axis vs sbi (financial analysis)

7/29/2019 Axis Vs SBI (financial Analysis)

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SBI & AXIS BankGroup 9Nishad Patil PG12069Poojan Doshi PG12081

Nihar Manjrekar PG12093

Raja Kundani PG12109

Shalinee Sharma PG12117


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State Bank of India

Largest nationalized bank in India (PSU)

In terms of assets, number of branches, deposits,profits and workforce.

Headquarters in Mumbai, India and employs about205,896 people.

Type Public (BSE/NSE: 500112/SBIN) & (LSE: SBID)

Largest ATM Network in IndiaHas International presence

Rating by S&P is BBB-

Rating byMoodys D+


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AXIS Bank

Axis Bank (Formerly known as UTI) was one of thefew private banks to have began operations in1994

Headquarters in Mumbai, India and employsabout 33,587 people.

Type Public (BSE/NSE: 532215/AXISBANK) &(LSE: AXBC)

Second Largest ATM Network in IndiaRating by S&P is BBB-

Has International presence

Rating by Moodys D+


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PRODUCTS

Investment

banking

CommercialBanking

RetailBanking

PrivateBanking

Asset

Management

Pensions

Mortgages

Credit Cards


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Banking Industry Trend 2012


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Current Share Price

Bank BSE Share Price NSE Share Price Face Value

SBI Rs. 2083.90 Rs. 2083.95 Rs. 10

AXIS Bank Rs. 1299.80 Rs. 1300.05 Rs. 10


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Shareholding pattern of SBI Vs Axis Bank

62%

27%

9%

2%

SBI

Promoter and Promoter Group

Institutions

Non-Institutions

Public

33%

50%

9%8%

AXIS

Promoter and Promoter Group

Institutions

Non-Institutions

Public


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Cost to Income Ratio = Operating Expenses

(Net Interest Income + Non Interest Income)

28.5526.18

34.99

38.06

33.77

28.0725.03

31.32

27.98

24.13

0

5

10

15

20

25

30

35

40

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Other Income to Total Income Ratio = Other Income

Total Income

8.83 8.13 8.9410.58

8.86

24.9826.74

33.91

30.56

24.70

0

5

10

15

20

25

30

35

40

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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PAT Margin (%)

9.95 9.88.67

7.26

8.7

12.08

13.28

15.916.92

15.39

0

2

4

6

8

10

12

14

16

18

Mar '08 Mar '09 Mar '10 Mar '11 Mar '12

SBI axis


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2.262.5

2.66

3.32

3.85

3.473.33

3.75 3.65 3.59

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank

Net Interest MarginNet Interest Margin = (Interest Income Interest Expense)

Average Earning Assets

Above assets comprises of advances, investments, balance with RBI andmoney at call.


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Credit to Deposit Ratio = Advances

Deposits

81.27 79.0876.11 75.69 77.19

65.8168.8

71.8874.67 76.3

0

1020

30

40

50

60

70

80

90

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Return on Equity (%)

17.82

15.0714.04

12.8414.36

16.09

19.93 19.89 20.1321.22

0

5

10

15

20

25

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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Return on Asset (%)

1.01 1.04

0.88

0.71

0.88

1.24

1.44

1.67 1.68 1.68

0

0.2

0.4

0.6

0.8

11.2

1.4

1.6

1.8

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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Debt Equity Ratio = Total Debt

Equity

10.96

12.8112.19

14.37

12.43

9.99

11.49

8.819.96 9.65

0

2

4

6

8

10

12

14

16

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Price to Book Value = Market Price

(Assets Intangible Assets and Liabilities)

0

0.5

1

1.5

2

2.5

3

3.5

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Earning per Share

126.62

143.77 144.37

130.16

184.31

32.15

50.61

65.78

82.95

102.94

0

20

40

60

80

100

120

140

160

180

200

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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Dividend per Share (Rs.)

21.5

29 30 30

35

610

1214

16

0

5

10

15

20

25

30

35

40

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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Dividend Payout Ratio (%)

20.18 20.19 20.78

23.05

20.06

23.49 23.16 22.57

19.7818.15

0

5

10

15

20

25

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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Capital Adequacy Ratio

13.47 14.25 13.3911.98

13.86

13.73 13.69

15.8

12.6513.66

0

2

4

6

8

1012

14

16

18

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

SBI AXIS


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EXAMPLE OF CAPITAL ADEQUACY

RATIO


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Non-performing Assets Ratio

1.781.79

1.72

1.63

1.82

1.5

1.55

1.6

1.65

1.7

1.75

1.8

1.85

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Cash Flows from Operations

-40000

-30000

-20000

-10000

0

10000

20000

30000

40000

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis


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Cash Flows from Investing Activities

-16000

-14000

-12000

-10000

-8000

-6000

-4000

-2000

0

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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Cash Flows from Financing Activities

-5000

0

5000

10000

15000

20000

25000

2007-08 2008-09 2009-10 2010-11 2011-12

SBI

Axis Bank


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THANK YOU

axis vs sbi (financial analysis)

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