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A Project Report capital structure at axsi bank

Master of Business Administration (Jawaharlal Nehru Technological University,

Hyderabad)

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A PROJECT REPORT
ON
CAPITAL STRUCTURE AT AXIS BANK
SUBMITTED
BY

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STUDENT DECLARATION

I hereby declare that this Project Report titled

submitted by me to the

Department of Business Management, O.U., Hyderabad, is a bonafide

work undertaken by me and it is not submitted to any other University

or Institution for the award of any degree diploma / certificate or

published any time before.

Name and Address of the Student Signature of the

Student

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AURORA’S PG COLLEGE
PANJAGUTTA

CERTIFICATE

This is to certify that the Project

Report entitled “
” submitted in partial fulfilment for the award of
MBA Programme of Department of Business Management, Aurora’s PG
College(MBA), Panjagutta, affiliated to Osmania University,
Hyderabad, was carried out by
H.T.No. under our guidance. This has not been
submitted to any other University or Institution for the award of any
degree/diploma/certificate.

Internal Guide Head of the Department Principal

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COMPANY
CERTIFICATE

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ACKNOWLEDGEMENT

This acknowledgement is a humble attempt to earnestly thank all

those who are directly or indirectly involved with my project and were of

immense help to me.

First of all, I would like to express my sincere thanks to the Director of

college and

H.O.D of MBA department, for giving me this opportunity to carry out

the project. I acknowledge with greatest courtesy the efforts taken by,

my internal guide, who took genuine interest in my project and helped

me, understand the basic concepts of the project when necessary.

I am also thankful to my external guide , at who

was readily willing to help me out in the course of the project.

Name of the Student

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Project index

Table of Contents

Contents Page numbers

Chapter 1: INTRODUCTION

1.1 Introduction to Study 1-2

1.2 Need of the Study 3

1.3 Scope of the Study 4

1.4 Objectives of the Study 5

1.5 Limitations of the Study 6

Chapter 2: RESEARCH METHODOLODY 7-8

Chapter 3: REVIEW OF LITERATURE

3.1 Theoretical Background 9-15

3.2 Articles 16-26

Chapter 4: INDUSTRY & COMPANY PROFILE

4.1 Industry Profile 26-32

4.2 Company Profile 33-45

Chapter 5: DATA ANALYSIS AND INTERPRETATION 46-70

Chapter 6: FINDINGS, SUGGESTIONS & CONCLUSION

6.1 Findings 71-73

6.2 Suggestions 74

6.3 Conclusion 75

BIBLIOGRAPHY iii

APPENDICES iv

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INTRODUCTION TO THE RESEARCH STUDY

This Project work examines the impact of capital structure on axis bank performance. The study spreads empirical work
on capital structure determinants of banks within country and foreign country. Multiple reversion models are useful to
evaluation the relationship between capital structure and banking performance. Performance is measured by return on
assets, return on equity and earnings per share. Determinants of capital structure contains long term debt to capital ratio,
short term debt to capital ratio and total debt to capital ratio. Results of the study validated a positive relationship between
factors of capital structure and performance of banking industry.

Capital structure of the group is very hard to determine. Financial managers are fronting difficulties in just determining
the optimal capital structure. Optimum capital structure means with a minimum weighted average cost of capital and thus
maximize the value of organization. A business utilizes several kinds of financing to operate a company efficiently.
Pakistanis financial field practical exciting modifications since independence in 1947. At first it was hurt by political and
socioeconomic problems. Unsatisfactory educated human sources and professionals resulted in to low quality connected
with services and products. Financial aspect is a tool which point out the financial strengths, weaknesses, opportunities
and threats. On the additional hand today capital structure is one of the most significant financial decisions for any
business and firm. This decision is authoritative because the organizations need to expand return to different organizations
and also have an effect on the value of the organization

Since the liberalization of Indian economy, there has been a continuous research on company financing activities,
particularly aimed at understanding how and why companies finance their activities. In the present scenario several
alternatives are available for collecting the funds. The finance managers use different combinations of debt & equity to
meet the various financial requirements of the company at least cost & risk. Small and Big organizations used the way of
collecting funds according to their paying capacity, degree of risk, size of capital, working system of the business etc.
Therefore, the present project is an attempt to study the comparative analysis of capital structure and its impact on
profitability of Axis Bank & determine the bank having effective capital mix and analyses the effect of changes in capital
structure over the period of time on the performance of banks. The data in study relates from 2019 & 2022. Lastly, some
suggestions have been given which the banks can follow. Hence, the research may contribute in providing a new way to
the banks for capital structure decision.

Keywords: Banking Performance, Optimal Capital Structure, Return on Assets, Return on Equity, Earning Per Share.

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Introduction

INTRODUCTION

Capital Structure refers to the mix of various components of Capital of a Company. Estimation of
requirement of capital is necessary, but the formation of capital structure is most important. The term
capital structure is used to represent the

1. Proportionate relationship between debt and equity

2. Determination of optimal capital structure is an important task in financial management

3. Capital structure decisions are important to maximize the earnings of the companies

. The factors influencing the capital structure decision are:

(i) Financial leverage or “trading on equity”

(ii) Growth and stability of sales
(iii) (iii) Cost of capital
(iv) (iv) Cash flow ability to service debt
(v) (v) Nature and size of a firm
(vi) (vi) Control
(vii) (vii) Flexibility
(viii) (viii) Cost of floatation
(ix) (ix) Capital market conditions (x) Marketability and
(x) (xi) Government policy. The structural composition of the capital of a company
organization will have an impact on its profit earning capacity. Capital structure decisions
are taken by considering the factors like profitability, solvency and control. The
relationship between debt, equity and profitability is examined and an attempt is made to
understand this relationship among them.

Many researcher debates on the impact of capital structure on banking performance in the world.
The good determine the performance is financial statement of any bank. The financial statement is
positively effect on banking performance. Some researcher found that financial statement is good
impact on banking performance. Some researcher debate that good relationship b/w capital
structure and banking performance. The main attract to capital structure on banking performance

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is new technologies. By new technologies develop then the productivity of any bank increase and
shown good results. Some researcher debate on variable which use in the capital structure on
banking performance such as investment and size of bank etc. Different theories adopt between
capital structure and bank performance and shown good results. Capital structure is the important
topic in finance. The process of measure of capital structure is very hard to any banks. The
managers of banks are facing difficulties in determining the capital structure. Pakistani banks are
facing many problems in financial field such as political problem. Because no educated person
resources and low quality of services and products. Modigliani and Miller (1958) debate that
capital structure is important decision in financial field. In (1970) Pakistani banking industry was
on top. In Pakistan the financial sector became good industries. Due to political impact the
negative impact on investment of any bank. Due to that very reason it has a negative effect on
investment environment in banking industry. The purpose of leading the study is to measure the
effect of capital structure on banking performance to provide experimental. The topic of capital
structure has been one that has inundated the academic world for a number of years. There have
been many works published on the subject which have presented such theories. A need was
identified to explore the impact that capital adequacy has on a bank’s performance and whether it
achieves its purpose of increasing constancy amongst banks. This study analyzed the determinants
of the capital structure of banks in financial data and by performing this analysis attempted to
establish trends in capital structure policy and regulatory compliance. The study also attempted to
identify best practices that contribute to the overall value and performance of the banking
organization. The hope is that the right application of capital structure theory and agreement with
principles will decrease a bank’s risk. Overall, the results of the analysis were unsatisfying, but
lay the basis for potential future research.

Need of the study

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The need of study is to find the different determinant of capital structure in the banking industry and
also to determine the impact of change in capital structure of the bank on its performance over the
period of time. So it is very important to have a clear idea about these factors and cost of different
sources in the banking industry. Therefore, the problem in the study is to determine & to find out
effective determinant of capital structure. While choosing the source of finance a financial manager
makes an attempt to ensure that risk as well as cost of capital is minimum.

For this purpose he has to answer the following questions:

1. How much amount should be raised through issue of equity?

2. How much amount should be raised through issue of preference share capital?

3. How much amount should be raised through debentures and other long-term debts?

Objectives of study

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1. To conduct comparative study regarding to capital structure of Axis Bank for the
period of 2019-23.

2. To find out the cost of different financial sources of project financing.

3. To know the portion of debt and equity in capital structure.

4. To make company analysis & determine company having an effective capital mix.

5. To determine the effect of changes in capital structure over the period of time on the
company’s performance

Scope of the study

Capital is essential for almost all activities in a company. The success of the

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company to a great extend depends up on its capital structure decision.

There should be a proper mix of debt and equity capital in the firm’s assets.
It is true that capital structure cannot affect the total earnings of the firm,
but it can affect the share holders equity. Hence it is relevant to make a
study of capital structure analysis of Axis Bank. One of the leading banks of
India.

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Limitations of the study

 The data are collected mainly based on secondary data. So all the limitations of the
secondary data are applicable.

 The limitation of ratio analysis and trend analysis are also applicable.

 The time factor is also a major constrains.

 The period of study is only five years.

 It is a particular study of capital structure of a b a n k so it can’t be generalized or

there is no universal application.

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Research Methodology

The secondary data is collected from various journals, reports and annual reports have been
collected from various websites of Axis Bank.
Period of the study: The years selected for analysis are 2019-2023.
In order to draw some of the results from my research project first i have developed some
hypothesis related to my research and in other step using my selected methodology i accept or
reject these hypotheses. Followings are these
Hypotheses. H1- There is a positive relationship between firms Capital structure and bank
performance. H0- There is a negative relationship between firms Capital structure and bank
performance.
Proposed Methodology
Population
The study utilizes the data from banks from 2019 to 2023. The study uses the descriptive analysis
to find the results because our research is going to find the results of different variables in years
from 2019 to 2023.
I solve precise problems to used empirical method. I collect secondary data and used regression
model. The purpose of our study is to evaluate the performance of difference variables in
different time periods to check the relationships that what impact of capital structure on banking
performance. I had found out the relationship between capital structure and the banks
performance. For the purpose of checking the relationship between Capital structure and bank
performance wealth I used the ROE, ROA and EPS of different banks. I apply statistical tools on

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the data to inference the research result in quantitative notation. Moreover I had done a literature
survey about that area of research to identify the relationship between Capital structure and Firms
performance of banks. By using the above discussed methodology I reject or accept the
hypothesis that I am generated. Capital structure, bank performance, bank size, earning risk, bank
loans are independent variable and bank efficiency is dependent variable and I had found out the
relationship between these Independent and dependent variable. The collected data was
performed to identify the capital structure of India banks. I used descriptive method that what
impact of capital structure on banking performance. The purpose of my research project that
measure the performance of bank

Statistical tools
ROE, ROA and EPS
Coefficiency of correlation
Samples: Data collection from axis bank website and bank capital structure reports
Sample size:150 documents
Sample location: Axis Bank ,Ameerpet Branch

While choosing the source of finance a financial manager makes an attempt to ensure that risk as
well as cost of capital is minimum. For this purpose he has to answer the following questions: 1.
How much amount should be raised through issue of equity? 2. How much amount should be
raised through issue of preference share capital? 3. How much amount should be raised through
debentures and other long-term debts?

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Literature Review

REVIEW OF LITERATURE
Noulas and Ketkar (1996) conducted a study to examine the technical and scale efficiency of
banks. Majid (2005) compared the productive efficiency of Islamic and conventional banks in
Malaysia. They used stochastic frontier function approach to estimate the efficiency of banks to
compare their relative performance. For the study, 34 banks were selected and data about these
banks were obtained from the annual reports of the banks and the directory of the association of
banks in Malaysia from 1993 lo 2000.However, their study related inefficiency of the bank with
its size in a non linear way.

Roshan Budhoo (1996) propounded that there have always been controversies among finance
scholars when it comes to the subject of capital structure. So far, researchers have not yet reached
a consensus on the optimal capital structure of firms by simultaneously dealing with the agency
problem. This paper provides a brief review of literature and evidence on the International
Journal of Research in Management, Economics and Commerce ISSN 2250-057X, Impact
Factor: 6.384, Volume 6 Issue 03, March 2016 www.indusedu.org 40 [email protected]
relationship between capital structure and ownership structure. The paper also provides
theoretical support to the factors (determinants) which affects the capital structure.

Minaxi Phor (2014) studied the different determinant of capital structure in the banking industry
and analysed capital structure of SBI Bank & ICICI Bank during period 2006-2018. She
concluded that the banks should have liquidity in their capital structure & Timely review of their

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capital structure is necessary in banking industry

Article 1:

Saeed, Muhamamd & Gull, Ammar Ali & Rasheed, Muhammad. (2013).

Impact of Capital Structure on Banking Performance (A Case Study of Pakistan).

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS. 4. 393-
403.

This paper examines the impact of capital structure on performance of Pakistani banks. The study
extends empirical work on capital structure determinants of banks within country over the period of
five years from 2007 to 2021 by utilizing data of banks listed at Karachi stock exchange. Multiple
regression models are applied to estimate the relationship between capital structure and banking
performance. Performance is measured by return on assets, return on equity and earnings per share.
Determinants of capital structure includes long term debt to capital ratio, short term debt to capital
ratio and total debt to capital ratio. Findings of the study validated a positive relationship between
determinants of capital structure and performance of banking industry.

Article 2:

Impact of Capital Structure on Banking Performance (A Case Study of Pakistan)

Muhammad Muzaffar Saeed1 MS/MBA (Banking & Finance) GC University Faisalabad, Pakistan

Abstract This paper examines the impact of capital structure on performance of Pakistani banks. The
study extends empirical work on capital structure determinants of banks within country over the
period of five years from 2007 to 2021 by utilizing data of banks listed at Karachi stock exchange.
Multiple regression models are applied to estimate the relationship between capital structure and
banking performance. Performance is measured by return on assets, return on equity and earnings per
share. Determinants of capital structure includes long term debt to capital ratio, short term debt to
capital ratio and total debt to capital ratio. Findings of the study validated a positive relationship
between determinants of capital structure and performance of banking industry.

Keywords: Capital, Long term Debt, short term Debt, Return on Assets, Return on Equity and
Earnings per share.

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Article 3:

THE DETERMINANTS OF BANK CAPITAL STRUCTURE 1 by

Reint Gropp 2 and Florian Heider

The paper shows that mispriced deposit insurance and capital regulation were of second order
importance in determining the capital structure of large U.S. and European banks during 1991 to
2004. Instead, standard cross-sectional determinants of non-financial firms’ leverage carry over to
banks, except for banks whose capital ratio is close to the regulatory minimum. Consistent with a
reduced role of deposit insurance, we document a shift in banks’ liability structure away from
deposits towards non-deposit liabilities. We find that unobserved timeinvariant bank fixed effects are
ultimately the most important determinant of banks’ capital structures and that banks’ leverage
converges to bank specific, time invariant targets. Key words: bank capital, capital regulation, capital
structure, leverage. JEL-codes: G32, G21

Article 4: Analysis of Capital Structure and Performance of Banking Sector in Middle East Countries

El-CHAARANI H. and El-Abiad Z., (2019),

Analysis of Capital Structure and Performance of Banking Sector in Middle East Countries,
International Journal of Economics and Financial Issues, Vol.9 (2)

Abstract

The research aims to empirically study the capital structure and the performance
of the banking sector in Middle East countries during a period of 6 years
(between 2021 and 2016). By using 143 banks and 723 observations, the study
shows that the capital structure of the banking sector was very volatile during
the studied period due to the economic conditions of the region. The results also
reveal the existence of positive and significant impacts of total debt and short-
term debt on the return on equity of the banking sector in Middle East region.
However, the results show negative and significant impacts of total debt and
short-term debt on the return on assets (ROA). Additional analysis reveals a
positive impact of long-term debt on the ROA ratio. Finally, this study refuses the
endogeneity hypothesis of the capital structure and the performance measured
by the profitability of the banking sector, and considers that the capital structure

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design is highly influenced by the decision taken by the international and

national regulatory boards.

Keywords: Capital Structure, Performance, Banks, Leverage, Long and Short-

Term Debts

JEL Classification: G2, G32

Theoretical review of literature

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There have always been controversies among finance scholars

when it comes to the subject of capital structure. So far, researchers have
not yet reached a consensus on the optimal capital structure of firms by
simultaneously dealing with the agency problem. This provides a brief
review of literature and evidence on the relationship between capital
structure and ownership structure. This also provides theoretical support
to the factors (determinants) which affects the capital structure.

Capital Structure is a mix of debt and equity capital

maintained by a firm.
Capital structure is also referred as financial structure of a firm. The capital
structure of a
firm is very important since it related to the ability of the firm to meet
the needs of its

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stakeholders. Modigliani and Miller (1958) were the first ones to

landmark the topic of capital structure and they argued that capital
structure was irrelevant in determining the firm's value and its future
performance. On the other hand, Lubatkin and chatterjee (1994) as well
as many other studies have proved that there exists a relationship
between capital structure and showed that their model is no more
effective if tax was taken into consideration since tax subsidies on debt
interest payments will cause a rise in firm value when equity is traded for
debt.

In more recent literatures, authors have showed that they are

less interested on how capital structure affects the firm value. Instead
they lay more emphasis on how capital structure impacts on the
ownership or governance structure thereby influencing top management
of the firms to make strategic decisions (Hitt, Hoskisson and Harrison,
1991). These decisions will in turn impact on the overall performance of
the firm (Jensen, 1986). Nowadays, the main issue for capital structure is
how to solve the conflict on the firms’ resources between managers and
owners (Jensen, 1989). This paper is review of literature on the various
theories related to capital structure and ownership structure of firms.

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Value and Corporate Performance of Firms

Capital structure is very important decision for firms so that

they can maximize returns to their various stakeholders. Moreover an
appropriate capital structure is also important to firm as it will help in
dealing with the competitive environment within which the firm operates.
Modigliani and Miller (1958) argued that an ‘optimal’ capital structure
exists when the risks of going bankrupt is offset by the tax savings of
debt. Once this optimal capital structure is established, a firm would be
able to maximize returns to its stakeholders and these returns would be
higher than returns obtained from a firm whose capital is made up of
equity only (all equity firm).

It can be argued that leverage is used to discipline mangers but

it can lead to the demise of the firm. Modigliani and Miller (1963) argued
that the capital structure of a firm should compose entirely of debt due
to tax deductions on interest payments. However, Brigham and
Gapenski (1996) said that, in theory, the Modigliani-Miller (MM) model is
valid. But, in practice, bankruptcy

costs exist and these costs are directly proportional to the debt level of
the firm. Hence, an increase in debt level causes an increase in
bankruptcy costs. Therefore, they argue that an optimal capital structure
can only be attained if the tax sheltering benefits provided an increase in
debt level is equal to the bankruptcy costs. In this case, managers of the
firms should be able to identify when this optimal capital structure is
attained and try to maintain at the same level. This is the only way that

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the financing costs and the weighted average cost of capital (WACC) are
minimized thereby increasing firm value and corporate performance.

Using theoretical models, top management of firms are able to

calculate the optimal capital structure but in real world situations, many
researchers found that most firms

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do not have an optimal capital structure (Simerly and Li, 2000). The
reason underlying this argument is that, in general, the performance of a
firm is not related to the compensation of the managers of the firm.
Accordingly, managers prefer to surround themselves with all sorts of
luxury and amenities rather than sharing the firm profits (paying out
dividend) with its shareholders. Hence, the main problem that
shareholders face is to make sure that managers work with the objective
of increasing the firm’s value instead of wasting the resources. In other
words, shareholders have to find a way to deal with the principal –agent
problem.

The Agency Theory

Berle and Means (1932) initially developed the agency theory

and they argued that there is an increase in the gap between ownership
and control of large organizations arising from a decrease in equity
ownership. This particular situation provides a platform for managers to
pursue their own interest instead of maximizing returns to the
shareholders. In theory, shareholders of a company of the only owners
and the duty of top management should be solely to ensure that
shareholders interests’ are met. In other words, the duty of top managers
is to manage the company in such a way that returns to shareholders are
maximized thereby increasing the profit figures and cash flows (Elliot,
2002). However, Jensen and Meckling (1976) explained that managers do
not always run the firm to maximize returns to the shareholders.

Their agency theory was developed from this explanation and

the principal- agent problem was taken into consideration as a key factor
to determine the performance of the firm. Jensen and Meckling (1976, p.

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308) states that “An agency relationship is a contract under which one or
more persons (the principal[s]) engage another person (the agent) to
perform some service on their behalf which involves delegating some
decision-making authority to the agent”. The problem is that the interest
of managers and shareholders is not always the same and in this case,
the manager who is responsible of running the firm tends to achieve his
personal goals rather than maximizing returns to the shareholders. This
means that managers will use the excess free cash flow available to
fulfill his personal interests

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instead of increasing returns to the shareholders (Jenson and Ruback,

1983). Hence, the main problem that shareholders face is to make sure
that managers do not use up the free cash flow by investing in
unprofitable or negative net present value (NPV) projects. Instead these
cash flows should be returned to the shareholders, for example though
dividend payouts (Jensen, 1986). The costs of monitoring the managers so
that they act in the interests of the shareholders are referred as Agency
Costs. The higher the need to monitor the managers, the higher the
agency costs will be.

Pinegar and Wilbricht (1989) discovered that principal-agent

problem can be dealt with to some extent through the capital structure by
increasing the debt level and without causing any radical increase in
agency costs. Similarly, Lubatkin and Chatterjee (1994) argue that
increasing the debt to equity ratio will help firms ensure that managers
are running the business more efficiently. Hence, managers will return
excess cash flow to the shareholders rather than investing in negative
NET PRESENT VALUE projects since the managers will have to make sure
that the debt obligations of the firm are repaid.

The Free Cash Flow Theory

Jenson (1989) states that when free cash flows are available to
top managers, they tend invest in negative net present value projects
instead of paying out dividends to shareholders. He argues that the
compensation of managers with an increase in the firm’s turnover. Hence
the objective of the

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company is to increase the size of the firm by investing in all sorts of

projects even if these projects have a negative net present value. Dorff
(2007) argued that compensation of managers tend to increase when
there is an increase in the firm’s turnover.

Jensen (1996) defines free cash flow as the amount of money

left after the firm has invested in all projects with a positive net present
value and states that calculating the free cash flow of a firm is difficult
since it is impossible to determine the exact number of

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possible investments of a firm. Lang, Sturz and walking (1991) uses the
Tobin’s q as a proxy to determine the quality of investment. Firms with a
high ‘q’ showed that firms were using their free cash flows to invest in
positive net present value projects whereas firms with low ‘q’ showed
that firms were investing in negative net present value projects and
therefore, the free cash flows should instead be paid out dividends to the
shareholders. As a whole, this study is in line with the free cash theory
and was considered as very reliable among economists. We can conclude
that using free cash flows to invest in negative net present value
projects leads to an increase in agency costs.

Announcements of Capital Expenditures

The free cash flow theory argues that there should be a

reduction in the free cash flow of firms with poor investments so that
managers do not waste the firm’s resources by investing in negative net
present value projects. Hence reducing the free cash flow is advantageous
but on the other hand, shareholders

or potential investors get a bad image of the firm when the latter is
cancelling or delaying
investment opportunities. Vermaelen (1981) and other studies discuss
the effects of
announcements of capital expenditures on the market value of the firm
but their results are very unclear and in contradiction to each other;
meaning that there is no real proof of the above mentioned relationship.
However, McConnell and Muscarella (1985) found that announcements of
future capital expenditures do have an impact on the value of firms
operating in the industrial sector only.

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Equity Financing and Firm performance

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The manager’s excess free cash flow to pursue their personal

interests instead of paying out dividends to shareholders. Lambert and
Larcker (1986) argued that managers of firms financed mostly with equity
(where there are a large number of shareholders with very small
shareholding power) tend to have this behavior. In this case, since it will
be difficult to regroup all the shareholders to pressure and control the
management and as a result, the shareholders prefer to sell their stocks
instead of incurring agency costs to solve this problem.

On the other hand, companies with a small number of

shareholders with large shareholding can more easily regroup themselves
to pressure and control the management on how to run the firm. The
study of Dolmat-Connel (2002) showed that the profitability of firms
increase considerably when

managers are given shares of the company. This is because the managers
will work in the interest of the shareholders since the managers themselves
own shares of the firm.

Therefore, linking the ownership structure to management can

solve the principal-agent problem. This is in line with Smith (1990) who
carried a study on 58 Management Buyouts of public companies during
the period of 1977 to 1986. His findings revealed that there exists a
positive relationship between management ownership and the
performance of the firm. This study also provide empirical evidence that
increase in operating profits result from the decrease in operating costs
and the proper management of working capital of the firms. This is in line
with Lichtenberg and Siegel (1990).

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Theories of capital structure

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Weighted average cost of capital (traditional view)

Traditionally, optimum capital structure is assumed at a point

where weighted average cost of capital is minimum. For a project
evaluation, this weighted average cost of capital is considered as the
minimum rate of return required from a project to pay off the expected
return of the investors and as such weighted average cost of capital is
generally referred to as the required rate of return.

Weighted average cost of capital is defined as the weighted

average cost of various source of finance. Weight being the market value
of each source

of finance outstanding, cost of various source of finance refers to the

return expected by the respective investors. The debt component should
be raised up to the level where the weighted average cost of capital of the
firm is at the lowest which is called the optimum cost of capital. Till the
optimum level reaches a firm can raise its debt component to minimize
weighted average cost of capital and for an increasing return to equity
holders. After the optimum level, any further increase in debt increases
the risk to the equity holders. Weighted average cost of capital is
undoubtedly an important tool in determining the optimal level of capital
structure.

To minimize the value of the firm as well as the market value of

the stock, the firm should strive to minimize weighted average cost of
capital. Thus considerable weight is placed on weighted average cost of

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capital for the ultimate objective of increasing the share holder’s worth by
choosing an appropriate capital mix. Other conditions like cash flow,
ability of the firm to meet the fixed charges, degree of leverage,
fluctuations of EBIT and its likely impact on EPS for alternative methods of
financing etc, should also be taken into consideration with due weight age
for the purpose.

Net income approach

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According to this approach, the capital structure decision is

relevant to the valuation of the firm. As such as change in the capital
structure causes an overall change in the cost of capital and in the total
value of the firm. Higher

debt content in the capital structure means a higher financial leverage

and this result in decline in the overall or weighted average cost of
capital. These results increase in the value of the firm and also increase in
the value of equity shares. In an opposite situation, the reserves condition
prevails.

There are usually three basic assumptions of this approach:

 Corporate taxes do not exist.

 Debt content does not change the risk perception of the investors.
 Cost of debt is less than cost of equity that is debt capitalization
rate is less than the equity capitalization rate.

Net operating income approach

According to net income approach value of the firm is independent on its

capital structure. It assumes that the weighted average cost of capital is
unchanged irrespective of the level of gearing. The underlying assumption
behind this approach is that the increase in the employment of debt
capital increase the expected rate of return by the stock holders and the
benefit of using relatively cheaper debt funds is offset by the loss arising

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out of the increase in cost of debt. Under this approach optimal capital
structure does not exist as an average cost of capital remains constant
for varied types of financial mix.

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Net operating income approach is opposite to the income

approach. According to this approach, the market value of the firm
depends upon the net

operating profit or EBIT and the overall cost of capital, weighted average cost
of capital. The financing mix or the capital structure is irrelevant and does not
affect the value of the firm.

The net operating income approach is based on certain assumptions:

 The investors see the firm as a whole and thus capitalize the total
earnings of the firm to find the value of the firm as a whole.
 The whole cost of capital of the firm is constant and depends up on
the business risk which also is assumed to be unchanged.
 The cost of debt is also constant.
 There is no tax.

The net operating income approach believes that the market

value of the firm as a whole for a given risk complexion. Thus, for a given
value of EBIT, the value of the firm remains the same irrespective of the
capital compositions, and instead depends on the overall cost of the
capital.

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Modigliani-Miller approach

The MM approach is quite similar to the NOI approach in many

respects. But still NOI approach is only conceptual in the sense and it fails
to give operational justification

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to the fact that the capital structure is not important for the valuation of
the firm. MM approach also supports the NOI approach but it provides
justification for the independence of the total valuation

and the cost of capital from the capital structure. It means according to
the weighted average cost of capital does not change with change in debt
equity mix that is change in capital structure. Whenever the debt equity
ratio changes, the expectations of the equity shareholders also change.

The Modigliani-Miller theorem (of Franco Modigliani, Merton

Miller) forms the basis for modern thinking on capital structure. The basic
theorem states that, under a certain market price process, in the absence
of taxes, bankruptcy costs, and asymmetric information, and in an
efficient market, the value of a firm is unaffected by how that firm is
financed. It does not matter if the firm’s capital is raised by issuing stock
or selling debt. It does not matter what the firm’s dividend policy is.
Therefore, the Modigliani-Miller theorem is also often called the capital
structure irrelevance principle.

According to MM approach the cost of capital is independent of

capital structure and, therefore there is no optimal value. According to
them, under competitive conditions and perfect market value because the
individual investor can alter investment to any mix of debt and equity the
investor desires.

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Assumptions of MM theory

 No taxes exist, no transaction costs exist,

 And individuals and corporations borrow at the same rates.

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 The stock markets are perfectly competitive

 Investors are rational and expect other investors to behave rationally.

These results might seem irrelevant (after all, none of the

conditions is met in the real world), but the theorem is still taught and
studied because it tells something very important. That is, capital
structure matters precisely because one or more of these assumptions is
violated. It tells where to look for determinants of optimal capital
structure and how those factors might affect optimal capital structure.

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Industrial Profile

The impact of capital structure on bank performance has been a topic of debate
between researcher and scholar. Different researchers have been conducted to
explore the impact of capital structure on bank performance. Different
researchers used different techniques and methodologies and there have been
different opinions about the results. Some researchers find that there is positive
impact of capital structure on bank performance. Different tools used to
determinates of capital structure of bank in financial and non-financial as the
study of Jensen and Meekling (1976). They found different problems to measure
the capital structure. Harris and Raviv (1991) Mayers 2001 have conducted
different theories to measure the capital structure. There is a positive
relationship between capital asset ratio and earnings of the bank by study
berger (1995). Different banks have high loan problems and bad quality loans.
The banks are highly levered to comparing the non-financial firms. Basically this
paper is related to the literature on 1) relationship between bank capital and
bank performance 2) what effect of capital structure on bank performance 3) risk
measuring. Many papers include to the literature on the relationship between
bank capital and bank performance. Many papers effect on capital structure on
bank performance. The effect of capital structure on bank performance is
positive. Different researcher measure the risk from equity and debt of bank. A
big role to finds the relationship between bank management cost efficiency. The
researchers are using more data about to measuring the risk. Due to performing
of these practices, banks have positive impression all the parties’ not only
interested parties. A positive image created in the mind about bank if low risk
involve. The result of these consequences to improving the financial
performance and good relationship between bank capital and bank performance.
In spite of different researchers Deesomak (2007) found that impact of capital
structure on bank performance to be negative. Some researcher as Modigliani
and miller (1958) debate in corporate finance theory. They interpret those
theories.

1) trade-off-theory

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2) traditional theory. In traditional theory when minimized the weighted average

cost of capital and maximize the market value. In trade-off-theory includes taxes
and agency cost. They focus only on positive relationship between capital
structure and bank performance. They use both internal and external sources to
measuring the performance of banks. There are many sources about debt and
equity. In which include long term debt and short term debt on corporate debt
and also include long term debt and short term debt on government debt.
Different variable used in this topic: such as independent variables and
dependent variables.

2.1 Leverage Ratio Leverage use in capital structure to increase the risk. There
are closely related concepts between leverage and capital structure. We
understand easy to measure and evaluate leverage particular in decision making
for capital structure. Three types of leverage 1) operating leverage

2) financial leverage

3) Total leverage. Operating leverage is the relationship between sales revenue

and earnings before interest and taxes. Financial leverage is the relationship
between earnings before interest and taxes. Total leverage is the relationship
between sales revenue and earnings per share.

2.2 Earnings Ratio We measure the risk using to different tools. As measuring of
risk the important role of behavioral finance. As a previous work if we take high
risk then the result will be high return and if we the low risk then the result will
be low return. If debts of banks increase daily then the badly effect on the
banking performance. We collect different information about banks. In which
including information about employment grade, occupation and also include
monthly and weekly working time.

By study Berger (2002) the banks who are create more profit efficiency there
riskier bank. By study Keely and furlong the value of banks maximize if the
banks adjust earning risk and the banks easily identify changes in earning in the
capital structure. If any bank has more debt than the bank take loan from other
banks and decrease the debt. 1

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2.3 Size This is the real variable and shows bank’s size. By study Pratomo and
Ismail (2007) the negative effect of size on banking performance. The bank size
affected by quantity so the bank measuring the size of bank. Many employee
work in the bank and they have different opinion. If they give good progress then
the risk of bank automatically decrease. We should increase the pay of those
employees who give good progress. This is why good relationship creates among
the employees and they will give good progress in future. By study Evans and
Leighton (1989) if the risk of employment negatively affect with bank size then
enhance the relationship between them.

2.4 Bank Investment

When any person invests in bank firstly they saw risk of bank. Many researcher
debates on banks investment. Firstly they cannot good decision about the value
and profitability of banks. As study Allayannis and Weston the positive
relationship between bank value and foreign currency. Before invest in bank we
gather many ideas from different people. The point of view of different
researcher the bank should equal the risk and capital. The result is if banks hold
capital then the risk can decrease. Different researcher debates on investment in
banks that is the key to measure the performance of banks. Berger (2002)
resulted that we measure banking efficiency that effect on investment.

2.5 Loans

Different researcher debates on this variable. By study Muhammad Ayub

Siddiqui and Adnan Shoaib we determine market value and efficiency of banks
by loan. It totally depends on the quality of bank. By Berger and De young
(1997) search relationship between efficiency of bank and loans.

2.6 Bank Efficiency Through bank efficiency we can easy measure of bank’s
ability and revenue. It is important to different banks. By researcher we should
focus only on cost of bank and profit margin. The profit margin should be low.
Different researcher debates on low efficiency and high efficiency. Some

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researcher discussion on this topic such as Wall (1985) some banks occurred in
1970 to 1980. In which its research that no interest only on profitability banks.
By study Gup and Walter they focus only on small banks in which they
investment highly quality and low cost. The past study by Critchfield, Davis,
Davison, Gratton, Hanc, and Samolyk (2005) they focus only performance of
bank. The result is that good decision about income and quality of banks. Firstly
we understand the operation of bank because different banks have different
criteria. If the manager clearly manages the rules of bank then the efficiency of
bank can increase. We should not show high profit although focus only on
performance of bank. This is strategic variable in which management control the
direction.

2.7 Market Value In simply when the weighted average cost of capital minimized
when market value of asset maximized. When prices of market increase then the
value of market is also increase. Researchers have different ideas use in
research.

COMPANY PROFILE
AXIS BANK
Company Background
Axis Bank Ltd was incorporated in the year 1993 as ‘UTI Bank Ltd’ which provided corporate
and retail banking products and was the first private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted jointly by
the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU
insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.

A Successful makeover as ‘AXIS BANK’

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In 2007 the bank decided to have an identity of its own distinct from its parent UTI-I. Thus
was born a brand ‘Axis’ - a word which connotes solidity and gives a feel of transcending
geographical boundaries. The Bank successfully rebranded itself as ‘Axis Bank’ in July 07 which has
helped it in shedding the faint perception of being a Government owned entity. This brand makeover
was very well executed, thus ensuring No slippages in the bank’s growth trajectory which was
evident from the 67% growth in its customer accounts to 9.9 mn during FY08 as against 5.93 mn
during FY07.

The Bank today is capitalized to the extent of Rs. 403.63 crores with the
public holding (other than promoters and GDRs) at 53.72%.

The Bank's Registered Office is at Ahmedabad and its Central Office is

located at Mumbai. The Bank has a very wide network of more than 896
branches and Extension Counters (as on 31st December 2019). The Bank has a
network of over 4055 ATMs (as on 31st December 2019) providing 24 hrs a day
banking convenience to its customers. This is one of the largest ATM networks in
the country.

The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to
achieve excellence. Axis Bank currently has global footprints in four countries by
way of 3 branches in Singapore, Hong Kong, Dubai and 2 representative offices
in Shanghai and Dubai. It has also sought permission from the Sri Lankan
Government to open a branch in Sri Lanka in the current fiscal. In these locations
it offers corporate credit and trade finance solutions, debt syndication and
wealth management
SL. NO CONTENT
services to 1 About the company NRI
population 2 Vision &mission settled in
these cities. 3 Ownership pattern
4 Products &services
5 Area of operations
6 Competitors information
7 Achievements and awards
8 Future growth &prospect
9 Financial statement
10 SWOT analysis
11 Conclusion
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ABOUT THE COMPANY: -

Axis Bank: -

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Axis Bank is the third-largest Indian bank offering a wide assortment of financial
products. The bank has its head office in Mumbai, Maharashtra. It has 4,050 branches,
11,801 ATMs and 4,917 cash recyclers spread across the country as of 31 March 2019
and nine international offices. The bank employs over 55,000 people and had a market
capitalization of ₹1.31 trillion (US$18 billion) (as on 31 March 2018). It sells financial
services to large and mid-size corporates, SME and retail businesses.

As of 30 June 2016, 30.81% shares are owned by promoters and promoter group
(United India Insurance Company Limited, Oriental Insurance Company Limited,
National Insurance Company Limited, New India Assurance Company Ltd, GIC, LIC
and UTI). The remaining 69.19% shares are owned by mutual funds, FIIs, banks,
insurance companies, corporate bodies and individual investors among others.

History:

The bank was founded in December 1993, as UTI Bank, opening its registered office
in Ahmedabad and corporate office in Mumbai. UTI Bank began its operations in
1993, after the Government of India allowed new private banks to be established. The
bank was promoted in 1993 jointly by the Administrator of the Unit Trust of India
(UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation,
National Insurance Company, The New India Assurance Company, The Oriental
Insurance Corporation and United India Insurance Company. The first branch was

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inaugurated on 2 April 1994 in Ahmedabad by Dr. Manmohan Singh, the then finance
minister of India.

In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of
India (RBI) withheld approval and the merger did not happen. In 2004, the RBI put
Global Trust into moratorium and supervised its merger with Oriental Bank of
Commerce.

In 2003, UTI Bank became the first Indian bank to launch a travel currency card. In
2005, it was listed on London Stock Exchange.

UTI Bank opened its first overseas branch in 2006 in Singapore. That same year it
opened a representative office in Shanghai, China. In 2007, UTI Bank opened a branch
in the Dubai International Financial Centre and branches in Hong Kong. In 2018, it
opened a representative office in Dubai.

With effect from 30 July 2007, UTI Bank changed its name to Axis Bank.

In 2019, Shikha Sharma was appointed as the MD and CEO of Axis Bank.

Axis Bank opened a branch in Colombo in October 2021, as a Licensed Commercial

Bank supervised by the Central Bank of Sri Lanka. Also, in 2021, Axis Bank opened a
representative office in Abu Dhabi. In 2021, Axis bank in 2013, Axis Bank's
subsidiary, Axis Bank UK commenced banking operations Axis Bank UK has a branch
in London.

Bollywood actress Deepika Padukone is the brand ambassador of Axis Bank.

In 2014, Axis Bank launched Its first ‘All Women Branch’ in Patna.

In 2015, Axis Bank opened its representative office in Dhaka.

In 2019, Amitabh Chaudhry takes over as the MD & CEO from 1 January.

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As of 31 March 2016, the bank has over 50,001 employees. It spent ₹26.7 billion
(US$370 million) on employee benefits during the FY 2022–13. Inaugurated Axis
House, its new corporate office in Worli, Mumbai.

VISION AND MISSION STATEMENT: -

VISION STATEMENT: -

 To be the preferred financial solutions provider excelling in customer delivery

through insight, empowered employees and smart use of technology.

 To emerge as a “Best financial bank” by pursuing global benchmarks in

profitability, operational efficiency, asset quality risk management and
expanding global reach.

MISSION STATEMENT: -

 Customer service and product innovation tuned to diverse needs of individual

and corporate clientele.

 Continuous technology gradation while maintaining human values. progressive

globalization and achieving international standards.

OWNERSHIP PATTREN: -

See FII, DII, MF, Institutional, Promoter and individual’s shareholding changes,
pledges, historical increases and decreases of shareholding for Axis Bank Ltd.

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PRODUCT/SERVICES: -

Axis Bank is the third largest private sector bank operating in India. The bank was
established in 1993 and began its operations in 1994. Axis Bank has a large network of
4,050 domestic branches with 11,801 ATMs and 4,917 cash recyclers spread across the
country (as on March 31, 2019). Globally the bank is spread over nine international
offices with branches in Singapore, Hong Kong, Dubai (at the DIFC), Colombo and
Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an overseas
subsidiary in London, UK.

Deposit account: -

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Saving account: -Axis Bank provides its customers with 14 types of Savings Accounts
with different features and benefits & discounts on movie tickets, Axis edge rewards
points & more.

Current account: - Axis Bank Current Accounts come with features like “Anywhere
Banking”. Users can also avail digital services such as SMS alerts and NEFT/RTGS
transactions for free.

Loan: -

Home loan: -Axis Bank offers home loan starting from Rs. 3 lakhs with maximum
tenure as 30 years. It provides 10 types of home loans to help its customers choose
according to their needs.

Personal loan: -Axis Bank offers personal loan ranging from Rs. 50000 to Rs. 15 lakhs
with tenure ranging from 12 to 60 months. It comes with minimal documentation and
quick approval.

Business loan: - Axis Bank offers collateral free business loans from Rs. 50000 to Rs.
50 lakhs for expansion, purchase of machinery & much more.

Education loan: -

Axis Bank offers education loan from Rs. 50000 to Rs. 75 lakhs at affordable interest
rates. Axis Bank Education Loan offers simple documentation, quick loan disbursal &
more.

Cards: -

Credit card: -Axis Bank offers a wide range of credit cards that are suitable for all
kinds of financial needs. From Flipkart gift vouchers to Axis edge reward points,
customers can earn a host of rewards.

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Debit card: - Axis Bank offers 22 types of debit cards to cater to the banking needs of
all its customers. These cards provide cashless transactions, higher cash withdrawal
limit and more.

Investment: -

Fixed deposit: - Customers can open a Fixed Deposit online with Axis Bank and invest
a minimum of Rs. 5,000 for tenure starting from a minimum of 7 days to a maximum
of 10 years. Read More

Recurring deposit: - Customers can open a Recurring Deposit online with minimum
monthly installments of Rs. 500 and no maximum limit for a flexible tenure ranging
from 6 months to 10 years.

Banking

Customer care: -Axis Bank 24*7 customer care number offers easy access to the
account & aids about services offered by the bank.

Balance enquiry: -Axis Bank Balance Enquiry can be availed by several ways which
includes missed call facility, SMS, customer care, ATM, passbook.

Services: -

Retail banking: -The bank offers services such as lending to individuals and small
businesses subject to the orientation, product and granularity criterion, along with
liability products, card services, Internet banking, automated teller machines (ATM)
services, depository, financial advisory services, and Non-resident Indian (NRI)
services. Axis bank is a participant in RBI's NEFT enabled participating banks list.

Corporate banking: -Transaction banking: Formed in April 2015, tax provides

integrated products and services to customers in areas of current accounts, cash
management services, capital market services, trade, foreign exchange and derivatives,

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cross-border trade and correspondent banking services and tax collections on behalf of
the Government and various State Governments in India.

Investment banking and trustee services: The bank provides investment banking and
trusteeship services through its owned subsidiaries. Axis Capital Limited provides
investment banking services relating to equity capital markets, institutional stock
brokering besides M&A advisory. Axis Trustee Services Limited is engaged in
trusteeship activities, acting as debenture trustee and as trust.

International banking: - The bank continues to offer corporate banking, trade finance,
treasury and risk management through the branches at Singapore, Hong Kong, DIFC,
Shanghai and Colombo, and also retail liability products from its branches at Hong
Kong and Colombo. The representative office at Dhaka was inaugurated during the
current financial year. Tee to various securitization trusts.

AREA OF OPERATION:

INDIAN BUSINESS: As of 12 Aug 2016, the bank had a network of 4,094 branches
and extension counters and 12,922 ATMs. Axis Bank has the largest ATM network
among private banks in India. It even operates an ATM at one of the world's highest
sites at Tegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.

INTERNATIONAL BUSINESS: The bank has nine international offices with branches
at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo and representative
offices at Dhaka, Dubai, Sharjah and Abu Dhabi, which focus on corporate lending,
trade finance, syndication, investment banking and liability businesses. In addition to
the above, the bank has a presence in UK with its wholly owned subsidiary Axis Bank
UK Limited.

COMPETATORS OF AXIS BANK: -

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SBI, Canara bank, Bandhan bank, Yes bank, Punjab National bank, HDFC bank, ICICI
bank, Tata, and IndusInd.

ICICI bank: -ICICI bank is a private sector bank that provides banking and financial
services.it was founded in1994. it has its headquarters in ICICI bank towers Bandra
Kurla complex Mumbai India. The CEO is V. Vaidyanathan. The founder is Industrial
credit and investment corporation of India.

HDFC bank: -HDFC bank ltd. Is an Indian banking and financial services company
headquartered in Mumbai Maharashtra.it was founded in 1977 as the first mortgage
company in India? the CEO is Aditya pure.

SBI: - The State Bank of India is an Indian multinational, public sector banking and
financial services statutory body. It is a government corporation statutory body
headquartered in Mumbai, Maharashtra. It was founded in 1 July 1955 Kolkata India.
The CEO is Arundhathi Bhattacharyya.

AWARDS/ACHIEVEMENTS: -

 ‘Best digital bank’ at the financial express India’s best banks awards.

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 ‘Best debt arranger on electronic bidding platform’ at the NSE market achievers’
awards.

 ‘Best contactless payments project’ and ‘Best prepaid card of the year’ at the
payments &cards awards.

 Winner in BFSI category for cross border remittance’ at the economic times
BFSI innovations tribe awards summit.

 Best use of data analysis for business outcome at the IBA banking technology
awards.

 Best media innovation sponsorship for axis bank kaun banega crorepati (KBC)
integration at emvies awards.

 Best mobile app for one Raipur at the BW business world 6th smart cities
conclave& mega awards.

 Axis Bank wins for 'Excellence in Operations' at the International Data

Corporation (IDC) Insights Awards, 2019

 Axis Bank wins 'Top Sell-side Firm in Secondary Market' and 'Top Arrangers -
Investors' Choice for Primary Issues' at The Asset Benchmark Research Awards,
2019

 Axis Bank wins in the 'Data Science/AI in BFSI' category at the Cypher
Analytics Awards, 2019

 Axis Bank wins for the Best Use of Data & Analytics for Business Outcome
amongst Large Banks at the 14th Indian Banking Association Technology
Awards

 Axis Bank wins Best Digital Bank at the 2016-17 edition of The Financial
Express 'India's Best Banks' awards ceremony, held on January 10th, 2019.

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 Axis Bank wins Best Digital Bank for the sfuturenecond consecutive year at the
2017-18 edition of The Financial Express 'India's Best Banks' awards ceremony,
held on 30th September, 2019.

 Axis Bank wins Best Use of Experiential/Events at The Economic Ties Brand
Equity Shark Awards, 2019.

C h
art Tit le

FUTURE GROWTH AND PROSPECTS: The first delivered we put out

has been to improve our deposit growth materiality to fund our strong loan
growth aspirations. We want to step up growth in the wholesale bank, the
momentum in the retail bank and want to scale to our sustain subsidiaries
materially. We also want to attain a leadership position on the payments side of
the business
India growth is unlikely to improve significantly in the near term particularly if
exports and private investment underperform. RBI forecasts fiscal 2020 GDP
growth at 7.2%, but this will be contingent on assumption of financial market
stability and credit floss, as well as a normal monsoon.

FINANCIAL STATEMENT:

Axis Bank Ltd reported revenue of 363.5B for FY 2019, an increase of 34.53%
compared to FY 2016. Net income fell 39.66% to 50.4B.

GROSS PROFIT RATIO

YEAR GPR

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2018 6.77
2019 5.26

GROSS PROFIT RATIO

12

10

8 5.26
0
6

4
6.77
5.26
2

0 0 0
2018 2019

0.09
0.08
ASSET TUROVER RATIO
0.07
0.06 YEAR ATR
0.05
2018 0.07
0.04 0.08
0.03
0.07 2019 0.08
0.02
0.01
0 0 0
2018 2019

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PROFITABILITY RATIO:-

YEAR PR

2018 3.44

2019 3.43

3.5

2.5

1.5

0.5

0
2018 2019

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CURRENT RATIO
Chart Title
0.12
0.1
0.08 YEAR CR
0.06
2018
0.1 0.10
0.1
0.04
0.02
2019 0.10
0 0 0
2018 2019
C rah
t tiTel

QUICK RATIO:-
YEAR ROE
2018 20.02
2019 17.84

QUICK RATIO
40

35

30
17.84
25

20 0

15

10 20.02 17.84
5

0 0 0
2018 2019

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SWOT ANALYSIS: -

STRENGTH:

 Axis Bank has a good image among urban population

 Axis Bank is registering a good growth in the Indian banking sector

 Excellent online services offered by Axis Bank like net banking, mobile apps
etc...

 Good advertising and brand exercise have helped the brand grow

WEAKNESS:

Here are the weaknesses in the Axis Bank SWOT Analysis:

 Lesser no. of branches compared to its competitors

 Axis Bank has limited market share owing to immense competition in the
banking segment.

OPPORTUNITIES:
Following are the Opportunities in Axis Bank SWOT Analysis:

Expansion in rural areas can help Axis Bank grow

 Going to foreign markets and exploring the new economies

 Axis Bank can tap the online growth in the Indian banking sector by
promoting their apps

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THREATS:

The threats in the SWOT Analysis of Axis Bank are as mentioned:

 New banking licenses issued by the Reserve Bank of India

 Foreign banks entering in India can reduce presence of Axis Bank

 Competitor banks increasing their activities in India

Axis bank has developed manifold in short period of time due to facilitate and
services, provided to their customer and this growth rate can be keep it up if they
start to go in semi-urban areas. In last couple of years, they have opened new
many branches and they should open many more. The working staff are very co-
operative in nature and due to that the bank will also get good benefit.

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Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial
Institution of the country, UTI. The Bank was set up with a capital of Rs. 115
crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four
subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 24.09%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI
Act, 1963, with a view to encourage savings and investment. In December 2002,
the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer
of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the
bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February
2003. In accordance with the Act, the Undertaking specified as UTI I has been
transferred and vested in the Administrator of the Specified Undertaking of the
Unit Trust of India (SUUTI), who manages assured return schemes along with
6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59
crores.

The Government of India has currently appointed Shri K. N. Prithviraj as

the Administrator of the Specified undertaking of UTI, to look after and
administer the schemes under UTI - I, where Government has continuing
obligations and commitments to the investors, which it will uphold.

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VISION, MISSION AND VALUES

Vision
To be the preferred brand for total financial banking solAXISons for
both corporate and individuals

Mission
o Customer Service and Product Innovation tuned to diverse needs of
individual and corporate clientele.
o Continuous technology upgradation while maintaining human
values.
o Progressive globalization and achieving international standards.
o Efficiency and effectiveness built on ethical practices.

Values
o Customer Satisfaction through
 Providing quality service effectively and efficiently
 Smile, it enhances your face value" is a service quality
stressed on
 Periodic Customer Service Audits
o Maximization of Stakeholder value
o Success through Teamwork, Integrity and People

Vision 2015 and Core Values

 VISION 2015:

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o To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of
technology
 CORE VALUES
o Customer Centricity
o Ethics
o Transparency
o Teamwork
o Ownership

ORGANISATION STRUCTURE

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Board of Directors

Dr. Sanjiv Misra Chairman

Shikha Sharma MD & CEO
K.N. Prithviraj Director
V.R. Kaundinya Director
Prasad Menon Director
Prof. Samir K Barua Director
Som Mittal Director
Ireena Vittal Director
Rohit Bhagat Director
V Srinivasan ED, Corporate Banking

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Services
Axis Bank operates in four segments:

Treasury operations, Retail Banking, Corporate/Wholesale banking and

other banking business.

Treasury operations: The Bank’s treasury operation services include

investments in sovereign and corporate debt, equity and mutual funds, trading
operations, derivative trading and foreign exchange operations on the account,
and for customers and central funding.[3]

Retail banking: In the retail banking category, the bank offers services such as
lending to individuals/small businesses subject to the orientation, product and
granularity criterion, along with liability products, card services, Internet
banking, automated teller machines(ATM) services, depository, financial advisory
services, and Non-resident Indian (NRI) services.[3]

Corporate/wholesale banking: The Bank offers to corporate and other

organisations services including corporate relationship not included under retail
banking, corporate advisory services, placements and syndication, management
of public issues, project appraisals, capital market related services and cash
management services.

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NRI services: Products and services for NRIs that facilitate investments in India.
[12]

Business banking: The Bank accepts income and other direct taxes through its
214 authorised branches at 137 locations and central excise and service taxes
(including e-Payments) through 56 authorised branches at 14 locations.

Investment banking: Bank’s Investment Banking business comprises activities

related to Equity Capital Markets, Mergers and Acquisitions and Private Equity
Advisory. The bank is a SEBI-registered Category I Merchant Banker and has
been active in advising Indian companies in raising equity through IPOs, QIPs,
and Rights issues etc. During the financial year ended 31 March 2022, Axis Bank
undertook 9 transactions including 5 IPOs and 2 Open Offers.

Lending to small and medium enterprises: Axis Bank SME business is

segmented in three groups: Small Enterprises, Medium Enterprises and Supply
Chain Finance. Under the Small Business Group a subgroup for financing micro
enterprises is also set up. Axis bank is the first Indian Bank having TCDC cards in
11 currencies.

Agriculture banking: 759 branches of the Bank provide banking services,

including agricultural loans, to farmers.As on 31 March 2013, the Bank’s
outstanding loans in the agricultural sector was INR 148 billion, constituting
7.5% of its total advances.

Advisory Services have been developed to advise public and private sector
clients on capital structuring and funding options with a view to help the clients
to help them reduce the cost of funds. The Group has also been active in
advising the central and various state governments or their agencies in
privatization and bid process management. The Group has successfully worked
on some of the benchmark transactions in infrastructure development &
manufacturing sector covering an entire range of projects across roads, railways,
airports, urban infrastructure maritime, power, oil and gas, petrochemicals,
cement, sugar, textiles, steel & allied sectors, auto ancillaries, paper,
Information Technology (IT), etc.

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DATA ANALYSIS & INTREPREATATION

The term capital structure refers to the relation between various long
term of financing such as debentures, preference share capital and
equity share capital including reserves and surplus. Financing the firm’s
assets is a very crucial problem in every business and as a general rules
there should be a proper mix of debt and equity capital in financing the
firm’s asset.

Capital structure of Apollo tyres Ltd. consist of equity share capital, preferenceshare
capital and secured and unsecured loans.

If properly analyzed and interpreted, fi nancial statem ents can pr ovide insights
into
firm’s performan ce. Analysis of financial statements is of interest to lenders, inve
a
security analysis, managers and others. The analysis of financial statements is an exer
stors
, cise
in
the rearrangement of complex accounting report into simplified
information which are easy to understand and capable of further analysis
and interpretation. Such analysis and interpretations helps to measure
the performance of the business.

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Capital structure of the company

Table 6.1 capital structure of the company

Rupees in
crores

Equity Total
Secured Unsecured
share capital
YEAR Reserve loans loans
capital structure
2017-2018 46.41 1179.99 223.15 237.51 1689.5

2018-2019 48.85 1305.30 462.39 233.13 2051.23

2019-2020 50.41 1676.18 875.94 257.01 2859.54

2020-2021 50.41 1845.15 858.17 121.18 2874.91

2021-2022 50.41 1997.19 1261.98 123.61 3433.19

Source: Annual report

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Chart 6.1 capital structure

shares
3500
3433.19
3000
2874.91
2859.54
2500

2000
2051.23
1500 shares
1689.5
1000

500

0
2017-20182018-20192019-20202020-20212021-2022

Year

Interpretation:

This table gives an idea about the capital structure of the company. It

includes equity share holder fund and secured and unsecured loans.

From the table we can see that the capital shows an increasing trend.

This shows the real financial position of the company. The company

issued more equity shares in the year 2020, 2021 and 2022. The

company has a good amount of reserve fund. The debt of the company

also increases in each year.

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Ratio analysis

Ratios are among the best known and mostly widely used tools of
financial analysis. A
ratio is a simple arithmetic expression of the relationship of one
number to another.
According to accounts han

d book by wixon, kell and Bedford, a ratio “is an expression of the

quantitative
relationship between two numbers”. This relationship can be expressed
as percentages,
fractions or proportion of numbers. Ratios help to summaries the large
qualitative judgment about the firm’s financial performance.

Leverage or capital structure ratios

The term leverage is of French (levier or lever) and Latin (levare)

origin; imply the mechanical power and advantage gained by the use of
a lever and handle. In commercial parlance, it implies the choice of an
appropriate capital structure which can ensure best and optimum return
to the supplier of capital. As viewed from the stand point of owners or
the equity share holders, it may stand for the possibility to maximizing
the rate of dividend. When looked at from the view point of long term
creditor’s leverage may imply coverage of fixed annual obligations
(interest and perfect dividend) by the level of earnings, as also the
prospect of repayment and redemption.

Leverage ratios may be calculated from the balance sheet items to

determine the proportion of debt in total financing. Also it may be
computed from the income statement items to determine the extent to
which operating profits are sufficient to cover the fixed charges. Thus, in

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total leverage ratios help to learn about the long term financial position
of the firm.

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The following ratios are used for the capital structure analysis of Axis
Bank tyers Ltd.

1. Capital gearing ratio.

2. Debt equity ratio.

3. Proprietary ratio.

4. Solvency ratio.

5. Fixed asset to net worth ratio.

6. Total investment to long term liabilities.

7. Ratio of fixed asset to funded debt.

8. Ratio of current liabilities to proprietor’s fund.

9. Return on equity share capital.

10. Earnings per share.

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Capital gearing ratio

The term capital gearing is used to describe the relationship between

equity share capital including reserves and surpluses to preference share

capital and other fixed interest bearing loans. If the preference share

capital and other fixed interest bearing loans exceed

the equity share capital including the reserves, the firm is said to be highly
geared. The firm

is said to be in low gear if the preference share capital and other fixed

interest bearing loans are less than equity share capital and reserves.

Table 6.2 Capital gearing ratio Rupees in crore

Fixed
Equity Reserves Capital
interest
share and Share gearing
YEAR bearing
capital surpluses holders ratio
debt
2018 46.41 1179.99 634.02 381 1.66

2019 48.85 1305.30 978.84 473.76 2.07

2020 50.41 1676.18 1233.42 223.15 5.53

2021 50.41 1845.15 1355.71 462.39 2.93

2022 50.41 1997.19 1548.66 392.12 3.65

Source: Annual report

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Chart 6.2 capital gearing ratio

Gearing ra琀椀o
5.53
6

5
3.65
4 2.93

3 2.07
Gearing ra琀椀o
1.66
2

0
0
2017-20182018-20192019-20202020-20212021-2022

Interpretation: the capital gearing ratio is used to describe the relationship

between equity
sha
capit includi reserve and surplus to share capital and other
re
al ng preference fixed
interest bearing loans. If the preference share capital and other fixed
interest bearing loans exceeds the equity share capital including
reserves the firm is said to be highly geared and vice versa. Gearing
should be kept in such a way that the company is able to maintain a
study rate of dividend. High gearing is not good for a new company or a
company in which future earnings are uncertain. The Axis Bank
Ltdshowed a steady capital gearing in the year 2018 and 2019. But the

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ratio shows an increasing trend in the last three years.

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Debt equity ratio.

Debt equity ratio is also known as external internal equity ratio is

calculated to measure the relative claims of outsiders and the owners
against the firm’s assets.

The two basic components of the ratio are debt and share holder’s
funds. The share holders fund consists of equity share capital, preference
share capital, capital reserves, revenue reserves and reserve
representing accumulated profits and surpluses. Debt includes all debt
and liabilities to outsiders, whether long term or short term or whether
in the form of debenture bonds, mortgage or bills.

Debt-equity ratio = Outsider’s fund

Share holders fund

Table 6.3 Debt equity ratio

rupees in crores.

Year Debt Equity Debt Equity Ratio

2018 647.16 634.02 1.02

2019 855.21 978.84 0.87

2020 747.76 1233.42 0.60

2021 601.86 1355.71 0.44

2022 851.59 1548.66 0.54

Source: Annual report

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Chart 6.3 Debt equity ratio

Debt equity ra琀椀o

1.2
1.02
1
0.87
0.8
0.6
0.6
0.54 Debt equity ra琀椀o
0.4
0.44

0.2

Interpretation: The debt equity ratio is calculated to measure the extent

to which debt financing has been used in a business. The ratio
indicates the proportionate claims of owners and the outsiders against
the firm’s assets. A ratio of 1:1 may be usually considered to be
satisfactory ratio although there cannot be any rule of thumb or standard
norm for all type of business. In some business a high ratio 2:1 or
even more may be considered satisfactory. From the above table, we
can see the debt equity relationship of Axis Bank

lt d. During the year 2008 and 2009 the debt of the company was more than the equity.
But
the next three consecutive years it shows a strong equity position ov
in he equity share holders fund during the year 2010 is more than the er the outsider’s
debt.
T double of debt
he company has a good debt equity position for the past few years.
fund.
T

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Proprietary ratio
A variant of debt equity ratio is the proprietary ratio, which is also
known as equity ratio. This ration establishes the relationship between
the shareholders funds to total tangible assets. It is used to measure the
involvement of the owners in the total resources available (source) and
committed (assets or uses). The contribution of the owner is regarded as
the financial base or backbone or foundation of an enterprise. The ratio,
therefore, gives an idea of the stability of the enterprise.

It is believed that higher the ratio sound the capital structure. When
the ratio approaches unity, it indicates the owner’s stake in the business
is on the increase. When the ratio shy’s away from unity, it means that
the owner’s stake in the business decreasing and the outsider’s role is
assuming relatively greater importance.

Proprietary ratio = Shareholders fund

Total assets

Table 6.4 Proprietary ratio Rupees in crore

Year Share Holders Fund Total asset Ratio

634.02 1223.9 0.47
2018
978.84 1489.23 0.43
2019
1233.42 1726.6 0.57
2020
1355.71 1835.27 0.67
2021

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1548.66 2207.3 0.61

2022

Source: Annual report

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Chart 6.4 Proprietary ratio

Proprietary ra琀椀o
0.8

0.7 0.67
0.57 0.61
0.6
0.47
0.5

0.4

0.3 0.43

0.2

0.1

0
2019 2020 2021 2022
Year 0

In terpretation: The Proprietary ratio shows share holders fund to total assets. It
appears
om the table that the company ’s assets are heavily financed by using
fr outsides fund in
the
year 2018 and 2019 but it shows an improvement in the next years due to
high reserve fund.

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Solvency ratio.

This ratio indicates the relationship between the total liabilities to

outsiders to total assets of a firm. So computed, this ratio provides a

specific measure of a firms solvency.

Here total liabilities to outsiders cover both current and long term

liabilities and total assets are to exclude fictitious intangible assets.

Generally lower the ratio, more satisfactory or stable is the long term

solvency of the firm.

Solvency ratio = Total liabilities to outsiders

Total assets

Table 6.5 Solvency ratio Rupees in crore

Year Total liability Total asset Ratio Percentage

2018 543.81 1223.9 0.44 44

2019 750 1489.23 0.50 50

2020 618.7 1726.6 0.36 36

2021 460.66 1835.27 0.25 25

2022 695.52 2207.3 0.32 32

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Source: Annual report

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Chart 6.5 Solvency ratio

Ra琀椀o
60
50
50
44
40
36 32
30
Ra琀椀o
20
25

10

2008 2009 2010 2011 2012

Interpretation: Generally, lower the ratio of total liabilities to total

assets more satisfactory or stable is the long term solvency position of a

firm. The solvency ratio is at high in the year2019 that is 50.the

Company has a good solvency ratio which can be seen from the table.

The company has a lower solvency ratio which is considered as good

for the long term solvency position of the firm.

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Fixed asset to net worth ratio.

Net fixed assets shows net fixed assets to net worth. This ratio
establishes the

relationship between fixed assets after depreciation and net worth that is,
share capita plus

reserves and surplus. It is an indication of the extend to which

shareholders fund are sunk into the net fixed assets. Generally the

purchase of fixed asset being in excess of net worth, difficulties may be

rise to provide depreciation resulting in reduction in profits.

Fixed asset to net worth ratio = Fixed assets (After depreciation)

Share holders fund

Table 6.6 Fixed asset to net worth ratio Rupees in crore

Year Net worth Total fixed asset Ratio

2018 576.74 888.94 1.54

2019 634.02 919.13 1.45

2020 978.84 1289.42 1.32

2021 1233.42 1368.11 1.11

2022 1355.71 1722.2 1.27

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Source: Annual report

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Chart 6.6 Fixed assets to net worth ratio

1.8

1.6 1.54
1.45
asset to

1.4 1.32
1.12 1.27
fxedaa琀椀o

1.2
net worth

0.8

0.6

0.4

0.2

0
Y ear 2
2018 2019 2020 2021 201

In net assets to
terpretation:
net Fixed asset to net worth ratio show the relation between
orth ratio. Here net worth and net fixed assets increased year by year.
w In the case of
net

block, in 2018 it was 888.94, next year it raised up to 919.13, next year

1289.42 then 1368.11 and the last year 2022 it was 1722.2 and the net

worth also shows an increasing trend which shows the increasing level of

the un geared companies capital.

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Total investment to long term liabilities

The ratio is calculated by dividing the total long term funds by the long term
liabilities.

Total investment to long term liabilities= Shareholders fund + long

term liabilities

Total long term liabilities

Table 6.7 Total investment to long term liabilities

Rupees in crore

Year shareholders fund + Total long term

Ratio
long term liabilities liabilities
2018 1120.55 543.81 2.06
2019 1384.02 750 1.85
2020 1597.54 618.7 2.58
2021 1694.08 460.66 3.68
2022 2051.23 695.52 2.95

Source: Annual report

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Chart 6.7 Total investments to long term

liabilities

4
3.68
3.5

3 2.95
2.58
2.5
2.06 1.85
2
Total investment to long
1.5 term liabili琀椀es

0.5

2008 2009 2010 2011 2012

Int liaberpretation: The table shows the relationship between total investments
and long term

ilities. Here total investments and net long term liabilities increased by
yearyear. It can

be seen from the table that the company faces in the year 2020 and 2021.

Then the company shows a strong financial position in the last year.

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Ratio of fixed assets to funded debt

The ratio measures the relationship between the fixed assets

and the funded debt and is very use full to the long term creditors.

Ratio of fixed assets to funded debt= Fixed asset

Funded debt

Table 6.8 Ratio of fixed assets to funded debt

Rupees in crore

Total
fixed
Year asset Funded debt Ratio
2018 888.94 543.81 1.63
2019 919.13 750 1.23
2020 1289.42 618.7 2.08
2021 1368.11 460.66 2.97

2022 1722.2 695.52 2.48

Source: Annual report

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Chart 6.8 Ratio of fixed assets to funded debt

Fixed assets to funded debt

2000
1800 1722.2
1600
1368.11
1400 1289.42
1200
1000 919.13 Total 昀椀xed asset
888.94
800 750 Funded debt
543.81 618.7 695.52
600
460.66
400
200
0
2018 2019 2020 2011 2012

Interpretation: The table shows the relationship between total fixed assets
and funded debt.

It can be seen from the table that the company depended heavily on outsiders
fund in the
year 2019 and 2010. Then the company shows a strong financial position in last three
the

years.

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Return on equity share capital

As equity share holders are the real owners of the company they are
more interested in the profitability of the company. Thus the performance
of the company should be judged on the basis of return on equity capital
of the company. Return on equity capital gives the relationship between
profits of a company and its equity capital.

Return on equity share capital = Net profit after tax

preference dividend
Equity share capital

Table 6.9 Return on equity share capital

Rupees in crore

Year Net profit Capital Ratio

67.63 46.41 1.76

2018

2019 78.17 48.85 2.04

2020 113.42 50.41 2.45

2021 219.3 50.41 4.49

2022 108.12 50.41 2.14

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Source: Annual report

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Chart 6.9 Return on equity share capital

5
4.49
4.5

3.5

3
2.45
2.5
2.04 2.14
21.76

1.5

0.5

0
Year 2018 2019 2020 2021 2022

Interpretation: this ratio is more meaning full to the equity share holders
who are interested

to know profits earned by the company and those profits which can be
made available to

pay to them. Higher the ratio position. table shows that

dividend betters the The the

company is profit making company and its return in equity share capital
increase in each

year except in the year 2022. The company maintains a good return to

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equity share holders even though it raises its capital in each year.

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Earnings per share

Earnings per share are a small variation of return on equity share

capital and are
calculated by dividing the net profit after taxes and preference dividend
by the total number of equity shares.

EPS= Net profits after tax and

preference dividend Number of
equity share capital

Table 6.l0 earning per share

Rupees in crore

Year Net profit Capital Ratio

113.42 4.641 24.44

2018

2019 219.3 4.885 44.89

2020 108.12 5.041 21.45

2021 198.25 5.041 39.33

2022 181.33 5.041 35.97

Source: Annual report

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Chart 6.10 Earnings per share

50
44.89
45
39.33
40

35
35.97
30

25
24.44
20
EPS

21.45
15

10

0
2018 2019 2020 2021 2022

Year

Interpretation: this earning per share is a good

measure of profitability and when compared with EPS
of other similar companies, it gives a view of the
comparative earnings or earning power of the firm. Here
the ratio measures net profit earned per share. The
above table shows the earning per share of Axis
Bank . The table shows that the earning per share of
the company shows an increasing trend except in 2020.
The high EPS means the better capital productivity of the
company.

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Chapter –4

FINDINGS,SUGGESTIONS AND CONCLUSION

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FINDINGS

The most crucial decision of any company is involved in the

formulation of its appropriate capital structure. The best design of capital
structure of the company obviously helps the management to achieve its
ultimate goal of minimizing the overall cost of capital, maximizing the
value of the firm. These will in turn help to maximize the earning per
share. It is apparent that the design of the capital structure of a
company may have some bearing on the profitability of that company.

The present study is aimed at analyzing the

capital structure of Axis Bank Ltd. The main objective is to analyze the
capital structure of the company.

 The company’s capital consist of equity share capital and long term loans

 The company has authorized preference shares.

 Second major player in the industry.

 The last three years the company issued equity share capital to raise the
fund.

 The capital structure analysis shows an upward trend.

 Capital gearing analysis reveals that in the year 2005 and 2006 the
company had a low gearing and had a high
gearing in the next years.

 Debt equity ratio shows that the company has a strong financial
background to carry on its business.

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SUGGESTIONS

 The company can utilize its preference share capital for raising funds.

 The company should always maintain current asset to meet the current
liabilities.

 It will be better for the company, if they could keep the solvency in a
standard form.

 The company’s net profit to net worth can be improved with increase
in debt component in the capital.

 Instead of issuing equity shares it will be better borrow low

interest rate funds for financing their assets.

 The company has a good amount of reserve which can be used for the
financial purpose.

 The company can adopt the technique of just in time system in

purchasing of raw material to control the working capital.

 It will be better to follow the current trend of proprietary ratio.

 The minimum level of working capital should be maintained for the

smooth running of the business.

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CONCLUSION

The study was conducted at Axis Bank Ltdltd with an emphasis on

capital structure

analysis of the company. Axis Bank Ltdltd is one of the major player in
the Indian tyre

industry. The capital structure planning is very important for the

success of a business. There should be a proper mix of debt and

equity. The company maintains the appropriate

mix of equity and outsiders fund so as to reduce the cost of capital,

ensure the availability of finance and increase the wealth of the share

holders. Capital structure refers to the mix of long term sources of funds,

such as debentures, long term debt, preference share capital and

equity share capital. Including reserves and surpluses that is retained

earnings. Some

companies do not plan their capital structure, and it develops as a result

of the financial decisions taken by the financial manager without any

formal planning. With planned capital structure, these companies may

fail to economies the use of their funds.

The choice of a firms capital structure is a marketing problem it is

essentially concern with how the firm decides to divide its cash flows in

to two components a fixed component that is earmarked to meet the

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obligations towards debt capital and a residual component that belongs

to equity share holders.

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Bibliography

Text Books

1. Ravi .M.kishore, financial management taxman allied

services P. Ltd. 2002.

2. Pandey I.M. financial management, vikas publishing

house, pvt. Ltd. New delhi,1992.

3. Prasana Chandra. Financial management theory and

practice, tata Mc graw hill publishing company ltd, new
delhi, 1997.

Journals

References

WESLEY NAIDU, THE IMPLICATIONS OF CAPITAL STRUCTURE THEORY AND

REGULATION FOR SOUTH AFRICAN BANKING INSTITUTIONS. Muhammad
Muzaffar Saeed MBA/ MS (Banking & Finance) GC University Faisalabad,
Pakistan , Impact of Capital Structure on Banking Performance. Luc Laeven
a,b,c,d, _, RossLevine e,f, Bank governance, regulation and risk taking
Kenneth
A. Froot a, Jeremy C. Stein b'*, Risk management, capital budgeting, and
capitalstructure policy for financial institutions:an integrated approach
Anthony Saunders1, Liliana Schumacher*

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,2 , The determinants of bank interest rate margins:an international study

Sinan Cebenoyan a,1, Philip E. Strahan b,* ,

Risk management, capital structure andlending at banksAllen N. Berger

a,b,*, Emilia Bonaccorsi di Patti , Capital structure and firm performance:A
new approach to testing agency theoryand an application to the banking
industry

. J.R. Daviesa, David Hillierb,T, Patrick McColganc , Ownership structure,

managerial behaviorand corporate value.
Mihaela Brînduşa TUDOSEGh. Zane University of Iasi, ROMANIA, Capital
Structure and Firm Performance.
Wahyu Ario Pratomo*& Abdul Ghafar Ismail** , ISLAMIC BANK PERFORMANCE
. ANDCAPITAL STRUCTURE
Annual reports and magazines

Websites

www.axisbank.com

https://core.ac.uk/download/pdf/234630195.pdf

https://papers.ssrn.com/sol3/papers.cfm?
abstract_id=3845068

https://www.scribd.com/document/473693760/AXIS-
BANK#

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