PROJECT REPORT

ON

AUDIT OF AXIS BANK

MASTER OF COMMERCE (ACCOUNTANCY)

PART-2 (SEMESTER-3)

(2016-2017)

INTERNAL ASSESSMENT

ADVANCED AUDITING

Submitted To:-

Prof. NALINI TIWARI

Submitted By:-

SWATI MARUTI MINDE

ROLL NO:-26

S.I.E.S. (NERUL) COLLEGE OF ARTS, SCIENCE & COMMERCE

AFFILIATED TO UNIVERSITY OF MUMBAI

 S.I.E.S (NERUL) COLLEGE OF ARTS, SCIENCE & COMMERCE

CERTIFICATE

(2016-2017)

This is to certify that the project entitled AUDIT OF AXIS BANK is a project
work done by SWATI MARUTI MINDE, ROLL NO-26 in fulfilment of the requirements
for the M.COM in ACCOUNTANCY (PART-2) (SEMESTER-3) during the academic
year 2016-2017 is the original work done of the candidate and completed under
guidance of Prof. NALINI TIWARI

Date:-

Place: - NAVI MUMBAI

.. ..

Internal Examiner External

Examiner

(Prof.KOEL.ROY.CHOUDHURY) (Prof.KOEL.ROY.CHOUDHURY)

M.COM Coordinator Principal

 DECLARATION BY STUDENTS

I, SWATI MARUTI MINDE, ROLL NO:-26, the student of M.COM

in ACCOUNTANCY (Part-2) (Semester-3) (2016-2017) hereby declares that I
have completed the project on AUDIT OF AXIS BANK under the supervision
of the internal guidance of Prof. NALINI TIWARI and that the contents of
the project are not copied any other source such as internet, earlier projects,
textbooks etc.

The information submitted is true and original to best of my knowledge.

Thank you,

Yours faithfully,

SWATI MINDE

ROLL NO:-26
 ACKNOWLEDGEMENT

I would like to thank all the people who helped me in undertaking the
study and completing the project, by imparting me with valuable information
and guidance that was required at every stage of my project work.

I would like thank our principal Prof.KOEL.ROY.CHOUDHURY and

M.COM Co-ordinate for giving me an opportunity and encouragement to
prepare the project.

Last but not the least, I would like to thanks my project guide for
guiding and helping me throughout the preparation of my project, right from
selection of the topic till its completion.

SWA
TI MINDE

R
oll No: 26
 CONTENTS

S.N PARTICULAR PAGE

NO.

1. AUDIT OF LEDGERS GENERAL CONSIDERATION

2. LEDGER SCRUTINY OF :-
BILLS RECEIVABLE
ACCRUED INCOME

3. AUDIT OF BANKS
4. COMPANY PROFILE OF AXIS BANK
ABOUT AXIS BANK
FINANCIAL STATEMENTS
FINANCIAL ANALYSIS
CONCLUSION
5.
BIBLIOGRAPHY
6.

Chapter 1
 AUDIT OF LEDGERS GENERAL CONSIDERATIONS

o STEPS

The audit of ledgers generally involves the following steps:

1. Internal Controls:
Testing the strength and quality of internal controls;
2. Opening Balances:
Tracing the opening balances from the previous years records;
3. Posting:
Checking the postings from subsidiary books and, if they are kept on the
self-balancing system, also tallying the totals of balances in subsidiary
ledgers with control accounts;
4. Closing Balances:
Checking the closing balances of individual accounts in the schedules; and
then into the final accounts;
5. Totals:
Checking the totals of ledger accounts; trial balance, schedules and
groupings;
6. Verification:
Verifying the balances in personal accounts, either with the statements of
account or confirmation of balances obtained from the parties; verifying the
balances in impersonal accounts, viz., those of fixed assets, bank balances,
etc. with the schedules containing details of assets and liabilities as well as
those of nominal accounts (featuring various items of income and expense
by reference to the documentary evidence which may exist in a variety of
forms to ensure that all the outstanding amounts, both receivable and
payable, have been properly adjusted);
7. Scrutiny:
 Scrutinising the accounts generally and, in particular, examining the
composition of final balances; and ascertaining the extent of clearance of the
balances brought forward from the previous year particularly those relating
to receivables and payables, sale or disposal of fixed assets and of
inventories.

o SCOPE
1. Check Balances and Transactions:
The audit of ledgers is an important step in the process of verification of the
correctness of Final Accounts. It is an occasion to review the transactions
entered during an accounting period, duly classified, in the totality. It also
involves analytical study of the relationship which exists between different
sets of figures. Ledgers, therefore, should be examined carefully and
comprehensively. The composition of the balance of each account should be
scrutinized and, if a doubt arises, the transaction or the set of transactions,
which have given rise to the doubt, should be examined in depth.
2. Test-Check:
When a comprehensive and effective system of internal control exists, it is
possible to limit the routine checking of ledgers by the application of test
checks as stated below:
Verifying the postings into the ledgers from the various books of
prime entry;
Verifying the totals of the account;
Tracing the balances of the personal and nominal accounts from
the ledgers into the schedule of balances; and
Comparing schedules totals with the balances in the Control
Accounts.
3. Sample:
The foregoing audit tests be applied to a selected group of entries in the
ledgers. In selecting the period of verification of posting and totals,
 preference should be given to the accounts whose composition or correlation
between debit and credit items is not clear. A few accounts could be selected
for test-check for the whole of the year.

o LEDGER KEEPER AND FRAUDS

1. Weak Internal Controls:
If the system of internal control is found to be ineffective, it would be
necessary for the auditor to increase the scope of verification of balances of
the accounts in the ledgers. In doing so, the auditor should take into account
the existence of possibilities of frauds being committed through
manipulation of entries in the ledgers. Some frauds in a ledger would not be
detected merely by extracting balances from the ledger and agreeing their
totals with the balance in the respective Control Accounts, since the
balances, despite the fraud, would agree. It would be discovered either on
postings being checked in detail, or on obtaining detailed statements of
account from customers and comparing them with those stated in the books
of account.

2. Possibilities of Fraud:
For studying the various avenues which are open to a ledger-keeper to
commit a fraud, the auditor should find out whether the ledger-keeper
extracts balances of customers and creditors from the ledgers and agrees
their balances in the Total Accounts; also whether the balances extracted, are
subsequently checked by some official; further, whether he has access to the
debtors and creditors; also if he meets them, does he do so on his own or in
the presence of responsible official?
3. Types:
 i. In the Creditors Ledger:
- Crediting the account of a supplier on the basis of a fictitious or
duplicate invoice and subsequently misappropriating the payment
made against the credit in the suppliers accounts.
- Suppressing a credit note issued by a supplier in respect of return or an
allowance and misappropriating an equivalent amount out of the
payment made to him.
- Crediting an amount due to a supplier not in his account but under a
fictitious name and misappropriating the amount paid against the
credit balance.
ii. In the debtors Ledger:
- Teeming and lading method in which cashier first misappropriates a
receipt and them makes good the amount before the cash balance is
checked by, say, raising a fictitious debit in an expense account.
- Adjusting an unauthorized credit or fictitious rebate, allowance,
discount, etc. in the account with a view to reduce the balance and
when payment is received from the debtor, misappropriating an
amount equivalent to the credit.
- Writing off the amount receivable from a customers bad debt account
and misappropriating the amount received in payment of the debt.
iii. In the General Ledger:
- Allocating an item of income or expenditure wrongly, e.g., an item of
capital expenditure being charged as revenue and vice versa; and
- Understanding or overstating the value of stocks, amount of prepaid
expenses or liability.

o VERIFICATION OF POSTING
1) Sample:
The selection of accounts for checking postings should be made on the same
consideration as that of accounts whose balances are required to be
 confirmed directly. Moreover, either all postings should be checked for only
a part of the period covered by the audit or only a few accounts selected for
the whole period.
2) Confirmation:
Subsequently, when the closing balances in a ledger are checked, it should
be confirmed that postings in the ledger to the extent specified in the Audit
Programme have been checked; also that the totals of the balances have been
checked. Auditor should ascertain the reasons for any un-ticked item in any
account in a ledger, indicating that its posting has not been checked.
3) Genuineness:
Auditor should confirm that all the entries in a ledger account are posted in a
chronological order; no entry has been made in between two entries and the
figures of an entry have not been altered; and there is no entry which has
been posted directly into the ledger before being recorded in a book of
original entry. In each such case, the genuineness of the entry or entries
should be verified, for these could be the results of attempts made by the
ledger-keeper with an ulterior motive.
4) Balances:
The opening balances should be checked, wherever practicable, with the
balances shown in the auditors own copy of trial balance, schedules and
groupings of the previous year. Alternatively, these should be checked with
the balances shown in the Balance Sheet, as at the end of the year. While
checking the closing balances or the groupings of balances, a memo should
be prepared as regards particulars of various balances which need to be
disclosed in the Balance Sheet, as well as of matters in respect of which
either sanction has to be obtained or adjusting entries have to be passed.
 Chapter 2

LEDGER SCRUTINY OF BILLS RECEIVABLE AND ACCRUED INCOME

Meaning of Ledger Scrutiny

Ledger scrutiny is part of audit procedure, like vouching, posting etc. The scrutiny
is required in all type of audit whether the same is Internal Audit, Statutory Audit.
Ledger scrutiny is to be done for all type of client whether the same is Pvt Co.,
Public Ltd, or a concern.

o BILLS RECEIVABLE LEDGER

The accounts receivable ledger is a subledger in which is recorded all credit sales
made by a business. It is useful for segregating into one location a record of all
amounts invoiced to customers, as well as all credit memos and (more rarely) debit
memos issued to them, and all payments made against invoices by them. The
ending balance of the accounts receivable ledger equals the aggregate amount of
unpaid accounts receivable.

WHY SCRUTINY IS DONE

The objective of the scrutiny of bills receivable ledger is to obtain audit evidence
so that the auditor is satisfied that

Existence: The balances shown in the bills receivable ledger are receivable and
recoverable, i.e. the right to recover balances from the bills receivable does exist.

Complete: The balances of all debtors are included in the bills receivable ledger;
i.e. no amount is omitted to be recorded.

Valuation: The balance amounts shown as due from the bills receivable are proper
i.e. neither more nor less.

Disclosure: The balances of bills receivable shown in the bills receivable ledger
are properly classified and disclosed in the Balance Sheet.

WHAT IS DONE BEFORE SCRUTINY

Before making a scrutiny of bills receivable ledger, auditor should ensure that the
following audit procedures have been duly completed:

Study of Internal Control: Auditor should have carried out the compliance
procedure to study and evaluate the accounting system and internal audit relating
to bills receivable.

Vouching of Sale & Receipt: Then, based on the result of the above study, the
auditor should have carried out the substantive procedure of vouching of
transactions affecting bills receivable viz. sales returns, cash receipts and bank
receipts.

HOW SCRUTINY IS DONE

Auditor can now begin the next procedure of Scrutiny of Bills Receivable Ledger
which involves the following steps.

a. Checking Opening Balances.

b. Checking Posting from Registers Books and Journals.
c. Checking Casting and totals of the Ledger Accounts.

a. Checking Opening Balances

Opening Balances of the Bills Receivable Ledger should be verified with reference
to the audited accounts, the Bills Receivable Ledger and the schedule of bills
receivable for the last year.

b. Checking Posting

- In vouching, auditor checks the entry in the original books such as Cash
Book, Sale Register, Debtors Register, Debit Note/Credit Note Register,
Journal, etc. The next step is to check the posting from these books into the
Bills Receivable Ledger. Auditor should check that the correct amount is
posted in the correct account on the correct side of the account.
- Posting may be checked on sample basis. Auditor may check either all the
posting for say 3 months or check posting into selected accounts for the
whole year.
- The following aspects should be checked.
all entries are posted in sequence of dates i.e. chronological order.
no entry is inserted in between two entries afterwards.
no entry is altered.
against each entry, there is a reference of the folio of the original book
or register.
c. Checking Casting

Auditor should check the totals of the ledger accounts. If an account runs into
many pages, he should check that the total of one page is correctly carried forward
to the next page.

ILLUSTRATION

Why and how will you, as an auditor, make a scrutiny of the following ledger
account?

In the Books of Mrs. Vyas

Bills Receivable Account

Dr. Cr.

Date Particular Rs. Date Particular Rs.

2011 2011
Jan.01 To Balance b/d 10,000 Apr.30 By Bank 10,000
May01 To Ramesh 5,000 Jun.02 By Bank 4,900
Jun.06 To Rakesh 10,000 By Discount 100
Aug.18 To Suresh 7,500 Aug.20 By Bank
Sep.10 To Rakesh 10,200 Sep.09 (Collection) 7,500
Dec.01 To Satish 5,000 Dec.01 By Rakesh 10,000
Dec.29 To Dev 7,000 Dec.31 By Aditya 5,000
By Balance c/d 17,200
54,700 54,700
Solution:

[1] Nature of Account: Bills receivable Account is a Real Account appearing in

the General Ledger.

[2] Object of Scrutiny: The scrutiny of Mrs.Vyas account is to be done to obtain

audit evidence that-

(a) The closing balance shown in the account is really due and receivable.

(b) The balances of Rs.17, 200 are properly valued.

(c) The balance is properly classified and disclosed in the Balance Sheet.

[3] Check Opening Balance: The Opening Balance of Rs.10, 000 will be verified
from previous years audited Balance Sheet (from schedule of Bills Receivable).

[4] Check Posting: Scrutiny of the posting in the account shows that-

(a) The postings are on the correct side of the account

(b) all entries are posted in sequence of dates i.e. chronological order.

(c) no entry is inserted in between two entries afterwards.

(d) no entry is altered.

(e) against each entry, there is a reference of the folio of the original book or
register.

[5] Check Casting: The totals Rs.54, 700 of the account are correct.
[6] Mark B/R Against Receipt: Each bill receivable will be marked against its
corresponding receipt. This is done as follows:

[A] Opening Balance Rs.10, 000 is settled by receipt on April 30: No balance.

[B] B/R of Ramesh Rs.5, 000 is discounted with Bank on June 2 for Rs.4, 900;
Discount charged by Bank Rs.100.

[C] B/R of Rakesh accepted on June 6 for 3 months Rs.10, 000 is dishonoured on
September 9 (due date + 3 days grace period).

[D] B/R accepted by Suresh Rs. 7,500 on August 18 is sent for collection to the
bankers on August 20.

[E] Rakesh accepted a new B/R Rs.10, 200 on September 10 (Rs.10, 000 + Interest
Rs.200).

[F] B/R accepted by Satish on December 1 Rs.5, 000 is endorsed in favour of

partys creditor Aditya.

[G] B/R accepted by Dev for Rs.7, 000.

[7] Closing Balance Composition: The closing balance of the account Rs.17,
200 is made up B/R of Rakesh Rs.10, 200 and B/R of Dev Rs.7, 000.

[8] Nature of Closing Balance: The closing balance of the account is a debit
balance (which is normal for a B/R account).

[9] Closing Balance Verification: Amount O/S on 31.12.2011 can be verified by

obtaining conformation letter Mrs.Vays. The party does not conform the balance a
certificate obtain from management such balances is receivable.
o ACCRUED INCOME

Accrual Accounting: Accrual is the fundamental basis of accounting. A

limited company must maintain its accounts on accrual basis. Under this
basis, (a) income which has accrued is booked even if not actually received
and (b) amount which is received in advance is not treated as income. This
gives rise to (a) Income Accrued and (b) Income Received in Advance.
Accounting Standard: Auditor should follow the guidelines contained in
Accounting Standard 9 Revenue Recognition issued by the Institute of
Chartered Accountants of India (ICAI) for this purpose.
Scrutiny of Income A/cs: Auditor should scrutinize all income accounts
(especially accounts like Service Charges Recovered, Interest, Rent,
Royalties and Dividends) to ascertain the amounts accrued or received in
advance.
General Rule: As a general rule, income should be booked when it has
accrued as per the terms of agreement between the parties.
Service Charges: Income from service charges accrues when the service is
performed and complete. Thus, income from job work (i.e. processing of
material supplied by others) accrues when the job or processing is
completed. If a job is complete at the year end, but not yet billed, auditor
should ensure that the income from that job is shown as accrued and
receivable in the books. On the other hand, if any amount is received but the
 job is not complete as at year end, it should be shown as Income Received in
Advance.
Interest Earned: Interest accrues on time at the rate agreed. Thus, if a loan
agreement states that interest on a loan of Rs.1, 00,000 is payable @ 20%
per year, interest for an year would be Rs.20, 000. If only Rs.15, 000 are
received till the year end, interest of Rs.5, 000 has accrued and must be
booked. On the other hand, if interest received is Rs.25, 000, Rs.5, 000 are
received in advance and pertain to the next year. Auditor should scrutinize
the Interest Account to ascertain the amount of Accrued or Interest Received
in Advance.
Rent: Rent also accrues on time basis at the rate agreed. Thus, if a rent
agreement states that rent of Rs.1, 000 is payable per month, rent for an year
would be Rs.12, 000. If only Rs.10, 000 are received till the year end, rent of
Rs.2, 000 has accrued and must be booked. If on the other hand, Rs.15, 000
are received during the year, Rs.3, 000 should be Rent Received in Advance.
Royalty: royalty means the charges for use of know-how, patents, trade
marks and copyrights. Royalty accrue as per the terms of the concerned
agreement.
Dividends: dividends on share accrue when the dividend is declared by the
shareholders. Auditor should enquire from the client whether any such
dividend has been declared on the shares held as investment till the year end.
Prior Period Income: Prior Period Income means income credited to the
current years profit and loss account, through relating to earlier years, due
to the omission to treat such income as Income Accrued during the
concerned year. Such items should be disclosed separately in the profit and
loss account.
ILLUSTRATION

Rumanis Ledger

Accrued Income Account

Dr. Cr.

Date Particular Amt. Date Particular Amt.

2011 2011
1.1.11 To bal b/d 10,000
1.5.11 To Interest
Received 5,000
2.6.11 To Rent Income 2,000
10.9.11 To Interest on
Bank Deposit 10,000
1.12.11 To Commission 31.12.11 By bal c/d 30,000
Received 3,000
30,000 30,000

Solution:

[1] Nature of Account: Accrued income account is a Real Account appearing in

the general ledger.
[2] Object of Scrutiny: The scrutiny of Rumanis account is to be done to obtain
audit evidence that

a. The closing balance Rs.30, 000 is show in the account is due & receivable.
b. The balance of Rs.30, 000 is properly valued.
c. The balance is properly classified & disclosed in the balance sheet.

[3] Check Opening Balance: The opening balance of Rs.10, 000 will be verified
from previous years audited balance sheet.

[4] Checking of Posting:

a. On 1.5.11 Interest received account debited of Rs.5, 000, Rumani earned

Interest but not yet received.
b. On 2.6.11 Rent Income debited to Rumanis A/C of Rs.2, 000, Rumani
earned rent but not yet received.
c. On 10.9.11 Interest on Bank deposit debited to Rumanis account of Rs.10,
000, Rumani received interest on bank in advance.
d. On 1.12.11 commission received debited to Rumanis A/C of Rs.3, 000,
Rumani earn commission but not yet received.

[5] Closing Balance Composition: The closing balance of Rs.30, 000 is made up
of opening balance of Rs.10, 000 + Interest Received on 1.5.11 Rs.5, 000 + Rent
income on 2.6.11 Rs.2, 000 + Interest on Bank Deposit on 10.9.11 Rs.10, 000 +
Commission Received on 1.12.11 Rs.3, 000.

[6] Nature of Closing Balance: The closing balance of Rs.30, 000 is showing
debit side which is normal for Accrued Income A/C.

[7] Check Casting: The total of Rs.30, 000 of the account are correct.

[8] Disclosure: The final balance of this account will be disclose in Accrued
Income ledger A/C should disclosed balance sheet under the head Current Asset.
 Chapter 3

AUDITS OF BANKS

Special Considerations

Banks have the following characteristics which distinguish them from most other
commercial enterprises:

Security: They have custody of large volumes of monetary items, including cash
and negotiable instruments, whose physical security has to be ensured. This applies
to both the storages and the transfer of monetary items and makes banks vulnerable
to misappropriation and fraud. Then therefore, need to establish formal operating
procedures, well-defined limits for individual discretion and rigours systems of
internal control.

Complexity: they engage in a large volume and variety of transactions in terms of

both number and value. This necessarily requires complex accounting and internal
control systems.

Branch-network: they normally operate through a wide network of branches and

departments which are geographically dispersed. This necessarily involves a
greater decentralization of authority and dispersal of accounting and control
functions.

Off-balance-sheet items: they often assume significant commitments without any

transfer of funds. These items commonly called off-balance-sheet items, may not
be difficult to detect.
Regulations: they are regulated by government authorities and the resultant
regulation requirements often influenced accounting and auditing practices in the
banking sector.

Legal Provisions

1. Principal enactments governing bank audit: there is an elaborate framework

governing the functioning of banks in India. The whole of banking sector can be
categorised into several sectors such as commercial banks, cooperative banks,
foreign banks, etc. The principal enactments which govern the functioning of
various types of banks are as under:

Banking regulations act, 1949;

Banking companies (acquisition of transfer of undertakings) act, 1970;

Banking companies (acquisition of transfer of undertakings) act, 1980;

State bank of India act, 1955;

State bank of India (subsidiary banks) act, 1959;

Regional rural banks act, 1976;

Companies act, 1956; and

Cooperative societies act, 1972 or the relevant state cooperative societies acts.

Besides, the above enactments, the act gives wide powers to reserve bank of India,
1934, also effect the functioning of banks. The act gives wide powers to reserve
bank of India to give directions to banks; such directions also have effect on the
functioning of banks.

2. Appointment of auditor: the banking regulations act requires that the balance
sheet and profit and loss account of a banking company should be audited by a
persons duly qualified under any law for the time being in force to be an auditor of
companies. Similar provisions are contained in the enactments governing
nationalised banks, state bank of India, subsidiaries, the auditor of a banking
company is to be appointed at the annual general meeting of the shareholders,
whereas the auditor of a nationalised bank is to appointed by the bank concerned
acting through its made. The auditors of the state bank of India are to be appointed
by the comptroller and auditor general of India in consultation with the central
government.

3. Powers of auditor: The auditor of a bank has the same powers as those of a
company auditor in the matter of access to the books, accounts, documents, and
vouchers. He is also entitled to require from the officers of the bank such
information and explanations as he may think necessary for the performance of his
duties. In the case of a banking company, he is entitled to receive notice relating to
any general meeting. He is also entitled to attend and to he heard there at on part of
the business, which concerns him as auditor. It is important to more that the auditor
of a nationalised bank may employ accountants or other persons at the expenses of
the bank to assist him in audit of accounts. Thus, auditors of these banks can
appoint the auditors of branches.

4. Auditors report: in the case of a nationalised bank, the auditor is required to

make a report to the central government in which he has to state the following: a)
Whether, in his opinion, the balance sheet is a full and fair balance sheet containing
all the necessary particular and is properly drawn up so as to exhibit a true and fair
view of the affairs of the bank, and in case he had called for any explanation or
information, whether it has been given and whether it is satisfactory; b) Whether or
not the transaction of the bank, which have come to his notice, have been within
the powers of that bank; c) Whether or not the returns received from the offices and
branches of the bank have been found adequate for the purpose of his audit; d)
Whether the profit and loss account shows a true balance of profit or loss for the
period covered by such account; and any other matter which he considers should
be brought o the notice of the central government. It may be noted that in the case
of a banking company, the auditor has to specifically report whether, in his
opinion, the profit and loss account and balance sheet of the banking company
comply with the accounting standards referred to his sub-section (3C) of section
211 of the companies act, 1956. It may be also be noted that the Companies
(auditors report) order [CARO], 2003 (revised in 2005), is not applicable to
banking companies.

5. Long form audit report: besides the audit report as per the statutory
requirement discussed above, the terms of appointment of auditors of public sector
banks, private sector banks and foreign banks as well as their branches, require the
auditors to also furnish a long form audit report(LFAR). The matters which the
banks require their auditors to deal with in the long form audit report have been
specified by the Reserve Bank of India.
 Chapter 4

COMPANY PROFILE OF AXIS BANK

o INTRODUCTION

Axis Bank is the third largest private sector bank in India offering a comprehensive
suite of financial products. Headquartered in Mumbai, the Bank has 2,904
branches, 12,743 ATMs and nine international offices. The Bank employs over
50,000 people and had a market capitalisation of `105,833 crores (as on 31 March,
2016).

Since inception, Axis Bank has focused on partnering customers and helping meet
their needs and aspirations. As a provider of banking and financial services, we
recognise that our role goes beyond the transaction. Indeed, it extends to being a
companion in growth.

It offers the entire spectrum of financial services to customer segments, spanning

large and mid-corporates, SME, and retail businesses. Axis Bank has its registered
office in Ahmedabad.

As of 31 Dec. 2013, approximately 43% of the shares are owned by Foreign

Institutional Investors. Promoters (UTI, LIC and GIC), who collectively held
approx. 34% of the shares, are all entities owned and controlled by the
Government. The remaining 23% shares are owned by corporate bodies, financial
institutions and individual investors among others.

HISTORY

UTI Bank opened its registered office in Ahmedabad and corporate office in
Mumbai in December 1993. The first branch was inaugurated on 2 April 1994
in Ahmedabad by Dr. Manmohan Singh, the Finance Minister of India. UTI Bank
began its operations in 1993, after the Government of India allowed new private
banks to be established. The Bank was promoted in 1993 jointly by the
Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of
India (LIC), General Insurance Corporation, National Insurance Company, The
New India Assurance Company, The Oriental Insurance Corporation and United
India Insurance Company.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but
the Reserve Bank of India (RBI) withheld approval and nothing came of this. In
2004 the RBI put Global Trust into moratorium and supervised its merger
into Oriental Bank of Commerce.

In 2003 Axis Bank became the first Indian bank to launch the travel currency card.

In 2005, Axis Bank got listed on London Stock Exchange.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it
opened a representative office in Shanghai, China. UTI Bank opened a branch in
the Dubai International Financial Centre in 2007. That same year it began branch
operations in Hong Kong. In 2008 it opened a representative office in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed

Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis
Bank opened representative offices in Abu Dhabi. In 2011, Axis bank inaugurated
Axis House, its new corporate office in Worli, Mumbai.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.

Axis Bank UK has a branch in London.

Deepika Padukone, a Bollywood actress is the brand ambassador of Axis Bank.

In 2015, Axis Bank opens its representative office in Dhaka.

The bank has over 50,000 employees (as of 31 March 2016). The bank
incurred 26.7 billion (US$400 million) on employee benefits during the FY 2012
13.The average age of an Axis Bank employee is 29 years. The rate in Axis Bank is
approx. 9% per year.
o FINANCIAL STATEMENTS
 o FINANCIAL ANALYSIS

The net profit of Rs.8, 223.66 crores for the year ended 31st March 2016,
registering a growth of 11.77% over the net profit of Rs.7, 357.82 crores last year.
The operating profit of the Bank increased by 20.31% to Rs.16, 103.61 crores from
Rs.13, 385.44 crores last year.

The Bank continued to focus on the quality of growth and displayed strong growth
in key balance sheet parameters for the year ended 31st March 2016. The total
assets increased by 13.75% to Rs.525, 468 crores, total advances increased by
20.52% to Rs.338, 774 crores.

The total deposits of the Bank increased by 11.02% to Rs.357, 968 crores against
Rs.322, 442 crores last year. Savings Bank deposits increased by 19.82% to
Rs.105,793 crores while Current Account deposits increased by 13.45% to
Rs.63,652 crores and together constituted 47% of total deposits as compared to
45% last year.

Basic Earning Per Share (EPS) was Rs.34.59 compared to Rs.31.18 last year, while
the Diluted Earning Per share was Rs.34.40 compared to Rs.30.85 last year. Return
on Equity (RoE) stood at 17.49% compared to 18.57% last year, and Return on
Assets (RoA) stood at 1.72% compared to 1.83% last year. The Net Interest Margin
(NIM) for the year was 3.90% compared to 3.92% last year. The ratio of Gross
NPAs to gross customer assets stood of 1.67%, and Net NPA ratio was 0.70%.
During the year, 12,309,627 equity shares of `2 each were allotted by the Bank to
some of its Directors/Employees and that of its subsidiary companies, pursuant to
exercise of options by them under the various Employee Stock Option Schemes of
the bank. Pursuant to said allotment the total issued and paid-up equity share
capital of the Bank increased to Rs.474.10 crores as on 31.3.2015.

The bank total income increased by 18.34% to reach Rs.

16,832.97 crores during 2015-16, compared to Rs. 14,224.14
crores last year
 Chapter 5

CONCLUSION

Axis bank h as developed man if old in short period of time due to facilities and
services provided to their customer and this growth rate can be keep it up if they
start to go in semi-urban areas. In last couple of years they have opened new many
branches and they should open many more. The working staff is very co-operative
in nature and due to that the bank will also get good benefit. Axis Bank has
provided their customer Net-banking facilities and due to that transactions are done
fast. Charges at Axis Bank are on lower side when we compare it with other Banks.
At the end, we have also discussed and potrayed the financial statements of Axis
bank till 2016 with its Directors Report.
 Chapter 6

BIBLIOGRAPHY

https://www.axisbank.com/docs/default-source/annual-reports/for-
axis-bank/annual-report-2015-2016.pdf?sfvrsn=6

https://www.scribd.com/doc/23575208/Axis-Bank-Project

https://www.scribd.com/doc/24871427/Project-Report-on-Axis-
Bank