We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Analysis of Banks by Using Ratios Essay Sample

essay
The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 851
  • Category: debt

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Analysis of Banks by Using Ratios Essay Sample

Axis bank
This is one of the leading banks in Indian banking sector. It is having 1622 branches and it is having more than 9924 ATMs it spread across 1050 centers over the India. In the credit more than 75 percent loans for the home loans. The growth in total deposits around 33%. Source : Axis bank annual report

Yes bank
Yes bank one of the private banks in Indian banking Industry it is having around 403 branches and 951 ATMs in India. Loan amount around 46999 corer rupees deposits are 66955 crore rupees. Source : Yes bank annual report

Interpretation:
Net income of AXIS bank is 219,946.50 crore rupees and for the YES bank is 63,073.50 crore rupees AXIS bank was established in the year 1994 but YES bank was established in 2003- 2004 but it was started operations in 2009. Compared to Yes bank Axis bank is operating well. Asset utilization ratio:

If we look at asset utilization ratio Yes bank is doing well compared to the Axis bank. For AXIS it is 10.38% and for the YES bank it is 10.81% that means that Yes bank is using each and every asset very usefully compared to the AXIS . They are getting more profits on each asset. Burden:

This is very very important factor of any bank if Axis bank had burden of 196,233.10 crore rupees that means that they are having more other income compared to operating expense Axis bank is very good at para banking that they are good at selling mutual funds and Insurance etc simply we can say that say they are doing non banking operations well. But in the case of yes bank it is reverse burden is in negative that means that it is having more operating expenses less other income the burden figure is around -918 crores this indicates that yes bank should more concentrate on para banking in insurance and some other forms. CASA ratio

Both AXIS and Yes banks are having almost same CASA ratio i.e 18.96 and 18.9 both banks are good at maintaining mix current accounts and savings account this CASA is nothing but the working funds for the company this CASA mix should be high it low cost deposits so that we can achieve good profits. Leverage ratio

RBI is implementing BASEL 3 norms that leads to higher safety leverage ratio currently AXIS 12.6% Yes have 17.06% the net worth of yes bank is less compare to AXIS from this ratio we came to know that Axis bank is having more equity capital compared to Yes bank. And also average total assets also more in the case of AXIS bank. ROA

This is the ration of PAT and average total assets for Axis it is 1.61% and for YES bank it is 1.33% it tells how much income it is generating from each single asset it also tells that the efficiency of a management Axis bank is managing assets well compared to the Yes bank this is highly depends on the industry it is a good measure to compare the companies in a industry. Interest paid

Axis bank paid more interest because it is having more loans this could be they need more money to lend others 139769 crore rupees but Yes paid 46917 crore may be this bank does not have that many lendings compared to the AXIS. One more AXIS is a very aggressive player in th industry that also one reason for that. ROE

For Yes bank it is 20.89% and for Axis it is 16.21 % simply we can say that how much money is generating from the share holders equity Yes bank is generating more money compare to Axis Axis bank is having more borrowings compare to Yes bank that can be one reason may it is more depending on the borrowings compared to equity. Net interest margin

NIM for Axis 8.3 % and for Yes it is 2.44 % only this tells us how management effectively taking the investment decisions in the case of debt. Axis bank having a very good ratio that means that the management of Axis bank is taking very good investment decision regarding debt. We can say that Axis bank perfectly utilizing their debt. But in the case of Yes bank management is not taking that much effective investment decisions regarding debt.

Conclusion
From the ratios we can say that Axis bank is doing well compared the reason may Axis bank is very aggressive player and one more reason is Axis bank is older than Yes bank this is also one reason Yes bank lagging compared to Axis bank. From the annual report of Yes bank we came to know that credit growth rate is increased year on year and they gave more loans to the industries it is growing more than 20% annually after that agriculture sector it is growing more than 15%. But in the case of Axis bank credit growth rate is 17% but the industry growth is 15% is doing better than industry.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Debt of developing countries

Although India’s debt clock is $1. 1 trillion with an interest rate of $2,282 per second, India’s economy is rapidly advancing and as of 2015 India’s economy surpassed China becoming a fast-growing major economy. The fiscal year of 2015-16, India’s economy grew by 7. 6% which lead to India topping the World banks growth outlook for the first time. While India’s economy fell in the...

Third World Debt

Cancelling all 3rd world debt seems morally right, but there are good economic reasons to be cautious. Debt cancellation should help create sustained economic growth and human development. However, this may not be the case if the money goes into the hands of the rich elite or corrupt dictators. Therefore it makes sense to use debt cancellation as a lever to get changes that are...

The American Consumerism

What's behind American consumerism? As Americans increasingly spend more than they earn, psychological research is providing clues as to why. By Amy Novotney Monitor Staff July/August 2008, Vol 39, No. 7 Print version: page 40 Woman holding a bag and a credit card One bright spot in the midst of the country's economic downturn may be a long-overdue focus on reining in our spending. Since...

Debt and Equity Financing

In the accounting industry financing is an important concept. Many companies would not be operable without acquiring some for of financing options. Although there are many types of financing, the two that will be discussed in this paper are debt financing and equity financing. Also this paper will give two examples of each type of financing and discuss which option will be the best choice...

Micro Finance Institutions

Microfinance is the provision of financial services to low-income clients or solidarity lending groups including consumers and the self-employed, who traditionally lack access to banking and related services.” Microfinance is not just about giving micro credit to the poor rather it is an economic development tool whose objective is to assist poor to work their way out of poverty. It covers a wide range of...

Get Access To The Full Essay
icon
300+
Materials Daily
icon
100,000+ Subjects
2000+ Topics
icon
Free Plagiarism
Checker
icon
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access
immediately?

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member