WORKING CAPITAL MANAGEMENT of axis bank Finance Research 2014 (2).doc

8/9/2019 WORKING CAPITAL MANAGEMENT of axis bank Finance Research 2014 (2).doc

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SUMMER TRAINING PROJECT REPORT

On

Working Capital Initiatives at AXIS AN! "i#ite$%&

'A pro(e)t *n$ertaken at t+e AXIS AN! RANC, -I,ARSARI./I,AR/ In$ia&0

AXIS AN! "IMITE1

SUMITTE1 TO

'"lo2$ Instit*te o3 Manage#ent an$ Te)+nolog2/ "IMT/ in partial 3*l3ill#ent o3 t+e $egree o3

Master4s o3 *siness A$#inistration5 o3 Uttar Pra$es+ Te)+ni)al Universit25 "*)kno6/ In$ia0

.a)*lt2 G*i$e 7/ S*8#itte$ 82/

POR.& RA,U" MIS,RA M1 WASIM A!RAM

ASTT& PRO.ESSOR M&&A& 9r$Se#ester RO"" NO&:9:;


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PART/:

1EC"ARATION

I, MD WASIM AKRAM to declare that the Diertation report entitled WOR!ING CAPITA"

MANAGEMENT O. AXIS AN!!"eing #"mitted to the $%%AR PRAD&S' %&C'(ICA)

$(I*&RSI%+ or the partial #lillment o the re-#irement or the degree o Mater o .#ine

Adminitration i m/ o0n endeaor and it ha not "een #"mitted earlier to an/

intit#tion2#nierit/ or an/ degree3

Place4

Date4 MD WASIM AKRAM

A Project Report On Working Capital Management 5


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AC!NOW"E1GMENT

I hae "eneited a lot rom #mmer training project or o#r co#re o MA5 thi project ha "een a

re0arding kno0ledge3 I hae got into the ario# apect o AXIS AN!3

I take thi opport#nit/ to ackno0ledge the inal#a"le aitance o thoe people 0ho helped me in

#cce#l completion o thi Diertation project report3

3

I alo thank (ihikant Singh and M#rt#6a ali or teering m/ conidence and capa"ilit/ or giing me

inight into training "/ giing me e7po#re to the arena o competitie and real 0orld3

)at "#t not the leat, I e7pre m/ thank to all the department o a7i "ank 0ho al0a/ enco#rage

me and proided me #pport at all time3

M1 WASIM A!RAM

M.A 8III Sem9

A Project Report On Working Capital Management :


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PRE.ACE

%hi project ha "een prepared in partial #lillment or the degree o Mater o .#ine

Adminitration3

A project i a 0ork plan deied thro#gh inetigation and anal/i to achiee a et o"ject 0ithin a

peciied time period3 A t#dent i aigned a topic and re-#ired to prepare a report ater making a

t#d/ o 0orking o an/ organi6ation3

I 0a aigned to prepare a Diertation project report on Working Capital Management o A;IS

.A(K3


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MD WASIM AKRAM

EXECUTI>E SUMMAR?

Working capital management or impl/ the management o capital ineted in c#rrent aet i the

oc# o m/ t#d/3 M/ topic i to t#d/ WOR!ING CAPITA" MANAGEMENT IN AXIS

AN!&

Working capital i the #nd ineted "/ a irm in c#rrent aet3 (o0 in a c#t throat competitie era

0here each irm compete 0ith each other to increae their prod#ction and ale, holding o

#icient c#rrent aet hae "ecome mandator/ a c#rrent aet incl#de inentorie and ra0

material 0hich are re-#ired or mooth prod#ction r#n3 'olding o #icient c#rrent aet 0ill

en#re mooth and #n interr#pted prod#ction "#t at the ame time, it 0ill con#me a lot o 0orking

capital3 'ere creep the importance and need o eicient 0orking capital management3 Working

capital management aim at managing capital aet at optim#m leel, the leel at 0hich it 0ill aid

mooth r#nning o prod#ction and alo it 0ill inole inetment o nominal 0orking capital in

capital aet3


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S&No& CONTENTS PAGE NO&

:& C,APTER/: INTRO1UCTION =@

IEW O. RE"ATE1

"ITRATURE 99

9& C,APTER/9 1ESIGN O. STU1? B

& T,E STU1? ;:

D& OJECTI>ES O. STU1? ;EMENTS

AXIS"ank one o the "igget "ank in priate ector in India3A on the /ear ended$arch %& '&%

the .ank had a net 0orth o Rs& @B


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CURRENT SITUATION O. T,E AN!

%oda/, more than a cent#r/ ater thoe tentatie irt tep, A;IS .A(K air/ tale i not onl/ going

trong "#t "la6ing ne0 tandard, and that min#c#le initial inetment ha gro0n "/ leap and

"o#nd to crore o r#pee in 0ealth or A;IS .A(K hareholder3 %he compan/G oering are

pread acro the pectr#m 0ith erice3 'aing #cceeded in garnering the tr#t o almot oneHthird

o IndiaG one "illion pop#lation and a trong management at the helm mean a7i 0ill contin#e to

dream "ig on it path o innoation3 And million o c#tomer 0ill ao#r the re#lt, happil/ eer

ater3

A Project Report On Working Capital Management 1E


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STRUCTURE O. ORGANISATION

1R&SANJI> MISRA C'AIRMA(

S,I!,A S,ARMA MD C&O

!&N PRIT,>IRAJ DIR&C%OR

>&R !AUN1IN?A DIR&C%OR

S3. MA%'$R DIR&C%OR

PRASAD M&(O( DIR&C%OR

Pro3 SAMIR K .AR$& DIR&C%OR

SOM MI%%A) DIR&C%OR

IR&&(A MI%%A) DIR&C%OR

RO'I% .'ABA% DIR&C%OR

> SRINI>ASAN 1IRECTOR

US,A SANGWAN 1IRECTOR



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OAR1 O. 1IRECTORS

D#ring the /ear, Shri S'IK'A S'ARMA, &7ec#tie Director 80holeHtime Director9 retired rom the

erice o the .ank 03e33 :1 Decem"er 5E1E3 %he .oard o Director place on record their

appreciation and gratit#de to Shri S3 Chatterjee or the al#a"le erice rendered "/ him d#ring hi

%en#re a &7ec#tie Director o the .ank3 In accordance 0ith the proiion o the Companie Act,

1>? and the Article o Aociation o the .ank, Shri K3( PRI%'*IRAJ, Shri S3. MA%'$R and

Smt3 PRASAD M&(O( retire "/ rotation at the %hirteenth Ann#al Beneral Meeting and, "eing

eligi"le, oer themele or reHappointment a Director o the .ank3

SUSI1IARIES%he .ank ha et #p t0o 0holl/ o0ned #"idiarie i63

$.) Sale )td3 and $.) Aet Management Compan/ )td3$.) Sale )td hae "een et #p or

marketing credit card and other retail aet prod#ct3

%he o"jectie o thi #"idiar/ i to "#ild a peciali6ed orce o ale peronnel, optimi6e

operational eicienc/ and prod#ctiit/ and there"/ red#ce cot3 %he ale #"idiar/ alo eek to

proide greater control and monitoring o the ale eort iHHi the c#rrent DSA model3 %he

econd #"idiar/ o the .ank, $.) Aet Management Compan/ )td3 ha "een ormed primaril/ to

carr/ on the actiitie o managing 8directl/ or indirectl/9 inetment, ent#re capital #nd, oH

hore #nd etc3

%he perormance o thee #"idiarie along 0ith their Director Report and inancial tatement are

encloed a Anne7#re to thi report3 In line 0ith the Acco#nting Standard 51 8AS 519 i#ed "/ the

Intit#te o Chartered Acco#ntant o India, the conolidated inancial re#lt o the .ank along 0ith

it #"idiarie or the /ear ended :1 March 5E15 are encloed a an Anne7#re to thi report3



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1IRECTORS4 RESPONSII"IT? STATEMENT

The oard of *irectors here+y declares and confirms that,

L %he applica"le acco#nting tandard hae "een ollo0ed in the preparation o the ann#al

acco#nt and proper e7planation hae "een #rnihed, relating to material depart#re3

L Acco#nting policie hae "een elected, and applied conitentl/ and reaona"l/, and pr#dent

j#dgement and etimate hae "een made o a to gie a tr#e and air ie0 o the tate o

aair o the .ank and o the Proit )o o the .ank or the inancial /ear ended :1

March 5E1=3

L Proper and #icient care ha "een taken or the maintenance o ade-#ate acco#nting record,

in accordance 0ith the proiion o the Companie 8Amendment9 Act, 5EEE, or

aeg#arding the aet o the .ank and or preenting and detecting ra#d and other

irreg#laritie3

L %he ann#al acco#nt hae "een prepared on a going concern "ai3

PART/


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*emand deposits up 3.&&/ to 0s. %%.&4 Crores.

Profit after ta: up %.43/ to 0s. &'32.1 Crores.

.oth "#ine and earning contin#ed to dipla/ high gro0th in


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A Project Report On Working Capital Management 1@


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O>ER>IEW O. .INANCIA" AN1 USINESS PER.ORMANCE

D#ring the /ear 5E1:H5E1=, the .ank ha 0itneed a trong gro0th in "#ine ol#me a 0ell a

proit, 0ith the net proit increaing "/ :=3? to R3 15?@3E crore rom R3 ?E3E crore the

preio# /ear3

%he total income o the .ank roe "/ >:3> to R3 ,>@E3>5 crore rom R3 =,?13=5 crore the

preio# /ear3

D#ring the ame period, the operating reen#e increaed "/ =53>> to R3 :>531 crore, 0hile

operating proit increaed "/ :?311 to R3 1,@?53?E crore3 On :1 March 5E1=, the .ank total

aet increaed "/ ==3:1 to R3:, 5@@ crore3

%he total depoit o the .ank gre0 "/ =?3>> to R3>, @? crore, 0hile the total adance gre0

"/ ?>35? to R3 :?,@?crore3

%he total demand depoit 8aing "ank and c#rrent acco#nt depoit9 hae increaed "/ =?311 to

R3 5:,=:E31 crore, contit#ting:3? o total depoit3

%he .ank ha increaed it market hare o aggregate depoit in All Sched#led Commercial .ank

8ASC.9, 0hich roe rom 13@? a on :1 March 5E1: to 53E on :E March 5E1=, While it hare

o adance roe rom 13>E to 13@ d#ring the ame period3

In the inancial /ear 5E1:H1=, the .ank incremental market hare o aggregate depoit in ASC.

0a :3: 0hile it incremental hare in adance 0a 53@>3 %he olid perormance o the .ank

depite higher proiioning on tandard aet, increae in rik 0eight on elect aet clae,

red#ction on interet paid on CRR and a hardening o interet rate d#e to tightening o the oerall

li-#idit/ it#ation #ndercore the eicac/ o the "#ine model adopted "/ the .ank3



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%he .ank contin#ed to enhance hareholder al#e and the dil#ted earning per hare or the /ear

5E1:H1= increaed to R3 5@3@ rom R3 553E the preio# /ear3 A on :1 March 5E1=, the "ook

al#e per hare o the .ank ha increaed to R3 1:>3>E rom R3 1113E? a on :1 March 5E1:3

%he .ank 0ill contin#e to derie "eneit rom the inratr#ct#re created Oer the /ear and 0ill

contin#e to p#r#e a trateg/ o proita"le gro0th thro#gh tronger corporate relationhip and an

accelerated retail c#tomer e7panion programmed drien "/ the .ank m#ltiple channel3 In 5E1:H

1=, the .ank trateg/3 %he .ank 0ill contin#e to emphai6e gro0th opport#nitie thro#gh higher

)eel o c#tomer atiaction and lo/alt/, and deepening relationhip 0ith e7iting c#tomer3 It

eek to maintain and enhance a trong retail and corporate ranchie, trengthen the tr#ct#re and

delier/ channel or increaing SM& and agric#lt#ral "#inee, e7ploit croHell opport#nitie,

oer priate "anking or highHnet 0orth c#tomer, conolidate ne0 "#ine initiatie #ch a

Credit Card, Wealth Management and .anc a#rance or )ie In#rance, and encae opport#nitie

thro#gh oerea oice or croH"order trade inance, /ndication o de"t and (RI "#ine

deelopment3

%he .ank 0ill contin#e to oc# on highH-#alit/ earning gro0th thro#gh an emphai on core

income tream #ch a (II and eeH"aed income and on maintaining a high tandard o aet

-#alit/ "/ proiding emphai on rigoro# rikHmanagement practice3 %he .ank 0ill contin#e to #e

%echnolog/ e7teniel/ to maintain competitie adantage and contin#e to #pHgrade the technolog/

platorm to proide leerage or "ringing in higher cot eiciencie3



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1



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Per3or#an)e S*##ar2

Interet income gro0 "/ >> +o+ on the "ack o >E +o+ gro0th in adance3 (et interet

margin improe to :3: d#e to lo0er cot o #nd and higher proportion o CASA3

Cot to income ratio remain ta"le at >E3

.ottom line gro0 "/ ?? +o+ aided "/ trong traction in ee income, depite higher

proiioning3

Capital ade-#ac/ ratio 8CAR9 comorta"le at 1?33

Rs '#0 9.?:< 9.?:9 C+ange B#.?:< B#.?:9 C+ange



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Interet income 11,?= 1,E5: >=3@ :1,5E1 =, >3

Interet e7pene @,@:@ 1E,>>E :?3= 5E,E :5,:5 >=3?

(et Interet

Income

:,11 @,=@: 131 1E,5: 1@,>? @E3@

(et interet

margin 89 53 :3:

Other Income 5,@@ =,@ @=3= @,EE 15,:E @=3

Other &7pene :,:? >,?5 ?@31 ,@1> 1=,5 @13:

Proiion and

contingencie

>1> 5,EE1 53> 1,?= =,1>= 1553

Proit "eore ta7 :,:: ?,@5: 1E13: ,?? 1?,E:1 ?E3=

%a7 @@ 1,?>= >3: 5,::: :,@E ?53E

Proit ater ta72

8lo9

?? 15? >53? =,=@1 @,E@ >3@

(et proit margin

891>3 1@3E 1=3: 1=35

(o3 o hare 8m9 5135 :>@3=

.ook al#e per

hare 8R9 5:=3:

P2.* 879N =3@

A7i .ank to#ched the >E mark in it adance gro0th or the tenth conec#tie -#arter in :


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appetite3 Alo, a rie in the proportion o CASA 8c#rrent and aing acco#nt9 #gget a cot

concio# trateg/ 0ith repect to depoit accretion3

Cost )entri) gro6t+&&

8R m9 mE3=

Agric#lt#re 5:,:@E @35 :?,@E @3? >@3=

Retail 1,@E 53= 15E,EE 5=3@ :E3

SM& >@,51E 1@3@ E,EE 13> >@3>

)arge corporate 1>1,E1E =?3@ 5:,:?E =35 >3>

Depoit >E,5EE ?>,>1E :=3?

CASA 1,:E :@31 :1E,:5E =>3: ?=3:

A Project Report On Working Capital Management 5:


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%erm depoit :5E,:@E ?53 :@>,1E >=3@ 1@31

Credit depoitratio

?:3> @E3

Contin#ing 0ith the trend een in the pat e0 -#arter, A7i .ank ee income regitered a trong

gro0th o 1 +o+ d#ring :


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PRO1UCTS H SER>ICES O. T,E ORGANISATION

T2pes o3 1eposit A))o*nts

While ario# depoit prod#ct oered "/ the .ank are aigned dierent name3 %he depoit

prod#ct can "e categoried "roadl/ into the ollo0ing t/pe3

1e#an$ $epositsmean a depoit receied "/ the .ank 0hich i 0ithdra0 a"le on demand3

Savings $eposits mean a orm o demand depoit 0hich i #"ject to retriction a to the

n#m"er o 0ithdra0al a alo the amo#nt o 0ithdra0al permitted "/ the .ank d#ring an/

peciied period3

A Project Report On Working Capital Management 5>


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Ter# 1epositmean a depoit receied "/ the .ank or a i7ed period 0ithdra0 a"le onl/ ater

the e7pir/ o the i7ed period and incl#de depoit #ch a Rec#rring2Reinetment Income

Certiicate2 &ncah 5=2Short term Depoit2


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Saing .ank Acco#nt can alo "e opened "/ a minor jointl/ 0ith nat#ral g#ardian or 0ith mother a

the g#ardian 8kno0n a Minor Acco#nt93 Minor a"oe the age o 15 0ill alo "e allo0ed to open

and operate aing "ank acco#nt independentl/3

L Operation o Joint Acco#nt H %he Joint Acco#nt opened "/ more than one indiid#al can "e

operated "/ ingle indiid#al or "/ more than one indiid#al jointl/3 %he Saing .ank Acco#nt

opened "/ minor jointl/ 0ith nat#ral g#ardian 2 g#ardian can "e operated "/ nat#ral g#ardian onl/3

L %he joint acco#nt holder can gie an/ o the ollo0ing mandate or the dipoal o "alance in

the a"oe acco#nt4

&ither or S#rior 4 I the acco#nt i held "/ t0o indiid#al a/, A ., the inal "alance along

0ith interet, i applica"le, 0ill "e paid to #rior on death o an/one o the acco#nt holder3

L An/one or S#rior2 4 I the acco#nt i held "/ more than t0o indiid#al a/, A, . and C, the

inal "alance along 0ith interet, i applica"le, 0ill "e paid to the #rior on death o an/ t0o

acco#nt holder3

%he a"oe mandate 0ill "e applica"le to or "ecome operational onl/ on or ater the date o mat#rit/

o term depoit3 %hi mandate can "e modiied "/ the conent o all the acco#nt holder3

L At the re-#et o the depoitor, the .ank 0ill regiter mandate 2 po0er o attorne/ gien "/ him

a#thori6ing another peron to operate the acco#nt on hi "ehal3

%he term depoit acco#nt holder at the time o placing their depoit can gie intr#ction 0ith

regard to clo#re o depoit acco#nt or rene0al o depoit or #rther period on the date o mat#rit/3

In a"ence o #ch mandate, the .ank 0ill eek intr#ction rom the depoitor2 a to the dipoal o

the depoit "/ ending intimation "eore 1> da/ o the mat#rit/ date o term depoit3



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A$vertising an$ Marketing

A7i 0ill make #re that all adertiing and promotional material i clear, air, reaona"le and not

mileading3

A7i 0ill eek /o#r peciic conent or giing detail o /o#r name and addre to an/ third part/,

incl#ding other entitie in o#r gro#p, or marketing p#rpoe3

A7i 0o#ld like to proide /o# 0ith the entire range o inancial erice prod#ct, ome o 0hich

are o#r o0n prod#ct 0hile ome other are the prod#ct o o#r gro#p2aociate2entitie or companie

0ith 0hom 0e hae tieH#p arrangement3

A7i 0ill ho0eer tell /o# a"o#t o#r aociate 2 gro#p entitie or companie haing "#ine tieH#p

arrangement 0ith # and i /o# o deire, direct their ta 2 agent or marketing their prod#ct3



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A Project Report On Working Capital Management :E


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EMP"O?EE STOC! OPTION P"AN 'ESOP0

%o ena"le emplo/ee incl#ding 0holeHtime Director o the .ank to participate in the #t#re gro0th

and inancial #cce o the .ank, the .ank ha intit#ted an &mplo/ee Stock Option Scheme #nder

0hich 5,,EE,EEE option can "e granted to emplo/ee3 %he emplo/ee tock option cheme i in

accordance 0ith the Sec#ritie and &7change .oard o India 8&mplo/ee Stock Option and &mplo/ee

Stock P#rchae Scheme9 B#ideline, 13 %he eligi"ilit/ and n#m"er o option to "e granted to an

emplo/ee i determined on the "ai o the emplo/ee 0ork Perormance and i approed "/ the

.oard o Director3

%he .ank hareholder approed plan in , the pricing

orm#la ha "een changed to the cloing price o the preio# da/ o the grant date3 %he

Rem#neration and (omination Committee granted option #nder thee plan on i7 occaion, o

option o 11,1,5>Q 1@,@,@EEQ 5@,@=,=>EQ :,E,:EQ >@,E,5=E and =?,>,?E d#ring 5EE@HE,

5EEHE, 5EEH1E, 5E1EH11, 5E11H15 and 5E15H1: repectiel/3 %he option granted, 0hich are nonH

tranera"le, et at the rate o :E, :E and =E on each o three #cceie annierarie

ollo0ing the granting, #"ject to tandard eting condition, and m#t "e e7ercied 0ithin three

/ear o the date o eting3 A o :1 March 5E15, , ?=,E: option had "een e7ercied and

1E,@5,1E option 0ere in orce3 Other tat#tor/ diclo#re a re-#ired "/ the reied S&.I

g#ideline on &SOP are gien in the Anne3

A Project Report On Working Capital Management :1


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RE>IEW O.

RE"ATE1

"ITRATURE

A Project Report On Working Capital Management :5


33/112

C,APTER/ IEW O. RE"ATE1 "ITRATURE

%he "anking ind#tr/ ha come #nder increaing peimim o late "eca#e o riing hort and longH

term interet rate3 %he "anking ind#tr/ market capitali6ation made a #"tantial decline3 Mot

inetor are concerned 0ith 0hether the ind#tr/ can #tain contin#ed proita"ilit/ a a re#lt o

thee actor3 .ank hae reponded in recent /ear to thee pro"lem "/ dieri/ing a0a/ rom

interet enitie prod#ct and erice3 .#t interet rate are the #ndamental apect o an/ inancial

erice3 %hereore, I "eliee the inancial erice ind#tr/ 0ill "e deepl/ aected "/ riing interet

rate3 .ank hae e7perienced good "#ine actor oer the pat t0o /ear3 Interet rate 0ere lo0,

credit -#alit/ 0a good, and inlation 0a lo03 %hee actor are ##all/ predictie o the t/pe o

earning "ank ho#ld report3 .#t good time cant contin#e "eca#e interet rate hike "eca#e

red#ced lending actiit/, damaged credit -#alit/, and red#ced al#e o "ond portolio3 Porter


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"argaining po0er4 I gro#ped thee t0o categorie together "eca#e in the "anking ind#tr/ the "#/er

are the #pplier and ice era, o I might a 0ell j#t dic# the it#ation a a 0hole3 Interet rate

are the ingle mot important apect o "ank proita"ilit/ the/ are the "argaining po0er3 Mot "ank

proit are deried rom net interet income3 %hi i interet income receied on loan min# interet

e7pene or "orro0ed #nd3 Interet rate determine the amo#nt o mone/ a "ank can earn3 Another

mea#re i a "ank net interet margin 0hich i a "ank net interet income diided "/ it aerage

earning aet3 %hi i a common mea#re o a "ank a"ilit/ to -#ee6e proit rom it loan3 When

interet rate all, the/ hae a poitie eect on a "ank3


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MEANING O. WOR!ING CAPITA" MANAGEMENT

Working Capital i commonl/ deined a the dierence "et0een c#rrent aet and c#rrent lia"ilitie3

&icient 0orking capital management re-#ire that irm ho#ld operate 0ith ome amo#nt o

0orking capital, the e7act amo#nt ar/ing rom irm to irm and depending, among other thing on

the nat#re o ind#tr/3

Capital re-#ired or a "#ine can "e claiied in t0o main categorie i63

:0 .iFe$ )apital5 an$


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C"ASSI.ICATION O. WOR!ING CAPITA"

Working Capital ma/ "e claiied on t0o "ai4 H

a0 On t+e 8asis o3 Con)ept7 /

On the "ai o concept, 0orking capital can "e claiied a,

Bro Working Capital

(et Working Capital

80 On t+e 8asis o3 Ti#e7 /

On the "ai o time, 0orking capital can "e claiied a,

Permanent or


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inancial or going concern concept 0herea net 0orking capital i an acco#nting concept o 0orking

capital3 .oth the concept hae their o0n merit3

%he gro concept i ometime preerred to the concept o 0orking capital or the ollo0ing reaon4

H

It ena"le the enterprie to proide correct amo#nt o 0orking capital at correct time3

&er/ management i more intereted in total c#rrent aet 0ith 0hich it ha to operate then the

o#rce rom 0here it i made aaila"le3

It take into conideration o the act eer/ increae in the #nd o the enterprie 0o#ld increae

it 0orking capital3

%he concept i alo #e#l in determining the rate o ret#rn on inetment in 0orking capital3

%he net 0orking capital concept, ho0eer, i alo important or the ollo0ing reaon4H

It i a -#alitatie concept, 0hich indicate the irmG a"ilit/ to meet it operating e7pene the

hortHterm lia"ilitie3

It indicate the margin o protection aaila"le to hort term creditor3

It i an indicator o inancial o#ndne o enterprie3

It #gget the need o inancing a part o 0orking capital re-#irement o#t o the permanent

o#rce o #nd3

A Project Report On Working Capital Management :@


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Per#anent or .iFe$ Working Capital7 /

Permanent or i7ed capital i the minim#m amo#nt, 0hich i re-#ired to en#re eectie #tili6ation

o i7ed acilitie and or maintaining the circ#lation o c#rrent aet3 &er/ irm ha to maintain a

minim#m leel o c#rrent aet i called permanent or i7ed 0orking capital a thi part o 0orking

capital i permanentl/ "locked in c#rrent aet3 A the "#ine, gro0 the re-#irement o 0orking

capital alo increae d#e to increae in c#rrent aet3

%emporar/ or *aria"le Working Capital4 H

%emporar/ or aria"le 0orking capital i the amo#nt o 0orking capital, 0hich i re-#ired to meet

the eaonal demand and ome pecial e7igencie3 *aria"le 0orking capital can #rther "e claiied

a eaonal 0orking capital and pecial 0orking capital3 %he capital re-#ired to meet the eaonal

need o the enterprie i called the eaonal 0orking capital3 Special 0orking capital i that part o

0orking capital 0hich i re-#ired to meet pecial e7igencie #ch a la#nching o e7tenie

marketing campaign or cond#cting reearch etc3

%emporar/ 0orking capital dier rom permanent 0orking capital in the ene that it i re-#ired or

hort period and cannot "e permanentl/ emplo/ed gain#ll/ in "#ine

Cal)*late )*rrent assets to 3iFe$ asset ratio

A irm need c#rrent and i7ed aet to #pport a partic#lar leel o o#tp#t3 'o0eer, to #pport the

ame leel o o#tp#t the irm can hae dierent leel o c#rrent aet3 A the irmG o#tp#t and

ale increae, the need or c#rrent aet increae3 Benerall/ the c#rrent aet do not increae in

direct proportion to o#tp#t Q c#rrent aet ma/ increae at a decreaing rate 0ith inp#t3 %hi

relationhip i "aed #pon the notion that it take a greater proportional inetment in c#rrent aet

0hen onl/ a e0 #nit o o#tp#t are prod#ced than it doe later on 0hen the irm can #e it c#rrent

aet more eicientl/3



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%he leel o the c#rrent aet can "e mea#red "/ relating c#rrent aet to i7ed aet3

%here are three policie4H

:0 coneratie c#rrent aet polic/7

CA2


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ESTIMATING WOR!ING CAPITA" NEE1S

:& "iK*i$it2 >s& Pro3ita8ilit27 Risk Ret*rn Tra$e O33&

%he irm 0o#ld make j#t eno#gh inetment in c#rrent aet i it 0ere poi"le to etimate 0orking

capital need e7actl/3 $nder perect certaint/, c#rrent aet holding 0o#ld "e at the minim#m leel3

A larger inetment in c#rrent aet #nder certaint/ 0o#ld mean a lo0 rate o ret#rn o inetment

or the irm, a e7ce inetment in c#rrent aet 0ill not earn eno#gh ret#rn3 A mall inet in

c#rrent aet, on the other hand, 0o#ld mean interr#pted prod#ction and ale, "eca#e o re-#ent

tockHc#t and ina"ilit/ to pa/ to creditor in time d#e to retrictie polic/3

A it i not poi"le to etimate 0orking capital need acc#ratel/, the irm m#t decide a"o#t leel

o c#rrent aet to "e carried3


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irm and it 0ill ace diic#ltie in o"taining #nd in the #t#re3 All thi ma/ orce the irm

into inolenc/3

Similarl/, the lo0 leel o tock 0ill re#lt in lo o ale and c#tomer ma/ hit to

competitor3 Alo, lo0 leel o de"tor ma/ "e d#e to right credit polic/, 0hich 0o#ld impair

ale #rther3 %h# the lo0 leel o c#rrent aet inole cot that increae a thi leel all3

Poli)ies 3or 3inan)ing )*rrent assets

HP#"lic depoit

"ONG TERM .INANCING4

%he o#rce o long term inancing incl#de ordinar/ hare capital, preerence hare capital

de"ent#re, long term "orro0ing rom inancial intit#tion and reere and #rpl#3 %he manage

it long term inancing rom capital reere, hare premi#m A2C, oreign project reere, "ond

redemption reere and general reere3

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S,ORT TERM .INANCING4

%he hort term inancing i o"tained or a period le than one /ear3 It i arranged in adance rom

"ank and other #pplier o hortHterm inance incl#de 0orking capital #nd rom "ank, p#"lic

depoit, commercial paper, actoring o receia"le etc3

%he Manage se)*re$loan a4H

19 )oan and adance rom "ank

59 Other loan and adance4

a9De"e"t#re2"ond

"9)oan rom State Bot3

c9)oan rom inancial intit#tion8ec#red "/ pledge o PS$

"ond and "ill accepted g#aranteed "/ "ank9

:9 Interet accr#ed and d#e on loan

8a9 rom State Bot3

8"9 rom inancial intit#tion "ond and other

%he Manage *nse)*re$loan a4 H

19 P#"lic depoit

59 Short term loan and adance4

a9


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"9


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:3 Aggreie Approach

Mat)+ing approa)+

%he irm can adopt a inancial plan 0hich matche the e7pected lie o aet 0ith the

e7pected lie o the o#rce o #nd raied to inance aet3 %h#, a ten /ear loan ma/ "e raied to

inance a plant 0ith an e7pected lie o ten /earQ tock o good to "e old in thirt/ da/ ma/ "e

inanced 0ith a thirt/ da/ commercial paper or a "ank loan3 %he j#tiication or the e7act matching

i that, ince the p#rpoe o inancing i to pa/ or aet, the o#rce o inancing and the aet ho#ld

"e relin-#ihed im#ltaneo#l/3 $ing long term inancing or hort term aet i e7penie a #nd

0ill not "e #tili6ed or the #ll period3 Similarl/, inancing long term aet 0ith hort term inancing

i cotl/ a 0ell a inconenient a arrangement or the ne0 hort term inancing 0ill hae to "e

made on a contin#ing "ai3

When the irm ollo0 matching approach 8alo kno0n a hedging approach9 long term

inancing 0ill "e #ed to inance i7ed aet and permanent c#rrent aet and hort term inancing

to inance temporar/ or aria"le c#rrent aet3 'o0 eer, it ho#ld "e reali6ed that e7act matching i

not poi"le "eca#e o the #ncertaint/ a"o#t the e7pected lie o aet3

%he irm i7ed aet and permanent c#rrent aet are inanced 0ith long term #nd and a

the leel o thee aet in increae, the long term inancing leel alo increae3 %he temporar/ or

aria"le c#rrent aet are inanced 0ith hort term #nd and a their leel increae, the leel o

hort term inancing alo increae3 $nder matching plan, no hort term inancing 0ill "e #ed i the

irm ha a i7ed c#rrent aet need onl/3

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Conservative approa)+

A irm in practice ma/ adopt a coneratie approach in inancing it c#rrent and i7ed aet3

%he inancing polic/ o the irm i aid to "e coneratie 0hen it depend more on long term #nd

or inancing need3 $nder a coneratie plan, the irm inance it permanent aet and alo a part

o temporar/ c#rrent aet 0ith long term inancing3 In the period 0hen the irm ha no need or

temporar/ c#rrent aet, the idle long term #nd can "e ineted in the trada"le ec#ritie to

conere li-#idit/3 %he coneratie plan relie heail/ on long term inancing and, thereore, the

irm ha le rik o acing the pro"lem o hortage o #nd3 %he coneratie inancing polic/ i

ho0n "elo03 (ote that 0hen the irm ha no temporar/ c#rrent aet, the long term #nd releaed

can "e ineted in marketa"le ec#ritie to "#ild #p the li-#idit/ poition o the irm3

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IMPORTANCE O. WOR!ING CAPITA"

:&Ti#e $evote$ to 6orking )apital #anage#ent7/

%he larget portion o inancial manager time i deoted to da/ to da/ internal operation the irm3

%hi ma/ "e appropriatel/ #m #p #nder the heading WORKI(B CAPI%A) MA(AB&M&(%&


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.ACTORS 1ETERMINING T,E WOR!ING CAPITA" REUIREMENT

:& NATURE O. USINESS7 /

%he re-#irement o 0orking capital i er/ limited in p#"lic #tilit/ #ndertaking #ch a &lectricit/,

Water S#ppl/ and Rail0a/ "eca#e the/ oer cah ale onl/ and #ppl/ erice not prod#ct and

no #nd are tied #p in inentorie and receia"le3 On the other hand, the trading and inancial irm

re-#ire le inetment in i7ed aet "#t hae to inet large amo#nt in c#rrent aet3 %he

man#act#ring #ndertaking re-#ire i6a"le amo#nt o 0orking capital along 0ith i7ed inetment3

ER7 /

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%here i an inere coHrelationhip "et0een the -#ant#m o 0orking capital and the elocit/ or peed

0ith 0hich the ale are aected3 A irm haing a higher rate o tock t#rnoer 0ill need lo0er

amo#nt o 0orking capital a compared to a irm haing a lo0 rate o t#rnoer3

5. CRE1IT PO"IC?4 H

Credit polic/ aect the 0orking capital re-#irement in t0o 0a/4

8a9 %erm o credit allo0ed "/ c#tomer to the irm,

8"9 %erm o credit aaila"le to the irm3

A concern that p#rchae it re-#irement on credit and ell it prod#ct2erice on cah

re-#ire leer amo#nt o 0orking capital and iceHera3

& WOR!ING CAPITA" C?C"E7 /

%he peed 0ith 0hich the 0orking c/cle complete one c/cle determine the re-#irement o

0orking capital3 )onger the c/cle larger i the re-#irement o 0orking capital3

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1ETORS

CAS, .INIS,E1

GOO1S

RAW MATERIA"WOR! IN

PROGRESS


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If you ... Then ...

Collect receia"le 8de"tor9

ater+o# releae cah

rom the c/cle

Collect receia"le 8de"tor9

lo0er+o#r receia"le

oak #p cah

Bet "etter credit 8in term o

d#ration or amo#nt9 rom

#pplier

+o# increae /o#r

cah reo#rce

;& RATE O. GROWT, AN1 EXPANSION O. USINESS7 /

%he larger i6e "#inee re-#ire more permanent and aria"le 0orking capital in comparion to

mall "#ine3 I a compan/ i gro0ing, it 0orking capital re-#irement 0ill alo go on increaing3

%h#, the gro0ing concern re-#ire more 0orking capital a compared to the ta"le ind#trie3

@& SEASONA" >ARIATION7 /

Benerall/, d#ring the "#/ eaon, a irm re-#ire larger 0orking capital than in the lack eaon3

B& USINESS ."UCTUATION7 /

In period o "oom, 0hen the "#ine i propero#, there i a need or larger amo#nt o 0orking

capital d#e to rie in ale, rie in price, optimitic e7panion o "#ine etc3 On the contrar/ in

time o depreion, the "#ine contract, ale decline, diic#ltie are aced in collection rom

de"tor and the irm ma/ hae a large amo#nt o 0orking capital idle3

:=& EARNING CAPACIT? AN1 1I>I1EN1 PO"IC? 7/

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Some irm hae more earning capacit/ than other d#e to -#alit/ o their prod#ct, monopol/

condition, etc3 S#ch irm ma/ generate cah proit rom operation and contri"#te to their 0orking

capital3 %he diidend polic/ alo eect the re-#irement o

0orking capital3 A irm maintaining a tead/ high rate o cah diidend irrepectie o it proit

need more 0orking capital than the irm that retain larger part o it proit and doe not pa/ o high

rate o cah diidend3

::&PRICE "E>E" C,ANGES7 /

Price leel change alo aect 0orking capital need3 I the price o dierent good increae, to

maintain ame leel o prod#ction, more 0orking capital i needed3

:AI"AI"IT? O. RAW MATERIA"7 /

Aaila"ilit/ o ra0 material on the contin#o "ai aect the re-#irement o 0orking capital3 %here

are certain t/pe o ra0 material, 0hich are not aaila"le reg#larl/3 In #ch a it#ation irm re-#ire

greater 0orking capital to meet the re-#irement o prod#ction3 Some ra0 material are aaila"le in

partic#lar eaon onl/ or e7ample 0ool, cotton, oil eed, etc3 %he/ hae to keep greater 0orking

capital3

:9& MAGNITU1E O. PRO.IT7 /

Magnit#de o proit i dierent or dierent "#inee3 (at#re o prod#ct, control on the market and

a"ilit/ o manager etc3 determine the -#ant#m o proit3 I the proit margin i high, it 0ill help to

arrange #nd internall/, 0hich 0ill alo increae the 0orking capital3

:& OT,ER .ACTOR7 /

a9 Operating eicienc/

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"9 Management a"ilit/

c9 Irreg#laritie o #ppl/

d9 Import polic/

e9 Aet tr#ct#re

9 Importance o la"or

CAPITA" MANAGEMENT

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%he .ank trie or the contin#al enhancement o hareholder al#e3 It capital management

rame0ork help to optimie the #e o capital "/ en#ring the right compoition o capital in relation

to "#ine gro0th and the eicient #e o capital thro#gh an optimal mi7 o prod#ct and erice3

D#ring the /ear, the .ank contin#ed to attract inetor interet rom dometic and oreign

intit#tional inetor, 0ith a i6ea"le increae in trading ol#me and price3 D#ring 5E1:H1=, the

.ank ha raied capital aggregating R3 1,?531 crore thro#gh Innoatie Perpet#al De"t

Intr#ment 8IPDI9, eligi"le a %ier I capital and %ier II capital in the orm o $pper %ier II and

#"ordinated "ond 8#nec#red redeema"le nonconerti"le de"ent#re93 O thi, the .ank ha raied

$S Dollar 55? million 8e-#ialent to R3 1E5:3E1 crore9 "/ 0a/ o '/"rid %ier I capital and $pper

%ier II capital rom Singapore #nder the M%( Programme3 %hi additional capital ena"led the .ank

to reinorce it gro0th trateg/ and hore #p it capital ade-#ac/ ratio3 Cone-#entl/, a on :1 March

5E1=, the .ank capital ade-#ac/ ratio roe to 113>@ rom 113E lat /ear3

%he ollo0ing ta"le et orth the rikH"aed capital, rikH0eighted aet and capital

ade-#ac/ ratio comp#ted in accordance 0ith the applica"le R.I g#ideline 5E3 %he .ank ha al0a/

oc#ed on innoation and dierentiation3 In thi direction, d#ring the /ear, the .ank ha opened

pecialied Priorit/ .anking "ranche or the high net0orth c#tomer egment3 Priorit/ .anking

"ranche hae "een conceied a a ingle top hop or al#ent C#tomer, catering to all their

"anking and inetment need, and the .ank i the irt to la#nch #ch a concept in India3

%hee "ranche are e7cl#ie "o#ti-#e "anking "ranche 0ith a pl#h am"ience catering to high

net0orth indiid#al, that take the Priorit/ .anking prod#ct to an e7periential leel, oering erice

in a dicreet manner 0hile maintaining comort and conidentialit/ or the c#tomer3 D#ring 5E1:H

1=, three #ch "ranche 0ere opened in the citie o P#ne, M#m"ai and Kolkata, 0ith plan to open

more #ch "ranche at other #r"an center in 5E11H153

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%he .ank i er/ enitie to the priac/ o it c#tomer and doe not engage in #nolicited

taleHcalling3 In thi regard, the .ank ha taken proactie mea#re to eek poitie c#tomer conent

on croHelling initiatie3 %he .ank la#nched project Sampark, 0hich inole meeting c#tomer

aceHtoHace at "ranch location, or o#tide A%M and eeking their 0ritten conent or croHelling

initiatie3 %he project i an intenie logitical e7ercie and "/ endHMarch 5E11, lac c#tomer

conent hae "een ac-#ired3 %hi gie the .ank a #ll/ compliant internal data"ae or croHell

initiatie #ch a or inetment adior/ erice and in#rance prod#ct3 %hi 0ill acilitate in

"ooting the ee income rom croHell o ario# prod#ct3 In it contant endeaor to proide

conenience to it c#tomer, the .ank ha "een aggreiel/ deeloping it alternatie "anking

channel, namel/ the A%M net0ork, Internet .anking and Mo"ile .anking3 %hee channel hae

receied oer0helming repone rom it c#tomer 0ith regitration and tranaction ig#re

increaing #"tantiall/ oer the preio# /ear3 D#ring the /ear, the .ank added 1555 A%M,

there"/ taking the net0ork i6e to 5=E5 on :1 March 5E1:3 %he .ank oer acce to it c#tomer

to oer 1,EEE A%M acro the co#ntr/ thro#gh "ilateral and m#ltilateral A%M haring

arrangement3 .eginning 5EE1, the .ank had identiied the A%M channel a a trong tool or

c#tomer ac-#iition and conenience3 At =3@E A%M per "ranch, the .ank ha the highet A%M to

"ranch ratio in the co#ntr/3 %he high A%M to "ranch ratio ha "een part o the gro0th trateg/ and

ha "een a major actor in the high gro0th o aing "ank depoit acco#nt and "alance3

Contin#ing 0ith it eort in proiding the #tmot in conenience and aet/ to it c#tomer, the

.ank ha promoted it mo"ile "anking erice to ena"le c#tomer to acce their acco#nt on their

mo"ile phone3 %he erice alo end o#t peciic tranaction alert on the mo"ile phone o

regitered c#tomer, inorming the c#tomer o the actiit/ in the acco#nt, there"/ giing an added

leel o aet/ to the c#tomer3 %he mo"ile channel ha o#nd increaing acceptance among the

.ank c#tomer3 D#ring the inancial /ear, =E o the incremental c#tomer igned on or mo"ile

"anking erice3 With 131E million c#tomer regitered or mo"ile "anking, the .ank ha among

the highet mo"ile regitration penetration leel among "ank c#tomer3 %he .ank i #ni-#el/

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CORPORATE AN!ING

Corporate .anking "#ine o the .ank proide -#alit/ prod#ct to large and midHi6ed client3

%he prod#ct incl#de credit, trade inance or dometic a 0ell a international tranaction,

tr#ct#red inance, and project inance and /ndication erice3

%he .ank contin#e to p#r#e a t0oHpronged trateg/ o 0idening the c#tomer "ae a 0ell a

deepening e7iting client relationhip3 Care#l choice o ne0 c#tomer "aed on appropriate rikH

ret#rn g#ideline orm the "ai or the trateg/ o 0idening the c#tomer "ae3 %he deepening o

e7iting client relationhip i achieed "/ a care#l acco#nt trateg/ oc#ing on increaing the

croHell o ario# corporate "anking prod#ct, a alo prod#ct rom other diiion o the .ank

incl#ding inetment "anking and retail prod#ct3

D#ring the /ear, large corporate adance gre0 "/ ?E to R3 1,:=? crore rom R3 11,5? crore

in the preio# /ear3 %he .ank took tep to oc# on ee income mainl/ rom trade inance acilitie

and doc#ment handling3 %hi method o ee generation i ta"le and #taining3 Bien the Increaing

oerea preence o the .ank, the trade inance "#ine i et to gro0 igniicantl/ oer the coming

/ear3 %he .ank take electie &7po#re to project inancing in area o inratr#ct#re a 0ell a

man#act#ring project et #p "/ rep#ted ind#tr/ gro#p3 It contantl/ 0ork to #pgrade it kill in

inancial tr#ct#ring to "e a"le to contin#e proiding al#e to it corporate c#tomer3

%he oerea preence ha ena"led the .ank to leerage it e7iting relationhip #rther "/ granting

loan to0ard &C. "/ Indian corporate a 0ell a to ena"le ac-#iition inancing3 %he .ank ha

alo contri"#ted to0ard inancing inratr#ct#re project and other orm o project inance thro#gh

it oerea "ranche3 Channel inance alo gre0 on the "ack o trong corporate demand3 %he

centralied Channel


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TREASUR?

%he integrated %rea#r/ manage the glo"al #nding o the "alance heet, dometic and oreign

c#rrenc/ reo#rce o the .ank, compliance 0ith tat#tor/ reere re-#irement, a 0ell a optimi6e

on opport#nitie in the market thro#gh managing proprietar/ poition in oreign e7change and

interet rate market3 With the e7panion o the .ank oerea, the %rea#r/ 0ill look to leerage on

the net0ork to 0iden prod#ct cope a 0ell a increae reen#e generation rom opport#nitie in the

glo"al market3

%he contin#ed thr#t on ma7imi6ing ret#rn rom c#tomer relationhip in the %rea#r/ ha re#lted

in gro0th o >1 in c#tomer e7change t#rnoer and ?E in reen#e3 %he %rea#r/ oered

tr#ct#red ol#tion to c#tomer #ing oreign e7change and deriatie oering, 0hich ha

re#lted in igniicant al#e addition to c#tomer relationhip3 In it contin#ed eort to oer top o

the line pa/ment ol#tion to c#tomer, the .ank ha oered Real %ime Bro Settlement 8R%BS9

and (ational &lectronic 1 oer the preio# /ear3 Depite a challenging

interet rate enironment, the .ank holding in goernment ec#ritie ha "een #"tantiall/

protected rom market rik a it i held a per peciied g#ideline o R.I3 %he portolio gae a ret#rn

o @3?=3 %he .ank eta"lihed a Medi#m %erm (ote 8M%(9 Programme or ro One "illion a a

part o the #nding plan or it oerea operation3

D#ring the /ear, the .ank raied $SD 1>E million a $pper %ierHII 8the irt h/"rid capital i#ance

o#t o India9 and $SD =? million a '/"rid %ierHI capital in term o recent g#ideline i#ed "/

R.I3 %he .ank alo raied enior de"t thro#gh the i#ance o $SD 5>E million o threeH/ear

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USINESS AN!ING

.#ine .anking ha conitentl/ oc#ed on proc#ring lo0 cot #nd "/ oering a range o

c#rrent acco#nt prod#ct and cah management ol#tion acro all "#ine egment coering

corporate, intit#tion, Central and State Boernment Minitrie and $ndertaking a 0ell a mall

"#ine c#tomer3 Cro elling o tranactional "anking prod#ct to deelop acco#nt relationhip,

aided "/ prod#ct innoation and a c#tomerHcentric approach hae "orne r#it in the orm o gro0ing

c#rrent acco#nt depoit "alance and increaing realiation o tranaction "anking ee3 So#rcing o

c#rrent acco#nt depoit i a oc# area or gro0th3 A o :1 March 5E11, c#rrent acco#nt depoit

gre0 "/ =13: to R3 11,:E=3:1 crore rom R3 @,@E3E crore in the preio# /ear3 On a dail/

aerage "ai, c#rrent acco#nt depoit gre0 rom a leel o R3 =,=5 crore or the /ear 5EEH1E to

R3 @,1: crore or the /ear 5E1EH113 D#ring 5E15H1:, the .ank o#rced @,>@ ne0 c#rrent

acco#nt a againt @@,5?= in the preio# /ear3 %here 0a a greater oc# on ac-#iition o high

al#e c#rrent acco#nt, th# accelerating the pace o gro0th in c#rrent acco#nt depoit "alance

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CAS, MANAGEMENT

Cah Management Serice 8CMS9 initiatie leeraged the .ank gro0ing "ranch net 0ork and

ro"#t technolog/ to proide a 0ide range o c#tomied ol#tion to #it the d/namic re-#irement

o it client3 %he .ank oer CMS ol#tion or collection and pa/ment 0ith an ideal "lend o

tr#ct#red MIS and #nd moement o that client are a"le to enhance their #nd management

capa"ilitie3 Alo the .ank We" CMS initiatie allo0 them to ie0 their dail/ tranaction on a

real time "ai3 %he trong correpondent "ank alliance 0ith partner "ank oer corporate client a

0ide geographical coerage3 CMS ora/ i not onl/ emerging a an important o#rce o ee income

"#t i alo contri"#ting igniicantl/ to0ard garnering 6ero cot #nd, orging large relationhip3

%he .ank ha eta"lihed a trong preence "/ oering collecting "ank erice in the IPO21

A#thoried .ranche3 Additionall/, the .ank i proiding collection and pa/ment erice to o#r

Central Boernment Minitrie and Department and een State Boernment and $nion

%erritorie3 %he .ank ha #rther trengthened it aociation 0ith the eHBoernance initiatie o

ario# State Boernment in India aimed at proiding "etter citi6en erice "/ etting #p integrated

citi6en acilitation center3 D#ring the /ear, the .ank aociated 0ith the Choice Project o the

Boernment o Chhattigarh and the eHS#idha initiatie o Boernment o $ttar Pradeh3 D#ring

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5E1EH11, the .ank ha alo e7tended the "#ine o Stamp D#t/ Collection thro#gh ranking in

Rajathan, in addition to Maharahtra and B#jarat3 %he .ank alo la#nched an eH%a7 Pa/ment


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"EN1ING TO AGRICU"TURE5 SME AN1 MI1 CORPORATES

%o #ll/ e7ploit the "#ine potential o the Small and Medi#m &nterprie 8SM&9 and Mid

Corporate egment, to "ring greater oc# on priorit/ ector lending, to achiee the mall cale

ind#tr/ and agric#lt#ral lending target i7ed "/ R.I and to e7plore ne0 aen#e o lending like

microinance, a eparate "#ine oc# 0a proided d#ring the /ear3


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comm#nit/3 %he .ank alo ineHt#ned it e7iting loan prod#ct to #ll/ #it the aried re-#irement

o it agric#lt#re "#ine clientele3 D#ring the /ear, the total agric#lt#ral adance o the .ank gre0

"/ an impreie 11>, 0ith direct agric#lt#ral lending recording a 1 gro0th oer the preio#

/ear3 %h#, or the econd /ear in #cceion, the .ank direct agric#lt#ral lending ha gro0n "/

oer E3 At the end o the /ear, direct agric#lt#ral adance tood at 3> o the net "ank credit,

0hich i the highet eer achieed "/ the .ank3 %he .ank 0o#ld contin#e the oc# on "#ilding #p

it agric#lt#re "#ine on proita"le line and i recr#iting agric#lt#re "#ine peronnel to #tain

gro0th plan and maintain portolio -#alit/3

%he microHinance "#ine o the .ank 0itneed increaing o#treach thro#gh ?= microHinance

relationhip3 %he portolio #nder microHinance increaed "/ 1?1 d#ring the /ear, 0hich

correpond to a client o#treach o ?3?5 lac, the majorit/ "eing poor 0omen in r#ral area3 %he .ank

alo initiated the proce o e7tending micro credit to elHhelp gro#p thro#gh illage organiation3

%he .ank ha alo "een implementing ario# goernmentHponored cheme3 With a ie0 to

e7panding o#r reach in the (ortheatern region o the co#ntr/, the .ank ha igned a Memorand#m

o $ndertanding 0ith So#th Aia &nterprie Deelopment


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1ESIGN O.STU1?

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C,APTER/ 9& 1ESIGN O. STU1?

RESEARC, MET,O1O"G?

%he methodolog/ decri"e the proce o reearch 0ork3 %hi contain the oerall reearch deign,

the data collection method, the ampling proced#re, the ield #re/ method and the anal/i

proced#re3

Decriptie Reearch

Primaril/ "aed on primar/ data collection3


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T,E STU1?

RESEARC, 1ESIGN

A Reearch deign i a rame0ork or "l#eprint or cond#cting the marketing reearch project3

EFplorator2 Resear)+

P#rpoe &7plorator/ Reearch

ES O. T,E STU1?

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%he ollo0ing are the o"jectie o reearch cond#cted4

%o #ndertand the trategie o "ank3

%o #ndertand the "anking ind#tr/3

%o #ndertand the compan/G #nction3

%o #gget 0a/ or improing the market hare, proit margin3

%o make an eectie adertiing campaign3

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"ITERATURE RE>IEW

Doing a )iterat#re Reie0 i a practical and comprehenie g#ide to reearching, preparing and

0riting a literat#re reie0, a major component o reearch project3 It i an eential tool not onl/

or potgrad#ate t#dent "#t alo or #ndergrad#ate and noice reearcher acro the ocial

cience and h#manitie3

A literat#re reie0 i an e7amination o the reearch that ha "een cond#cted in a partic#lar ield o

t#d/3 'art 819 deine it a4

%he election o aaila"le doc#ment 8"oth p#"lihed and #np#"lihed9 on the topic, 0hich

contain inormation, idea, data and eidence3 %hi election iT 0ritten rom a partic#lar

tandpoint to #lil certain aim or e7pre certain ie0 on the nat#re o the topic and ho0 it

i to "e inetigated, and

%he eectie eal#ation o thee doc#ment in relation to the reearch "eing propoed

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1ATA CO""ECTION MET,O1S

Data Collection i an important apect o an/ t/pe o reearch t#d/3 Inacc#rate data collection can

impact the re#lt o a t#d/ and #ltimatel/ lead to inalid re#lt3

Data collection method or impact eal#ation ar/ along a contin##m3 At the one end o thi

contin##m are -#antatatie method and at the other end o the contin##m are #alitatie method

or data collection

*antitative an$ *alitative 1ata )olle)tion #et+o$s

%he *antitative $ata )olle)tion #et+o$s, rel/ on random ampling and tr#ct#red data collection

intr#ment that it diere e7perience into predetermined repone categorie3 %he/ prod#ce re#lt

that are ea/ to #mmari6e, compare, and generali6e3

#antitatie reearch i concerned 0ith teting h/pothee deried rom theor/ and2or "eing a"le to

etimate the i6e o a phenomenon o interet3 Depending on the reearch -#etion, participant ma/

"e randoml/ aigned to dierent treatment3 I thi i not eai"le, the reearcher ma/ collect data

on participant and it#ational characteritic in order to tatiticall/ control or their inl#ence on the

dependent, or o#tcome, aria"le3 I the intent i to generali6e rom the reearch participant to a

larger pop#lation, the reearcher 0ill emplo/ pro"a"ilit/ ampling to elect participant3

%/pical -#antitatie data gathering trategie incl#de4

&7periment2clinical trial3

O"ering and recording 0ellHdeined eent 8e3g3, co#nting the n#m"er o patient 0aiting in

emergenc/ at peciied time o the da/93

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O"taining releant data rom management inormation /tem3

Adminitering #re/ 0ith cloedHended -#etion 8e3g3, aceHto ace and telephone

interie0, -#etionnaire etc93

1ATA CO""ECTION SOURCES

Poert/ map are not onl/ inl#enced "/ the election o a concept#al approach to deine poert/ and

"/ the choice o a peciic poert/ indicator3 %he data collection method itel can determine the

reol#tion o the poert/ map and the t/pe o anal/i to cond#ct3

A "rie reie0 o dierent data collection method 0ill highlight the pro and con o ario#

#"jectie and o"jectie method and the tradeHo "et0een #re/ and cen# data3 A hort ection

#mmari6ing major o#rce or international poert/ map 0ill ho0 that the pool o e7iting data

or a glo"al poert/ map i limited3 Additional inetment in data collection and modeling need to

"e made to prod#ce map 0ith higher reol#tion, more comprehenie poert/ mea#re, and a 0ider

international co#ntr/ coerage3

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ANA"?SISO.

1ATA

A Project Report On Working Capital Management @>


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C,APTER/ & ANA"?SIS O. 1ATA

MANAGEMENT 1ISCUSSION AN1 ANA"?SIS

$"C0#- in

the econd hal o the /ear, R.I anno#nced #rther mea#re to tem inlationar/ e7pectation and

A Project Report On Working Capital Management @?


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alo to contain the credit gro0th that p#t pre#re on the li-#idit/ poition, there"/ hardening interet

rate in the econom/3

Bro0th trend 0ere accompanied "/ ro"#tne o oerall macroHeconomic #ndamental,

partic#larl/ 0ith tangi"le progre to0ard ical conolidation and a trong "alance o pa/ment

poition3 With an #p#rge in inetment, the o#tlook i ditinctl/ #p"eat3 'o0eer, the major

challenge lie in taking macroHeconomic leel correctie action to tackle the #ppl/ ide contraint

to keep inlation at an accepta"le leel3 Interet rate hae alread/ ho0n ign o hardening, 0hich

ma/ aect #rther inetment in the ind#trial ector3 In order to maintain the BDP gro0th oer

in the coming /ear, the major challenge lie in "alancing o c#rrent pace o gro0th 0ith nonH

accelerating inlation3 %he c#rrent polic/ mea#re adopted "/ monetar/ a#thoritie to tighten

li-#idit/ in order to ight inlation led to an increae in interet rate, 0hich co#ld lo0 do0n

economic gro0th in the coming /ear, partic#larl/ in repect o inratr#ct#re and other core ector

project3

Againt the "ackdrop o generall/ trong economic #ndamental in the lat /ear, the "anking /tem

eem to hae done 0ell d#ring 5E1EH11, relected in the gro0th o "#ine in the orm o aggregate

depoit and adance3 In term o the Weekl/ Statitical S#pplement p#"lihed "/ R.I, the

aggregate depoit o All Sched#led Commercial .ank 8ASC.9 a on :E March 5E1: hae gro0n

"/ 5=35@ rom :1 March 5E15, 0hile "ank credit ha gro0n "/ 53>13 'o0eer, there contin#e

to "e area o concern, primaril/ hardening interet rate that ma/ re#lt in pre#re #pon the net

interet margin3 %he contin#ing rie in interet rate ma/ make ario# project economicall/

#nia"le, re#lting in higher (PA and alo aect al#ation3 )atl/, the harp increae in proiion

on tandard aet 0ill impact the proita"ilit/ o "ank3

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margin to hae "een #nder greater pre#re3 %he "ank, tho#gh, appear to hae in#lated #ch

pre#re3 Interet margin, 0hile the/ hae declined rom the :31> per cent een in 5EE:HE=, are till

hoering cloe to the : per cent mark3 8%he compara"le margin or ICICI .ank and 'D


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GRAP,S

RATE O. 1I>E1EN1 1EC"AIRE1 ? AXIS AN!

+&AR DI*&D&(D

5EE:H5EE= 15

5EE=HE> 1>

5EE>HE? 5E

5EE?HE@ 55

5EE@HE 5>

5EEHE 5

5EEH1E :>

5E1EH11 =>

5E11H15 ?EV

RETAI" "IAI"ITIES

A Project Report On Working Capital Management E


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+&AR

S. D&POSI% 8RS3

CROR&9

5EE?H5EE@ 1=5:

5EE@H5EE 5>>

5EEH5EE =1

5EEH5E1E E?1

5E1EH5E11 151?>

RETAI" "IAI"ITIES

+&AR R&%AI)



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D&POSI%8RS3CROR&9

5EE?H5EE@ ==1

5EE@H5EE ?5?

5EEH5EE ?1?

5EEH5E1E 1:?1

5E1EH5E11 155E



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EN,ANCING S,ARE ,O"1ER >A"UE O. AXIS AN!

TA"ES

RATIO ANA"?SIS O. AXIS AN!

Mar E Mar E@ Mar E? Mar E> Mar E=

Capital Ade-#ac/ E3EE 113>@ 113E 153?? 11351



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Ratio&AR(I(BS

RA%IOS

Income rom

1 =53>? :?35

Operating

Income a a o

Working

= 5=3E1



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On (et WorthReported Ret#rn

On (et Worth15351 13=5 1?3 1:3 5=3=

.ORROWI(B

RA%IOS.orro0ing rom

R.I a to %otal

.orro0ing

E3EE E3EE E3EE E3EE E3EE

.orro0ing rom

other "ank a a

to %otal

.orro0ing

E3EE 113>= :53:@ 3>> 13?1

.orro0ing rom

other a a to

%otal .orro0ing

1EE3EE 5:31@ =>3?= ?:3=5 >@3:?

.orro0ing

0ithin India a a

to %otal

.orro0ing

1EE3EE :=3@1 @3E5 @53 @>3@

.orro0ing rom

o#tide India a a

to %otal

.orro0ing

E3EE ?>35 513@ 5@3E1 5=3E5

D&POSI%

RA%IOS

Demand Depoit 1EE3EE 1355 13? 553>? 5>3@=

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o %otal DepoitSaing Depoit

o %otal DepoitE3EE 5E3?5 5E31E 1>3=5 153::

%ime Depoit o

%otal DepoitE3EE ?E31= ?E3E5 ?53E1 ?135

Depoit 0ithin

India a to

%otal Depoit

3?: 1EE3EE 1EE3EE 1EE3EE

Depoit O#tide

India a to

%otal Depoit

E3:? E3EE E3EE E3EE

P&R .RA(C'

RA%IOSOperating

Income Per

.ranch

3@= @3 ?3@ 3:

Operating Proit

Per .ranch531: 5311 135 13?

(et Proit Per

.ranch131 13E E3? 13E

Peronnel

&7pene Per

.ranch

E3? E3>: E3>5 E3=

Adminitratie

&7pene Per

.ranch

13>= 135 E3 13?

3:= =3E5 :3>5 =3E>



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&7pene Per

.ranch.orro0ing Per

.ranch35? >3? >35> 53E

Depoit Per

.ranch1E=3@ 31= :3>> :31>

P&R

&MP)O+&&

RA%IOS8R3 in $nit9Operating

Income Per

&mplo/ee

>,=@5,>=53: >,=>,5E?3@ =,5,5=3E? ?,1:@,5@3??

Operating Proit

Per &mplo/ee1,1>,=@?3?> 1,=>1,E>3E@ 1,5:,5=>3? 1,=:E,@=3

(et Proit Per

&mplo/ee??:,5?=3: @=5,:3@@ ?>,E3= @1,?:=31@

Peronnel

&7pene Per

&mplo/ee

:5,11E3:5 :??,>>53=5 :@1,=?>3?? :>1,@>>31>

Depoit Per

&mplo/ee>,E:,=E@35 ?1,51:,>3>@ ??,?E@,>>3@E ?E,@,E311

E,::3@ :=,E>1,:13E5 :5,@@5,:?53@= 5@,1?5,>E3??

A Project Report On Working Capital Management @


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SWOT ANA"?SIS .OR T,E AXIS

STRENGT,S7

'igh -#alit/ erice proide

Strong and 0ell management3

Second larget priate "ank all oer India

A;IS .ank ha "een to a"le maintain the -#alit/ o it loan portolio

WEA!NESSES7

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Strengthening o r#pee hitting proit

A"ilit/ to pa thro#gh price increae in ario# market d#e to

Intene competition3

Manpo0er pro"lem i "ig pro"lem3

OPPORTUNITIES7

Deelopment o modern "anking3

Potential or gro0th thro#gh increaed penetration3

Opport#nit/ to no41 "ank all oer india

Increaing pop#larit/ in oerea market

T,REATSC,A""ENGES7

&nironment 0ith diere pla/er

Riing competitor or priate "anking

Change in ical "eneit2la0

People attraction retention

Management o co#ntr/ rik3



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.IN1INGS

C,APTER/ D& .IN1INGS

'ere lot o thing I ind to make thi project report3


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Secondl/ kno0n there operation /tem3

%hirdl/ kno0n there controlling rik management3


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identiied rik3 %he .ank, ince the inception o the Rik Department, ha deeloped inHho#e kill

to manage ke/ area o rik i63, credit rik, market rik and operational rik3

Cre$it Risk

Credit rik coer the ina"ilit/ o a "orro0er or co#nterHpart/ to hono#r commitment #nder an

agreement and an/ #ch ail#re ha adere impact on the inancial perormance o the .ank3

Accordingl/, the .ank trie to eectiel/ ae, adminiter, monitor and enorce recoer/ o loan

to ario# client3

%he Additional mea#re o rik containment at the indiid#al e7po#re and at the portolio leel

are4

Rating linked e7po#re norm adopted "/ the .ank are coneratie in comparion to the

reg#lator/ pr#dential e7po#re norm3

Ind#tr/H0ie e7po#re ceiling are "aed on the ind#tr/ perormance, propect and the

competitiene o the ector3

&7po#re 0ith "#llet repa/ment, long getation project, longer tenor e7po#re, and longer

moratori#m are aeed 0ith additional care3

Committee o Director Rik Management Committee

A#dit Committee .oard o Director

Credit Committee A)CO Operational Rik

Inetment Committee Management Committee

5 Ditri"#tion o Credit Rik Aet "/ Aet #alit/

Ind#tr/ anal/i pla/ an important part in aeing the potential concentration rik rom 0ithin the

loan portolio3 Partic#lar attention i gien to ind#tr/ ector 0here the .ank "eliee there i a high

degree o rik or potential or olatilit/ in the #t#re33



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Cons*#er Cre$it Risk Manage#ent

%he .ank contin#ing aggreie ora/ into retail "anking ha re#lted in a harp "#ild #p in the

retail aet portolio3 %he ke/ challenge or a health/ retail aet portolio i to en#re a ta"le rik

adj#ted earning tream "/ maintaining c#tomer dea#lt 0ithin accepta"le leel3 %he .ank

periodicall/ carrie o#t a comprehenie portolio leel anal/i o retail aet portolio 0ith a rik

ret#rn perpectie3 Rik mea#rement or the retail portolio i aeed primaril/ on a credit coring

"ai3 D#ring the /ear, the .ank ha initiated a project to reamp it e7iting credit coring model

or retail aet 0ith e7ternal #pport rom a rep#ted international endor3

Market Risk

Market rik i the rik to the .ank earning and capital d#e to change in the market leel o

interet rate or price o ec#ritie, oreign e7change and e-#itie, a 0ell a the olatilitie o thoe

change3 %he .ank i e7poed to market rik thro#gh it trading actiitie, 0hich are carried o#t "oth

or c#tomer and on a proprietar/ "ai3 %he .ank adopt a comprehenie approach to market rik

management or it trading, inetment and aet2lia"ilit/ portolio3 %he .ank #e ario# rik

metric, "oth tatitical and nonHtatitical, incl#ding nonHtatitical mea#re like poition, gap and

enitiitie 8d#ration, P*.P, option Breek9Q *al#e at Rik 8*aR9Q enitiit/ o net interet income

8&aR9Q and enitiit/ o the &conomic *al#e o &-#it/ 8&*&93

"iK*i$it2 Risk

)i-#idit/ rik arie in an/ "ank general #nding o it actiitie3 A part o the li-#idit/

management contingenc/ planning, the .ank aee potential trend, demand, eent and

#ncertaintie that co#ld reaona"l/ re#lt in an adere li-#idit/ condition3 %he .ank conider the

impact o thee potential change on it o#rce o hort term #nding and long term li-#idit/



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planning3 %he .ank A)M polic/ deine the gap limit or the tr#ct#ral li-#idit/ and the li-#idit/

proile o the .ank i anal/ed on a tatic a alo a d/namic "ai "/ tracking all cah inlo0 and

o#tlo0 in the mat#rit/ ladder "aed on the e7pected occ#rrence o cah lo03 %he .ank

#ndertake "ehaio#ral anal/i o the nonHmat#rit/ prod#ct i63 aing and c#rrent depoit and

cah credit2 oerdrat acco#nt, on a periodic "ai to acertain the olatilit/ o reid#al "alance in

thoe acco#nt3 %he rene0al pattern and premat#re 0ithdra0al o term depoit and dra0 do0n o

#naailed credit limit are alo capt#red thro#gh "ehaio#ral t#die3

Co*ntr2 Risk

%he .ank ha p#t in place a rik monitoring /tem or the management o co#ntr/ rik3 %he .ank

#e the eenHcategor/ claiication i63 inigniicant, lo0, moderate, high, er/ high, retricted

and oHcredit ollo0ed "/ the &7port Credit B#arantee Corporation o India )td3 8&CBC9 and

rating o international rating agenc/ D#n .radtreet or monitoring the co#ntr/ e7po#re3 %he

rating o co#ntrie are "eing #ndertaken at monthl/ interal or at more re-#ent interal i the

it#ation o 0arrant i3e3 in cae o a igniicant change in the condition o a co#ntr/ inoling harp

deterioration o it rating3 &7po#re to a co#ntr/ incl#de all creditHrelated lending, trading and

inetment actiitie, 0hether cro "order or locall/ #nded3 %he .ank ha et #p e7po#re limit or

each rik categor/ a alo indiid#al co#ntr/ e7po#re limit, and the e7po#re limit are generall/

monitored at 0eekl/ interal3

Operational Risk

Operational rik i the rik o lo re#lting rom inade-#ate or ailed internal procee, people or

/tem, or normal e7ternal eent3 %he .ank i in the proce o rolling o#t a ot0are ol#tion or

an operational rik management rame0ork 0ith emphai on identiication o ke/ rik indicator at



95/112

the #nit leel, monitoring identiied rik at the #nit leel and then aggregating at a higher

organi6ational leel3 %he "#ine #nit p#t in place the "aeline internal control a approed "/ the

Prod#ct Management Committee to en#re a o#nd and 0ell controlled operating enironment

thro#gho#t the organi6ation3 &ach ne0 prod#ct or erice introd#ced i #"ject to a rigoro# rik

reie0 and igno proce 0here all releant rik are identiied and aeed "/ department

independent o the rik taking #nit propoing the prod#ct3 *ariation o e7iting prod#ct, a 0ell a

o#to#rcing, are alo #"ject to a imilar proce3

Rik Management rame0ork or Oerea Operation3

%he .ank ha p#t in place a comprehenie Rik Management polic/ or it glo"al operation and

ha alo orm#lated co#ntr/ peciic rik polic/ or thee operation "aed on the hot co#ntr/

reg#lator g#ideline3 %he Aet )ia"ilit/ Management and all the rik e7po#re or the oerea

operation are monitored centrall/ "/ implementing o#nd /tem and control, and alo "/

adopting the norm a peciied "/ the reg#lator in the hot co#ntr/3

A Project Report On Working Capital Management >


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CONC"USION

C,APTER/ . CONC"USION

%he "anking ind#tr/ market capitali6ation made a #"tantial decline3 Mot inetor are

concerned 0ith 0hether the ind#tr/ can #tain contin#ed proita"ilit/ a a re#lt o thee actor3

.ank hae reponded in recent /ear to thee pro"lem "/ dieri/ing a0a/ rom interet enitie

prod#ct and erice3 .#t interet rate are the #ndamental apect o an/ inancial erice3



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I "eliee the inancial erice ind#tr/ 0ill "e deepl/ aected "/ rie Interet rate hae

alread/ ho0n ign o hardening, 0hich ma/ aect #rther inetment in the ind#trial ector3 In

order to maintain the BDP gro0th oer in the coming /ear, the major challenge lie in "alancing

o c#rrent pace o gro0th 0ith nonHaccelerating inlation3 %he c#rrent polic/ mea#re adopted "/

monetar/ a#thoritie to tighten li-#idit/ in order to ight inlation led to an increae in interet rate,

0hich co#ld lo0 do0n economic gro0th in the coming /ear, partic#larl/ in repect o inratr#ct#re

and other core ector project3ng interet rate3

A7i .ank tand apart rom it priate ector competitor U ICICI .ankand 'D


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%echnolog/ ho#ld improe in "anking ector "eca#e ne0 technolog/ replace traditional

"anking and red#ced peronnel cot3

.ank ho#ld oled the pro"lem o lack o eicient emplo/ee , o that man po0er co#ld not

"ecome a h#rdle in #cce o "ank3



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RE.ERENCES

RE.ERENCES H II"IOGRAP,?

Web sites.

0003google3com

http://www.google.com/http://www.google.com/


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0003a7i"ank3com

0003ragadirect3com

0003altaita3com

0003an0er3com

0003lidehare3com

0003managementparadie3com

A Project Report On Working Capital Management 1EE
http://www.axisbank.com/http://www.ragadirect.com/http://www.altavista.com/http://www.answers.com/http://www.slideshare.com/http://www.managementparadise.com/http://www.axisbank.com/http://www.ragadirect.com/http://www.altavista.com/http://www.answers.com/http://www.slideshare.com/http://www.managementparadise.com/


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ANNEXURE

UESTIONNAIRE

13 What i /o#r #ll time proeionX

a9 .#ine "9 Bot3 Serice

A Project Report On Working Capital Management 1E1


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A3 D#ration o 0orkingX

a9 .elo0 ? month "9 ? month Y 1 /ear

c9 1 Y 5 /ear d9 5 Y : /ear

e9 A"oe : /ear

.3 Ann#al Prod#ctiit/ gien to compan/X

a9 .elo0 >E,EEE "9 >E,EEE Y 1, EE,EEE

c9 1, EE,EEE Y 5, EE,EEE d9 5, EE,EEE Y :, EE,EEE

e9 :, EE,EEE Y =, EE,EEE 9 A"oe :, EE,EEE

C3 Are /o# atiied 0ith /o#r compan/X

a9 +e "9 (o

D3 Which age gro#p do /o# "elongX

a9 .elo0 5> "9 5> Y :E

c9 :E Y :> d9 A"oe :>

&3 Are /o# marriedX

a9 +e "9 (o


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105/112

:1HE:H5E15 :1HE:H5E11

8R3 in EEE9 8R3 in EEE9

Cah lo0 rom operating actiitie

(et proit "eore ta7e ,?5,:? @,:1:,E11

Adj#tment or4

Depreciation on i7ed aet 1,11,?=E 51,::

Depreciation on inetment ??,??? :=,1>

Amortiation o premi#m on @=? @>=>@

'eld to Mat#rit/ inetment

Proiion or (on Perorming

Adance2Inetment 8net o "ad de"t9 @:@,:@E 1,5@E,=@

Beneral proiion on

Sec#ritied aet 5>,=EE 8=,EEE9

Proiion on tandard aet 1,55:,>EE ==?,EE

Beneral proiion or retail aet 1@,@EE EE

Proiion or 0ealth ta7 5,=@ 1,=>@

)o on ale o i7ed aet 5,1E1 1?,5

Amortiation o deerred

emplo/ee compenation 5@,E?@ ?:,5:>

%OA%A) 1=,EE,E: 1E,=E,:=E

Adj#tment or4

8Increae92Decreae

in inetment 851,E=5,@9 8=?,5,:>:9

8Increae92Decreae

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in adance 81=?,:E@,=@9 8?,5==,>=9

Increae2 8Decreae9

In "orro0ing 5>,1=?,@1: ,>,5E:

Increae2 8Decreae9

In depoit 1?,@5E,? =,E1>,:15

8Increae92Decreae

In other aet 81,:1,@=E9 =,>,15=

Increae28Decreae9 in

Other lia"ilitie proiion 81=,=>19 11,>=:,:?

Direct ta7e paid 8=,15,5?19 8:,1=@,@19

(et cah lo0 rom

Operating actiitie >5,>>,5? 5,=E1,?5

Cah lo0 rom ineting actiitie

P#rchae o i7ed aet 85,55>,?:9 81,=@:,:59

8Increae92Decreae in 'eld to

Mat#rit/ Inetment 8:=,:?=,?=?9 81,>=5,=9

Proceed rom ale

o i7ed aet :=,>> =5,5:>

(et cah #ed in

Ineting actiitie 8:?,>>>,@>=9 85E,@=,?19

Cah lo0 rom inancing actiitie

Proceed rom i#e o

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S#"ordinated de"t 8net o repa/ment9 :,::,EEE 1E,EEE,EEE

Proceed rom i#e o Perpet#al

De"t and $pper %ier II intr#ment 1:,@:>,15E H

Proceed rom i#e o Share Capital 5,=E1 =,=:

Proceed rom Share Premi#m

8(et o hare i#e e7pene9 ::E,E5> EE,>5=

Pa/ment o Diidend 81,11@,=1?9 8@,=1E9

(et cah generated rom

@

:

CAS, ."OW STATEMENT

'.OR T,E ?EAR EN1E1 9: MARC, 9 H

(et increae in cah and

cah e-#ialent :5,@?=,?5 8,?1E,=59

Cah and cah e-#ialent

a at 1 April 5E11 :?,=1,=55 =>,E5,:?=

Cah and cah e-#ialent

A at :1 March 5E15 ?,1:,E>1 :?,=1,=55

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PRO.IT AN1 "OSS ACCOUNT

Sched#le (o3 8R3 in %ho#and9

I I(COM&

Interet earned 1: =>,?E:,=:

Other income 1= 1E,E,E?>

%O%A) >>,@E:,EE

II &;P&(DI%$R&

Interet e7pended 1> 5,:1,@?@

Operating e7pene 1? 15,1:,>5

Proiion and contingencie 1@8>31319 @,E:>,1@:

%O%A) =,1?E,>:5

Propoed Diidend 8incl#de ta7 on diidend9 1,=@,1 III CO(SO)IDA%&D (&%

PRO=5,=@?



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.alance in Proit )o acco#nt "ro#ght

or0ard rom preio# /ear @,:1E,:E

$tili6ation or &mplo/ee .eneit Proiion #nder

Acco#nting Standard 8AS9H1> 8Reied9 1@ 8=31E9 8:1,E59

I* AMO$(% A*AI)A.)& :=,:

* APPROPRIA%IO(S4

%raner to Stat#tor/ Reere 1,?=@,>@1

%raner to Capital Reere 1>?,=1>

.alance in Proit )o acco#nt carried or0ard 1E,5=5,::

%O%A) 1:,>:=,:

*I &AR(I(BS P&R &$I%+ S'AR& 1@ 8>313=9

8


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Sched#le reerred to a"oe orm an integral part o the

Conolidated Proit and )o Acco#nt

A per o#r report o een date


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A"ANCES,EET AS ON 9:ST MARC,

&mplo/ee Stock

Option O#ttanding 8(et9 1@8=31>9 ,@:

Depoit : >@,>E,55@

.orro0ing = >1,>?,E:E

Other lia"ilitie and proiion > >,@@,5>

%O%A) @:5,>>,@5

ASS&%S

Cah and .alance 0ith

Reere .ank o India ? =?,?1E,:E:

.alance 0ith "ank and

mone/ at call and hort notice @ 55,>@5,@=

Inetment 5?,@1,?E>

Adance :?, @?=,?E

Other Aet 11 1,?5,1?1



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%O%A) @:5,>>,@5

Contingent lia"ilitie 15 1,=1,?>:,>E1

.ill or collection ?5,@=?,::5

Signiicant Acco#nting Policie

And (ote to Acco#nt 1@

Sched#le reerred to a"oe orm an integral part o the Conolidated .alance SheetA per o#r report

o een date

WORKING CAPITAL MANAGEMENT of axis bank Finance Research 2014 (2).doc

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