AXIS BANK LIMITED

Balance Sheet for the Year ended March 31,2018

Rs. (in crore) Profitability Ratio

2018 2017 I.
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS 2017
Equity Share Capital 513.31 479.01 2018
Total Share Capital 513.31 479.01
Reserves and Surplus 62931.95 55283.53 II.
Total Reserves and Surplus 62931.95 55283.53
Total ShareHolders Funds 63445.26 55762.54 2017
Deposits 453622.72 414378.79 2018
Borrowings 148016.14 105030.87
Other Liabilities and Provisions 26245.45 26295.47 III.
Total Capital and Liabilities 691329.58 601467.67
ASSETS 2017
Cash and Balances with Reserve Bank of India 35481.06 30857.94 2018
Balances with Banks Money at Call and Short Notice 7973.83 19398.24
Investments 153876.08 128793.37 IV.
Advances 439650.3 373069.35
Fixed Assets 3971.68 3746.89 2017
Other Assets 50376.62 45601.87 2018
Total Assets 691329.58 601467.67

AXIS BANK LIMITED V.

Profit & Loss Account for the year ended 31st,March 2018

Rs. (in crore) 2017

2018 2017 2018
INCOME
Interest / Discount on Advances / Bills 34137.47 33124.96 Liquidity Ratio
Income from Investments 9983.3 9622.82 I.
Interest on Balance with RBI and Other Inter-Bank fund 387.83 503.84
Others 1271.71 1290.54 2017
Total Interest Earned 45780.31 44542.16 2018
Other Income 10967.09 11691.31
Total Income 56747.4 56233.47 II.
EXPENDITURE
Interest Expended 27162.58 26449.04 2017
Payments to and Provisions for Employees 4312.96 3891.86 2018
Depreciation 568.1 508.8
Operating Expenses (excludes Employee Cost & Deprec 9109.29 7799.24
Total Operating Expenses 13990.34 12199.91 SOLVENCY RATIO
Provision Towards Income Tax 1671.19 4988.9 I.
Provision Towards Deferred Tax -182.53 -3200.62
Other Provisions and Contingencies 13830.14 12116.96 2017
Total Provisions and Contingencies 15318.8 13905.2 2018
Total Expenditure 56471.72 52554.19
Net Profit / Loss for The Year 275.68 3679.28 II.
Net Profit / Loss After EI & Prior Year Items 275.68 3679.28
2017
2018

III.

2017
2018

CAPITAL MARKET RA
I.

2017
2018

II.

2017
2018

III.

2017
2018
 Profitability Ratio
Profit Margin Ratio
(PAT/Net sales)*100
8.26 %
0.60 %

Assest Turnover Ratio OP assets 2017

Net Sales/Avg. Total Assest 525467.62
0.08 times
0.07 times

Return on Assets(ROA)/Return on investment(ROI)

(PAT/Avg. total assets)*100
0.65 %
0.04 %

Return on Equity(ROE) OP Share capital2017

(PAT/Avg. Shareholder Equity)*100 476.57
13.08 %
0.86 %

Earning Per Share

PAT/No. of Equity Share

15.36 per share

1.07 per share

Liquidity Ratio
Current Ratio
Current Assets/Current Liability
3.65 3.65:1
3.58 3.58:1

Quick Ratio/Acid test ratio

Quick Asset/Current Liability
1.91 1.91:1
1.66 1.66:1

SOLVENCY RATIO
Debt Equity ratio
Debt/Equity
1.88 1.88:1
2.33 2.33:1
Liability to equity ratio
All liabilities/shareholders equity
9.79 9.79:1
9.90 9.90:1

Interest coverage ratio (ICR)

PBIT/Interest expense
0.14 times
0.01 times

CAPITAL MARKET RATIO

Price earning ratio(PE Ratio)
Avg. stock price/ Earning per share EPS Maret high Market low Dividend
32.30 15.36 567.85 424.4 1407.43
481.51 1.07 539.2 495.2 1405.28

Dividend Yield
DPS/Avg stock price
0.0118 times
0.0106 times

Price to book ratio (PB Ratio)

Market stock price/book value per share
4.26 times
4.18 times
 PROFITABILITY RATIO

PROFIT MARGIN RATIO:

In the year 2017, it is observed that Axis Bank Limited enjoyed
a profit margin ratio of 8.26% which marginally came down to
0.60% in the year 2018. This is due to high decrease in
provision towards Income tax in 2018 with respect to 2017.

ASSET TURNOVER RATIO (ATR):

In the year 2017, Axis Bank was able to convert its assets into
sales 0.08 times which reduced to 0.07 times in the year 2018.
This has happened because there is a slight increase in the
operating assets and the total assets for year 2018. And is
indicating that the Axis Bank is not using its assets efficiently to
generate more revenue.

RETURN ON ASSET (ROA)/RETURN ON INVESTMENT (ROI):

In the year 2017, Axis Bank Limited generated a ROA/ROI of
0.65%, which significantly came down to 0.04% in the year
2018. This means that on average investment of Rs.100 the
bank generates a PAT of Rs. 65 This indicate that the company
has not been successful in utilizing its assets in an efficient
manner.
And there is a huge fall in the net profit in 2018 and the
operating asset and total assets of the company is also high in
the year 2018, still not making much profit.

RETURN ON EQUITY(ROE):
In the year 2017, Axis Bank Limited had return on equity of
13.08% which means that if shareholder’s invested Rs.100 than
the bank generated a profit of 13.08%. Whereas in the year
2018 ROI significantly came down to 0.86%. Because there is a
drastic fall in the net profit of Axis bank limited in the year
2018.

EARNING PER SHARE(EPS):

Axis Bank Limited earning per share for the year 2017 is 15.36,
which significantly goes down to 1.07 in the year 2018. This
drastic fall has happened because there is a high fall in the net
profit of the company in the year 2018. Which means the
company is in poor health and will give low return to their
share holder.
 LIQUIDITY RATIO

CURRENT RATIO:
In the year 2017, Axis Bank Limited has a current ratio of
3.65:1 which decreases to 3.58 in 2018. We can see that in
2017 when the current liability of the bank is Rs.1 then it
had Rs 3.65 to payoff, similarly in 2018 when the current
liability of the bank is Rs.1 then it had Rs 3.58 to payoff. So,
it is an evident that the bank enjoys good liquidity position
during both the years and has sufficient current assets to
pay off its current liabilities.

QUICK RATIO/ACID TEST RATIO:

In the year 2017 the company quick ratio was 1.91:1 which
marginally increase to 1.96:1. It is the evident that Bank
didn’t had enough quick assets to pay off the current
liabilities.
 SOLVENCY RATIO

DEBT EQUITY RATIO:

In the year 2017, the debt equity ratio of Axis Bank
Limited was 1.88:1 which further increase to 2.33:1
during 2018. This means risk for creditors has slightly
lower.

LIABILITY TO EQUITY RATIO:

In the year 2017, the Liability to Equity ratio of Axis Bank
Limited was 9.79:1 which further increase to 9.90:1 during
2018. This means when the company had a liability of Rs.1
towards its shareholders, it had a liability of Rs. 9.79 and
9.90 in the respective years. And there is a slight increase in
the ratio because the borrowings and deposits in the year
2018 has increase slightly.

INTEREST COVERAGE RATIO:

In the year 2017, Axis Bank Limited had an interest
coverage ratio of 0.14 times which decreases to 0.01 times
during 2018. It means that when the bank had to pay an
interest expense of Rs.1 then the bank had PBIT of only Rs.
0.14 and Rs. 0.01 in the respective years. It is clearly evident
that the bank didn’t have sufficient income to payoff its
interest expense in both years.
And it is because the company has a drastic fall in the net
profit in year 2018.
 CAPITAL MAARKET RATIO

PRICE EARNING RATIO:

The Price Earning ratio of Axis Bank Limited was 32.30 times in
the year 2017 which further increase to 481.51 times in the
year 2018 which shows that the company has a drastic
increase in performance and can earn.

DIVIDEND YIELD:
The dividend yield by Axis Bank Limited in the year 2017 was
0.0118% which falls to 0.106% in the year 2018. There are a
very short fall means the company was not able to do much
about its dividend.

PRICE TO BOOK RATIO:

The company Axis Bank Limited price to book ratio in the year
2017 was 4.26 times which decreases to 4.18 time in the year
2018 which shows company has decrease a little. And Price to
book ratio 4.26 times and 4.18 times means the bank’s
average stock price was moving at 4.26 times of its book value
in 2017 and 4.18 times of its book value in 2018.