INTRODUCTION

Introduction

Axis Bank formerly known as Unit Trust of India (UTI) Bank. Axis Bank was the
first of the new private banks to have begun operations in 1994, as financial services firm.
The establishment of UTI bank is through the central government of India allows private
sectors to establish bank & related organization. The Bank was promoted jointly by the
Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance
Corporation of India (LIC) and General Insurance Corporation of India (GIC) and National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd.

Unit Trust of India Hold a special position in the Indian capital market and has
promoted many financial institution in the country. The UTI Bank changed its name to Axis
Bank in April 2007 to avoid confusion with other similar organization name. The Bank has
strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.
 The Bank's Registered Office is at Ahmadabad and its Central Office is located
at Mumbai. The Bank has a very wide network of more than 1042 branches; The Bank has a
network of over 4474 ATMs (as on 30th June 2010) providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country. Axis
Bank Ltd. has been promoted by the largest and the best Financial Institution of the country,
UTI. Axis bank is the 1st bank in the country to provide a secure debit card-based payment
service. On 24 Feb. 2010, Axis bank announced the launch of ‘AXIS CALL & PAY’ on a
unique mobile payments solution using Axis bank debit cards. Axis bank is the name decided
by the board of members of the bank. Axis Bank is one of the 1st private sector banks in the
country and provides a complete suite of corporate and Retail Banking products. The Axis
Bank Ltd (Company profile) is the essential source for Top-level company data and
information. The Axis Bank Ltd. (SWOT analysis) examines the Company’s key business
structure and Operations, History and Products, & provides Summary Analysis of its key
revenue lines and strategy. Axis Bank is a banking corporation offering Retail and Corporate
Banking services, including retail loans, corporate & business credit, Forex and Trade finance
services, Investment banking, Depository services and Investment advisory services.

Axis Bank has positioned itself as a bank, which gives higher standard of services through
product innovation for the diverse need of individual & corporate Clients. So they want to
highlight following points in their positioning statement:

• Customer Centric
• Service oriented
• Product innovation

There is a PEST analysis, which means Political factors, Economics factors, Social
factors, Technical factors which influence the bank in all type of ways. The details are
given below:-

Political factors- Banking act 1949, Rules of reserve Bank of India, CRR ( ), Interest
rates (both deposit & loan), Bank rate, Indian Banking Association, IT act 1961.

Economic factors- Money inflation & deflation, Industrial growth, Liberalization &
globalization policies, Capital market requirement.

Social factors- Income level, Society status, Banking habits and Individual requirement.
 Technical factors- Travel currency card, Redemptions of mutual funds, Internet contact,
Product innovation.

It focuses on increase the service level by technical enhancement.

History of Axis Bank

In 1998

The UTI Bank has 28 branches in urban & semi urban areas as on 31 st July. All the
branches are fully computerized and networked through VSAT. ATM services are available
in 27 branches. The company offers ATM cards, using which account-holders can withdraw
money from any of the bank’s ATMs across the country, which is inter-connected by VSAT.
UTI Bank has launched a new retail product with operational flexibility for its customers.
UTI Bank promoted by India’s pioneer mutual fund Unit Trust of India along with LIC (Life
Insurance corporation of India), GIC (General Insurance corporation of India),

In 1999

The UTI Bank and Citibank have launched an international co-branded credit card.
The UTI Bank and Citibank have come together to launch an international co-branded credit
card under the Master Card umbrella.

In 2000

The bank has announced the launch of Tele-Depository services for its depository
clients. UTI Bank has launch of ‘iconnect’, its Internet Banking products. Geojit Securities
ltd. The 1st company to start online trading services, has signed with a UTI Bank. An India
bull has signed a memorandum of understanding with UTI bank. The UTI Bank has entered
in to an agreement with Stock Holding Corporation of India for providing loans against
shares.

In 2001
 UTI Bank launched a private placement of non- convertible debentures to raise up to
Rs. 75 Crore. UTI Bank has opened 2 offsite ATMs and 1 Extension counter with an ATM
in Mangalore, taking its total number of ATMs across the country to 355.

In 2002

UTI Bank ltd has informed BSE that shri B.R. Barwale has resigned as a Director of
the bank w.e.f. January 02 2002. UTI Bank ltd has informed that in the meeting of the Board
of Directors decisions were taken- Mr. Yash Mahajan, Vice Chairman and Managing
Director of Punjab Tractors ltd. was appointed as an additional Director. UTI Bank ltd has
informed BSE that a meeting of the Board of Directors of the bank is scheduled to be held on
October 24, 2002.

In 2003

UTI Bank ltd has informed BSE (Bombay Stock Exchange) that at the meeting of
the Board of Directors of the company held on January 16, 2003. Shri R.N. Bharadwaj,
Managing Director of LIC has been appointed as an Additional Director of the bank. UTI
Bank (private sector bank) has opened a branch at Nellore. The Bank’s Chairman and
Managing Director, Dr. P.J. Nayak, inaugurating the bank branch at GT road on May 26. UTI
has been authorized to launch 16 ATMs on the Western Railway stations of Mumbai
Division. UTI Bank allots shares under Employee Stock option Scheme to its employees.
UTI Bank ties up with UK government fund for contract farming. UTI Bank opened new
ATM in Sikkim.

In 2004

UTI Bank ltd has informed that Shri Ajeet Prasad, Nominee of the Administrator of
the Specified Undertaking of the Unit Trust of India (UTI) has been appointed as an
additional Director of the bank w.e.f. January 20, 2004. UTI bank open new branch in Udupi.
UTI Bank installs ATM in Thiruvananthapuram. UTI Bank has launches ‘Remittance Card’
in association with Remit to India, offering money-transfer services.

In 2005
 UTI Bank enters in to a partnership with Bajaj Allianz for selling general insurance
products through its branch network. UTI Bank launches its 1st Satellite Retail Assets Centre
(SRAC) in Karnataka at Mangalore.

In 2006

UTI Bank announces the launch of its Credit Card Business. UTI Bank becomes the 1st
Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International
Market. UTI Bank Business Gold Debit Card, Master Card launched.

In 2007

Axis Bank Ltd has informed that consequent upon handing over charge as
administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), Shri S.B.
Mathur, the nominee Director of SUUTI has resigned as a Director of the bank w.e.f.
December 06, 2007. Axis Bank Ltd has appointed Shri K.N. Prithviraj as an additional
Director on the Board at Directors of the Bank. Company name has been changed from UTI
Bank ltd to Axis Bank Ltd. on 30 July 2007.

In 2008

Axis Bank launches Platinum Credit Card, India’s 1st EMV chip based card. Axis
Bank set up its branch at Ilanji at Meenakshi Nagar on the Madurai road on April 16.

In 2009

Axis Bank said its board has recommended the appointment of Shikha Sharma,
currently chief of ICICI group’s Life insurance business, as its next Managing Director and
CEO. Axis Bank has set up a new branch at perumbavoor. The bank has a network of 832
branches along with 8 extension counters and 3622 ATMs across the country. Axis Bank ltd.
has informed that the Board of Directors of the Bank at its meeting held on June 01, 2009
Smt. Shikha Sharma as an additional Director of the bank. Axis Bank has received final
clearance from the Securities and Exchange Board of India (SEBI) to begun its mutual fund
operations and will launch debt and equity schemes soon where as IDBI Bank is awaiting the
regulator’s permit for an entry. Axis Bank opened the new branch also. It has a network of
892 branches, 8 extension counters and 3806 ATMs across the country.
In 2010

Axis Bank has a network of 1042 branches, and 4474 ATMs across the country as on
30th June 2010. Axis Bank ltd has informed that at the meeting of the Board of Director held
on January 15, 2010. The decisions were taken:

• To appoint Dr. Adarsh Kishore, former Finance Secretary, Government of India and
Former Executive Director, International Monetary Fund Representing Bangladesh,
Bhutan, India and Sri Lanka.
• To appoint Shri S.B.Mathur, former Chairman, LIC and the National Stock
Exchange of India, as an Additional Director.

Introduction of 5’s Japanese technique

5’s is a basic fundamental systematic approach for productivity quality and safety
improvement in all types of business. The 5’s program focuses on having Visual order,
Organization, Cleanliness and Standardization. You can expect a result from a five S program
are: Improved profitability, Efficiency, Service and Safety. The method is developed in Japan
(5’s stands for 5 Japanese words that start with the letter S).
• Seiri (sort): Sort out what is needed and what is not needed.
• Seiton (straighten): Arrange essential things in order for easy access.
• Seiso (scrub): Keep machines and work areas clean.
• Seiketsu (standardize): Make cleaning and checking a routine practice.
• Shitsuke (sustain): Make the 5’s a way of life, it requires discipline.

The term 5’s derives from a list of five Japanese words- Seiri, Seiton, Seiso, Seiketsu
and Shitsuke. The meanings of all the Japanese words are as follows.
Seiri Proper Arrangement,
Seiton Orderliness
Seiso Cleanliness
Seiketsu Cleaned up
Shitsuke Discipline
Sorting – Sorting of belongings as per need & wants of the work place and should be related
to work.

Systematic Arrangement # Everything on decided place/ right place.

# Systematic layout of work place

# Every single item must be located its own place for safekeeping.

# Each location must be labeled for easy identification.

Spic & Span—To check for sorting out and systematic arrangement and should be
effectively carried out to check and to keep workplace clean.

Standarisation--- Defining of measures/Standards by which personnel must measure and

maintain cleanliness.

Self Discipline--- People should themselves observe cleanliness & orderliness at all times,
without having to be reminded by management.

5S The Japanese Management Philosophy

Introduction
5S is a system to reduce waste and optimize productivity through maintaining an orderly
workplace and using visual cues to achieve more consistent operational results.

The 5S pillars, Sort (Seiri), Set in Order (Seiton), Shine (Seiso), Standardize (Seiketsu), and
Sustain (Shitsuke), provide a methodology for organizing, cleaning, developing, and
sustaining a productive work environment. In the daily work of a company, routines that
maintain organization and orderliness are essential to a smooth and efficient flow of
activities. This lean method encourages workers to improve their working conditions and
helps them to learn to reduce waste, unplanned downtime, and in-process inventory.

It also would result in the organization of tools and materials into labeled and color coded
storage locations. 5S provides the foundation on which other lean methods, such as TPM,
cellular manufacturing, just-in-time production, and six sigma can be introduced.

Method and Implementation Approach

5S is a cyclical methodology: sort, set in order, shine, standardize, and sustain the cycle. This
results in continuous improvement.

The 5S Pillars

Sort
Sort, the first S, focuses on eliminating unnecessary items from the workplace that are not
needed for current production operations. An effective visual method to identify these
unneeded items is called “red tagging”, which involves evaluating the necessity of each item
in a work area and dealing with it appropriately. A red tag is placed on all items that are not
important for operations or that are not in the proper location or quantity. Once the red tag
items are identified, these items are then moved to a central holding area for subsequent
disposal, recycling, or reassignment. Organizations often find that sorting enables them to
reclaim valuable floor space and eliminate such things as broken tools, scrap, and excess raw
material.

Set In Order
Set In Order focuses on creating efficient and effective storage methods to arrange items so
that they are easy to use and to label them so that they are easy to find and put away. Set in
Order can only be implemented once the first pillar, Sort, has cleared the work area of
unneeded items. Strategies for effective Set In Order include painting floors, affixing labels
and placards to designate proper storage locations and methods, outlining work areas and
locations, and installing modular shelving and cabinets.

Shine
Once the clutter that has been clogging the work areas is eliminated and remaining items are
organized, the next step is to thoroughly clean the work area. Daily follow-up cleaning is
necessary to sustain this improvement. Working in a clean environment enables workers to
notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments.
These changes, if left unattended, could lead to equipment failure and loss of production.
Organizations often establish Shine targets, assignments, methods, and tools before beginning
the shine pillar.

Standardize
Once the first three 5S’s have been implemented, the next pillar is to standardize the best
practices in the work area. Standardize, the method to maintain the first three pillars, creates a
consistent approach with which tasks and procedures are done. The three steps in this process
are assigning 5S (Sort, Set in Order, Shine) job responsibilities, integrating 5S duties into
regular work duties, and checking on the maintenance of 5S. Some of the tools used in
standardizing the 5S procedures are: job cycle charts, visual cues (e.g., signs, placards,
display scoreboards), scheduling of “five-minute” 5S periods, and check lists. The second
part of Standardize is prevention – preventing accumulation of unneeded items, preventing
procedures from breaking down, and preventing equipment and materials from getting dirty.

Sustain
Sustain, making a habit of properly maintaining correct procedures, is often the most
difficult S to implement and achieve. Changing entrenched behaviors can be difficult, and the
tendency is often to return to the status quo and the comfort zone of the “old way” of doing
things. Sustain focuses on defining a new status quo and standard of work place organization.
Without the Sustain pillar the achievements of the other pillars will not last long. Tools for
sustaining 5S include signs and posters, newsletters, pocket manuals, team and management
check-ins, performance reviews, and department tours. Organizations typically seek to
reinforce 5S messages in multiple formats until it becomes “the way things are done.” Proper
discipline keeps the 5S circle in motion.
 The 5-S practice is a technique used to establish and maintain quality environment in
an Organisation. The 5-S technique has been widely practiced in Japan. Most Japanese 5-S
practitioners consider 5-S useful not just for improving their physical environment, but also
for improving their thinking processes. The 5-S can help in all stratas of life. Everyday
problems could be solved through adoption of this practice. The clear meaning of all 5 S
Japanese words can understand by following table.

JAPANESE ENGLISH MEANING EXAMPLE

Seiri Structure Organisation Throw away rubbish
Seiton Systematic Neatness 30-second retrieval of a document
Seiso Sanitise Cleaning Individual cleaning responsibility
Seiketsu Standardise Standardisation Transparency of storage
Shitsuke Self-Discipline Discipline Do 5-S daily

How to Implement the 5-S

5-S implementation requires commitment from both (The top management + everyone in
the organization). It is also important to have a 5-S champion to lead the whole organization
towards 5-S implementation step-by-step. The following steps will help you to achieve
success.

Step 1: Top Management Commitment and preparedness

You have to sell the idea of the 5-S to the most senior executive of your organization.
In promoting the 5-S activities, the important thing is to do them one at a time and to do each
thoroughly. Even the little things have to be taken seriously if they are to make any
meaningful impact. This process can be stratified as follows: -

• Make a decision and implement it

• Make tools and use them.
• Do things that demand improvement as pre- requisites
• Do things that require help from other departments.

Step 2: Draw up a Promotional Campaign

The 1st thing to do for a promotion campaign is to set up a timetable. The key
activities are as follows: -
 • Get top-management commitment, assess status- quo and establish implementation
plan.
• 5-S workshop for 5-S facilitators, which is based on the 5-S Audit Worksheet.
• 1st 5-S day- Organization (throw away things you do not need)
• Daily 5-S activities by everyone.
• 2nd 5-S day- Neatness (name everything and assign locations)
• 3rd 5-S day- Cleaning (all- together house cleaning)
• 4th 5-S day- Standardization (visual management & transparency for things)
• 5th 5-S day- Discipline (do your own 5-S audit)
• Grand prize presentation for the best 5-S department/section.
• Review and plan for next 5-S campaign.

Step 3: Keeping Records

It is important to keep records not only of decisions made but also of the problems
encountered, actions taken and results achieved. If past practice has been recorded
people will have a sense of progress and improvement over time. There are a number
of tools for keeping records, these are:

• Log Books
• Photographs
• Videos

Step 4: 5-S Training

The 5-S activities are all directed at eliminating waste and effecting continuous
improvement in the work place. As you go on, you will notice that there are always additional
5-S problems to solve. Training should also include section-wide or company-wide meetings
where people can announce their results. It is important that people know, how to use the
computer to do charts and graphs even if it is not part of their job description.

Step 5: Evaluation

It is very easy to get in to a routine with 5-S activities particularly because they demand
constant everyday attention to routine details. It is difficult to make alert 5-S activities a part
of the daily routine. Workplaces evaluations are needed to keep everyone, what is happening
and to spot problems before develop in to major complications. Your evaluation tools are the
keys and it is as simple as using the 5-S audit worksheet as your evaluation criteria.
5S – A JAPANESE WAY OF MANAGING WORKPLACE
Cleanliness is next to godliness. Everyone, including animals prefers cleanliness. Many
organizations, particularly manufacturing sectors, have overgrow their premises, because of
increase production, increased manpower, accumulation of materials & machinery over years
of production activity. This has led to cluttered, undirty workplaces with increased risk of
accidents.
The health & safety executive recognized this problem and set up Health & safety
Laboratories (HSL) to evaluate a technique that is widely used in Japan. This technique is
called 5-S. This is a method for establishing and maintaining a quality-working environment.
5’S are derived from the 1st letters of the word SEIRI, SEITON, SEISO, SEIKETSU and
SHITSUKE, which means Sorting, Set in order, Shine or Scrub, Standardize and Sustain or
Self-discipline respectively. This article aims at explaining the importance of 5’S in today’s
scenario. It describes all the 5’S and methods of implementing 5’S.

ELIMINATION OF WASTE
When the Japanese say elimination of waste this mean essential minimum amount of
workers, equipment and materials necessary to meet demand. This means no safety stock, no
inventory stored for use in production requirements.

Just-in-time (JIT) production is an important part of waste elimination. In fact, JIT has often
been defined as the elimination of waste. JIT is the production of precisely the necessary unit
in the correct quantity at the correct time in order to maintain perfect performance to
schedule. Finally, the Japanese utilize a number of quality control techniques to ensures
maximized quality and minimized waste.
 Objective of Study

• To study the satisfaction level of customers of Axis bank.

• To know implementation and awareness of 5-S Japanese technique in an Axis Bank.
• To identify the perception of customers about their banks.
• To reduce wastage of time and money through implementing the 5-S Japanese
technique in a bank.
 COMPANY PROFILE

In the financial sector, the Bank has delivered a very strong performance with a net profit of
Rs. 2,514.53 crores (38.51% higher than the net profit of Rs. 1,815.36 crores last year). Basic
Earnings per Share (EPS) of Rs. 65.78 (29.97% higher than the EPS of Rs. 50.61 in 2008-09)
and a Return on Equity (ROE) of 19.89% compared to 19.93% last year. In 2009-10, the total
income was Rs. 15,583.80 crores, while 2008-2009 the total income was Rs. 13732.36,
increasing by Rs. 1,851.44 crores or 13.48% over last year.

During the period the operating revenue rose 35.96% to Rs. 8,950.27 crores,
Operating revenue is any type of income that is generated as a result of the day-to-day
operations of a business. Operating revenue is not the same as operating profit, which is the
more commonly used in financial statement analysis. While operating profit increased by
40.69% to Rs. 5,240.55 crores.

Operating profit means the profit earned from a firm’s normal core business
operations. This value does not include any profit earned from the firm’s investment. It is
also called EBIT (Earning before interest & Tax). The Net Interest Income (NII) grew by Rs.
1,318.28 crores to Rs. 5,004.49 crores, rising 35.76%, due in large measure. The total earning
assets of the Bank increased by 20.46% to Rs. 1,33,308.75 crores from Rs. 110,663.96 crores
last year. The share of CASA deposits in the total deposits of the Bank on a daily average
basis rose sharply by 429 basis points from 36.10% last year to 40.39% while the cost of term
deposits fell 189 basis points from 9.41% last year to 7.52%. As a result, the Net Interest
Margin (NIM) climbed 42 basis points over the year. In the last four quarters, the NIM has
consistently improved: from 3.34% in Q1, to 3.52% in Q2, 4.00% in Q3 and 4.09% in Q4.
 Other income comprising fees, trading profit and miscellaneous income was Rs.
3,945.78 crores, at the end of the year, rising 36.21% or by Rs. 1,048.90 crores over the year.
Fee income comprised 32.68% of the operating revenue of the Bank, generated by products
and services of diverse businesses such as client-based merchant foreign exchange trade,
Service charges from account maintenance, transaction banking including cash management
services, syndication and placement fees, processing fees from loans and commission on non-
funded products such as letters of credit and bank guarantees, inter-change fees on ATM-
sharing arrangements and fee income from the distribution of third-party personal investment
products. There was also a healthy increase in treasury income by way of proprietary trading
profit, which grew 119.97% over the year to Rs. 822.38 crores, from Rs. 373.86 crores last
year. Miscellaneous income rose 162.24% mainly on account of higher recoveries of loans
written-off in earlier years. During the year, such recoveries amounted to Rs. 174.43 crores
against Rs. 62.95 crores last year. The Bank continued to add to its network of branches,
ATMs and other channels, contributing in part to the growth of operating expenses of the
Bank, which rose 29.79% to Rs. 3,709.72 crores over last year.

During the year, the Bank created total provisions (excluding provisions for tax) of
Rs. 1,389.19 crores against Rs. 939.68 crores last year. The ROE declined marginally
from 19.93% in 2008-09 to 19.89%. Basic EPS rose to Rs. 65.78 from Rs. 50.61 last year.
The Book Value per share rose from Rs. 284.50 on 31 March 2009 to Rs. 395.99 on 31
March 2010 while Return on Assets (ROA) improved to 1.67% from 1.44% last year.
Employee productivity also improved, profit per employee increasing to Rs. 11.63 lacs from
Rs. 10.02 lacs last year and business per employee increasing to Rs. 11.11 crores from Rs.
10.60 crores last year.

The Bank finished the year with a healthy growth of the balance sheet at Rs.
180,647.85 crores, increasing by Rs. 32,925.80 crores, or 22.29% over last year. Total
deposits were Rs. 141,300.22 crores, increasing by Rs. 23,926.11 crores, or 20.38% over last
year. Low-cost demand deposits (savings bank and current accounts) (CASA) were Rs.
66,029.54 crores, rising by Rs. 15,385.81 crores, or 30.38% over the year. As on 31 March
2010, the percentage share of low-cost demand deposits (CASA) in total deposits rose to
46.73% from 43.15% last year. Savings bank account deposits grew 31.13% to Rs. 33,861.80
crores, while current account deposits grew 29.60% to Rs. 32,167.74 crores. Total advances
were Rs. 104,343.12 crores, growing 27.94% by Rs. 22,786.35 crores from last year. Of this,
corporate advances (comprising large and mid-corporate accounts) were Rs. 52,503.53
crores, growing by Rs. 11,292.63 crores or 27.40% over last year. During the same period,
advances to the SME segment (including micro finance) were Rs. 19,482.65 crores,
increasing by Rs. 3,405.95 crores, or 21.19% over last year, while agricultural lending stood
at Rs. 11,534.04 crores, increasing by Rs. 3,316.65 crores or 40.36% over the year. Retail
loans were Rs. 20,822.90 crores, increasing by Rs. 4,771.12 crores or 29.72% from last year.
The Bank's total investments were Rs. 55,974.82 crores, increasing by Rs. 9,644.47 crores or
20.82% over last year.
The total assets of the Bank's overseas branches as on 31 March 2010 were Rs. 13,921.42
crores, increasing by Rs. 2,245.93 crores or 19.24% over last year. The Bank crossed a
landmark on 29 March opening its 1000 branch at Bandra West, Mumbai. The Bank is now
present in all states and Union Territories (except Lakshadweep) and is present in 401 of the
626 district headquarters in the country.

During 2009-10, 200 branches (including service branches/CPC) were

added to the Bank's network, taking the total number of branches and Extension Counters
(ECs) to 1,042 as on 30 June 2010 from 835 last years. Of these, 332 branches are in semi-
urban and rural areas and 710 branches are in metropolitan and urban areas. The ATM
network of the Bank grew from 3,595 last years to 4,474 at the end of FY 2010. During the
year under review, the Bank raised capital in the form of equity and debt to support future
growth.

The paid up capital of the Bank as on 31 March 2010 rose to Rs. 405.17 crores
from Rs. 359.01 crores as on 31 March 2009. The shareholding pattern of the Bank as of 31
March 2010 is stated below:

S.No. Name of Shareholders % of paid up

capital
1. Administrator of the Specified Undertaking of the Unit 24.00
Trust of India (UTI-I)

2. Life Insurance Corporation of India 10.27

3. General Insurance Corporation and four PSU Insurance 4.27
Companies
4. Overseas Investors including FIIs/ OCBs/ NRIs 33.68

5. Foreign Direct Investment (GDR issue) 8.37

 6. Other Indian Financial Institutions/ Mutual Funds/ Banks 7.07

7. Others 12.34
Total 100.00

The Bank's shares are listed on the NSE and the BSE. The GDRs (Global Depositary
Receipt) issued by the Bank are listed on the London Stock Exchange (LSE). The Bonds
issued by the Bank under the MTN programme are listed on the Singapore Stock Exchange.
The Bank's EPS for 2009-10 has risen to Rs. 64.31 from Rs. 50.27 during 2008-09. In view
of the overall performance of the Bank, future outlook 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. 12.00 per share on equity shares, compared to Rs. 10.00 per share declared
for the last year. This increase reflects our confidence in the Bank's ability to consistently
grow earnings over time.

SUBSIDIARIES

The Bank has set up five wholly-owned subsidiaries: 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 Securities and Sales Ltd. was set up in
December 2005 (originally incorporated as UBL Sales Ltd., renamed as Axis Sales Ltd. in
2007 and now rechristened as Axis Securities and Sales Ltd. on 5 April 2010) to market
credit cards and retail asset products. The objective of setting up the subsidiary was to build a
specialized force of sales personnel and optimize operational efficiency only. In October
2006, the Bank set up Axis Private Equity Ltd., primarily to carry on the activities of
managing equity investments and provide venture capital support to businesses. Axis Trustee
Services Company Ltd. was established in May 2008 to engage in trusteeship activities (e.g.
acting as a debenture trustee, Axis Asset Management Company Ltd. was set up primarily to
carry on the activities of managing a mutual fund business in January 2009 and in the same
year, Axis Mutual Fund Trustee Ltd. was set up, to act as the trustee for the mutual fund
business.
 AXIS BANK LIMITED - BALANCE SHEET
(BALANCE SHEET AS ON 31 MARCH 2010)

As on
As on
31-03-2010 31-03-2009
(Rs. in Thousands) (Rs. in Thousands)

CAPITAL AND LIABILITIES

Capital 4,051,741 3,590,051
Reserves & Surplus 156,392,749 98,545,835
Employees' Stock Options Outstanding (Net) 1,734 12,111
Deposits 1,413,002,175 1,173,741,052
Borrowings 171,695,512 155,198,710
Other Liabilities and Provisions 61,334,608 46,132,728

TOTAL 1,806,478,519 1,477,220,487

ASSETS
Cash and Balances with Reserve Bank of India 94,738,756 94,192,103
Balances with Banks and Money at Call and Short Notice 57,325,631 55,976,854
Investments 559,748,156 463,303,514
Advances 1,043,431,188 815,567,658
Fixed Assets 12,224,199 10,728,873
Other Assets 39,010,589 37,451,485

TOTAL 1,806,478,519
1,477,220,487
Contingent liabilities 3,182,052,916
2,092,603,126
Bills for collection 192,928,684
139,573,115

AXIS BANK LIMITED - PROFIT & LOSS ACCOUNT

(PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH 2010)

Year ended Year

ended
31-03-2010 31-03-2009
(Rs. in Thousands) (Rs. in Thousands)

INCOME

Interest earned 116,380,215 108,354,856

Other income 39,457,819 28,968,781

TOTAL 155,838,034 137,323,637

EXPENDITURE

Interest expended 66,335,261 71,492,742

Operating expenses 37,097,223 28,582,127
Provisions and contingencies 27,260,217 19,095,184

TOTAL 130,692,701 119,170,053

NET PROFIT FOR THE YEAR (I - II) 25,145,333 18,153,584

Balance in Profit & Loss Account brought forward
from previous year 23,480,865 15,538,689

AMOUNT AVAILABLE FOR APPROPRIATION 48,626,198 33,692,273

APPROPRIATIONS :
Transfer to Statutory Reserve 6,286,333 4,538,396
Transfer to Investment Reserve 148,750 622
Transfer to Capital Reserve 2,239,176 1,467,231
Transfer to General Reserve 3,109 -
Proposed Dividend (includes tax on dividend) 5,674,493 4,205,159
Balance in Profit & Loss Account carried forward 34,274,337 23,480,865

TOTAL 48,626,198 33,692,273

EARNINGS PER EQUITY SHARE

(Face value Rs.10/- per share) (Rupees)
Basic 65.78 50.61
Diluted 64.31 50.27

AXIS BANK LIMITED - CASH FLOW STATEMENT

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2010

Year ended Year ended

31-03-2010 31-03-2009
(Rs. in Thousands) (Rs. in Thousands)

Cash flow from operating activities

Net profit before taxes 38,513,633 27,851,939

Adjustments for:
Depreciation on fixed assets 2,343,218 1,886,663
Depreciation on investments (222,334) 1,078,002
Amortization of premium on Held to Maturity investments 829,739 927,742
Provision for Non Performing Advances/Investments 13,570,445 7,322,127
General provision on securitized assets - (6,437)
Provision on standard assets (9,100) 1,055,000
Provision for loss in present value for agricultural assets - 6,900
Provision for wealth tax 3,483 2,883
Loss on sale of fixed assets 38,707 81,999
Provision for country risk (15,300) 3,500
Contingent provision against derivatives - (719,733)
Provision for restructured assets 564,722 654,586
Amortization of deferred employee compensation (230) (2,510)

55,616,983 40,142,661

Adjustments for:
(Increase)/Decrease in investments (49,859,981) (35,356,100)
(Increase)/Decrease in advances (241,808,777) (225,884,514)
Increase/(Decrease) in borrowings (excluding subordinated debt,
perpetual debt and upper Tier II instruments) (1,717,478) 45,614,357
Increase/(Decrease) in deposits 239,261,124 297,478,846
(Increase)/Decrease in other assets 215,852 (8,262,795)
Increase/(Decrease) in other liabilities & provisions 13,727,672 2,828,679
Direct taxes paid (15,146,740) (11,044,801)

Net cash flow from operating activities 288,655 105,516,333

Cash flow from investing activities

Purchase of fixed assets (4,065,926)
(3,867,421)
(Increase)/Decrease in Held to Maturity investments (47,352,587)
(93,950,560)
Proceeds from sale of fixed assets 188,676
398,386

Net cash used in investing activities (51,229,837)

(97,419,595)
40
Cash flow from financing activities
Proceeds from issue of Subordinated debt,
Perpetual debt and Upper Tier II instruments (net of repayment) 18,214,280 19,050,630
Proceeds from issue of Share Capital 461,690 12,954
Proceeds from Share Premium (net of share issue expenses) 38,570,041 375,614
Payment of Dividend (4,205,287) (2,515,993)

Net cash generated from financing activities 53,040,724 16,923,205

Effect of exchange fluctuation translation reserve (204,112) 106,610

Net increase in cash and cash equivalents 1,895,430 25,126,553
Cash and cash equivalents at the beginning of the year 150,168,957 125,042,404
Cash and cash equivalents at the end of the year 152,064,387 150,168,957
Appendices
 BIBLIOGRAPHY

 Book: - Research Methodology

Author: - Sharma D.D

 Book:- Organizational Behaviour

Author: - Robbins & L.M Prasad

 Websites:- www.axisbank.com

www.google.com

www.16th annual report of axis bank.com