevailing more than the returns.
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Summary of Findings,
Conclusion and Suggestions /
CHAPTER-5 Recommendations
5.1 DISCUSSION
DISCUSSION, 5.2 SUGGESTIONS
AND
CONCLUSION
P a g e 49 | 53
➢ DISCUSSION
The study provides key findings according to the data analysis and arrives on someconclusions based
on the findings.
• The average Net Profit Ratio of SBI is 5.13% and AXIS bank is 13.99%, which implies that the Net
Profit Ratio of AXIS bank is 8.85%, which is more than that of the SBI.
• The average Operating profit ratio of SBI is 10.15% and AXIS bank is 14.58% it means AXIS bank
Operating profit ratio is 4.42% more than SBI.
• The average Net Worth Ratio of SBI is 5.77% and AXIS bank is 11.04% it means AXIS bank Net Worth
Ratio is 5.27% more than SBI.
• The average EPS of SBI is 10.15% and AXIS bank is 10.84% it means AXIS bank EPS is 0.69% more
than SBI.
• The average Total Assets Turnover Ratio of SBI is 7.05% and AXIS bank is 7.50% it means AXIS bank
Total Assets Turnover Ratio is 0.44% more than SBI.
• The average Dividend Pay-Out Ratio of SBI is 4.66% and AXIS bank is 4.34% it means SBI bank
Dividend Pay-Out Ratio is 0.44% more than AXIS.
• The average Debt-Equity Ratio of SBI is 15.45% and AXIS bank is 10.33% it means SBIbank Debt-
Equity Ratio is 5.07% more than AXIS.
➢ SUGGESTIONS
• An Earnings per Share (EPS) of SBI Bank is very low when compared to AXIS. Where in 2017-18 the
value gone to negative it implies profitability of SBI is not equal to AXIS Bank. Therefore, the SBI Bank
may take some measures to increase income over expenditure for increasing Earning per Share.
• Debt-equity Ratio of SBI is higher when compared to AXIS Bank. As a result, SBI should have a control
on their debts. Axis Bank have to maintain the standards to manage their debts.
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➢ CONCLUSION
According to the analysis both SBI and AXIS banks are maintaining their standards and requirements. Both
the banks are running with profitability. But their performance indicate the significant difference between
both the banks of SBI and AXIS in terms of Deposits, Advances, Investments, Net Profit, and Total Assets.
It is suggested to the investors to prefer investment in equities having returns, with low or moderate risk.
Equities generating high returns, with high risk are also considered better, to the extent of interest of investors.
The Beta is the indicator of volatility of stocks. It measures the fluctuations in securities. From this study, it is
observed that, the equities of SBI are much volatile and riskier, than that of AXIS bank equities. The Return
on Equity from SBI is much lower, compared to AXIS. The fluctuation of the stocks clearly indicate that, SBI
equities are bearing more risk. AXIS generates good amount of returns, though there is existence of risk in a
considerable amount. Hence, it is suggested to the investors to invest in AXIS Bank equities.
Every investor’s objective is to obtain greater returns, with minimum risk. Equity Analysis is one such
analysis, which acts as a supporting tool to the investors before they make up their mind to invest in any of the
organization’s equities. It gives the information required by the investors to put forward their investment
options and to make a wise investment decision. Based on the data used and analysis carried out for this study,
the
performance of AXIS Bank is considered superior to SBI. The performance of each and all organization’s
stocks keep on changing based on the market conditions and many other factors such as political, economic,
social factors which impacts the stock market. Hence, the investors must analyze all the crucial factors which
may have a direct bearing on the market and it is hoped that, this study fulfills the investor requirements.
P a g e 51 | 53
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[1] Sathya Swaroop Debasish (2006),” Efficiency Performance in Indian Banking—Use of Data
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[3] Fadzlan sufian, Md Akbar Noor Mohamad Noor (2012),” Determinants of Bank Performance in a
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[7] D.Padma and V.Arulmathi (2013) ,”Financial Performance Of State Bank Of India And Icici Bank – A
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[9] Manish Mittal and Arunna Dhademade (2005), “A Comparative study on profitability and productivity in
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International
✓ http://en.wikipedia.org/wiki/State_Bank_of_India
✓ http://en.wikipedia.org/wiki/Axis_Bank
✓ www.capitaline.com
✓ www.sbi.com
✓ www.investopedia.com
✓ www.in.finance.yahoo.com
✓ www.sbi.co.in
✓ www.Axisbank.com
✓ http://www.moneycontrol.com
✓ www.readyratios.com
✓ https://www.equitymaster.com/stock-research/compare/SBI-UTIB/Compare-SBI-AXIS-BANK
✓ www.bankingindustry.com
✓ https://ticker.finology.in/
✓ www.google.com
✓ www.crisilresearcher.com
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