Financial Analysis of Axis Bank

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CORPORATE FINANCE
END TERM PROJECT

To study the Financials of ICICI bank, HDFC bank and Axis bank and to conduct Comparative Financial Analysis among them. UNDER THE GUIDANCE: Dr. ASHISH GARG PROGRAM COORDINATOR PGDM (FINANCE)

Submitted by:
Janmey Patel (202) Nikhil Arora (206) Shashank Mohore (228) Aniket Gupta (229) Parandeep Singh Chawla (231)

TABLE OF CONTENTS
Overview of Indian Banking Industry4
Types of Commercial Bank4
Public Sector Bank4
Private Sector Bank4
Foreign Bank4
Regional Rural Banks4
Overview of ICICI Bank 5
Overview of Axis Bank 5
Overview of HDFC Bank 5
Stock Analysis6
Return & Risk Analysis7
Calculations:7
Terms:7
Risk7
Return7
Risk & Returns Figures8
Covariance & Correlations8
Terms8
Correlation Effect8
Covariance & Correlation Figures8
Portfolio Variance & Standard Deviation9
Portfolio Return Figures9
Portfolio Risk Figures9
Cost of Capital10
Cost of Debt10
Cost of Equity10
Cost of Debt & Equity Figures10
Weighted Average Cost of Capital Calculations11
Comparative Analysis11
Leverages11
Leverage Figures12
Graphical Representation for Leverages12
P/E Ratio Analysis13
P/E Ratio Figures13
Dividend Policy Analysis13
Dividend Yield and Dividend Payout Ratio14
Conclusions and Inference14
Return14
Risk15
Choice based upon Risk and Return15
Cost of Capital16
Choice Based on Cost of Capital16
PE Ratio Analysis17
Leverage17
Dividend Policy18

Overview of Indian Banking Industry

Types of Commercial Bank

Public Sector Bank
In case of Public Sector banks the major shareholders is Government of India. For example State Bank of India, Punjab National Bank, Bank of India etc. Private Sector Bank
In case of Private Sector Banks the major Shareholders are Private Individuals. For example ICICI Bank, Axis Bank, HDFC Bank etc. Foreign Bank
In case of Foreign Bank the major Shareholders are the foreign entities. For example Standard Chartered Bank, Citi Bank, HSBC etc. Regional Rural Banks
In case of Regional Banks the major shareholders are Central Government, Concerned State Government and Sponsor Bank in the ratio of 50:15:35. For example Andhra Pradesh Grameena Vikas Bank etc.

Overview of ICICI Bank

ICICI (Industrial Credit and Investment Corporation of India) Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI bank is the 2nd largest bank in India by assets and 3rd largest by market capitalization.

Overview of Axis Bank Axis Bank was begun its operations in 1994, after the Government of India allowed new private banks to be...
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