PARTICULARS

2016-17
Net Profit 3,967.03
Total Revenue 57,596.70
Net Profit Margin(NPM) 6.89%
Total Revenue 57,596.70
Avg. Total Assets
Total Asset Turnover(TAT)
Avg. Total Assets 57,596.70
Share holder equity 55,762.54
Avg. Equity
Equity Multiplier(EM) (Financial Leverage)
Return on Equity(ROE) (NPM*TAT*EM)
Total Assets 611462.01
Capital to Asset Ratio
Profitability of assets
Return on Asset
Asset Utilization
Operating expenses 12725.63
Cost Management
Cost to income 46.6
Net interest margin 3
Operating expenses to total assets 2.08
other income to total assets 2.03
Cost of fund
contingent liabilties 673136.35
Contingent liabilties/ total asset 110.09
net profit 3,967.03
provision and contingencies 14,114.69
operating expenses 12725.63
interest expended 26789.35
non interest income 12421.6
interest income 33694.64

ROA
ROE
 Rs. Crores
2017-18 2018-19 2019-20 2020-21
464.02 5,047.09 1,878.75 7,252.39
58,476.67 70232.41 80,057.67 80,847.94
0.79% 7.19% 2.35% 8.97%
58,476.67 70232.41 80,057.67 80,847.94
58036.69 64354.54 75145.04 80452.81
100.76% 109.13% 106.54% 100.49%
58,476.67 70232.41 80,057.67 80,847.94
63,445.26 66676.3 84,947.84 101,603.01
59603.90 65060.78 75812.07 93275.43
0.981 1.079 1.056 0.867
0.78% 8.47% 2.64% 7.81%
703703.37 814045.97 927817.81 1010325.33
0.0901590964386 0.0819072908131 0.0915565955777 0.1005646468351
0.80 7.84 2.50 9.01
0.03 0.58 0.17 0.66
8.31% 8.63% 8.63% 8.00%
14788.36 16720.19 18065.76 19174.87
2.10% 2.05% 1.95% 1.90%
52% 44.56% 50.19% 47.82%
2.70% 2.72% 2.77% 2.94%
2.1 2.05 1.94 1.89
1.68 1.74 1.76 1.59
5.15% 5.43% 5.48% 4.48%
706725.24 758228.98 925006.76 1053624.91
100.43 93.14 99.70 104.29
464.02 5,047.09 1,878.75 7,252.39
15,620.59 14,581.65 22,117.22 19,494.23
14788.36 16720.19 18065.76 19174.87
27603.69 33883.47 37,995.94 34926.44
11862.62 14188.75 16341.99 16151.52
34909.73 42,322.58 49,323.30 48,903.22

0.03 0.58 0.17 0.66

0.78% 8.47% 2.64% 7.81%
Du Point Analysis - Breakout Room 6
Arun Roshan D - 20023
Gowtham R - 20054
Janmajaya Pradhan - 20062
Jayasankar G - 20064
Madhusudhanan R - 20076
 PARTICULARS
2016-17
Net Profit 15287.4
Total Revenue 86,148.99
Net Profit Margin(NPM) 17.75%
Total Revenue 86,148.99
Avg. Total Assets
Total Asset Turnover(TAT)
Avg. Total Assets
Share holder equity 91,281.44
Avg. Equity
Equity Multiplier(EM) (Financial Leverage)
Return on Equity(ROE) (NPM*TAT*EM)
Total Assets 892344.16
Capital to Asset Ratio
Profitabilty of assets
Return on Asset(IN %)
Asset Utilization
Operating expenses 11360.18
Cost Management
Cost to income(%) 38.09%
Net interest margin(%) 3.94%
Operating expenses to total assets 2.32
other income to total assets 1.44
Cost of funds
Contigent liabilities 818284.29
Contigent liabilities/ total asset 91.700526173668
Net profit 15287.4
Provisions and contigencies 12068.93
operating expenses 11360.18
interest expended 38041.58
non interest income 12877.63
interest income 73271.35

ROA
ROE
 Rs. Crores
2017-18 2018-19 2019-20 2020-21
18560.84 22445.61 27296.27 31856.77
101,344.45 124107.79 147,068.27 155,885.27
18.31% 18.09% 18.56% 20.44%
101,344.45 124107.79 147,068.27 155,885.27
997765.165 1197995.94 1436818.075 1690168.54
10.16% 10.36% 10.24% 9.22%
997765.165 1197995.94 1436818.075 1690168.54
109,080.11 153128 175,810.38 209,258.91
100180.78 131104.06 164469.19 192534.65
9.960 9.138 8.736 8.779
18.53% 17.12% 16.60% 16.55%
1103186.17 1292805.71 1580830.44 1799506.64
0.0988773363611 0.1184462590284 0.1112139389219 0.1162868229261
0.0186024133244 0.0187359649983 0.018997721754 0.0188482800656
1.68% 1.74% 1.73% 1.77%
9.19% 9.60% 9.30% 8.66%
13766.54 16022.94 18839.16 19939.58
1.25% 1.24% 1.19% 1.11%
39.86% 38.63% 39.18% 41.55%
3.88% 3.97% 3.79% 3.85%
2.16 2.14 2.08 1.94
1.45 1.46 1.57 1.51

836231.7 1025125.31 1130474.06 975280.66

75.801503204124 79.294614965771 71.5114051068 54.197113715568
18560.84 22445.61 27296.27 31856.77
16474.9 20254.73 24598.52 29779.67
13766.54 16022.94 18839.16 19939.58
42381.48 53712.69 62137.42 59247.58
16056.6 18947.05 24878.97 27332.88
85287.84 105160.74 122189.29 128552.39

1.68% 1.74% 1.73% 1.77%

18.35% 17.12% 16.60% 16.55%
 Bank/Year 2017-18 2018-19
Axis 0.79% 7.19%
HDFC 18.31% 18.09%

Net Profit as % of Average total assets

25.00%

20.00%
Figure 1 - Net Profit as % of Average total assets
15.00%

10.00%

5.00%

0.00% Axis ba
2017-18 2018-19 2018-19 2019-20
Net profit on Average total is fluctuating. However it's fiscal year 2019-20 has been a good year interms of gro
of net profit attaining it's high comparing to the previous years. While, its peer
AxisHDFC bank is showing good retu
HDFC
and has a consistent growth and less fluctuation. Both the banks have shown good growth during the 2019-2
fiscal.
 2018-19 2019-20 Bank/Year 2017-18 2018-19
2.35% 8.97% Axis 0.98 1.08
18.56% 20.44% HDFC 9.96 9.14

of Average total assets Leverage in the banking system

12.00

10.00
Figure 2 - Leverage in
8.00
the banking system
6.00

4.00

2.00

Axis bank's 0.00

8-19 2018-19 2019-20 2017-18 2018-19 2018-19 2019-20
s been a good year interms of growth
er
AxisHDFC bank is showing good returns
HDFC Axis HDFC
wn good growth during the 2019-20

Axis has been having good consistency in maintaining low leverage. Though it ha
increased from 2017-18 fiscal to 2018-19. It has started showing downward trend ma
sure risks are minimized. HDFC has a higher Leverage making it riskier, however it
reducing marginally every year. But, 2019-20 fiscal year has shown a very minima
increase.
 2018-19 2019-20
1.06 0.87
8.74 8.78

the banking system

18-19 2018-19 2019-20

Axis HDFC

aining low leverage. Though it has

rted showing downward trend making
erage making it riskier, however its
cal year has shown a very minimal
 ROE Analysis

Factor/Bank Axis HDFC

2017-18 0.78% 18.53%

2018-19 8.47% 17.12%

Return on Equity
2019-20 2.64% 16.60%

2020-21 7.81% 16.55%

2017-18 0.80 0.02

Profitability of Assets 2018-19 7.84 0.02
2019-20 2.50 0.02
2020-21 9.01 0.02
2017-18 0.98 9.96
2018-19 1.08 9.14
Leverage
2019-20 1.06 8.74
2020-21 0.87 8.78
2017-18 0.09 0.10

Capital to Assets ratio 2018-19 0.08 0.12

2019-20 0.09 0.11
2020-21 0.10 0.12
 Factor/Bank Axis HDFC

2017-18 0.03% 1.68%

2018-19 0.58% 1.74%

Return on Assets
2019-20 0.17% 1.73%

2020-21 0.66% 1.77%

ROA Analysis - Asset utilization and cost management bank groups

Factor/Bank Axis HDFC
2017-18 8.31% 9.19%
2018-19 8.63% 9.60%
Asset Utilization
2019-20 8.63% 9.30%
2020-21 8.00% 8.66%
2017-18 2.10% 1.25%
2018-19 2.05% 1.24%
Cost Management
2019-20 1.95% 1.19%
2020-21 1.90% 1.11%
 While there is good asset utilization for both the companies. HDFC gas veen
performing consistenly better than Axis. Axis has started performing better but the
covid-19 pandemic has affected banks and both the banks have shown reduced
utilization in the last 2 financial years with 2020-21 being very bad because of long
lockdowns and uncertainities.

Both the banks are becoming cost efficient and its clearly visible
with the downward trend. However, HDFC has a better cost
effiency than Axis.
 Axis Bank 2017-18 2018-19 2018-19
Cost to Income Ratio 52.00% 44.56% 50.19%
Net Interest Margin 2.70% 2.72% 2.77%

Axis Bank
54.00% 3.00%
52.00% 2.95%
2.90%
50.00%
Figure 3-a - Trend in 2.85%
efficiency indicators 48.00% 2.80%
46.00% 2.75%
2.70%
44.00%
2.65%
42.00% 2.60%
40.00% 2.55%
2017-18 2018-19 2018-19 2019-20

Cost to Income Ratio Net Interest Margin

Axis bank has been showing higher costs and fluctuating costs during the period. However HDFC bank has sho
NIM consistently without any dip. But, HDFC has a minor dip in NIM in 2018
 2019-20 HDFC Bank 2017-18 2018-19 2018-19
47.82% Cost to Income Ratio 39.86% 38.63% 39.18%
2.94% Net Interest Margin 3.88% 3.97% 3.79%

HDFC Bank
3.00% 42.00% 4.00%
2.95% 41.50%
41.00% 3.95%
2.90%
2.85% 40.50% 3.90%
Figure 3-b - Trend in 40.00%
2.80% efficiency indicators 39.50% 3.85%
2.75%
39.00%
2.70% 38.50% 3.80%
2.65% 38.00% 3.75%
2.60% 37.50%
2.55% 37.00% 3.70%
2019-20 2017-18 2018-19 2018-19 2019-20

t Margin Cost to Income Ratio Net Interest Margin

eriod. However HDFC bank has shown slight variations but relatively less cost to income ratio. Axis Bank has shown upward trend in
DFC has a minor dip in NIM in 2018-19 fiscal year but has started recovering in the following year.
 2019-20
41.55%
3.85%

4.00%

3.95%

3.90%

3.85%

3.80%

3.75%

3.70%
2019-20

est Margin

hown upward trend in

 Axis Bank 2017-18 2018-19 2018-19
Operating expenses to
2.1 2.05 1.94
total assets
Other income to total
1.68 1.74 1.76
assets

Axis Bank
2.5
Figure 4-a-
Movements in 2
operating expenses
and other income 1.5

0.5

0
2017-18 2018-19 2018-19 2019-20

Operating expenses to total assets Other income to total assets

Axis Bank has been showing good performances by maintaining low operating expense
banks have been reducing their operating expenses and increasing other income, excep
the last quarter o
 2019-20 HDFC Bank 2017-18 2018-19 2018-19
Operating expenses
1.89 2.16 2.14 2.08
to total assets
Other income to total
1.59 1.45 1.46 1.57
assets

HDFC Bank
2.5
Figure 4-b -
Movements in 2
operating expenses
and other income 1.5

0.5

0
2019-20 2017-18 2018-19 2018-19 2019-20

ome to total assets Operating expenses to total assets Other income to total assets

maintaining low operating expenses and at the same time significantly higher other income than HDFC. However both
nd increasing other income, except for fiscal year 2019-20 where it has dropped because of the pandemic factor during
the last quarter of the fiscal year.
 2019-20

1.94

1.51

9 2019-20

r income to total assets

 Bank/Year 2017-18 2018-19 2018-19 2019-20
Axis 100.43 93.14 99.70 104.29
HDFC 75.8015032 79.294615 71.5114051 54.1971137

Contignent Liabilities/Total assets

120.00

100.00
Figure 6 - Contingent
liabilities as
proportion of total 80.00
liabilities/assets
60.00

40.00

20.00

0.00
2017-18 2018-19 2018-19 2019-20

Axis HDFC
 Axis Bank has a higher contingent liabilty to Total asset ratio than HDFC. While HDFC is reducing it's
contigent liabilities, Axis is showing fluctuations as it has better Other incomes than HDFC creating more
contingent liabilities than HDFC.
DFC is reducing it's
HDFC creating more
 Non-Interest
Axis Bank Interest Income
Income
2017-18 3.61% -4.50%
2018-19 21.23% 19.61%
2019-20 16.54% 15.18%
2020-21 -0.85% -1.17%

Axis Bank 20

60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
-10.00%
Figure 7-a - More -20.00%
indicators of banks' Interest Income Non-Interest Income Interest Expended Op
financial performance

1200...

1000...

800

600

400

200

-200...
Net P...
 Operating Provision and
Interest Expended Net Profit
Expenses Contingencies
3.04% 16.21% 10.67% -88.30%
22.75% 13.06% -6.65% 987.69%
12.14% 8.05% 51.68% -62.78%
-8.08% 6.14% -11.86% 286.02%

2017-18 2018-19 2019-20 2020-21

n-Interest Income Interest Expended Operating Expenses Provision and

Contingencies

Net profin margin for

Axis bank added
separately as it has
Net P... huge variations
 Non-Interest
HDFC BANK Interest Income Interest Expended
Income
2017-18 16.40% 24.69% 11.41%
2018-19 23.30% 18.00% 26.74%
2019-20 16.19% 31.31% 15.68%
2020-21 4.95% 9.86% -4.65%

HDFC Bank
40.00%
Figure 7-b - More
indicators of banks' 35.00%
financial performance 30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
Interest Income Non-Interest Interest Expended Operating Prov
-5.00% Income Expenses Con
-10.00%

2017-18 2018-19 2019-20 2020-21

Year on Year data taken for comparison

 Operating Provision and
Net Profit
Expenses Contingencies
21.18% 36.51% 21.41%
16.39% 22.94% 20.93%
17.58% 21.45% 21.61%
5.84% 21.06% 16.71%

FC Bank

xpended Operating Provision and Net Profit

Expenses Contingencies

19 2019-20 2020-21

for comparison
 Banks ROA and ROE

Factor/Bank Axis HDFC

2017-18 0.78% 18.53%

2018-19 8.47% 17.12%

Return on Equity
2019-20 2.64% 16.60%

2020-21 7.81% 16.55%

2017-18 0.03% 1.68%

2018-19 0.58% 1.74%

Return on Assets
2019-20 0.17% 1.73%

2020-21 0.66% 1.77%

 Axis bank gives inconsistent and bad return on equity. HDFC is consistent and
provides good return on equity. But, it is to be noted that the ROE of HDFC has been
constantly decreasing and is showing a downward trend which is a bad sign for the
shareholders.

The return on asset is not good and shows inconsistency in Axis Bank. HDFC has
better ROA and has continous upward trend signifying good improvements.

Note: HDFC's ROA is showing an upward trend but ROE has been showing a
downward trend.