International Journal of Multidisciplinary Research and Development

International Journal of Multidisciplinary Research and Development

Online ISSN: 2349-4182, Print ISSN: 2349-5979
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Volume 4; Issue 11; November 2017; Page No. 12-20

A study of financial performance: a comparative analysis of axis and ICICI bank

Pooja Rani
Assistant Professor, Dept. of Commerce, Govt. PG College of Women, Rohtak, Haryana, India

Abstract
Banking Sector plays an important role in economic development of a country. The banking system of India is featured by a large
network of bank branches, serving many kinds of financial services of the customer. The Axis bank is a 3 rd largest private sector
bank in India. Headquarter of Axis is at Mumbai, the bank has 3,304 branches, 14,163 ATMs and 9 international offices. The Bank
has 80 lakh customer services and 2.25crs transaction handed as on 31st March 2017. The Bank has 80 lakh customer services and
2.25crs transaction handed as on 31st March 2017. The Industrial Credit and Investment Corporation of India, popularly known as
ICICI is 2nd largest and leading bank of private sector in India. The Bank has 4,850 branches and 13,882 ATMs in India as on 31 st
march, 2017. The main aim of this study is to examine the financial performance of Axis and ICICI Bank, both are private sector
bank. The research is descriptive and analytical in nature. The data used for the study was entirely secondary nature. The present
study is conducted to compare the financial performance of Axis and ICICI Bank on the basis of ratios such as credit deposit, net
profit margin etc. The period of study taken is from the year 2012-13 to 2016-17. The study found that Axis is performing well and
financially sound than ICICI Bank but in context of deposits and expenditure ICICI bank has better managing efficiency than Axis
bank.

Keywords: credit deposit ratio, net profit margin, net worth ratio, advances, ICICI and AXIS

Introduction Retail segment. The Bank has reduced concentration risk in

An efficient banking system is recognized as basic our corporate book significantly. The bank has tightened
requirement for the economic development of any economy. incremental sanctions and is actively targeting the pool of
Banks mobilize the savings of community into productive better rated corporate. The bank continues to drive the
channels. The banking system of India is featured by a biggest transition of our corporate franchise towards a more flow led,
network of bank branches, serving many kinds of financial transaction banking oriented business.
needs of the customer.
Incorporated in 1994, Axis Bank has emerged as one of Subsidiaries
India’s most trusted banks and the 3rd largest in the private As on 31st March 2017, the Bank has the following nine
sector. Headquarter of Axis is at Mumbai, the bank has 3,304 unlisted subsidiary companies:
branches, 14,163 ATMs and 9 international offices. The Bank 1. Axis Asset Management Company
has 80 lakh customer services and 2.25crs transaction handed 2. Axis Bank UK Ltd.
as on 31st March 2017. The bank employs over 56000 people 3. Axis Capital Ltd.
and had a market capitalization of Rs. 1, 17,548 crs. As on 31st 4. Axis Finance Ltd.
march, 2017. It is among the country’s first new generation 5. Axis Mutual Fund Trustee Ltd.
private sector banks. The Bank has 9 international offices with 6. Axis Private Equity Ltd.
branches at Singapore, Dubai, Hong Kong, Colombo and 7. Axis Securities Ltd
Shanghai. It has representative offices at Dubai, Abu Dhabi, 8. Axis Trustee Services Ltd
Dhaka and an overseas subsidiary at UK, London. The 9. A.TREDS Limited
international offices focus on corporate trade finance, lending,
syndication and investment banking and liability businesses. ICICI bank-profile
The Bank provides comprehensive corporate banking ICICI Bank is 2nd largest and leading bank of private sector in
solutions with presence across the value chain, comprising India. Headquarter of ICICI bank is in Mumbai, India. The
credit, transaction banking, treasury, syndication, investment Bank has 4,850 branches and 13,882 ATMs. In 1998, the
banking and trustee services. Bank launched internet banking operations. ICICI Bank offers
The 1st private sector bank to introduce recyclers, which can a wide range of banking products and financial services to the
accept and dispense cash. As on 31 March, 2017, the Bank corporate and retail customers. It also provides services in the
had deployed 1,349 recyclers. In the last few years, Bank has areas of asset management, venture capital investment
significantly strengthened credit underwriting and risk banking, life and non-life insurance. The Bank's equity shares
management practices at the Bank. The bank has diversified are listed in India on National Stock Exchange (NSE),
our loan book materially and now has 45% of our loans in the Bombay Stock Exchange (BSE) and its American Depositary

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International Journal of Multidisciplinary Research and Development

Receipts (ADRs) are also listed on the New York Stock period2012-13 to 2016-17 for which latest data is at hand at
Exchange (NYSE). ICICI bank is first Indian banks listed the respective sources. We splint the study period into two:
NYSE. The data were analyzed with the help of various tool and
The Bank is major banking and financial services organization techniques i.e. mean method and Percentage. Data collected is
in India. The bank is the second biggest bank in India and the present in the form of table. Each table is accompanied by
largest private sector bank in India by market capitalization. appropriate analysis and explanations. In addition to this,
They are publicly held banking company engaged in adequate uses have been made of graphs and diagrams to
providing a wide range of banking and financial services illustrate and highlight the data presented in tabular form.
including treasury operations and commercial banking. The
bank and their subsidiaries offers a wide range of banking and Tools and Techniques
financial services including commercial banking, retail To obtain the objectives of the present study the data were
banking, project and working capital finance, insurance, collected from the various sources and transcribed into tables
corporate finance, venture capital and private equity, and the same were analyzed with the help of appropriate
investment banking, broking and treasury products and statistical tools and techniques to draw a conclusion.
services. They offer through a variety of delivery channels and
through their specialized subsidiaries in the area of investment Limitation of the study
banking, life and non-life insurance, venture capital and assets Due to constraints of time and resources, the study is likely to
management. The bank has a network of 4850 branches and suffer from certain limitations. Some of these are mentioned
about 13882 ATMs and presence in 18 countries. They have here under so that the findings of the study may be understood
subsidiaries in the Russia, UK and Canada, branches in United in a proper perspective. The limitations of this study are:
States, Singapore, Bahrain, Hong-Kong, Sri Lanka, Qatar and  The study is based on the secondary data and the
Dubai International finance centre and representative offices limitation of using secondary data may affect the
in United Arab Emirates, Bangladesh, Thailand, China, South performance.
Africa, Malaysia and Indonesia. UK subsidiary has established  The secondary data was taken from the annual reports of
branches in Belgium and Germany. the AXIS and ICICI Bank. It may be possible that the
Subsidiaries of ICICI Bank: data shown in the annual reports may be window dressed
1. National which does not show the actual position of the banks.
 ICICI Lombard Financial analysis is mainly done to compare the growth,
 ICICI Prudential Life Insurance Company Ltd financial soundness, and profitability of the respective banks
 ICICI Securities Limited by diagnosing the information contained in the financial
 ICICI Prudential Asset Management Company Limited statements. Financial analysis is done to identify the financial
 ICICI Venture strengths and weaknesses of the two banks by properly
 ICICI Direct.Com establishing relationship between the items of Balance Sheet
 ICICI Foundation and P&L Account. It helps in better understanding of banks
2. International financial growth, position, and performance by analyzing the
 ICICI Bank UK PLC financial statements with various tools and evaluating the
 ICICI Bank Canada relationship between various elements of financial statements.
 ICICI Bank Eurasia LLC
For this purpose the following parameters have been
Objective of the study studied
This paper aims to check the financial performance both 1. Credit/ Deposit Ratio
Bank. 2. Interest Expenses/Total Expenses
 To analysis, asses and comparison the financial 3. Interest Income/Total Income
performance of Axis and ICICI Bank. 4. Other Income/ Total Income
 To interpret the results of both banks. 5. Net Profit Margin
6. Percentage Change in Net Profits
Research Methodology 7. Percentage Change in Total Income
In the present study, an attempt has been made to measure, 8. Percentage Change in Total Expenditure
evaluate and compare the financial performance of Axis and 9. Percentage Change in Deposits
ICICI Bank which both are related to the private sector. This 10. Percentage Change in Advances
study is based on secondary data that has been collected from
annual reports of the both banks, magazines, journals, 1. Credit/Deposit Ratio: Credit/Deposit Ratio is the
documents and other published information. proportion of loan to assets created by a bank from the
deposits received. Credits are the loans and advances
Data collection granted by the bank. In other words it is the amount lent
The study relies on secondary data compiled from various by the bank to an organization or a person which is
published. The main source of data for this study is based on recovered later on. Interest is charged from the borrower.
the Handbook on Indian Statistics published by sources Deposit is the amount accepted by bank from the
Economic Survey of India. This study is made for the customer and interest is paid to them.

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Table 1: Credit/ Deposit Ratio (in times).

Years Axis Bank ICICI Bank
2012-13 0.17 0.30
2013-14 0.18 0.41
2014-15 0.25 0.48
2015-16 0.30 0.47
2016-17 0.25 0.50
Mean 0.23 0.43
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 1: Credit/Deposite Ratio.

In the above Table depicts that over the course of five expenses, interest expenses, and other operating expenses
financial periods of study the mean of Credit Deposit Ratio in etc.
ICICI was higher than in Axis Bank in every years. This
shows that ICICI Bank has created more loan assets from its Table 2: Interest Expense/ Total Expenses (in percent).
deposits as compared to Axis Bank.
Years Axis Bank ICICI Bank
2012-13 75 71
2. Interest Expenses/Total Expenses: Interest Expenses /
2013-14 70 68
Total Expenses reveals the expenses incurred
proportionate contribution of interest expenses to total 2014-15 69 66
expenses. Banks accepts deposits from pay and savers 2015-16 71 56
interest on these accounts. This payment of interest is 2016-17 68 52
known as interest expenses. Total expenses include the Mean 71 62.6
amount spent in the form of staff expenses, overhead Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 2: Interest Expense/ Total Expense

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International Journal of Multidisciplinary Research and Development

In the above table shows that the ratio of interest expenses to invest their savings in Axis than ICICI.
total expenses in Axis was highly volatile it decreased from 3. Interest income to total income: Interest Income to
75percent to 68 per cent during the period 2012-13 to 2016- Total Income shows the proportionate share of Interest
17. The ratio of interest expenses to total expenses in ICICI Income in total income. Banks lend money in the form of
was also decreased from 71 per cent to 52 per cent during the loans and advances to the customer and receive interest
period 2016-17. It has been found that the share of interest on it. This receipt of interest is called interest income.
expenses in total expenses was higher in case of Axis as Total income includes interest income, operating income,
compared to ICICI, which shows that people preferred to and non-interest income and.

Table 3: Interest income to total income.

Years Axis Bank ICICI Bank
2012-13 80.58 82.76
2013-14 80.54 80.01
2014-15 80.92 80.13
2015-16 81.39 77.49
2016-17 79.21 73.53
Mean 80.53 78.78
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 3: Interest Income to Total Income

In the above table represents that the ratio of interest income 4. Other income to total income: Other income to total
to total income in axis and ICICI both is quite stable and income reveals the proportion of other income to total
volatile over the years. Thus, the proportion of interest income income. Other income includes non-interest income and
to total income in Axis was higher than that of ICICI, which operating income. Total income includes operating
shows that people preferred Axis to take loans and advances. income, interest income, and non-interest income.

Table 4: Other Income / Total Income.

Years Axis Bank ICICI Bank
2012-13 19.42 17.24
2013-14 19.46 19.09
2014-15 19.08 19.87
2015-16 18.61 22.51
2016-17 20.79 26.47
Mean 19.47 21.22

In the above table shows that the ratio of other income to total increased from 17.24per cent in 2012-13 to 21.22per cent
income was increased from 19.42 per cent in 2012-13 to 20.79 2016-17. The table shows that the ratio of other income to
per cent in 2016-17 in case of AXIS Bank. However, the share total income was relatively higher in ICICI as compared to
of other income in total income of ICICI was continually SBI during the period of study.

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Fig 4: Other Income to Total Income

5. Net Profit Margin: Net Profit Margin reveals the financial performance of the business efficiency and activity of
management in operations.

Table 5: Net profit margin in Axis and ICICI

Years Axis Bank ICICI Bank
2012-13 15.35 17.19
2013-14 16.34 17.97
2014-15 16.78 18.24
2015-16 16.33 14.29
2016-17 6.54 13.31
Mean 14.27 16.20
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 5: Net Profit Margin

In the above table reveals that the ratio of net profits to total was decreased last two years of study in ICICI. Thus, the
income of AXIS is quite stable (lies b/w 15.35 to 16.78) over AXIS has shown comparatively lower operational efficiency
the years expect 2016-17.whereas in case of ICICI, it is not than ICICI.
stable. It increased to 17.19 percent from 18.24 percent in
2014-15 then further decreased to 14.29 percent in 2015-16 6. Growth of Net Profit
and 13.31 percent in 2016-17 during the period of 5 years of Net profit Ratio is used for measuring the profitability of the
study. However, the net profit margin was higher in ICICI firm and any corporate. It is calculated by dividing net profit
(16.20%) as compared to AXIS (14.27%) during the period of by net sales multiplied by 100. It establishes the relationship
study. But it was increased in 2012-13 to 2014-15 and then it between the net profit and sales.

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Table 6: Growth of profit in Axis and ICICI bank

Years Axis Bank ICICI Bank
Profit (In Rs. Cr.) % Change Profit (In Rs. Cr.) % Change
2012-13 5,179.43 -------------- 8,325.47 ---------------
2013-14 6,217.67 20.05 9,810.48 17.84
2014-15 7,347.87 18.18 11,175.36 13.91
2015-16 8,223.66 11.92 9,726.29 -12.97
2016-17 3,679.28 -55.26 9,801.09 0.77
Mean 6129.58 9767.74
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 6: Growth of Net Profit

In the table highlights that the mean value of net profit was Table 7: Growth in Total Income of AXIS and ICICI.
higher in ICICI compared to that in Axis during the period of
Years Axis Bank ICICI Bank
study. Further the growth rate of Net Profits was also higher in
Axis than that in ICICI during the study period. The table also Income Income
% Change % Change
shows that the annual growth rate of profit in Axis was highest (In Rs. Cr.) (In Rs. Cr.)
in the year 2013-14 and was negative in the year 2016-17. In 2012-13 33,733.68 -------- 48,421.30 ---------
ICICI, the annual growth rate of profit was highest in the year 2013-14 38,046.38 12.78 54,606.02 12.77
2013-14 and was negative in the year 2015-16.
2014-15 43,843.64 15.24 61,267.27 12.20
7. Total Income: The total income represents the money 2015-16 50359.50 14.86 68,026.49 11.04
value of the income earned during a period. The higher 2016-17 56,233.47 11.67 73,660.76 8.28
value of total income indicates the efficiency and good Mean 44,443.34 61,196.37
performance. Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 7: Growth in total income of Axis and ICICI Bank

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International Journal of Multidisciplinary Research and Development

In the above table highlights that the mean value of total 8. Total Expenditure: The total expenditure reveals the
income was higher in ICICI as compared to that in AXIS proportionate contribution of total expenditure spent on
during the period of study. However the rate of growth the development of staff, interest expended and other
regarding total income was higher in Axis than in ICICI overheads.
during the period of study.

Table 8: Total Expenditure of AXIS and ICICI

Years Axis Bank ICICI Bank
(In Rs. Cr.) % Change (In Rs. Cr.) % Change
2012-13 23,430.55 ------------ 37,382.16 ---------------
2013-14 26,590.29 13.49 40,637.86 8.71
2014-15 30,457.91 14.54 45,447.35 11.83
2015-16 34,255.89 12.47 55,866.78 22.92
2016-17 38,648.95 12.82 62,382.16 11.66
Mean 30,676.72 48,343.26
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 8: Total Expenditure of Axis AND ICICI Bank

In the above table discloses that the mean value of total more efficient as compared to ICICI in terms of managing
expenditure was higher in ICICI (Rs. 48343.26 crores) as expenditure.
compared to that in AXIS (Rs. 30676.72 crore) during the
period of study. The table also highlights that the annual 9. Advances: Advances are the credit facility granted by the
growth rate of expenditure in ICICI was highest (22.92%) in bank. In other words it is the amount borrowed by a
the year 2015-16 and was lowest (8.71%) in the year 2013-14. person from the Bank. It is also known as “Credit”
In AXIS, the annual growth rate of expenditure was near to granted where the money is disbursed and recovery of
12-14% during the study period. Hence it is clear that AXIS is which is made later on.

Table 9: Total Advances of AXIS and ICICI.

Years Axis Bank ICICI Bank
(In Rs. Cr.) % Change (In Rs. Cr.) % Change
2012-13 1,96,965.96 ------------ 290249.44 ----------
2013-14 2,30,066.76 16.81 338702.65 16.68
2014-15 2,81,083.03 22.17 387522.94 14.41
2015-16 3,38,773.72 20.52 435263.94 12.32
2016-17 3,73,069.35 10.12 464232.08 6.65
Mean 2,83,991.76 3,83,194.04
Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

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Fig 9

In the above table presents that the mean of Advances of Table 10: Total Deposits of AXIS and ICICI.
ICICI was higher as compared to mean of Advances of AXIS.
Years Axis Bank ICICI Bank
Rate of growth was also higher in SBI (108.16 %) than in
(In Rs. Cr.) % Change (In Rs. Cr.) % Change
ICICI (12.45%). Table also shows the per cent Change in
2012-13 2,52,613.59 ----------- 2,92,613.63 ----------
Advances over the period of 5 years. In case of ICICI
Advances were continuously decreased over the period of 2013-14 2,80,944.56 11.22 3,31,913.66 13.43
study. However Advances in AXIS were increased till 2014- 2014-15 3,22,441.94 14.77 3,61,526.73 8.92
15 but these were decreased in the subsequent years. 2015-16 3,57,967.56 11.02 4,21,425.71 16.57
10. Deposits: Deposit is the amount accepted by bank from 2016-17 4,14,378.79 15.76 4,90,039.06 16.28
the customer in the form of current deposits, savings Mean 3,25,669.29 3,79,503.76
deposits and fixed deposits and interest is paid to them. Source: Annual Reports of Axis and ICICI from 2012-13 to 2016-17

Fig 10: Total Deposits

In the above table presents that the mean of Deposits of ICICI (62.60 %) and the proportion of interest income to total
was higher (Rs. 379,503.76 crores) as compared to mean of income was higher in case of AXIS (80.76 % ) as compared to
deposits of AXIS (Rs.3,25,669.29crores). Table also shows ICICI (78.78%), which shows that people prefer ICICI to
the per cent Change in Deposits over the period of 5 years. In invest their savings and AXIS to take loans & advances. The
case of ICICI deposits were continuously fluctuating over the ratio of other income to total income was relatively higher in
period of study. However deposits in AXIS were increased in ICICI (21.22%) as compare to AXIS (19.47%). Net Profit
2012-13 and 2016-17. Margin of ICICI (16.20) is higher whereas in AXIS it was
(14.27%), which shows that ICICI has shown comparatively
Findings and Conclusions better operational efficiency than AXIS Bank. The growth rate
The study found that the mean of Credit Deposit Ratio in of net profit is decreased in both banks but it was negative in
ICICI was higher than in SBI AXIS Bank. This shows that AXIS bank in last year of study. This shows that ICICI
ICICI Bank has created more loan assets from its deposits as performed well as compared to AXIS. The mean value of total
compared to AXIS. The contribution of interest expenses in income was higher in ICICI (61,196.37) as compared to that
total expenses higher in AXIS (71%) as compare to ICICI in AXIS (Rs. 44,443.44 Crores). The mean value of total

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expenditure was higher in ICICI (Rs. 48,343.26 crores) as

compared to that in AXIS (Rs. 30,676.72 Crores) Deposits in
both banks were continuously increased. In case of both banks
Advances were continuously increased with an increasing
trend AXIS and decreasing trend in ICICI. The mean value of
total deposits and advances was higher in ICICI Bank. Hence,
on the basis of the above study or analysis banking customer
has more trust on the ICICI bank as compared to AXIS Bank.

References
1. Singh B, Dr. Anurag Tandon, Ms. Priyaka. A Study of
Financial Performance: A Comparative Analysis of SBI
and ICICI Bank, International Journal of Marketing,
Financial Services & Management Research Online
available at www.indianresearchjournals.com, 2012;
1(11). ISSN 2277 3622
2. Trend and progress of banking, RBI.
3. Development Research Group Study, No. 22, Department
of Economic Analysis and Policy, Reserve Bank of India,
Mumbai, 2000.
4. Financial year report of AXIS Bank 2012-13 to 2016-17.
5. Financial year report of ICICI Bank 2012-13 to 2016-17.
6. ICICI Bank bulletin publication 2017
7. RBI statistical table relating to banks 2016-17
8. Information Memorandum
9. AXIS and ICICI Bank annual report 2012-13 to 2016-17.

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