EXECUTIVE SUMMARY

Banks are an important source of funding in economies all around the world and plays a vital role
in Indian economy .Today the bank is been leading in a private sector and financial services
company in India offering a wide range of products and services to corporate and retail customers
through a variety of delivery channels.

The ICICI bank and AXIS bank are the new private sector bank in India which offers new
innovative products and services. It show all the process, the reports the committee who have been
working in the bank to make them successful. Finally we examine all in the innovation and
strategies in both the banks.

Through financial analysis my aim is to understand the financial factor is influencing the bank and
its decision making. This show the ratio to appreciate their impact on bank performance from
2009- 2014 five years the financial statement helps to identified financial performance of the bank.

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 CHAPTER 1: INTRODUCTION

1.1 Introduction on Banking

Banking has been defined as “accepting for the purpose of landing and investments of deposits of
money from the public, repayable on demand, order or otherwise and withdraw able by cheque,
draft, or otherwise”.

Banking in India is mainly governed by the banking regulation act 1949 and the RBI act 1934, the
RBI and the Government of India exercise control over banks from the opening of banks to their
winding up by the virtue of powers conferred under the statues. A banking system is also referred
as system provided by bank which offers cash management services for customers reporting the
transactions of their accounts and portfolios throughout the day for past 3 decades. India’s banking
system has several outstanding achievements to its credit. Al the banks safeguards the money and
valuables and provide loan, credit, and payment services, such as checking accounts, money
orders, and cashier’s cheque. The bank also offer investment and insurance product.

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1.2 TYPES OF BANKS

What are Private Sector Banks?

The private-sector banks in India represent part of the Indian banking sector that is made up of

both private and public sector banks. The "private-sector banks" are banks where greater parts of
stake or equity are held by the private shareholders and not by government.

Banking in India has been dominated by public sector banks since the 1969 when all major banks
were nationalised by the Indian government. However, since liberalisation in government banking
policy in the 1990s, old and new private sector banks have re-emerged. They have grown faster &
bigger over the two decades since liberalisation using the latest technology, providing
contemporary innovations and monetary tools and techniques.

The private sector banks are split into two groups by financial regulators in India, old and new.
The old private sector banks existed prior to the nationalisation in 1969 and kept their
independence because they were either too small or specialist to be included in nationalisation. The
new private sector banks are those that have gained their banking license since the liberalisation in
the 1990s.

What are Public Sector Banks?

The Central Government entered the banking business with the nationalization of the Imperial
Bank of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank was
named as the State Bank of India. The seven other state banks became the subsidiaries of the new
bank when nationalised on 19 July 1969.The next major nationalisation of banks took place in
1969 when the government of India, under prime minister Indira Gandhi, nationalised an
additional 14 major banks. The total deposits in the banks nationalised in 1969 amounted to 50
crores.

The objectives behind nationalisation were:

 To break the ownership and control of banks by a few business families,

 To prevent the concentration of wealth and economic power.

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1.3 INTRODUCTION ON ICICI BANK

Industrial Credit and Investment Corporation of India (ICICI)

My character is changing the challenges is for these animal to raise his P/E
from 6 to 12.

-K.V. Kamath MD and CEO, ICICI in April1997.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and
was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through
a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on
the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project financing to
Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group offering a wide variety of products and
services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In
1999, ICICI become the first Indian company and the first bank or financial institution from non-
Japan Asia to be listed on the NYSE.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National
Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom and Canada; branches
in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Dubai International Finance
Centre and China; and representative offices in United Arab Emirates, South Africa, Bangladesh,
Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium
and Germany.

ICICI Bank is an Indian multinational banking and financial services company headquartered

in Mumbai, Maharashtra, India. As of 2014, it is the second largest bank in India in terms of assets
and market capitalisation. It offers a wide range of banking products and financial services for
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corporate and retail customers through a variety of delivery channels and specialised subsidiaries
in the areas of investment banking, life, non-life insurance, venture capital and asset management.
The Bank has a network of 4,050 branches and 12,642 ATMs in India, and has a presence in 17
countries including India.

After consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking, the
managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank
would be the optimal strategic alternative for both entities, and would create the optimal legal
structure for the ICICI group's universal banking strategy. The merger would enhance value for
ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities
for earning fee-based income and the ability to participate in the payments system and provide
transaction-banking services. The merger would enhance value for ICICI Bank shareholders
through a large capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments, higher market share in
various business segments, particularly fee-based services, and access to the vast talent pool of
ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank
approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The
merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High
Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai
and the Reserve Bank of India in April 2002. Consequent to the merger,
The ICICI group's financing and banking operations, both wholesale and retail, have been
integrated in a single entity.

5
1.4 HISTORY

ICICI Bank is India's largest private sector bank by consolidated assets. The bank's consolidated
total assets stood at US$ 156.8 billion as on 30 September 2017. The bank and their subsidiaries
offer a wide range of banking and financial services including commercial banking retail banking
project and corporate finance working capital finance insurance venture capital and private equity
investment banking broking and treasury products and services. They offer through a variety of
delivery channels and through their specialised subsidiaries in the areas of investment banking life
and non-life insurance venture capital and asset management. ICICI Bank had a network of 4856
branches and 13792 ATMs as on 30 September 2017. ICICI Bank is present across 17 countries
including India. The bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and their American Depositary Receipts (ADRs) are
listed on the New York Stock Exchange. The bank is the first Indian Bank listed on New York
Stock Exchange.ICICI Bank Ltd was incorporated in the year 1994 as a part of the ICICI group
with the name ICICI Banking Corporation Ltd. The initial equity capital was owned 75% by ICICI
and 25% by SCICI Ltd a diversified finance and shipping finance lender of which ICICI owned
19.9% at December 1996. Pursuant to the merger of SCICI into ICICI ICICI Bank became a
wholly-owned subsidiary of ICICI. In September 10 1999 the name of the Bank was changed from
ICICI Banking Corporation Ltd to ICICI Bank LtdIn March 10 2001 ICICI Bank acquired Bank of
Madura an old private sector bank in an all-stock merger. ICICI Ltd along with their wholly owned
retail finance subsidiaries namely ICICI Capital Services Ltd and ICICI Personal Financial
Services Ltd amalgamated with the Bank with effect from May 3 2002.In May 2003 the bank
acquired the entire paid-up capital of Transamerica Apple Distribution Finance Pvt Ltd (now
known as ICICI Distribution Finance Pvt Ltd) which primarily engaged in financing in the two-
wheeler segment. In September 12 2003 the Bank incorporated ICICI Bank Canada as a 100%
subsidiary company. In May 2005 the Bank acquired the entire paid-up capital of Investitsionno-
Kreditny Bank a Russian bank with their registered office in Balabanovo in the Kaluga region and
a branch in Moscow. Thus IKB became a subsidiary of Bank with effect from May 19 2005. In
August 2005 the Bank acquired additional 6% of the equity share capital of Prudential ICICI Asset
Management Company Ltd and Prudential ICICI Trust Ltd from Prudential Corporation Holdings
Ltd and thus these two companies became the subsidiaries of the Bank. During the year 2006-07
ICICI Bank Canada incorporated ICICI Health Management Inc as a subsidiary company. In April
2007 Sangli Bank Ltd merged with the Bank with effect from April 19 2007. In 2007 June the
Bank entered into an agreement with networking solutions provider GTL Ltd to lease out their call
6
centre facility at Mahape worth of around Rs 100 crore for a period of 25 years. During the year
2007-08 the Bank increased their branches & extension counter from 755 Nos to 1262 Nos
including the addition of about 200 branches through the merger of Sangli Bank. They increased
their ATM network from 3271 ATMs to 3881 ATMs. They launched mobile banking service
enabling a wide range of banking transactions using the mobile phone.During the year 2008-09 the
Bank increased their branches & extension counter from 1262 Nos to 1419 Nos. They also
received licenses for 580 additional branches from RBI. They increased their ATM network to
4713 ATMs from 3881 ATMs. In April 22 2009 ICICI Prudential Pension Funds Management
Company Ltd was incorporated as a subsidiary company of ICICI Prudential Life Insurance
Company Ltd.During the year 2009-10 the Bank increased their branches & extension counter
from 1419 Nos to 1707 Nos. They also increased their ATM network from 4713 ATMs to 5219
ATMs. ICICI Wealth Management Inc. a subsidiary of ICICI Bank Canada has been dissolved
effective December 31 2009.In January 2010 the Bank and First Data a company engaged in
electronic commerce and payment services formed a merchant acquiring alliance and a new entity
named ICICI Merchant Services 81% owned by First Data was formed which acquired ICICI
Bank's merchant acquiring operations for a total consideration of Rs. 3744 million.In May 2010
the Bank approved the scheme of amalgamation of Bank of Rajasthan Ltd with the Bank through
share-swap in a non-cash deal that values the Bank of Rajasthan at about Rs 3000 crore. Each 118
shares of Bank of Rajasthan will be converted into 25 shares of ICICI Bank Ltd. In August 2010 as
per the scheme of amalgamation Bank of Rajasthan was amalgamated with the Bank with effect
from the close of business on 12 August 2010. The merger of Bank of Rajasthan added over 450
branches to the network. Including these their branch network increased from 1707 branches at
March 31 2010 to 2529 branches at March 31 2011. They also increased their ATM network from
5219 ATMs at March 31 2010 to 6055 ATMs at March 31 2011.On 19 May 2011 ICICI Bank
announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed
rate notes in aggregate principal amount of US$ 1 billion. The offering had an order book of US$
2.70 billion with strong interest from over 220 investors.On 16 August 2012 ICICI Bank
announced that the bank through its Dubai branch successfully priced an issuance of 5.5 year fixed
rate notes in an aggregate principal amount of US$750 million. The offering was oversubscribed
by 7.6 times and had an order book of US$ 5.7 billion. On 26 November 2012 ICICI Bank through
its Dubai branch successfully launched and priced a US$ 250 million tap of its US$ 750.0 million
4.70% 2018 notes originally issued in August 2012. The offering was oversubscribed by 5.6 times
and had an order book of US$ 1.4 billion.On 22 August 2013 ICICI Bank announced an increase
of 0.25% in its base rate to 10% p.a. from 9.75% p.a. with effect from 23 August 2013. The bank
7
also announced an increase of 0.25% in its benchmark prime-lending rate and in its Floating
Reference Rate (FRR) for consumer loans (including home loans) with effect from 23 August
2013. On 23 January 2014 ICICI Bank signed an agreement for a USD 200 million Line of Credit
with The Export-Import Bank of Korea (Korea Eximbank).The Board of Directors of ICICI Bank
Limited at its meeting held on 9 September 2014 considered and approved the sub-division (split)
of one equity share of the bank having a face value of Rs 10 into five equity shares of face value of
Rs 2 each.The Board of Directors of ICICI Bank at its meeting held on 5 December 2014 approved
a proposal for the sale of ICICI Bank's shareholding in ICICI Bank Eurasia Limited Liability
Company (IBEL) a non-material wholly-owned banking subsidiary in Russia to Sovcombank an
unrelated third party Russian bank.On 7 April 2015 ICICI Bank announced a reduction of 0.25%
in its base rate to 9.75% p.a. from 10% with effect from 10 April 2015. Simultaneously the bank
announced a reduction in interest rates for some tenors of retail fixed deposits. ICICI Bank
announced a reduction of 0.05% in its base rate to 9.7% p.a. from 9.75% p.a. with effect from 26
June 2015. On 1 October 2015 ICICI Bank announced a reduction of 0.35% in its base rate to
9.35% p.a. from 9.7% p.a. with effect from 5 October 2015.The Board of Directors of ICICI Bank
at its meeting held on 30 October 2015 approved the sale of 9% shareholding in its subsidiary
ICICI Lombard General Insurance Company to its joint venture partner Fairfax Financial Holdings
Limited. Upon completion of the transaction ICICI Bank will hold approximately 64% stake and
Fairfax will hold about 35% stake in ICICI Lombard General Insurance Company.The Board of
Directors of ICICI Bank at its meeting held on 16 November 2015 approved the sale of 6%
shareholding in its subsidiary ICICI Prudential Life Insurance Company comprising the sale of 4%
to Premji Invest & its affiliates and 2% to Compassvale Investments Pte Ltd an indirectly wholly-
owned subsidiary of the Singapore-based investment company Temasek. Upon completion of the
transaction ICICI Bank will hold approximately 68% stake in ICICI Prudential Life Insurance
Company. Prudential Plc ICICI Bank's joint venture partner will maintain its current share of
approximately 26%.On 14 January 2016 ICICI Bank announced that it crossed the milestone of
disbursing mortgage loans of over Rs 1 lakh crore a first among private sector banks in the
country.On 14 March 2016 ICICI Bank through its Dubai branch priced an issuance of 10 year
fixed rate notes of an aggregate principal amount of US$ 700 million. The notes carry a coupon of
4% and were offered at an issue price of 99.592.On 18 July 2016 ICICI Bank announced that its
subsidiary company ICICI Prudential Life Insurance Company has filed a draft red herring
prospectus with the Securities and Exchange Board of India for a public offer of up to 18.13 crore
equity shares representing approximately 12.65% of its equity share capital through an offer for
sale by ICICI Bank. 9 September 2016 ICICI Bank announced that the bank has entered into a
8
subscription agreement to acquire 10% shareholding in Resurgent Power Ventures Pte. Limited a
power platform created to facilitate investment in power projects in India by ICICI Group and Tata
Group with Caisse de depot et placement du Quebec (CDPQ) of Canada Kuwait Investment
Authority and State General Reserve Fund of Oman as partner investors. On 2 January 2017 ICICI
Bank announced a reduction of 0.7% in marginal cost of funds based lending rates (MCLR) with
effect from 3 January 2017. On 2 March 2017 ICICI Bank through its Dubai branch priced an
issuance of 5.5 year fixed rate notes for an aggregate principle amount of $300 million. The Board
of Directors of ICICI Bank at its meeting held on 3 May 2017 recommended issue of bonus shares
in the ratio of 1:10. On 15 May 2017 ICICI Bank announced reduction of interest rates by upto 30
basis points for home loans upto Rs 30 lakh in its bid to boost affordable housing in the country.On
5 June 2017 the Board of Directors of ICICI Bank approved the sale of a part of its shareholding in
ICICI Lombard General Insurance Company in an initial public offering by ICICI Lombard
General Insurance Company subject to requisite approvals and market conditions. On 14 July 2017
ICICI Bank announced that its subsidiary company ICICI Lombard General Insurance Company
Limited has filed a draft red herring prospectus with the Securities and Exchange Board of India
for a public offer of up to 8.62 crore equity shares representing approximately 19% of its equity
share capital through an offer for sale of up to 3.17 crore equity shares by ICICI Bank and up to
5.44 crore equity shares by FAL Corporation. ICICI Bank announced a reduction in interest on
Savings Bank account by 50 basis points to 3.5% from 4% with effect from 19 August 2017 on
deposits below Rs 50 lakh. Interest rate on deposits of Rs 50 lakh and above was kept unchanged
at 4%.On 7 November 2017 the Board of Directors of ICICI Bank approved the sale of a part of its
shareholding in ICICI Securities in an initial public offering by ICICI Securities subject to
requisite approvals and market conditions. On 15 December 2017 ICICI Bank announced that it is
selling 6.44 crore shares of its subsidiary company ICICI Securities through IPO of ICICI
Securities. In this regard ICICI Securities Limited has filed a draft red herring prospectus with
Securities and Exchange Board of India for a public offer of up to 6.44 equity shares of face value
of Rs 5 each representing approximately 20% of its equity share capital as on date. On 7 December
2017 ICICI Bank through its Dubai branch priced an issuance of 10 year fixed rate notes for an
aggregate principal amount of US$ 500 million. The notes carry a coupon of 3.8% and were
offered at an issue price of 99.728.

9
 1.5 AWARDS

Awards - 2010

 ICICI Bank awarded the most Tech-friendly Bank award by Business World
 ICICI Bank was voted as the Most Trusted Brand among private sector banks in the 2010
Economic Times - Brand Equity Most Trusted Brands Awards and ranked 7th in the list of Top 50
service brands
 ICICI Bank received the 2010 World Finance UK award for:
o Excellence in Remittance Business, Worldwide
o Excellence in NRI Services, Worldwide
o Excellence in Private Banking Business, APAC Region
 ICICI Bank UK, HiSAVE has been awarded 'Best Online Savings Account Provider 2010 '
by Your Money ,direct consumer awards,UK
 ICICI Bank wins the Asian Banker Award for Best Banking Security System
 ICICI Bank is the first and the only Indian brand to be ranked as the 45th most valuable
global brand by BrandZ Top 100 Global Brands Report.
 ICICI Group Global Private Clients (GPC) has won the coveted 'Euromoney Private
Banking Award 2010' for Best Bank in the Super-Affluent Category (USD 500,000 to USD 1
million) - India. The other categories in which GPC picked up awards were:
o Fixed Income Portfolio Management
o Lending/Financing Solutions
o Precious Metals Investment
o Private Equity Investment
o Specialized Services - Entrepreneurs
o FX/Rates Derivatives Supplier
 ICICI Bank wins the Asian Banker Award for Excellence in SME Banking 2009
 ICICI Bank won the second prize in the Six Sigma Excellence Awards, conducted by
Indian Statistical institute, Bangalore for "Improving Sales for TV Banking business"
 Mr.N. Vaghul, Former Chairman, ICICI Bank was awarded the "Padma Bhushan"

10
 Awards - 2011

 ICICI Bank won the "Best Domestic Provider of FX Services (India)", "Best Domestic FX
Provider for Innovative FX Products and Structured Idea (India)", "Overall Best Domestic Interest
Rates Services (India)" and "Overall Best Credit Research & Market Coverage for the Local
Currency Bonds (India)", in the Asiamoney Corporate FX Poll
 ICICI Bank received the "Best House Of the Year (India)", by Asia Risk
 ICICI Bank was awarded the "Best Derivatives House (India)", by The Asset Triple A
 ICICI Bank awarded "House Of The Year (India)", by Asia Risk magazine, for eighth time
in a row since 2004
 ICICI Bank tops the list of "Most Trusted Private Sector Bank" and ranks 10th in the list of
"India's Most Trusted Service Brands" by Brand Equity, Most Trusted Brands 2011
 ICICI Bank received the Best Manpower Efficient Award amongst private sector banks by
FICCI – IBA
 ICICI Bank won the Best Local Bank – Gold by Trade and Forfaiting Awards, UK
 ICICI Bank was awarded The Asset Triple A Awards, Hongkong for:
o Best Domestic Transaction Bank (India)
o For 6th consecutive year won the Best Domestic Trade Finance Bank (India)
o Best Domestic Cash Management Bank (India)
o Best e-Commerce Bank (India)
o Best SME Bank (India)
 ICICI Bank is the only Indian brand to figure in the BrandZ Top 100 Most Valuable Global
Brands Report 2011, second year in a row.
 ICICI Bank ranked 5th in the list of "57 Indian Companies", and 288 th in World Rankings
in Forbes Global 2000 list
 ICICI Bank has won the "Banking Technology Awards 2010" at The Indian Banks
Association in the following categories:
o "Best Financial Inclusion Initiative" (first prize)
o "Best Online Bank" ( runner up)
o "Best use of Business Intelligence" ( runner up)
o "Technology Bank of the year" ( runner up)

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 Awards - 2012

 ICICI Bank received the Golden Peacock Innovative Product / Service Award for its Tab
Banking project. The Golden Peacock Awards were instituted by the Institute of Directors and was
headed by Justice P N Bhagwati, Ex Chief Justice of India.
 ICICI Bank received the "Dataquest Technology Innovation Awards 2012" for Data center
migration by Dataquest.
 ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG) Bank
Linkage Programme in NABARD's State Level Awards announced by their Maharashtra Regional
Office. The Bank received the first prize for the year 2010-11 in the Private Sector Bank category
and 2nd runner up for the year 2011-12 in the Commercial Bank category.
 For the second consecutive year, ICICI Bank won the NPCI's NFS Operational Excellence
Awards in the MNC and Private Sector Banks Category for its ATM network.
 Mr.K.V.Kamath was awarded the "Hall Of Fame" by Outlook Money for his long standing
contribution in the financial services sector.
 ICICI Bank won the Best Bank - India Award by The Banker.
 ICICI Bank tops the list of "Private sector and Foreign Banks" by Brand Equity, Most
Trusted Brands 2012. It ranks 15th in the "Top Service 50 Brands".
 For the third consecutive year, ICICI Bank ranked second in "India's 50 Biggest Financial
Companies" in The BW Real 500 by Businessworld.
 ICICI Bank tops the list of most fans in India and globally ranks fifth amongst financial
institutions on Facebook in the social media engagement study conducted by Ketchum Sampark.
 ICICI Bank in the Private Sector Bank category won the Best Technology Bank Of The
Year ,Best Financial Inclusion Initiative and Best Use Of Technology In Training and e-Learning
by Indian Bank's Association (IBA) Technology Awards. The Bank also received the first runner
up for Best Online Bank, Best Customer Relationship Initiative and Best Use Of Mobility
Technology in Banking by IBA Technology Awards .
 ICICI Bank awarded the Best SME Bank for Treasury and Working Capital (India) by The
Asset Triple A.

Awards - 2013

 ICICI Bank has been adjudged winner at the Express IT Innovation Award under the Large
Enterprise category.
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 ICICI Bank wins awards under the categories of 'Most Innovative Bank' and 'Most
Innovative use of Multi-Channel Infrastructure' at the Indian Bank's Association's BANCON
Innovation Awards 2013.
 ICICI Bank won the Asian Banking & Finance Retail Banking Award 2013 for the Online
Banking Initiative of the Year
 ICICI Bank won an award under the Social Media category at the InformationWeek EDGE
Award
 ICICI Bank received the award for 'Best Private Sector Banker' by the Sunday Standard
Best Bankers Awards 2013.
 ICICI Bank has been awarded the 'Best Banker - All round expansion' by the Sunday
Standard Best Bankers Awards 2013.
 ICICI Bank won 'Best Banker - Efficiency & Profitability' by the Sunday Standard Best
Bankers Awards 2013.
 Mr KV Kamath, Chairman, receives the "AIMA Managing India" Award for "Outstanding
Institution Builder"
 ICICI Bank received the Asian Banking & Finance Wholesale Banking Awards 2013 for
the India Domestic Trade Finance Bank of the Year
 ICICI Bank Limited has been awarded as the Best Private Sector Bank under the category
Global Business Development for the Dun & Bradstreet - Polaris Financial Technology Banking
Awards 2013
 ICICI Bank has been one of the recipients of the Corporate Governance Asia Annual
Recognition Awards 2013
 ICICI Bank has receieved the Special Award for Best IT Team Among Private Sector
Banks from the Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank won the Special Award for Electronic Payment Systems Among Large Banks
from the Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank receievd Special Award for Mobile Banking Among Large Banks from the
Institute for Development and Research in Banking Technology (IDRBT)
 ICICI Bank ranks 10th in Fortune India's list of 50 most admired companies in India.
 For the second consecutive year, Mr. N.S.Kannan, Executive Director & CFO, received the
"Best Performing CFO", in the Banking / Financial Services category by CNBC - TV 18.

13
 Awards - 2014

 ICICI Bank has ranked second at the 'National Energy Conservation Award 2014' under the
office buildings (less than 10 lakh kWh/year consumption) category.
 IDRBT has given awards to ICICI Bank in the categories of 'Social Media and Mobile
Banking' and' Business Intelligence Initiatives'.
 ICICI Bank won the award for the Best Bank - Global Business Development (Private
Sector) in the Dun & Bradstreet - Polaris Financial Technology Banking Awards 2014.
 ICICI Bank was awarded the Certificate of Recognition as one of the Top 5 Companies in
Corporate Governance in the 14th ICSI (The Institute of Company Secretaries of India) National
Awards for Corporate Governance.
 ICICI Bank has been honoured as The Best Service Provider - Risk Management, India at
The Asset Triple A Transaction Banking, Treasury, Trade and Risk Management Awards 2014.
 Mr Rakesh Jha has been ranked as the Best CFO in India at the 14th Annual Finance Asia's
Best Managed Companies Poll.
 ICICI Bank has won The Corporate Treasurer Awards 2013 in the categories of 'Best Cash
Management Bank in India' & 'Best Trade Finance Bank in India'.
 ICICI Bank has been awarded the 'Best Retail Bank in India', 'Best Microfinance Business'
and Best Retail Banking Branch Innovation' under the 'Excellence in Retail Financial Services
awards 2014' by The Asian Banker.

14
1.6 ROLE IN INDIAN FINANCIAL INFRASTRUCTURE

The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:

 National Stock Exchange - The National Stock Exchange was promoted by India's

leading financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of
India with the objective of establishing a nationwide trading facility for equities, debt
instruments and hybrids, by ensuring equal access to investors all over the country through an
appropriate communication network.
 Credit Rating Information Services of India Limited (CRISIL) - In 1987,
ICICI Ltd along with UTI set up CRISIL as India's first professional credit rating agency.
CRISIL offers a comprehensive range of integrated products and service offerings which
include credit ratings, capital market information, industry analysis and detailed reports.
 Exchange National Commodities and Derivatives Limited - NCDEX is an
online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD,
NSE, Canara Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative
Limited (IFFCO) and Punjab National Bank.

Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has facilitated setting up of
"FINO Cross Link to Case Link Study" in 2006, as a company that would provide technology
solutions and services to reach the underserved and under banked population of the country. Using
technologies like smart cards, biometrics and a basket of support services, FINO enables financial
institutions to conceptualise, develop and operationalize projects to support sector initiatives
in microfinance and livelihoods.

Entrepreneurship Development Institute of India - Entrepreneurship Development

Institute of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by
the erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of
the Government of Gujarat as a national resource organisation committed to entrepreneurship
development, education, training and research.

15
 North Eastern Development Finance Corporation - North Eastern
Development Finance Corporation (NEDFI) was promoted by national level financial
institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development of industries,
infrastructure, animal husbandry, agro-horticulture plantation, medicinal plants, sericulture,
aquaculture, poultry and dairy in the North Eastern states of India. NEDFI is the premier
financial and development institution for the North East region.
 Asset Reconstruction Company India Limited - Following the enactment of the
Securitisation Act in 2002, ICICI Bank, together with other institutions, set up Asset
Reconstruction Company India Limited
 Credit Information Bureau of India Limited - ICICI Bank has also helped in
setting up Credit Information Bureau of India Limited (CIBIL), India's first national credit
bureau in 2000. CIBIL provides a repository of information (which contains the credit history
of commercial and consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions, state financial
corporations, non-banking financial companies, housing finance companies and credit card
companies.
 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank has
indirectly invested in Institutional Investor Advisory Services, through ICICI Prudential Life
Insurance Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to
providing participants in the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300 companies.

1.7 PRODUCTS AND SERVICES

16
 ICICI Bank Unifier Bangalore Metro Card

ICICI Bank and Bangalore Metro Rail Corporation Limited (BMRCL) on April 2015, announced
the launch of the ‘ICICI Bank Unifier Bangalore Metro Card’. This card offers the commuters dual
benefits of an ICICI Bank credit or debit card and BMRCL’s smart card, called Name Metro Smart
Card. This is a cobranded card in association with MasterCard.

 'Touch n Remit' facility for NRIs in Kingdom of Bahrain

In March 2015, ICICI Bank tied up with SADAD Electronic Payments WLL to offer remittance
service for NRIs based in Bahrain, enabling them to transfer monies instantly to India from the
latter’s kiosks spread across the Kingdom of Bahrain. This facility has been named as ‘Touch n
Remit’.

 ICICI Bank Ltd launches 'Video Banking' for NRI

In February 2015, ICICI Bank announced the launch of 'Video Banking' for all its NRI (Non
Resident Indian) customers. Using this service, the customers can now connect with a customer
care representative over a video call, round-the-clock, on all days from anywhere using their smart
phone.

 Pockets by ICICI Bank

In February 2015, ICICI Bank Re-Launched POCKETS, now working as a "Digital wallet" for
everyone (Android OS users only). The Wallet be can be opened by anyone and can conduct
transactions like recharge, shopping, transfer money using the virtual visa card which is issued
when signing up for the wallet.

 ICICI BANK PAY ON TWITTER

ICICI Bank on January, 2015 launched banking services on Twitter, christened as 'ICICIBankPay'.
This service in India enables ICICI Bank customers to transfer money to anyone in the country
who has a Twitter account, check account balance ,view last three transactions and recharge
prepaid mobile in a completely secure manner.

 My Savings Rewards

17
ICICI Bank has rolled-out the programme 'My Savings Rewards' from 1 September
2012, where reward points are offered to individual domestic customers for a variety of
transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying
utility bills with Internet banking and auto-debit from savings account towards equated
monthly installments for home/ auto/ personal loan/ recurring deposit. Customers are
required to maintain a monthly average balance of ₹ 15,000 or more. the Indian bank
will require 5.5% interest on short term loans and long term bonds and mortgages loans
up to $2 million up to 20years to pay back annual interest of 5.5% short term loans from
3 months up to 3years at 5.5% .credit interest is reduced to 10% annually .

 I Wish- the flexible recurring deposit

I Wish is a flexible recurring deposit product launched by ICICI Bank for its savings account
customers. Unlike a traditional recurring deposit, I Wish allows customers to save varying amounts
of money at any time of their choice. Customers can create several goals and track their progress
on an online interface.

ICICI Bank has developed this product in collaboration with Social Money. ICICI Bank has also
launched an app for Android and Apple smart watches. The app will provide the facility of online
banking transaction from smart watch.

 CONTACTLESS CREDIT AND DEBIT CARDS

ICICI Bank on January, 2015 announced the launch of the country’s first ‘Contactless’ debit and
credit cards, enabling its customers to make electronic payments by just waving the cards near the
merchant terminal in lieu of dipping or swiping them. These cards are based on the Near Field
Communication (NFC) technology, which provides customers the improved convenience of speed
as these cards require significantly lesS time than traditional cards to complete a transaction along
with enhanced security as they remain in control of the customer.

 Go green initiative

The Go Green Initiative is an organisation wide initiative that moves beyond moving people,
processes and customers to cost effective automated channels to build awareness and
consciousness of our environment, our nation and our society.

18
Objective
ICICI Bank's Green initiative is to make healthy environment in the organisation i.e.; to create
intrapersonal skills among the customer and understanding between employees of the organisation.

Broad objectives of the ICICI are:

1. to assist in the creation, expansion and modernisation of private concerns;

2. To encourage the participation of internal and external capital in the private concerns;
3. To encourage private ownership of industrial investment.

 Green products and services

 Instabanking

It is the platform that brings together all alternate channels under one umbrella and gives
customers the option of banking through Internet banking, I-Mobile banking, IVR Banking.

On 22 September 2014 ICICI Bank launched Four New Next Generation Mobile Banking Apps.

 Vehicle Finance

Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of
energy. The models identified for the purpose are, Marti’s LPG version of Marti 800, Omni and
Versa, Hyundai's Santo Eco, Civic Hybrid of Honda, Riva electric cars, Tata Indica CNG and
Mahindra Logan CNG versions.

 Carbon Footprint Calculator

Inputs include region, user input of the distance travelled in a particular medium of transport daily,
electricity consumed per month and LPG cylinder/piped natural gas used per month

19
1.8 DIRECTORS REPORT

APPROPRIATIONS
The profit after tax of the Bank for fiscal 2015 is Rs. 111.75 billion after provisions and
contingencies of Rs. 39.00 billion, provision for taxes of Rs. 46.45 billion and all expenses. The
disposable profit is Rs. 244.93 billion, taking into account the balance of Rs. 133.18 billion
brought forward from the previous year. Your Bank's dividend policy is based on the profitability
and key financial metrics of the Bank, the Bank's capital position and requirements and the
regulations pertaining to the same. Your Bank has a consistent dividend payment history. Given
the financial performance for fiscal 2015 and in line with the Bank's dividend policy, your
Directors are pleased to recommend a dividend of Rs. 5.00 per equity share for the year ended
March 31, 2015 and have appropriated the disposable profit as follows

 PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS

Pursuant to the clarification dated February 13, 2015 issued by Ministry of Corporate Affairs and
Section 186(11) of the Companies Act, 2013, the provisions of Section 186(4) of the Companies
Act, 2013 requiring disclosure in the financial statements of the full particulars of the loan given,
investment made or guarantee given or security provided and the purpose for which the loan or
guarantee or security is proposed to beutilised by the recipient of the loan or guarantee or security
is not applicable to a banking company.
 SUBSIDIARY, ASSOCIATE AND JOINT VENTURE COMPANIES
ICICI Bank Eurasia Limited Liability Company ceased to be a subsidiary of the Bank effective
March 17, 2015.
The Bank, to protect its interests as a lender, converts loans or exercises pledge of shares from time
to time and hence acquires equity holding in unrelated companies, which are required to be
reported as associates under the Companies Act, 2013 if the holding exceeds 20.0%. Accordingly,
pursuant to invocation of pledge for recovery of monies, Falcon Tyres Limited became an
associate company of the Bank effective December 4, 2014 for the purpose of reporting under the
Companies Act, 2013. The particulars of subsidiary and associate companies as on March 31, 2015
have been included in Form MGT–9 which is annexed to this report as Annexure D.

20
DIRECTORS AND OTHER KEY MANAGERIAL PERSONNEL
Changes in the composition of the Board of Directors and other Key
Managerial Personnel
Alok Tandon, Joint Secretary, Ministry of Finance, has been nominated by Government of India as
Director on Board of the Bank effective June 6, 2014 in place of Arvind Kumar. The Board placed
on record its appreciation of the valuable contribution and guidance provided by Arvind Kumar to
the Bank.
V. K. Sharma was appointed as an independent Director by the Members at the last Annual
General Meeting (AGM) held on June 30, 2014.
There was no other appointment or cessation of appointment of key managerial personnel during
the financial year.
Independent Directors
The Board of the Bank consists of 12 Directors, out of which seven are independent Directors, one
is a Government Nominee Director and four are whole time Directors.
All independent Directors have given declarations that they meet the criteria of independence as
laid down under Section 149 of the Companies Act, 2013 which has been relied on by the Bank
and placed at the Board Meeting of the Bank held  on April 27, 2015.

AUDITORS
Statutory Auditors:-
At the AGM held on June 30, 2014 the Members approved the appointment of M/s B S R & Co.
LLP, Chartered Accountants as statutory auditors for a period of four years commencing from the
twentieth AGM till the conclusion of the twenty–fourth AGM subject to the annual approval of
RBI and ratification by the Members every year. As recommended by the Audit Committee, the
Board has proposed the re–appointment of M/s B S R & Co. LLP, Chartered Accountants as
statutory auditors for fiscal 2016. Their appointment has been approved by RBI for fiscal 2016.
The appointment is accordingly proposed in the Notice of the current AGMvide item no. 5 for
ratification by Members. There are no qualifications, reservation or adverse remarks made by the
statutory auditors in the audit report.

21
1.9 SOCIAL RESPONSIBILITY PROGRAMME FOR
ELEMENTARY EDUCATION

 Read to Lead Phase I: Read to lead is an initiative of ICICI Bank to facilitate access
to elementary education for underprivileged children in the age group of 3–14 years
including girls and tribal children from the remote rural areas. The Read to Lead initiative
supports partner NGOs to design and implement programmes that mobilise parent and
community involvement in education, strengthen schools and enable children to enter and
complete formal elementary education. Read to lead has reached out to 100,000 children
across 14 states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka,
Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.

 Read to Lead Phase II: In Phase II of the Read to lead programme, ICICI Bank has
supported the establishment of 63 libraries that-t will reach out to approximately 7,200
children in the rural areas of Jagdalpur block of Baster district in Chhattisgarh. The
programme includes building libraries, sourcing books and conducting various interactive
activities to make the library a dynamic centre for learning.

22
1.10 RISK MANAGEMENT FRAMEWORK

The Bank's risk management framework is based on a clear understanding of various risks,
disciplined risk assessment and measurement procedures and continuous monitoring. The policies
and procedures established for this purpose are continuously benchmarked with international best
practices. The Board of Directors has oversight on all the risks assumed by the Bank. Specific
Committees have been constituted to facilitate focused oversight of various risks as follows:
The Risk Committee of the Board reviews risk management policies of the Bank pertaining to
credit, market, liquidity, operational, outsourcing and reputation risks and business continuity
management. The Committee also reviews the Risk Appetite & Enterprise Risk Management
frameworks, Internal Capital Adequacy Assessment Process (ICAAP) and stress testing. The stress
testing framework includes a wide range of Bank–specific and market (systemic) scenarios. The
ICAAP exercise covers the domestic and overseas operations of the Bank, banking subsidiaries
and material non–banking subsidiaries. The Committee reviews migration to the advanced
approaches under Basel II and implementation of Basel III, risk return profile of the Bank,
compliance with RBI guidelines pertaining to credit, market and operational risk management
systems and the activities of the Asset Liability Management Committee. The Committee reviews
the level and direction of major risks pertaining to credit, market, liquidity, operational,
compliance, group, management and capital at risk as part of risk profile templates. In addition, the
Committee has oversight on risks of subsidiaries covered under the Group Risk Management
Framework. The Risk Committee also reviews the Liquidity Contingency Plan for the Bank and
the threshold limits.
The Credit Committee of the Board, apart from sanctioning credit proposals based on the Bank's
credit authorisation framework, reviews developments in key industrial sectors and the Bank's
exposure to these sectors as well as to large borrower accounts and borrower groups. The Credit
Committee also reviews the major credit portfolios, non–performing loans, accounts under watch,
overdue and incremental sanctions.
The Audit Committee of the Board provides direction to and monitors the quality of the internal
audit function and also monitors compliance with inspection and audit reports of Reserve Bank of
India, other regulators and statutory auditors.
The Asset Liability Management Committee is responsible for managing liquidity and interest rate
risk and reviewing the asset–liability position of the Bank. Summaries of reviews conducted by
these Committees are reported to the Board on a regular basis.
23
Policies approved from time to time by the Board of Directors/Committees of the Board form the
governing framework for each type of risk. The business activities are undertaken within this
policy framework. Independent groups and sub–groups have been constituted across the Bank to
facilitate independent evaluation, monitoring and reporting of various risks. These groups function
independently of the business groups/sub–groups.
The Bank has dedicated groups, viz., the Risk Management Group, Compliance Group, Corporate
Legal Group, Internal Audit Group and the Financial Crime Prevention & Reputation Risk
Management Group, with a mandate to identify, assess and monitor all of the Bank's principal risks
in accordance with well–defined policies and procedures. The Risk Management Group is further
organised into the Credit Risk Management Group, Market Risk Management Group and
Operational Risk Management Group. These groups are completely independent of all business
operations and coordinate with representatives of the business units to implement the Bank's risk
management policies and methodologies. The internal audit and compliance groups are responsible
to the Audit Committee of the Board.

PERFORMANCE AND FINANCIAL POSITION OF SUBSIDIARIES, JOINT

VENTURES AND ASSOCIATES

The performance and financial position of subsidiaries and associates of the Bank as on March 31,
2015 has been annexed to this report as Annexure A.
The Bank will make available separate audited financial statements of the subsidiaries to any
Member upon request. These documents/details are available on the Bank's website
(www.icicibank.com) and will also be available for inspection by any Member or trustee of the
holder of any debentures of the Bank at its Registered Office and Corporate Office. As required by
Accounting Standard–21 issued by the Institute of Chartered Accountants of India, the Bank's
consolidated financial statements included in this Annual Report incorporate the accounts of its
subsidiaries and other consolidating entities. A summary of key financials of the Bank's
subsidiaries is also included in this Annual Report.

24
1.12 SUBSIDERIES

Domestic

 ICICI Prudential Life Insurance Company Limited

 ICICI Lombard General Insurance Company Limited
 ICICI Prudential Asset Management Company Limited
 ICICI Prudential Trust Limited
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Venture Funds Management Company Limited
 ICICI Home Finance Company Limited
 ICICI Investment Management Company Limited
 ICICI Trusteeship Services Limited
 ICICI Prudential Pension Funds Management Company Limited

International

 ICICI Bank USA

 ICICI Bank UK PLC
 ICICI Bank Canada
 ICICI Bank Eurasia Limited Liability Company.

25
 AXIS BANK

1.12 INTRODUCTION ON AXIS BANK

Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. It
offers financial services to customer segments covering Large and Mid-Sized Corporates, MSME,
Agriculture and Retail Businesses. Axis Bank has its registered office at Ahmedabad. Axis
Bank is the third-largest of the private-sector banks in India offering a comprehensive suite of
financial products. The bank has its head office in Mumbai, Maharashtra. It has 4000 branches as
of 25 March 2019. It has 12,705 ATMs and 3,548 cash recyclers spread across the country as on
31 December 2018 and ten international offices. The bank employs over 55,000 people and had a
market capitalization of ₹1.31 trillion (US$18 billion) (as on March 31, 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. 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.

26
1.13 HISTORY
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in December
1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr.Manmohan Singh,
then Finance Minister of India. UTI Bank began its operations in 1994, 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.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the Reserve Bank
of India (RBI) withheld approval and nothing came of this. In 2004 the RBI put Global Trust into
moratorium and supervised its merger into Oriental Bank of Commerce.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it opened a
representative office in Shanghai, China.Axis Bank is the third largest private sector bank in India.
The Bank operates in four segments namely treasury retail banking corporate/ wholesale banking
and other banking business. The treasury operations 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. Retail banking includes lending
to individuals/small businesses subject to the orientation product and granularity criterion. It also
includes liability products card services Internet banking automated teller machines (ATM)
services depository financial advisory services and non resident Indian (NRI) services. The
corporate/wholesale banking segment includes corporate relationships not included under retail
banking corporate advisory services placements and syndication management of publics issue
project appraisals capital market related services and cash management services. The Bank's
registered office is located at Ahmedabad and their Central Office is located at Mumbai. With
3485 domestic branches (including extension counters) and 14332 ATMs across the country as on
30 September 2017 the network of Axis Bank spreads across 2033 cities and towns enabling the
bank to reach out to a large cross-section of customers with an array of products and services. The
bank also has nine overseas offices with branches at Singapore Hong Kong Dubai (at the DIFC)
Shanghai and Colombo; representative offices at Dubai Abu Dhabi and Dhaka and an overseas
subsidiary at London UK.The Bank has five wholly-owned subsidiaries namely Axis Securities
and Sales Ltd Axis Private Equity Ltd Axis Trustee Services Ltd Axis Asset Management
Company Ltd and Axis Mutual Fund Trustee Ltd.Axis Bank was incorporated in the year 1993
with the name UTI Bank Ltd. Axis Bank is one of the first new generation private sector banks to
27
have begun operations in 1994. The bank was promoted in 1993 jointly by Specified Undertaking
of Unit Trust of India (SUUTI) (then known as Unit Trust of India) Life Insurance Corporation of
India (LIC) General Insurance Corporation of India (GIC) National Insurance Company Ltd. The
New India Assurance Company Ltd. The Oriental Insurance Company Ltd. and United India
Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to
SUUTI an entity established in 2003.In the year 2001 the bank along with Global Trust Bank
(GTB) had a merger proposal to create the largest private sector bank but due to media's issues
both the banks withdraw the merger proposal. In the year 2003 the Bank was given the authorized
to handle Government transactions such as collection of Government taxes to handle the
expenditure related payments of Central Government Ministries and Departments and pension
payments on behalf of Civil and Non-civil Ministries such as defence posts telecom and railways.
In December 20003 the Bank launched their merchant acquiring business.In the year 2005 the
Bank raised $239.3 million through Global Depositary Receipts. They won the award 'Outstanding
Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure
delivery capabilities and innovative solutions.In December 2005 the Bank set up Axis Securities
and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset
products. In October 2006 they set up Axis Private Equity Ltd primarily to carry on the activities
of managing equity investments and provide venture capital support to businesses.In the year of
2007 the bank again raised $218.67 million through Global Depository Receipts. They opened 153
new branches during the year which includes 43 extension counters that have been upgraded to
branches and 8 Service branches/ CPCs. They also opened new overseas offices at Singapore
Dubai and Hong Kong and a representative office in Shanghai.During the year 2007-08 the Bank
opened 143 new branches taking the number of branches to 651 which included 33 extension
counters that have been upgraded to branches. Also they expanded overseas with the opening of a
branch at the Dubai International Finance Centre. The Bank changed their name from UTI Bank
Ltd to Axis Bank Ltd with effect from July 30 2007 to avoid confusion with other unrelated
entities with similar name.During the year 2008-09 the Bank opened 176 new branches that
include 12 extension counters that have been upgraded to branches taking the total number of
branches and ECs to 835. During the year they opened 831 ATMs thereby taking the ATM
network of the Bank from 2764 to 3595. Also they opened a Representative Office in Dubai.In
May 2008 the Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary
company which is engaged in trusteeship activities. In December 2008 they launched their new
investment advisory service exclusively for High Net Worth clients. In January 2009 the Bank set
up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund
28
business. Also they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual
fund business.During the year 2009-10 the Bank opened 200 branches taking the total number of
branches Extension Counters (ECs) to 1035. In March 209 2010 they opened their 1000 branch at
Bandra West Mumbai. In September 2009 Axis Bank launched the private banking business in the
domestic market christened 'Privee' to cater to highly affluent individuals and families offering
them unique investment opportunitiesDuring the year the Capital Markets SBU was restructured
with the debt capital market business (hitherto a part of the capital markets) carved into a separate
vertical. As a result the Bank's Capital Markets SBU comprises equity capital markets (ECM)
business mergers and acquisitions and private equity syndication. In February 24 2010 the Bank
launched the 'AXIS CALL & PAY on atom' a unique mobile payments solution using Axis Bank
debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment
service over IVR.During the year 2010-11 407 new branches were added to the Bank's network
taking the total number of branches and extension counters (ECs) to 1390. Of these 564 branches/
ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan and urban areas.
The Bank is present in all states and Union Territories (except Lakshadweep) covering 921 centres.
The ATM network of the Bank increased from 4293 to 6270.During the year the Bank also opened
a Representative Office in Abu Dhabi. This was in addition to the existing branches at Singapore
Hong Kong and DIFC (Dubai International Financial Centre) and representative offices at
Shanghai and Dubai.In March 7 2011 the Bank incorporated a new subsidiary namely Axis U.K.
Ltd. as a private limited company registered in the United Kingdom (UK) with the main purpose of
filing an application with Financial Services Authority (FSA) UK for a banking license in the UK
and for the creation of necessary infrastructure for the subsidiary to commence banking business in
the UK.On 8 January 2014 Axis Bank announced the opening of its Shanghai Branch thus
becoming the first Indian private sector bank to set up a branch in China.On 4 December 2014
Axis Bank announced that it had closed its Senior Unsecured Redeemable Non-Convertible
Debenture issue of amount Rs 5705 crore and priced at 8.85% p.a. payable annually maturing on 5
December 2024.On 9 December 2014 Axis Bank announced the launch of limited period offer of
20 year fixed rate home loan for affordable housing at 10.40%.On 27 July 2015 Axis Bank
announced that it had signed a $200 million 7 year bilateral loan deal with the Asian Development
Bank (ADB) for extending affordable agriculture credit to farmers in India.On 22 November 2015
Axis Bank announced the opening of its Representative Office in Dhaka Bangladesh in a bid to
strengthen its international presence.On 9 March 2016 Axis Bank announced the launch of the
world's first Forex prepaid card issued in conjunction with Diners Club International a business
unit of Discover Financial Services.On 30 March 2017 Axis Bank announced a strategic
29
partnership with Wells Fargo & Company to offer seamless remittance facility to their NRI
customers from The United States of America (USA).On 17 June 2017 Axis Bank in association
with Kochi Metro Rail Corporation (KMRL) launched India's first single-wallet contactless open
loop metro card to allow cashless commuting for commuters in Kochi.On 5 July 2017 Axis Bank
announced its foray into the luxury bikes loans segment for 500cc & above bikes.On 11 July 2017
Axis Bank announced its collaboration with Inter-American Investment Corporation (IIC) to
facilitate trade with Latin America and the Caribbean.Axis Bank on 27 July 2017 announced that it
has entered into an agreement with Jasper Infotech Private Limited to acquire 100% stake in its
subsidiaries viz. FreeCharge Payment Technologies Private Limited and Accelyst Solutions
Private Limited which together constitute the digital payments business under the FreeCharge
brand. The deal marked the first such acquisition of a digital payments company by a bank in
India.

30
1.14 AWARDS

AWARDS 2010

 Best debt house in india- euromoney 2010

 Best domestic debt house in india –asiamoney 2010
 Best bond house in india –Fianaceasia 2010
 Best new private sector bank, rank 2 –FE best bank award 2010
 The best of asia-pacific biggest listed companies second year in row- forbes fab 50
 The asset awards 2010:best domestic bank, india
 The asset awards 2010:best domestic bond house, india
 Overall winner and consistent performer –(large banks category)- business today best bank
awards 2010
 Fastest growing large bank- business world’s best bank award 2010
 Ranked no.1 in “overall experience with bank staff” and “overall branch facilities” by the
Hindustan times-Mars survey reported dated 29th march, 2010

AWARDS 2011
 Bank of the year –india- the banker awards 2011

 Best bank in private sector – NDTV profit business leadership awards 2011

 Best bank outlook money awards 2011

 The best domestic bank –india- asset triple a account awards 2011

 Most productive private sector bank- FIBAC 2011banking awards

 3rd strongest bank in asia – pacific region by asian banker

 Brand excellence awards -2011 star news

 Most preffered bank amongst retail customers –CSLA survey on personal banking trends

 Best bond house india – 2011 by finance asia

31
  Best risk master award- FIBAC 2011 banking awards

AWARDS 2012

 Bank of the Year - Money Today FPCIL Awards 2012-13

 Best Private Sector Bank - CNBC-TV18 India’s Best Bank and Financial Institution Awards
2012
 Consistent Performer - India’s Best Banks – 2012 Survey by Business Today & KPMG
 Gold Shield for Excellence in Financial Reporting in the Private Banks category - 2011-12 -
ICAI (Institute of Chartered Accountants of India)
 Transformational Business Leader of the Year’ at AIMA’s Managing India Awards – 2012
 Woman Leader of the year’ at Bloomberg - UTV Financial Leadership Awards – 2012
 Businessworld’s Banker of the Year Award - 2012
 Forbes List of Asia’s 50 Power Business Women - 2012
 Indian Express Most Powerful Indians – 2012
 India Today Power List of 25 Most Influential Women - 2012

AWARDS 2013

 Axis Bank ranked No 1 company to work for in the BFSI sector - 'The Best Companies to
Work for' survey by Business Today

 Ranked No 1 in the IT Biz Award - large enterprises category by Express IT Award

 Innovation for 2013 for Ladies First card under ‘the Most Innovative Broad Based Product
Offering’ category- IBA Innovations Award

 .'India's Best Woman CEO' by Business Today- 2013

 Runner up for the best banker category-outlook money awards 2013

 Fastest growing large bank- business world pwc survey of india’s best bank 2013

 Axis bank featured in asia’s fab 50 companies for 2013 by Forbes asia

32
 Consistent performance- india best bank 2013 survey by business today and KPMg

 Banking fronteits finnoviti 2013 awards for ‘fxconnect’

AWARDS 2014

 Axis Bank Foundation conferred Outstanding Corporate Foundation at Forbes India,

Philanthropy Awards, 2014
 Best Domestic Bank in India- Asiamoney Best Banks 2014
 Best Bank Award among Large Banks for IT For Business Innovation- IDRBT Banking
Technology Excellence Awards 2014
 Axis Bank featured for the fourth time in Asia's Fab50 companies for 2014 by Forbes Asia
 Best Bank for Rural Reach in the Private Sector and Best Retail Growth Performance in the
Private Sector category- Dun & Bradstreet-Polaris Financial Technology Banking Awards
2014
 Banker of the Year' for 2014-15 by Business Standard
 AIMA - JRD Tata Corporate Leadership Award for the Year 2014

1.15 INITIATIVES

The Business Gaurav SME Awards: In 2011–12, Axis Bank set up 6 SME centres and
SME cells each across the country, taking the total number to 32 SME Centres. The Bank also
organised the 'Business Gaurav SME Awards' in association with Dun & Bradstreet to recognise
and award achievements in the SME space.

Financial inclusion: Till March 2012, the Bank had opened over 4.4 million No Frills accounts
in over 7607 villages through a network of 15 Business Correspondents and nearly 6000 customer
service points. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and has
covered 6800 villages across 19 districts and 9 states till date with over 3.7 million beneficiaries.

Industry First Initiatives:Axis Bank launched Mobile Banking App 2.0 for its retail resident
Indian customers the first of its kind in India, which offers a high level of personalization. The App

33
has been launched in partnership with Tagit, a leading Singapore mobile solutions company. The
new application uses Tagit's mobility solution platform that enables Banking on-the-go.

1.16 PRODUCTS AND SERVICES

Axis Bank operates 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.

 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] Axis bank is a participant in RBI's NEFT enabled participating
banks list.

 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.

 NRI services: Products and services for NRIs that facilitate investments in India

34
 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 2012, 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.

 Ping Pay: was unveiled between 21st May - 25th May 2015, which is a multi-social
payment solution that let customers to transfer funds using their smart phones to both Axis
Bank accounts and other banks' account holders.

35
1.17 DIRECTOR’S REPORT:

The Board of Directors have the pleasure of presenting the Twenty First Annual Report of the
Bank together with the Audited Statement of Accounts, Auditors' Report and the Report on
business and operations of the Bank for the financial year ended 31st March 2015.
The Bank continued to show a healthy growth in both business and earnings, with a net profit of
Rs.7,357.82 crores for the year ended 31st March 2015, registering a growth of 18.34% over the
net profit of Rs.6,217.67 crores last year. The robust growth in earnings was achieved on the back
of a balanced business growth across all banking segments indicative of a clear strategic focus of
the Bank. The key return ratios continued to remain healthy, with Return on Equity (ROE) at
18.57% and Return on Assets (ROA) at 1.83%. During the year, the Basic Earnings Per Share
(EPS) was Rs.31.18.
The Bank total income increased by 15.24% to reach Rs.43, 843.64 cores during 2014–15,
compared to Rs.38, 046.38 cores last year. Operating revenue over the same period increased by
16.70% to Rs.22,589.18 crores driven by healthy growth in the Bank core income streams: net
interest income (NII), fees and other income.
During the year, NII increased by 19.01% to Rs.14,224.14 crores from Rs.11,951.64 crores last
year and constituted 62.97% of the operating revenue. Fee, trading and other income increased by
12.96%
Rs.8,365.04 crores from Rs.7,405.22 crores last year. The operating expenses grew by
16.49% to Rs.9,203.74crores from Rs.7,900.77 crores last year. As a result, operating profit
increased by 16.84% to  Rs.13,385.44 crores from Rs.11,456.09 crores reported last year.

Sub–Division of the Bank's Equity Shares

The shareholders at the last Annual General Meeting of the Bank held on 27th June 2014 had
approved the sub–division of one equity share of the Bank having a face value of Rs.10 each into
five equity shares of the face value of Rs.2 each. The sub–division of equity shares came into
effect from 30th July 2014, being the record date fixed for the same.

36
DIVIDEND
The Bank's Diluted Earnings Per Share (EPS) for 2014–15 has risen to Rs.30.85 from Rs.26.45 of
equity share of Rs.2 each (adjusted for sub–division) for the last year. In view of the overall
performance of the Bank and the objective of rewarding shareholders with cash dividends while
retaining capital to maintain a healthy capital adequacy ratio to support future growth, the Board of
Directors has recommended a higher dividend of Rs.4.60 per equity share of Rs.2 each for the year
ended 31st March 2015, as compared to Rs.4.00 per equity share of Rs.2 each (adjusted for sub–
division) declared last year. This dividend shall be subject to tax on dividend to be paid by the
Bank. This increase reflects our confidence in the Bank's ability to consistently grow earnings over
time.

1.18 LISTING AND SHAREHOLDING

Axis Banks's equity shares are listed on the Bombay Stock Exchange and National Stock
Exchange of India.The company's global depository receipts (GDRs) are listed on the London
Stock Exchange. The Bonds issued by the Bank under the MTN programme are listed on
the Singapore Stock Exchange.

As on 31 December 2013, the promoters UTI, LIC and GIC held approx. 34% of the shares in Axis

Bank. Foreign Institutional investors (FII) held approx. 43% of the shares. Remaining 23% of the
shares are held by others.

The bank aims to increase its share in the financial services sector by continuing to build a strong
retail franchise. The segment continues to be one of the key drivers of the Bank’s growth strategy,
encompassing a wide range of products delivered through multiple channels to customers. It offers
a complete suite of products across deposits, loans, investment solutions, payments and cards.

BOARD OF DIRECTORS

During the year, some changes in the composition of the Board of Directors have taken place. Shri
R. N. Bhattacharyya, nominee of Specified Undertaking of the Unit Trust of India (SUUTI),
37
resigned as Director of the Bank with effect from 28th June 2014. Shri Somnath Sengupta,
Executive Director of the Bank had opted for early retirement and accordingly retired as such, with
effect from 1st September 2014. Shri Sanjeev K. Gupta, President & Chief Financial Officer was
inducted on the Board and took charge as the Executive Director (Corporate Centre) & CFO of the
Bank, with effect from 4th September 2014. Shri S. B. Mathur, attained the upper age limit of 70
years as prescribed under RBI guidelines and accordingly resigned as Director of the Bank, with
effect from 30th September 2014. Shri S. Vishvanathan was appointed as an Additional
Independent Director of the Bank, with effect from 11th February 2015. The Board places on
record its appreciation for the valuable services rendered by Shri R. N. Bhattacharyya, Shri
Somnath Sengupta and Shri S. B. Mathur, during their tenure as Director of the Bank.

Key Managerial Personnel

Smt. Shikha Sharma, MD & CEO, Shri V. Srinivasan, Executive Director & Head (Corporate
Banking), Shri Sanjeev K. Gupta, Executive Director (Corporate Centre) & Chief Financial Officer
and Shri Sanjeev Kapoor, Company Secretary of the Bank are deemed to be Key Mangerial
Personnel of the Bank as per the provisions of the Companies Act, 2013 and Rules made
thereunder and that they were already in office before the commencement of the Companies Act,
2013.

Meetings
A calendar of Meetings is prepared and circulated in advance to the Directors. During the year,
seven Board Meetings were convened and held, the details of which are given in the Report on
Corporate Governance, which is forming a part of this report. The intervening gap between the
said Board Meetings was within the period prescribed under the Companies Act, 2013 and revised
Clause 49 of the Listing Agreement.

Board Evaluation
Pursuant to the provisions of the Companies Act, 2013 and revised Clause 49 of the Listing
Agreement, the Board has carried out an annual evaluation of its performance, of the Directors
individually as well as the evaluation of the working of its Committees.
Audit Committee
The composition and the functions of the Audit Committee of the Board of Directors of the Bank
is disclosed in the Report on Corporate Governance, which is forming a part of this report.
38
Remuneration Policy
The Board has on the recommendation of the Nomination & Remuneration Committee of the
Board of Directors of the Bank formulated and adopted a policy for the selection and appointment
of Its MD & CEO, executive directors.

39
 1.19
Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group 33.88%

Foreign Institutional Investors (FII) 43.18%

Individual shareholders 06.61%

Bodies Corporate 06.03%

Mutual funds 04.47%

GDR 03.90%

Financial institutions / Banks 00.85%

Others 01.08%

Total 100.0%

CORPORATE SOCIAL RESPONSIBITIES

 Axis Bank Foundation: Axis bank has set up this trust in 2006 and supports
supplementary education. Axis Bank contributes up to 1 percent of its net profit annually to
various social initiatives undertaken by this foundation. During the year 2011–12, the
foundation has partnered with 36 NGOs for educating over a lakh underprivileged and
special kids in 13 states.

40
  Green Banking: The recycling initiative under the Green Banking banner has helped
the bank productively use around 21572 kilograms of dry waste during the year.The Axis
Bank's corporate office in Mumbai is designed and constructed as a Platinum LEED-
Certified Green Building.

1.20 SUBSIDIARIES

As on 31st March 2015, the Bank has eight unlisted subsidiaries: Axis Asset Management
Company Ltd., Axis Bank UK Ltd., Axis Capital Ltd., Axis Finance Ltd., Axis Mutual Fund
Trustee Ltd., Axis Private Equity Ltd., Axis Securities Ltd. and Axis Trustee Services Ltd.

i) Axis Asset Management Company Ltd. undertakes the activities of managing the mutual fund
business.
ii) Axis Bank UK Ltd. is the banking subsidiary of the Bank in the United Kingdom and
undertakes the activities of banking.

CHAPTER 2: RESEARCH METHODOLOGY

2.1 OBJECTIVES OF THE STUDY

41
  To study the financial performance of ICICI bank and AXIS bank

 To find the percentage of debtors turns in to NPA (bad debts)

 To explore the relationship between total income and PAT (profit after tax)

 To study the market position of both the banks

 To study how one bank is different from others in favour of products and services

 To compare the profitability position of ICICI bank and AXIS bank

2.2 LIMITATION OF STUDY

1. Study project on a specified on a topic has page constraint.

2. Pratically in each and every single day trends keep on modifying therefore it is difficult to give
the current status of the study.

3. Due to lack of pratical knowledge there is limited view of the project.

4. Time constraint

2.3 METHOD USED FOR COLLECTION OF DATA

Research is investigating to plan for activities creative work undertaken on a systematic basis in
order to increase the stock of knowledge of man culture and society and the use of this stock of
knowledge to revise new application.

42
The researcher collected data for the project purely from the secondary source:-

1. The content of the project are purely based on the secondary data.

2. The data is granted from secondary data like website book reference

2.4 HYPOTHESIS

 Ho: there is no significant difference between the performance of ICICI bank and AXIS
bank in term of deposits

 H1: there is significant difference between the performance of ICICI bank and AXIS bank
in term of advances

 H2: there is no significant difference between the performance of ICICI bank and AXIS
bank in term of investments

 H3: there is significant difference between the performance of ICICI bank and AXIS bank
in term of total assets

 H4: there is significant difference between the performance of ICICI bank and AXIS bank
in term of profitability

43
 CHAPTER 3 : REVIEW OF LITERATURE

Review of literature is essential tool in research methodology. With the help we find out
many variables which can be related for our study. On the basis we get information about last
research study which is doing in this sector with help we find out meaning information about our
study.

A Vijaya Kumar (2012) this study is related to “Evaluating performance of banks through
the CAMEL Model- A case study of State bank of India and its Associates”. In this study
CAMEL rating Approach has been used for evaluating overall health and financial status SBI
and its associate’s banks. This study is based on secondary data and data are taken annual report
and other resources. Secondary data are taken 1996-97 to 2009-2010. At last this study reveal
liquidity position of State bank of India and its associate’s bank are better. But State bank of
India is edge over associate bank, if compared with each other according to these ratios.

M.Dhanabhakyam and M. Kavitha (2012) this study is related to “Financial

performance of selected public sector banks in India”. With the help of this study
researcher informed about the public sector banks in India. Six public sector banks are taken in
this study. For check the financial performance of banks, ratio The objective of this study is
analysis the financial performance of public sector banks and improving the performance of
banks

Dr.Sonia narula and Monika single (2014) this study is related to “Empirical study on
non-performing assets in bank”. To objective are to compare total advance, Net profit Gross
NPA, Net NPA and to know the performance of bank and know the relation of net profit and
NPA. For this purpose data are collated from the annual report of Punjab national bank of the
year 2006-07 to 2011-2012. Systematic research methodology is used. Correlation method
are used for the checking the relation of Net profit and NPA. This study is showing NPA and
Net profit are continuously increasing and positive relation between NPA and net profit of the
some adverse reason. So that bank is not capable to give the loan of its new customer.

D. Padma and V Arulmathi (2013), this study related to “Financial performance

of State bank of India and ICICI Bank of India: A Comparative study”. The main objective of
study is analysis the financial performance of both banks. For this purpose descriptive
research methodology are used. Data are collected of five year up 2006-07 to 2010-2011.
This data are taken from the annual report of State Bank of India and ICICI Bank of India. For
44
comparing the both banks performance is taken hypothesis as deposits, Advance,
Investment, Net Profit and Total Assets. T test is used as well as tool. With help of t test
conclusion is arrived there is significant difference between the financial performance of
State Bank of India and ICICI Bank of India. SBI bank is better than ICICI Bank and it is very
extensive Bank comparatively.

Sneha and S.Shukla (2015), this study related to “Analysis financial strength of Public and
Private sector Banks: A CAMEL Approach”. This study is related to evaluate the
performance & financial soundness of various Public & Private sector banks using CAMEL
Approach. For this purpose six banks are taken in which three banks are private and three
banks are public. Analytical research methodology is used and secondary data are taken up
2010-2013. This data are taken from annual report of public sector (bank of Baroda, IDBI Bank,
PNB Bank) and private sector banks (Axis Bank, ICICI Bank, HDFC Bank). These
studies show the Capital Adequacy, Assets Quality, Management Quality

Srinivas K T (2013), this study is related to “A study of non-performing assets of

commercial bank in India”. With the help of this study, researcher informed about the non-
performing assets. How it effect the functioning of the banking sector? Main objective of this
study identify the non-performing assets and find out the reason for increasing non-
performing assets in banking sectors. For study purpose, researcher collected secondary data for
the financial year 1996-97 to 2011-2012. In research methodology tabulation method is used and
data are collected from RBI bulletin. Core banking solution and proper supervision of borrower
are used then NPAs assets are controlled

45
 CHAPTER 4: DATA ANALYSIS AND INTERPETATION OF
DATA

4.1 ANALYSIS OF DATA

Table no 1: Net profit ratio of ICICI bank and AXIS bank (Rs in crore)

ICICI BANK AXIS BANK

YEAR NET NET NET NET NET NET
PROFIT SALE PROFIT PROFIT SALE PROFIT
RATIO RATIO
2009- 4024.98 33184.58 12.12 2514.53 15603.2 16.11
10 7
2010- 5153.37 32671.94 15.79 338.49 19786.9 17.12
11 4
2011- 6465.25 41045.41 15.75 4242.21 27414.8 15.47
12 6
2012- 8325.47 48421.31 17.91 5179.43 33733.6 15.35
13 8
2013- 9810.47 54606.02 17.96 6217.67 38046.3 16.34
14 8
AVERAGE 15.76 AVERAGE 16.08
INTERPRETATION:

Table 1 shows the financial performance of ICICI Bank and AXIS Bank. The profit of
ICICI Bank is increasing continuously but profit of Axis Bank is fluctuating. But
comparatively net profit is better of Axis Bank because its average profit is excess instead
of ICICI Bank.

46
 Table no 2: Operating profit ratio of ICICI bank and AXIS bank

ICICI BANK AXIS BANK

YEAR NET SHARE NET NET SHARE NET
PROFIT HOLDER WORTH PROFIT HOLDER WORTH
FUND RATIO FUND RATIO
2009-10 9732 33184.58 29.33 5240.55 15603.27 33.59
2010-11 9048 32621.94 27.74 6415.69 19786.94 32.42
2011-12 10386 41045.41 25.30 7430.87 27414.86 27.11
2012-13 13199 48421.31 27.26 9303.13 33733.68 27.58

2013-14 16594 54606.02 30.39 11456.09 38046.38 30.11

AVERAGE 28.00 AVERAGE 30.16

INTERPRETATION :

Table 2 shows the financial performance of ICICI Bank and AXIS Bank. The
Operating profit of ICICI Bank and Axis Bank are fluctuating. But comparatively
Operating profit is better of Axis Bank because its average Operating profit is excess instead
of ICICI Bank.

47
 Table 3: Return on Net Worth Ratio of ICICI Bank and Axis Bank

ICICI BANK AXIS BANK

YEAR NET SHARE NET NET SHARE NET
PROFIT HOLDER RATIO PROFIT HOLDER RATIO
FUND FUND

2009-10 4024.98 51618.37 7.79 2514.53 16044.62 15.67

2010-11 5153.37 55090.93 9.35 3388.49 18988.82 17.83
2011-12 6465.25 60405.25 10.70 4242.21 22808.54 18.59
2012-13 8325.47 66705.95 12.48 5179.43 33107.86 15.64
2013-14 9810.47 73213.33 13.40 6217.67 38220.49 16.26
AVERAGE 10.75 AVERAGE 16.80

INTERPRETATION:

Table 3 shows the financial performance of ICICI Bank and AXIS Bank. The Return on Net
Worth Ratio of ICICI Bank is continuously increasing but Axis Bank’s Net Worth ratio is
fluctuating. But comparatively Net return is better of Axis Bank because its average Return on
Net worth Ratio is excess instead of ICICI Bank.

48
Table 4: Earning per Share of ICICI Bank and Axis Bank

ICICI BANK AXIS BANK

YEAR NET NO OF EPS NET NO OF EPS
PROFIT EQUITY PROFIT EQUITY

2009-10 4024.98 111.48 36.10 2514.53 40.51 62.07

2010-11 5153.37 115.17 44.45 3388.49 41.05 82.55
2011-12 6465.25 115.27 56.09 4242.21 41.32 102.67
2012-13 8325.47 115.37 72.18 5179.43 46.79 110.70
2013-14 9810.47 115.48 84.95 6217.67 46.98 132.35
AVERAGE 58.81 AVERAGE 98.70

INTERPRETATION:

Table 4 shows the financial performance of ICICI Bank and AXIS Bank. The earnings per
share of ICICI Bank and Axis Bank are continuously increasing. But comparatively
earnings per share are better of Axis Bank because its average earnings per share are excess
instead of ICICI bank.

49
 Table 5: Total Assets Turnover Ratio of ICICI Bank and AXIS bank

ICICI BANK AXIS BANK

YEAR NET TOTAL ASSETS NET SALES TOTAL ASSETS
SALES ASSETS TURN ASSETS TURN
OVER OVER
RATIO RATIO
2009-10 33184.58 363399. 9.13 15603.27 180647.9 8.64
72
2010-11 32621.94 406233. 8.03 19786.94 242713.4 8.15
69
2011-12 41045.41 489068. 8.39 27414.86 28560.7 9.60
81
2012-13 48421.31 536794. 9.02 33733.68 340560.7 9.91
68
2013-14 540606.02 594641. 9.18 38046.38 383244.9 9.93
58
AVERAGE 8.75 AVERAGE 9.24

INTERPRETATION:

Table 5 shows the financial performance of ICICI Bank and AXIS Bank. The total Asset
Turnover Ratio is better of Axis Bank because its average total Assets Turnover Ratio
excess instead of ICICI Bank.

50
Table 6: Dividend Pay-out Ratio of ICICI Bank and Axis Bank

ICICI BANK AXIS BANK

YEAR DIVIDEND EPS DIVIDEND DIVIDEND EPS DIVIDEND
PER PAYOUT PER PAYOUT
EQUITY RATIO EQUITY RATIO
SHARE SHARE
2009- 12.0 36.10 33.23 12.0 65.78 18.24
10
2010- 14.0 44.74 31.28 14.0 82.95 16.87
11
2011- 16.5 56.08 29.41 16.0 102.94 15.54
12
2012- 20.0 72.17 27.71 18.0 119.67 15.04
13
2013- 23.0 84.95 27.07 20.07 132.56 15.08
14
AVERAGE 29.75 AVERAGE 16.16

INTERPRETATION:

Table 6 shows the financial performance of ICICI Bank and AXIS Bank. The
dividend payout Ratio of ICICI Bank and Axis Bank are continuously decreasing. But
comparatively Dividend pay-out Ratio is better of ICICI Bank because its average Dividend
Pay-out Ratio excess instead of Axis Bank.

51
 Table 7: Debt-Equity Ratio of ICICI Bank and Axis Bank

ICICI BANK AXIS BANK

YEAR OUTSIDER’S SHAR DEBT OUTSIDER SHAREH DEBT
FUND E EQUITY FUND OLDER EQUITY
HOLD RATIO FUND RATIO
ER
FUND
2009- 202016.61 51618.3 3.91 141300.22 16044.62 8.81
10 7
2010- 225602.11 555090. 4.10 189237.87 18998.82 9.96
11 93
2011- 2555499.95 60405.4 4.23 220104.31 22808.54 9.65
12 3
2012- 292613.63 66705.9 4.39 255613.59 33107.86 7.63
13 5
2013- 331913.66 73213.3 4.53 280944.56 388220.49 7.35
14 3
AVERAGE 4.23 AVERAGE 8.68

INTERPRETATION:

Table 7 shows the financial performance of ICICI Bank and AXIS Bank. The debt
equity Ratio of ICICI Bank is continuously increasing and Axis Bank is
fluctuating. This ratio shows solvency capacity of the any organization. But
comparatively Debt equity Ratio is better of ICICI Bank because it’s average Debt
equity Ratio less instead of Axis Bank. It means that axis bank are maximum time
depend its Debt which is not better for any organization. On this condition
organization cannot pay loan proper time.

52
 Table 8: Proprietary Ratio of ICICI Bank and Axis Bank

ICICI BANK AXIS BANK

YEAR SHARE TOTAL PROPR SHARE TOTAL PROPRIET
HOLDER ASSETS IETAR HOLDER ASSETS ARY
FUND Y FUND RATIO
RATIO
2009-10 51618.37 36399.7 0.14 16044.62 1808647. 0.09
32
2010-11 55090.93 406233. 0.14 18998.82 242713.3 0.08
6
2011-12 60405.24 489068. 0.12 22808.54 285627.7 0.08
8
2012-13 66705.95 536794. 0.12 33107.86 340506.6 0.10
6
2013-14 27702.58 44178.1 0.63 18689.52 30641.15 0.61
5
AVERAG 0.66 AVERAGE 0.61
E

INTERPRETATION:

Table 8 shows the financial performance of ICICI Bank and AXIS Bank. The
Proprietary Ratio of ICICI Bank is continuously decreasing but Proprietary Ratio of
Axis Bank is fluctuating. But comparatively Proprietary Ratio is better of ICICI Bank
because it’s average Proprietary Ratio excess instead of Axis Bank.

53
 Table 9: Interest expended to Interest earned Ratio of ICICI Bank
and Axis Bank

ICICI BANK AXIS BANK

YEAR INTEREST INTEREST RATIO INTEREST INTEREST RATIO

EXPANDED EARNED EXPANDED EARNED
2009- 17592.57 25706.93 0.68 6633.53 11638.02 0.57
10
2010- 16957.15 25974.05 0.65 8591.82 15154.81 0.57
11
2011- 22808.49 33542.65 0.68 17516.31 27182.57 0.64
12
2012- 26209.58 40075.59 0.65 17516.31 27182.57 0.64
13
2013- 27702.58 44178.15 0.63 18689.52 30641.15 061
14
AVERAGE 0.66 AVERAGE 0.61

INTERPRETATION:

Table 9 shows the financial performance of ICICI Bank and AXIS Bank. The
Interest expended to Interest Earned Ratio of ICICI Bank is fluctuating but Interest
expended to Interest earned Ratio of Axis Bank is continuously increasing. But
comparatively Interest expended to Interest earned Ratio is better of ICICI Bank
because it’s average Interest expended to Interest earned instead of Axis Bank.

54
Table 10: Net NPA to Net Advance Ratio of ICICI Bank and
Axis Bank

ICICI BANK AXIS BANK

YEA INTEREST INTERES RATI INTEREST INTERES RATI

R EXPANDE T O EXPANDE T O
D EARNED D EARNED
2009- 17592.57 25706.93 0.68 6633.53 11638.02 0.57
10
2010- 16957.15 25974.05 0.65 8591.82 15154.81 0.57
11
2011- 22808.49 33542.65 0.68 17516.31 27182.57 0.64
12
2012- 26209.58 40075.59 0.65 17516.31 27182.57 0.64
13
2013- 27702.58 44178.15 0.63 18689.52 30641.15 061
14
AVERAGE 0.66 AVERAGE 0.61

INTERPRETATION:

Table 10 shows the financial performance of ICICI Bank and AXIS Bank. The Net NPA to
Net Advance Ratio of ICICI Bank is fluctuating but Net NPA to Net Advance ratio is better of
Axis bank. But average NPA to net advance ratio of ICICI bank is greater than axis bank. So
the performance of Axis bank is better.

55
Table 11: Financial performance evaluation of ICICI Bank and Axis Bank
through t- test

VARIABLES MEAN MEAN 2 D.F C.V CRITICA

1 . L VALUE

DEPOSITS 261529. 216840.09 8 1.32 2.306

2 4 8

ADVANCES 256050. 168708.20 8 2.49 2.306

2 8 1

INVESTMEN 152671. 89688.900 8 4.00 2.306

T 0 7

NET 6755.5 4308.466 8 1.98 2.306

PROFIT 5

TOTAL 478027. 286558.91 8 3.47 2.306

ASSETS 7 2 1

56
4.2 TESTING OF HYPOTHESIS

Testing of Hypothesis for deposit of ICICI Bank and

Axis Bank

Calculating value of t-statistics is 1.328 and critical value of t-statistics is 2.306 at 5% level of
significance. Calculated value of t-statistics lies in the acceptance region and it indicates that at
5% level of significance null hypothesis “There is no significant difference between the
performance of ICICI Bank and Axis Bank in term of deposits” is accepted and there have
enough statistical evidence to accept the null hypothesis and reject alternate. It also inferred
from the above that there have no statistical differences between financial performance
of ICICI bank and Axis bank in term of deposit.

Testing of Hypothesis for Advance of ICICI Bank and

Axis Bank

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Calculating value of t-statistics is 2.491 and critical value of t-statistics is 2.306 at 5% level of
significance. Calculated value of t-statistics does not lie in the acceptance region and it
indicates that at 5% level of significance alternate hypothesis “There is significant difference
between the performance of ICICI Bank and Axis Bank in term of Advance” is accepted and
there have enough statistical evidence to accept the alternate hypothesis and reject null.
It also inferred from the above that there have enough statistical differences between financial
performance of ICICI bank and Axis bank in term of Advance. It also indicates that ICICI
bank performing better than its rival bank

Testing of Hypothesis for Investment of ICICI Bank and

Axis Bank

Calculating value of t-statistics is 4.007 and critical value of t-statistics

is 2.306 at 5% level of significance. Calculated value of t-
statistics does not lie in the acceptance region and it indicates that
at 5% level of significance alternate hypothesis “There is significant
difference between the performance of ICICI Bank and Axis Bank in
term of Investment” is accepted and there have enough statistical
evidence to accept the alternate hypothesis and reject null. It also
inferred from the above that there have enough statistical differences
between financial performance of ICICI bank and Axis bank in term of
Investment. It also indicates that ICICI bank performing better than its
rival bank.

Testing of Hypothesis for Net Profit of ICICI Bank and

Axis Bank

Calculating value of t-statistics is 1.985 and critical value of t-statistics is 2.306 at 5% level of
significance. Calculated value of t-statistics lies in the acceptance region and it indicates that at
5% level of significance null hypothesis “There is no significant difference between the
performance of ICICI Bank and Axis Bank in term of Net Profit” is accepted and there have
enough statistical evidence to accept the null hypothesis and reject alternate. It also inferred

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from the above that there have no statistical differences between financial performance
of ICICI bank and Axis bank in term of Net Profit.

Testing of Hypothesis for Total Assets of ICICI Bank and

Axis Bank

Calculating value of t-statistics is 3.471 and critical value of t-statistics is 2.306 at 5% level of
significance. Calculated value of t-statistics does not lie in the acceptance region and it
indicates that at 5% level of significance alternate hypothesis “There is significant difference
between the performance of ICICI Bank and Axis Bank in term of Total Assets” is accepted
and there have enough statistical evidence to accept the alternate hypothesis and reject null. It
also inferred from the above that there have enough statistical differences between financial
performance of ICICI bank and Axis bank in term of Total Assets. It also indicates that ICICI
bank performing better than its rival bank.

CHAPTER 5 FINDINDS , CONCLUSIONS AND

SUGGESTIONS

5.1 FINDINGS

The average Net Profit of ICICI Bank is 15.76 and Axis Bank is 16.08, which is the more than
0.32 of ICICI bank. It means that axis bank’s performance is better than of ICICI bank.

The average Operating Profit of ICICI Bank is 28.00 and Axis Bank is 30.16, which is more
than 2.16 of ICICI bank. It means that Axis Bank’s performance is better than of ICICI bank.

The average Return on Net worth of ICICI bank is 10.75 and Axis bank is 16.80,
which is more than 6.05 of ICICI bank. It means that Axis bank performance is better than of
ICICI bank. In other word, Axis bank’s shareholder earn 6.05 % more money comparatively
ICICI bank.

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The average Earning Per Share of ICICI bank is 58.81 and Axis bank is 98.07, which is more
than 39.26 of ICICI bank. It means that Earning Per Share of Axis bank is better than ICICI
bank.

The average Total Assets Turnover ratio of ICICI bank 8.75% and Axis Bank Is
9.24%, which is more than 0.49% of ICICI bank.

The average Dividend Pay Share of ICICI bank is Rs.29.75 and Axis bank is Rs.16.16.
In this condition, dividend payout ratio of ICICI bank is Rs.13.59 more than Axis bank. In
other word, we can say that ICICI bank are paying more dividend comparatively Axis
bank.

The average Debt Equity ratio of ICICI bank is 4.23 and Axis bank is 8.68, which is the 4.45%
excess of ICICI bank. In other word Axis bank pays its debt 4.45% more ICICI bank.

The average Proprietary Ratio of ICICI bank is 0.13 and Axis bank is 0.09, which is more than
0.04 of Axis bank. It means that ICICI bank performance is better.

The average Interest Expended to Interest Earned ratio of ICICI bank is 0.66 and Axis bank is
0.61. It is 0.05% excess of ICICI bank ratio than the Axis bank.

The average Net NPA to Net advance ratio of ICICI bank is 1.157 and Axis bank is 0.354. It is
0.803% excess of ICIC bank ratio than the AXIS bank ratio.

5.2 CONCLUSION

As per 2009 -2014 data analysis It is very difficult to measure the performance of banks on few
parameters. All banks in India offer almost identical products and services may differ a little
from bank to bank. Private banks look posh and very efficient but personal services may be
lacking

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Financial ratios are essentially concerned with the identification of significant accounting data
relationships, which give the decision-maker insights into the financial performance of a
company. The analysis of financial statements is a process of evaluating the relationship
between component parts of financial statements to obtain a better understanding of the firm‟s
position and performance. The first task of financial analyst is to select the information relevant
to then decision under consideration from the total information contained in the financial
statements. The second step is to arrange the information in a way to highlight significant
relationships. The final step is interpretation and drawing of inferences and conclusions. In brief,
financial analysis is the process of selection, relation and evaluation.

Today, banks facing rapid changing environment. Performance of banking industry not only
influenced by domestic factors but also a number of factors influenced the banks performance.
Despite all these challenges, we concluded that both performing well on net profit
parameter. It also concluded that Axis bank generating more return on net worth compares to its
rival ICICI bank. Axis bank performs well on earning per share, assets turnover and debt-equity
parameters. Overall performance of Axis bank is good compare to ICICI Banks

5.3 RECOMMENDATION/SUGGESTIONS:

Every coin has two sides, so it is in the case of financial analysis. It is a user friendly tool to
know the financial status of the firm it has certain limitation in lack of information. On the basis
of analysis & findings, the researcher puts forwards the followings suggestions. The researcher
hopes that these suggestions will be useful to the banks in improving their efficiency &
transparency in their working. These suggestions will also be useful to the regulatory bodies like
the RBI to make the industry more accountable to the authority as well as public. Hence it is
recommended that one should be careful while using the financial statement analysis and should
also consider the effect of

o Accounting policy of the firm

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 o Change in accounting procedure and standard of the firm

BIBLIOGRAPHY:-

BOOKS REFERERED:-

Dogan, M. (2013). Comparison of Financial Performances of Domestic and Foreign Banks:

Ban Narula, S., & Singla, M. (2014). Empirical Study on Non Performing Assets of
Bank.

Padma, D., & Arulmathi, V. (2013). Financial Performance Of State Bank Of India And Icici
Bank

Parvin, A., & Arifur Rahman, M. (2014). Financial Performance Analysis of Selected Private
Conventional Commercial Banks

T, S. K. (2013). A Study On Non- Performing Assets Of Commercial Banks In India.

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NEWSPAPER:-

Economic times

Website:-
www.icicibank.com

www.Axisbank.com

www.rbi.com

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