Axis Bank Company analysis

Ticker – 532215/AXISBANK

Industry Overview :

Banking is a Very Good business if you don’t do anything dumb – Warren Buffett

Running a bank is as difficult as analysing BANK and its Fundamentals. Many Small, Check and Uncheck, many small thing, Many parameters to check. But there is reason for that as Bank business come into contact with Public money which makes it important role player in Country’s economy. If handled by wrong person, you are inviting disaster. For running the Bank, Management and the way they run it is important. The parent Institution is also important for bank as it’s possible for them it’s possible to use brand name or develop one. If they are strong, the bank will eventually follow it.

I don’t know weather it is right or wrong, but I feel that For running the Bank, you need Right man at right time and right place. You may find many examples in industry itself. From Deepak Parekh, P J Nayak to Shikha Sharma, Uday KOTAK. It is the management who decided the future by its decision.

Many times it’s the parent organisation which Decide it. If you are lucky and receiving HDFC ICICI or UTI as parent, then its half done for You.

Company overview : Formerly know as UTI bank, Was supported by erstwhile UTI. One out of ten private banks which gets licence in first time when RBI was giving licence after Balance of payment crisis with ICICI bank, HDFCBANK, OBC, Development Credit BANK, Centurion Bank, Bank Of Punjab, Times Bank, IDBI bank, Global Trust Bank, IndusInd bank. There are many reasons you may think where are others and why HDFCBANK, ICICI bank are so big. The management is playing key Role.

Sure that first management make some mistakes by giving loans to wrong people, but the luck of the bank is big as there was P J Nayak, was serving on the board.

From Early day to recent days the bank Was going through big transition. Concentrating on industry to Youth concentration to achieving right mix in loan book to Giving financial services to Increase offshore operations. Bank is taking many right steps. Infact Saurabh Mukherjee in his recent Book, unusual Billionaire use some perfect words.

Confounding the Sceptics Repeatedly

SHAREHOLDING


Financials and Ratios

 2010-112011-122012-132013-142014-152015-16
Loan Book142407.83169759.54196965.96230066.76281083.03338773.72
Net Interest Margin2.702.802.833.113.073.20
ROE17.8318.5915.6416.2616.4615.46
ROA1.391.481.521.621.591.56
Efficiency Ratio39.4533.5432.7234.5334.7435.7
Tier 1 Capital9912131213
Net NPA to Loan Book %000001
Book Value462.77552707.50813.47188.47223.12
CASA41%42%44%45%45%47%
In FY 15 there was stock split , on record date 30 July 2014.
Face value change from ₹10 to ₹2

Future Prospects : The bank is targeting the age group of 25-35  as important and trying to make banking friendlfor them. Past loans given to Industries are hurting them but it is worth to take that pain as the Bank is still going through big change. I personally find out that the bank is applying successful strategies of ICICI amd HDFCBANK both. It is Makeing their Future bright.

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About Ashutosh Tilak

Tracking Indian Capital Market since 2010. Finance Student, On this blog I am writing about finance and Investing. You can contact me analystashu@gmail.com or @androidashu & @InsideFinanc on twitter