SBI & AXIS Bank

Group 9
Nishad Patil
Poojan Doshi
Nihar Manjrekar
Raja Kundani
Shalinee Sharma

PG12069
PG12081
PG12093
PG12109
PG12117

State Bank of India

Largest nationalized bank in India (PSU)
In terms of assets, number of branches, deposits,

profits and workforce.

Headquarters in Mumbai, India and employs about
205,896 people.
Type Public (BSE/NSE: 500112/SBIN) & (LSE: SBID)
Largest ATM Network in India
Has International presence
Rating by S&P is BBBRating by Moodys D+

AXIS Bank
Axis Bank (Formerly known as UTI) was one of the
few private banks to have began operations in
1994
Headquarters in Mumbai, India and employs
about 33,587 people.
Type Public (BSE/NSE: 532215/AXISBANK) &
(LSE: AXBC)

Second Largest ATM Network in India

Rating by S&P is BBBHas International presence
Rating by Moodys D+

Investment
banking
Commercial
Banking

Credit Cards

Mortgages

Retail
Banking

PRODUCTS

Private
Banking

Pensions
Asset
Management

Banking Industry Trend 2012

Current Share Price

Bank

BSE Share Price

NSE Share Price

Face Value

SBI

Rs. 2083.90

Rs. 2083.95

Rs. 10

AXIS Bank

Rs. 1299.80

Rs. 1300.05

Rs. 10

Shareholding pattern of SBI Vs Axis Bank

AXIS

SBI
2%

8%

9%

33%

9%

27%
62%

50%

Promoter and Promoter Group

Institutions

Non-Institutions
Public

Promoter and Promoter Group

Institutions
Non-Institutions
Public

Cost to Income Ratio =

Operating Expenses
(Net Interest Income + Non Interest Income)
40

38.06
34.99

35
30

28.5528.07

25

33.77

31.32
27.98

26.18
25.03

24.13

SBI

20

Axis Bank

15
10
5
0

2007-08

2008-09

2009-10

2010-11

2011-12

Other Income to Total Income Ratio = Other Income

Total Income
40
33.91

35

30.56
30
25

24.98

26.74

24.70

SBI

20

Axis Bank

15
10

8.83

8.13

8.94

2007-08

2008-09

2009-10

10.58

8.86

5
0

2010-11

2011-12

PAT Margin (%)

18
16

16.92
15.9

14
12
10
8

15.39

13.28

12.08

9.95

9.8
8.7

8.67

7.26

4
2
0
Mar '08

Mar '09

Mar '10

SBI

axis

Mar '11

Mar '12

Net Interest Margin

Net Interest Margin = (Interest Income Interest Expense)
Average Earning Assets
Above assets comprises of advances, investments, balance with RBI and
money at call.
4.50

4.00
3.50

3.47

3.00
2.50

3.75

2.26

3.33
2.5

3.65
3.32

3.85
3.59

2.66
SBI

2.00

Axis Bank

1.50
1.00
0.50
0.00
2007-08

2008-09

2009-10

2010-11

2011-12

Credit to Deposit Ratio = Advances

Deposits
90

81.27

79.08

80
70

65.81

76.11
68.8

71.88

75.69 74.67 77.19 76.3

60
50

SBI

40

Axis Bank

30
20
10
0

2007-08

2008-09

2009-10

2010-11

2011-12

Return on Equity (%)

25

20

19.93
15

17.82
16.09

19.89

15.07

14.04

10

20.13

12.84

21.22

14.36

2007-2008

2008-2009

2009-2010

SBI

AXIS

2010-2011

2011-2012

Return on Asset (%)

1.8

1.6

1.67

1.4
1.2
1
0.8

1.68

1.68

1.44
1.24
1.01

1.04
0.88

0.6

0.88
0.71

0.4
0.2
0
2007-2008

2008-2009

2009-2010

SBI

AXIS

2010-2011

2011-2012

Debt Equity Ratio = Total Debt

Equity
16

14.37

14
12

12.81
10.96

11.49

12.43

12.19

9.99

9.96

10

8.81

9.65

SBI

Axis Bank

6
4
2
0

2007-08

2008-09

2009-10

2010-11

2011-12

Price to Book Value =

Market Price
(Assets Intangible Assets and Liabilities)
3.5
3
2.5
2

SBI
1.5

Axis Bank

1
0.5
0

2007-08

2008-09

2009-10

2010-11

2011-12

Earning per Share

200
180

184.31

160
140
120
100

144.37

143.77

130.16

126.62

82.95

80

65.78

60
40

102.94

50.61
32.15

20
0
2007-2008

2008-2009

2009-2010

SBI

AXIS

2010-2011

2011-2012

Dividend per Share (Rs.)

40
35
35

30

20

30

29

25

30

21.5

15
10
5
0

12

10

14

16

6
2007-2008

2008-2009

2009-2010

SBI

AXIS

2010-2011

2011-2012

Dividend Payout Ratio (%)

25
20

23.49

23.16

20.18

2007-2008

23.05

20.19

22.57
20.78

19.78

20.06
18.15

2008-2009

2009-2010

2010-2011

2011-2012

15
10
5
0

SBI

AXIS

Capital Adequacy Ratio

18

16

13.73

15.8
13.69
12.65

14
12

13.47

14.25

13.66
13.86

13.39
11.98

10
8
6

4
2
0
2007-2008

2008-2009

2009-2010

SBI

AXIS

2010-2011

2011-2012

EXAMPLE OF CAPITAL ADEQUACY

RATIO

Non-performing Assets Ratio

1.85
1.8

1.82
1.78

1.79

1.75

1.72

1.7
SBI
1.65

Axis Bank

1.63

1.6
1.55
1.5

2007-08

2008-09

2009-10

2010-11

2011-12

Cash Flows from Operations

40000
30000
20000
10000
SBI

0
2007-08

-10000
-20000
-30000
-40000

2008-09

2009-10

2010-11

2011-12

Axis

Cash Flows from Investing Activities

0
2007-08

2008-09

2009-10

2010-11

2011-12

-2000
-4000

-6000
-8000
-10000
-12000
-14000
-16000

SBI
Axis Bank

Cash Flows from Financing Activities

25000
20000

15000
SBI

10000

Axis Bank

5000
0
2007-08
-5000

2008-09

2009-10

2010-11

2011-12

THANK YOU