COMPARISON OF LEVERAGE OF AXIS BANK AND ICICI BANK
SUBMITTED BY FEBSON LEE MATHEW 1ST MBA A BATCH
ICICI BANK
Key Financial Indicators: Last 5 Years
FINANCIAL YEAR2009 2010 2011 20122013
Earnings per share (Basic)33.76 36.14 45.27 56.1172.20
Earnings per share (Diluted)33.70 35.9945.0655.9571.93
Total capital adequacy ratio
15.5% 19.4% 19.5% 18.5% 18.7%
Dividend per share8.5010.0011.0011.0012.00
AXIS BANKRATIOS20092010201120122013
Earnings Per Share (Basic) (in `) 50.61 65.78 82.95 102.94
119.67
Book Value (in `) 284.50 395.99 462.77 551.99 707.50
Return on Equity 19.93% 19.89% 20.13% 21.22% 20.51%
Return on Assets 1.44% 1.67% 1.68% 1.68% 1.70%
Capital Adequacy Ratio (CAR) 13.69% 15.80% 12.65%13.66%
17.00%
Dividend Per Share (in `) 10.00 12.00 14.00 16.0018.00
Dividend Payout Ratio 23.16% 22.57% 19.78%18.15%19.06%
COMPARISON OF EARNING PER SHARE
It signifies the proportion of earnings paid out as dividends
and shows the growth plan of the company Lower the Dividend Pay
out, higher the retention ratio which in turn signifies higher
growth For ICICI, the value is around 20 whereas for axis bank it
is 18 This also indicates that there are better growth prospects
for Axis bank
It signifies the proportion of earnings paid out as dividends
and shows the growth plan of the company.Lower the Dividend Pay
out, higher the retention ratio which in turn signifies higher
growthFor ICICI, the value is around 20 whereas for axis bank it is
18.This also indicates that there are better growth prospects for
Axis bank
A safe CAR is required to ensure that the company can keep on
growing by advancing more loans.Both the banks have safe Capital
Adequacy Ratio in the range of 12-14%.Both banks seem to be pretty
safe in terms of CAR.
CONCLUSION ON COMPARING AXIS BANK AND ICICI BANK INVESTING IN
ICICI BANK IS MORE PROFIT GENERATABLE.
