Retail Banking & Evaluation of Financial Performance of Axis Bank (Summer Internship Report)
From 30th June To 10th August
Submitted to: Submitted by:Training Supervisor: Ashish Jain Shridhonkar Mr. Nishpap PGDM (07-09)
Sales Manager (07-II711) Axis Bank Limited, Gwalior
Summer training is one of the most vital and active part of the curriculum of management students. Its basic idea behind this is to strengthen the student’s concept through practical training and make them acquainted with actual method and procedures. I did the work as a management trainee at AX IS Ba nk Limit ed for a period of six weeks starting from 30th June, 2008. I would like to extend my heartfelt gratitude to Mr. Nishp ap Sh ri dho nk ar Branch Sales Manager, for her proper guidance throughout the project. Without her support and cooperation I would have failed in my endeavors and targets in the summer training. I would also like to thank my Senior Placement Executive Prof . P. N. Rath who helped me a lot in my project.
The financial year 2007-08 will be remembered as a year of transformation in the history of the Bank, when the na me of the Ba nk cha ng ed to Ax is Ban k fro m UTI Bank . The conviction that it was worthwhile to invest in building a brand that would solely be our own, he lpe d to crea te a disti nct id entity . The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to become a multinational bank. The Bank was successful in establishing a new identity in the market in a short span of time. The Bank once again met with considerable success over the past year and achieved all its key objectives. This encouraging performance not only underscored the sust ain ability of the Ba nk' s high te mpo of gro wth , but also helped to move closer to its objective of being one of the mo re cu stom er -fo cu se d ba nk s in the cou ntr y. This is reflected in the robust growth in both business and revenue during 2007-08 and in various financial parameters. During 2007-08, the Bank's business and earnings con tinu ed to sh ow hi gh grow th, in dic ative of a cl ea r st rat eg ic foc us , the communication of corporate priorities to branches across the country, and finally the execution of these goals through intensive efforts. The Bank reported a ne t pr ofit of Rs . 1,071.03 cr ores during the year ended 31st March 2008, up 62.52%, from Rs. 659.03 crores in the previous year. Diluted earnings per share (EP S) wer e Rs . 31.31 pe r sh ar e, up 37.38 % from Rs . 22.79 pe r sh ar e a ye ar earli er . Return on Equity (ROE) was 16.09% compared to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh equity capital during the financial year. Return on Average Assets was 1.24% , co mpa re d to 1.10% in th e pr evi ous y ea r.
~4~ In 2007-08, the Bank achieved a tota l inc ome of Rs. 8,800.80 crores, up 60.84 % from 2006-07. During this period, op er ati ng rev en ue was Rs. 4,380.84 crores, up 76 .76% from the previous year, while op er ati ng pro fit was up by 76.12% to reach Rs. 2,225.92 crores. The strong growth in income was largely driven by a strong inc re as e in both ne t int er es t in com e by 76.07% to Rs. 2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The str ong inc om e grow th ref le cts the so li d busi ne ss growth acro ss al l ba nki ng se gme nts and th e su cc es sfu l exec utio n of growth initiativ es . The strong growth in incomes was partly offset by an increase in operating expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operating expenses primarily reflects the higher costs incurred as a result of increased business levels that include additional sales and service personnel and higher variable compensation. Additional expenses incurred to support the growth initiatives of the Bank (including network expansion as well as the...
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