A STUDY on FINANCIAL HEALTH of AXIS BANK and HDFC BANK *Dr

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A STUDY ON FINANCIAL HEALTH OF AXIS BANK AND HDFC BANK *Dr. B.Sudha., M.Com., M.Phil., Ph.D., **Mr. P.Rajendran., M.Com., M.Phil., ABSTRACT The banking sector is a service sector and it is one of the components of financial system. Banking role is more important for development of our economy. Banking institutions in our country had assigned a vital role in financing the process of planned economic development. The efficient and competition of banking system defined the strength of the economy. Indian banking sector play vital role to development of our economy. This study conducted by the researcher to analyses the financial performance of the two largest private sector banks i.e. Axis Bank and HDFC Bank. The study covers the period of five financial years i.e. 2013-14 to2017-18. The data was collected from the annual reports, websites, relevant articles and newspapers. Data analyzed through various statistical tools and ratio analyses are used. For instance, loans and advances to deposits ratio, interest expenses to total expenses, interest income to total income, other income to total income, net profit to total income, net worth ratio, percentage change in total income, percentage change in total expenditure, percentage change in advances and percentage change in deposits. Mean, standard deviation, standard error, co-efficient of variation and compound annual growth rate (CAGR) had used to find the performance of the banks. The research article concluded that the overall performance of the banks is HDFC Bank is better than the Axis Bank during the research period. KEY WORDS: AXIS Bank, HDFC Bank, ratio analysis, financial health, mean, CAGR. ______*Assistant Professor in Commerce, Department of Commerce, Periyar University College of Arts and Science, Pappireddipatti, Dharmapuri (D.t), Tamil Nadu, India. **Part – Time Research Scholar & Assistant Professor in Commerce, K.S.Rangasamy College of Arts and Science (Autonomous), K.S.R KalviNager, Tiruchengode – 637215, Tamil Nadu, India,

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1. INTRODUCTION Banking sector is a core segment of the Indian financial system. It is a backbone of an Indian economy. It helps national and worldwide economic development. It is one of the important performers in the banking industry. In the recent studies banking services are highlighted. There had been covered lot of literature for this study. The banks are including public sector banks, old and new private sector banks, foreign banks etc. Financial sound is a key factor of banking. Financial performance is an important measure of economic and financial development of the country. Financial soundness of the banking sector means efficiency, profitability, liquidity and stability position of bank. The study deals with financial health of new private sector banks using through various ratios and statistical tools. Profile of Axis Bank Axis Bank is the third largest private sector bank in India. It also one of the first new generation private sector banks to have begun operations in 1994. The bank was promoted in 1993, jointly by specified undertaking of Unit Trust of India (SUUTI) then known as Unit Trust of India. Its head office in Mumbai, Maharashtra, 4,050 branches, 11,801 ATMs, and 4,917 cash recyclers spread across the country as on 31 March 2019 and ten international offices. The first branch was inaugurated on 2nd April 1994 in Ahmedabad by Dr. Man Mohan Singh the then finance minister of India. The administrator of the UTI is LIC, GIC, NIC, the New India Assurance Company, the Oriental Insurance Corporation and United India Insurance Company. With effect from July 30th 2007 UTI Bank changed its name to Axis Bank. Profile of HDFC Bank HDFC Bank Limited (Housing Development Finance Corporation) was incorporated in August 1994 with its registered office in Mumbai, India. HDFC Bank commenced operations as a scheduled commercial bank in January 1995. HDFC was amongst the first to receive an „in principle‟ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. The bank at present has an enviable network of over 4,805 branches spread over cities across India. All branches are linked on an online real time basis. Customers in over 500 locations are also servicing through telephone banking. The bank also has a network of about over 12,860 networked ATMs 2,657 across cities and towns. HDFC Bank provides a number of products and services including wholesale banking and retail banking, treasury, auto loans, two wheeler loans,

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personal loans, loans against property, consumer durable loans, life style loan, credit cards and the various digital products. 1. REVIEW OF LITERATURE PriyankaJha (2018) found that analyzing financial performance of public sector banks (Punjab National Bank) and private sector banks (ICICI Bank) in India. Her objective was to assess and compare the financial performance of both the banks. The present study concluded that ICICI Bank has performed sounder as compare to PNB Bank. Dr.Gagandeep Sharma and Divya Sharma (2017) discussed comparison and analysis of profitability of top three Indian private sector banks. Their objective was to study the profitability ratios of top three private sector banks i.e. HDFC Bank, ICICI Bank and Axis Bank. The study concluded that HDFC Bank is found to be consistent on the basis of cost to income ratio and return on net worth. Pawan and Gorav (2016) this study is related to a comparative study on financial health ICICI Bank and Axis Bank. Their objective was to measure and compares financial performance and health of ICICI Bank and Axis Bank. The study concluded that Axis Bank performs well on earning per share, assets turnover and debt-equity parameters. Overall performance of Axis Bank is good to compare ICICI Bank. Sanjib Kumar Pakira (2016) examines his research growth performance analysis a comparative study between SBI and HDFC Bank Limited. His objective was to analysis the growth rate in SBI and HDFC Bank limited as both the banks are giant banks in public and private sector. In this research work the researcher found that HDFC Bank has performed much better than the SBI Bank. Dr. RashmiSoni (2015) evaluated performance rating of failed new private sector banks in India. His main objective was identifying the banks that have failed performed poorly or merged with big banks after obtaining the banking licenses and calculating various ratios for each parameter of the CAMELS framework. The study concluded that HDFC and Kotak Mahindra Bank are rated highest in the earnings and profitability. Dr. Mukund Sharma (2014) examined performance of Indian Public and Private Sector Banks. His objective was to study the performance of public sector banks and private sector banks based CAMEL framework. It was found that private sector banks were better than public sector banks in utilizing the available resources such as assets and employees.

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Dr.K.Srinivas and L. Saroja (2013) conducted a study to compare the financial performance of HDFC Bank and ICICI Bank. From the study it is clear that there is no significance difference between the ICICI and HDFC Bank‟s financial performance but we conclude that the ICICI Bank performance is slightly less compared with HDFC Bank. NEED FOR THE STUDY The financial health Axis Bank and HDFC Bank is an extremely interesting topic for discussion. The decreasing of financial performance of the banking sector is caused by unsecured loans and advances. The RBI gives continuous physical force exerted on banks profitability and put forward for consideration several methods to reduce the unsecured loans and advances with changes in the social and economic objective of Axis Bank and HDFC Bank. It becomes findings and remedial measures to make smaller the financial performance in the value of new banking systems. The approach of policy makers towards financial performance had changed, with the result that less profits and gains had become fact of life. This study had concentrated on analysis of the financial performance of Axis Bank and HDFC Bank. OBJECTIVES OF THE STUDY 1. To examine the financial performance of Axis Bank and HDFC Bank. 2. To compare the financial performance of the Axis Bank and HDFC Bank. SCOPE OF THE STUDY This research article concentrate on appraising any changes that perceived and revealed in the financial health of Axis Bank and HDFC Bank. Moreover, the study had attempted to identify areas so as to become better the financial health of Axis Bank and HDFC Bank. LIMITATIONS OF THE STUDY The study to suffer from certain limitations, due to constrains of time and resources. This research article is based on the secondary data and the limitations of utilizing secondary data may affect the results. The data is taken from annual reports, relevant journals and website of study banks. It may be possible that the data shown in the annual reports may be window dressed which does not show the actual position of the banks. Financial analysis is mainly done to compare the growth, profitability and financial soundness of the respective banks by analyzing the information contained in the financial statements. Financial analysis is to identify the financial strengths and weaknesses of the two banks balance sheet and profit and loss account. The study helps in understanding the financial

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position, growth and performance of the study banks. The financial statements are analyzed by various statistical tools and evaluating the relationship between the elements. RESEARCH METHODOLOGY The present study, an attempt had made to measure, evaluate and compare the financial performance of Axis Bank and HDFC Bank. This research article is based on the secondary data. The data is taken from annual reports, relevant journals and website of study banks. The study covers the time period of five financial years from 2013-14 to 2017-18. The ratio analysis was applied to analysis and compares the trends in banking business. The financial performance such as loans and advances to deposit ratio, interest expenses to total expenses, interest income to total income, other income to total income, net worth ratio, net profit margin, percentage change in total income, percentage change in total expenditure, percentage change in deposits and percentage change in advances. Mean, standard deviation, standard error, co-efficient of variance and compound annual growth rate had been used to analyze the trends in profitability of banking business. DATA ANALYSIS AND INTERPRETATION Loans and advances to deposit ratio Loans and advances to deposit ratio is the proportion of loan-assets created by a bank from the deposits received. The amount lent by the bank to a person or an organization which is recovered later on. Interest is charged from the borrower. Deposit is the amount received by bank from the account holders and interest is paid to them. TABLE 1: LOANS AND ADVANCES TO DEPOSITS RATIO (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC BANK HDFC BANK HDFC LOANS AND DEPOSITS BANK LOANS AND DEPOSITS BANK ADVANCES (Rs.in ADVANCES (Rs.in Thousands (Rs.in Thousands) (Rs.in Thousands ) ) Thousands) 2013-14 2,300,667,584 2,809,445,649 81.89 3,154,188,602 3,670,803,323 85.93 2014-15 2,810,830,297 3,224,419,369 87.17 3,834,079,720 4,502,836,477 94.60 2015-16 3,387,737,229 3,579,675,603 94.64 4,872,904,174 5,458,732,889 89.27 2016-17 3,730,693,495 4,143,787,878 90.03 5,545,682,021 6,436,396,563 86.16 2017-18 4,396,503,045 4,536,227,223 96.92 6,583,330,908 7,887,706,396 83.46 MEAN 90.13 87.88 SD 5.35 3.83 ERROR 2.39 1.71 CO-EF VAR 5.94 4.36 4.30 CAGR -0.73

Source: Annual Reports

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Table 1 shows that over the course of five financial years of study the mean of loans and advances to deposit ratio in Axis Bank was higher (90.13) than in HDFC Bank (87.88) and Axis Bank‟s (4.30) CAGR also higher than HDFC Bank (-0.73). In case of Axis Bank, loans and advances ratio was higher in 2017-18 (96.92) and the lowest in 2013-14 (81.89). But in case of HDFC Bank the loans and advances ratio was higher in 2014-15 (94.60) and the lowest in 2017-18 (83.46). This shows that Axis Bank had created more loan assets from its deposits as compared to HDFC Bank.H0: There is no significant relationship between loans and advances and deposits of Axis Bank and HDFC Bank.H01: There is significant relationship between loans and advances and deposits of Axis Bank and HDFC Bank.

One-Sample Test

Test Value = 0 t df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Loans & advance 9.169 4 0.001 3325286330.00000 2318414547.5947 4332158112.4053 s Deposits 11.804 4 0.000 3658711144.40000 2798138166.7960 4519284122.0040

Findings: The Significant p value is 0.001> 0.05 than equal variance assumed is 0.000< 0.05than hypothesis is rejected. The Significant p value is 0.000> 0.05 than equal variance assumed is 0.001 < 0.05 than hypothesis is rejected. Interest expenses to Total expenses Interest expenses to total expenses deals the expenses incurred on interest in proportion to total expenses. Banks accepted deposits from the public and pay interest on these accounts. This payment of interest is known as expenses. Total expenses included the amount spent in the form of staff expenses, interest expenses, overhead expenses and other operating expenses. TABLE 2: INTEREST EXPENSES TO TOTAL EXPENSES (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC BANK HDFC BANK HDFC INTEREST TOTAL BANK INTEREST TOTAL BANK EXPENSES EXPENSES EXPENSES EXPENSES (Rs.in (Rs.in (Rs.in (Rs.in Thousands) Thousands) Thousands ) Thousands ) 2013-14 186,895,220 318,287,135 58.72 234,454,516 420,880,155 55.71 2014-15 212,544,595 364,858,212 58.25 272,884,553 495,121,276 55.11 2015-16 241,550,675 421,358,380 57.33 340,695,748 615,558,905 55.35 2016-17 264,490,420 525,541,894 50.33 380,415,844 708,615,836 53.68 2017-18 271,625,818 564,717,175 48.10 423,814,803 827,836,068 51.20 MEAN 54.55 54.21

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SD 4.43 1.29 ERROR 1.98 0.58 CO-EF VAR 8.12 2.38 CAGR -0.05 -2.09 Source: Annual Reports Table 2 shows that the ratio of interest expenses to total expenses in Axis Bank decreased from 50.33 % to 48.10% during the year 2016-17 and 2017-18. It had found that the ratio of interest expenses to total expenses of Axis Bank had been decreasing in each year from 2013-14 to 2017-18. The ratio interest expenses to total expenses in HDFC Bank was also increased from 55.11% to 55.35% during the year 2014-15 and 2015-16, afterward it was decreased from 55.35% , 53.68% and 51.20% during the period 2015-16, 2016-17 and 2017-18. It had found that the share of interest expenses in total expenses was higher in the Axis Bank compared with HDFC Bank, which shows that people give preference to invest their savings in Axis Bank than HDFC Bank. H0: There is no significant relationship between interest expenses and total expenses of Axis Bank and HDFC Bank. H01: There is significant relationship betweeninterest expenses and total expenses of Axis Bank and HDFC Bank.

One-Sample Test Test Value = 0 T df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Interest 2796334 14.784 4 0.000 235421345.60000 191209239.6255 expenses 51.5745 Total 5686962 9.393 4 0.001 438952559.20000 309208885.0486 expenses 33.3514

Findings: The Significant p value is 0.000 > 0.05 than equal variance assumed is 0.000< 0.05than hypothesis is rejected. The Significant p value is 0.001 > 0.05 than equal variance assumed is 0.001 < 0.05 than hypothesis is rejected.

Interest income to total income Interest income to total income shows the proportionate contribution of interest income in total income. Banks lends money in the form of loans and advances to the borrowers and receives interest on it. This receipt of interest is called interest income. Total income includes interest income, non-interest income and operating income.

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TABLE 3: INTEREST INCOME TO TOTAL INCOME (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC BANK HDFC BANK HDFC INTEREST TOTAL BANK INTEREST TOTAL BANK INCOME INCOME INCOME INCOME (Rs.in (Rs.in (Rs.in (Rs.in Thousands) Thousands) Thousands ) Thousands ) 2013-14 306,411,554 380,463,801 80.54 425,550,196 508,525,212 83.68 2014-15 357,274,565 445,655,709 80.17 506,664,925 602,121,760 84.15 2015-16 409,880,364 503,595,008 81.39 631,615,614 743,732,155 84.93 2016-17 451,750,929 575,966,963 78.43 732,713,529 861,489,858 85.05 2017-18 457,803,123 567,473,988 80.67 852,878,437 1,013,444,478 84.16 MEAN 80.24 84.39 SD 0.99 0.52 ERROR 0.44 0.23 CO-EF VAR 1.23 0.62 CAGR 0.04 0.14 Source: Annual Reports The table 3 represents that the ratio of interest income to total income in Axis Bank is instability over the years. But the ratio of interest income to total income in HDFC Bank is increased from 84.15% to 85.05% during the year 2014-15 and 2016-17.except in the year 2017-18. The growth rate of Axis Bank is 0.04% while that of HDFC Bank is 0.14%. Thus, the proportion of interest income to total income in Axis Bank was lower than that of HDFC Bank. This shows that people preferred HDFC Bank to take loans and advances. H0: There is no significant relationship between interest income and total income of Axis Bank and HDFC Bank. H01: There is significant relationship between interest incomeand total income of Axis Bank and HDFC Bank.

One-Sample Test Test Value = 0 t Df Sig. (2- Mean Difference 95% Confidence tailed) Lower Upper Interest income 13.749 4 0.000 396624107.00000 316528939.6268 476719274.3732 Total income 13.355 4 0.000 494631093.80000 391800019.5799 597462168.0201

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Other income to total income Other income to total income reveals the proportionate share of other income to total income. Other income includes non-interest income and operating income. Total income includes interest income, non-interest income and operating income. TABLE 4: OTHER INCOME TO TOTAL INCOME (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC BANK HDFC BANK HDFC OTHER TOTAL BANK OTHER TOTAL BANK INCOME INCOME INCOME INCOME (Rs.in (Rs.in (Rs.in (Rs.in Thousands) Thousands) Thousands ) Thousands ) 2013-14 74,052,247 380,463,801 19.46 82,975,016 508,525,212 16.32 2014-15 88,381,144 445,655,709 19.83 95,456,835 602,121,760 15.85 2015-16 93,714,644 503,595,008 18.61 112,116,541 743,732,155 15.07 2016-17 124,216,034 575,966,963 21.57 128,776,329 861,489,858 14.95 2017-18 109,670,865 567,473,988 19.33 160,566,041 1,013,444,478 15.84 MEAN 19.76 15.61 SD 0.99 0.52 ERROR 0.44 0.23 CO-EF VAR 5.01 3.33 CAGR -0.17 -0.74 Source: Annual Reports The table 4 explains that the ratio of other income to total income was increased from 19.46% to 19.83% during the year 2013-14 and 2014-15. It was decreased from 18.61% in the year 2015-16. In the year 2016-17 the ratio was increased to 21.57%, except in the year 2017-18. But the share of other income in total income of HDFC Bank was decreased from 16.32% to 15.84% in the year from 2013-14 to 2017-18. Hence, the ratio was higher in Axis Bank as compared to HDFC Bank during the study period. More other income is earned by Axis Bank as compared to HDFC Bank. H0: There is no significant relationship between other income and total income of Axis Bank and HDFC Bank. H01: There is significant relationship between other incomeand total income of Axis Bank and HDFC Bank. One-Sample Test Test Value = 0 t Df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Other income 11.287 4 0.000 98006986.80000 73899265.4766 122114708.1234 Total income 13.355 4 0.000 494631093.80000 391800019.5799 597462168.0201

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Net profit to total income Net profit to total income is called Net profit margin. It explains the financial results of the business activity and efficiency of management operations. TABLE 5: NET PROFIT TO TOTAL INCOME (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC BANK HDFC BANK HDFC NET TOTAL BANK NET PROFIT TOTAL BANK PROFIT INCOME (Rs.in INCOME (Rs.in (Rs.in Thousands ) (Rs.in Thousands) Thousands) Thousands ) 2013-14 162,469,290 380,463,801 42.70 202,194,201 508,525,212 39.76 2014-15 210,491,344 445,655,709 47.23 258,963,586 602,121,760 43.00 2015-16 258,471,542 503,595,008 51.33 323,521,958 743,732,155 43.50 2016-17 279,557,245 575,966,963 48.54 401,060,643 861,489,858 46.55 2017-18 247,240,088 567,473,988 43.57 530,423,526 1,013,444,478 52.34 MEAN 46.67 45.03 SD 3.19 4.24 ERROR 1.43 1.90 CO-EF VAR 6.84 9.42 CAGR 0.51 7.11 Source: Annual Reports Table 5 explained that the ratio of net profit to total income of Axis Bank and HDFC Bank. The ratio of HDFC Bank was increased from 39.76% to 52.34% during year 2013-14 to 2017-18, whereas in case of Axis Bank is not instability over the years, because the ratio of net profit to total income of Axis Bank was increased from 42.70% to 51.33% during the year from 2013-14 to 2015-16, but in the year 2016-17 and 2017-18 decreased by 48.54% and 43.57% respectively. However, the net profit margin was higher in HDFC Bank (7.11%) as compared to Axis Bank (0.51%) during the study period. Thus, the Axis Bank has shown comparatively lower operational efficiency than HDFC Bank. H0: There is no significant relationship between net profit and total income of Axis Bank and HDFC Bank. H01: There is significant relationship between net profitand total income of Axis Bank and HDFC Bank. One-Sample Test Test Value = 0 t Df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference Lower Upper Net profit 11.242 4 0.000 231645901.80000 174437624.8061 288854178.7939 Total 13.355 4 0.000 494631093.80000 391800019.5799 597462168.0201 income

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Findings: The Significant p value is 0.000 > 0.05 than equal variance assumed is 0.000< 0.05than hypothesis is rejected. The Significant p value is 0.000> 0.05 than equal variance assumed is 0.000< 0.05 than hypothesis is rejected. PROPRITORS FUNDS TO NET PROFIT Net worth ratio is used for measuring the overall efficiency of a Bank. This ratio establishes the relationship between net profit and the proprietor‟s funds. TABLE 6: PROPRITORS FUNDS TO NET PROFIT (in %) YEAR AXIS BANK AXIS BANK AXIS HDFC HDFC BANK HDFC PROPRITORS NET BANK BANK NET PROFIT BANK FUNDS PROFIT PROPRITOR (Rs.in (Rs.in (Rs.in S FUNDS Thousands ) Thousands) Thousands) (Rs.in Thousands ) 2013-14 4,698,446 162,469,290 2.89 4,798,101 202,194,201 2.37 2014-15 4,741,044 210,491,344 2.25 5,012,991 258,963,586 1.94 2015-16 4,765,664 258,471,542 1.84 5,056,373 323,521,958 1.56 2016-17 4,790,072 279,557,245 1.71 5,125,091 401,060,643 1.28 2017-18 5,133,078 247,240,088 2.08 5,190,181 530,423,526 0.98 MEAN 2.15 1.63 SD 0.41 0.49 ERROR 0.92 0.22 CO-EF VAR 19.07 30.06 CAGR -7.89 -19.81 Source: Annual Reports It is clear that table 6 reveals the net worth ratio of Axis Bank decreased from 2.89% to 1.71% during the period from 2013-14 to 2015-16, and increased from 1.71% to 2.08% in the year 2016-17 and 2017-18. In case of HDFC Bank ratio was decreased from 2.37% to 0.98% during the year from 2013-14 to 2017-18. It is clear that the net worth ratio was higher in Axis Bank (-7.89%) as compared to HDFC Bank (-19.81) during the study period. Hence, the Axis Bank had utilized its resources more effectively as compared to HDFC Bank. H0: There is no significant relationship between proprietors’ funds betweennet profit and of Axis Bank and HDFC Bank. H01: There is significant relationship betweenproprietors and net profit of Axis Bank and HDFC Bank. One-Sample Test Test Value = 0 t df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Proprietors 61.606 4 0.000 4825660.80000 4608178.8919 5043142.7081 funds Net profit 11.242 4 0.000 231645901.80000 174437624.8061 288854178.7939

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Total Income Total income indicates the rupee value of the income earned during a period. The higher value of total income represents the efficiency and good performance. Table 7 clearly indicates that the mean value of HDFC Bank (74,586.27 cores) as compared to Axis Bank (49,463.11cores) during the study period. The growth rate of total income is also higher in HDFC Bank (18.82) as compared to Axis Bank (10.51). Hence, the HDFC efficiency is better than the Axis Bank during the study period. TABLE 7: GROWTH IN TOTAL INCOME YEAR AXIS BANK TOTAL % CHANGE HDFC BANK % CHANGE INCOME TOTAL INCOME (Rs.in cores) (Rs.in cores) 2013-14 38,046.38 - 50,852.52 - 2014-15 44,565.57 85.37 60,212.18 84.46 2015-16 50,359.50 75.55 74,373.22 68.37 2016-17 57,596.70 66.06 86,148.99 59.03 2017-18 56,747.40 67.05 101,344.45 50.18 MEAN 49,463.11 74,586.27 SD 7407.39 17998.04 ERROR 3312.69 8048.97 CO-EF VAR 14.98 24.13 CAGR 10.51 18.82 Source: Annual Reports H0: There is no significant relationship between Axis Bank total income and HDFC Bank total income. H01: There is significant relationship between Axis Bank total income and HDFC Bank total income. One-Sample Test Test Value = 0 t df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Axis Bank total 13.35 4 0.000 49463.11000 39180.0009 59746.2191 income 5 HDFC Bank total income. 8.288 4 0.001 74586.27200 49600.9853 99571.5587

Findings: The Significant p value is 0.000 > 0.05 than equal variance assumed is 0.000< 0.05than hypothesis is rejected. The Significant p value is 0.001> 0.05 than equal variance assumed is 0.001< 0.05 than hypothesis is rejected.

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Total Expenditure The total expenditure reveals the proportionate share of total expenditure spent on the development of staff, interest expended and other expenses or overheads. The highest value of total expenditure is not good in their performance. TABLE 8: GROWTH IN TOTAL EXPENDITURE YEAR AXIS BANK % CHANGE HDFC BANK % CHANGE TOTAL EXPENDITURE TOTAL (Rs.in cores) EXPENDITURE (Rs.in cores) 2013-14 31,828.71 - 42,088.02 - 2014-15 37,117.09 85.75 49,512.13 85.01 2015-16 42,135.84 75.53 61,555.89 68.37 2016-17 53,629.67 59.35 70,861.58 59.39 2017-18 56,471.72 56.36 82,783.61 50.84 MEAN 44,236.61 61,360.25 SD 9454.99 14567.57 ERROR 4228.40 6514.82 CO-EF VAR 21.37 23.74 CAGR 15.41 18.43 Source: Annual Reports The table 8 discloses that the mean value of total expenditure was higher in HDFC Bank (61,360.25 cores) as compared to that Axis Bank (44,236.61 cores) during the period of study, but the rate of growth regarding expenditure in HDFC Bank (18.43%) than that the Axis Bank (15.41%) during the period. It is clear that HDFC Bank is successful in decreasing their total expenditure as compared to Axis Bank. The table also highlights that the annual growth rate of expenditure in HDFC Bank was highest (85.01%)in the year 2014-15 and lowest was (50.84%) in the 2017-18. In the case of Axis Bank the annual growth rate of expenditure was highest (85.75%) in the year 2014-15 and lowest was (56.36%) in the year 2017- 18. Hence, the HDFC Bank is more efficient than as compared to Axis Bank in terms of managing expenditure. H0: There is no significant relationship between Axis Bank total expenditure and HDFC Bank total expenditure. H01: There is significant relationship between Axis Bank total expenditure and HDFC Bank total expenditure. One-Sample Test Test Value = 0 t df Sig. (2-tailed) Mean Difference 95% Confidence Lower Upper Axis Bank total 9.357 4 0.001 44236.60600 31110.9742 57362.2378 expenditure HDFC Bank total expenditure. 8.424 4 0.001 61360.24600 41137.2147 81583.2773

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Findings: The Significant p value is 0.001> 0.05 than equal variance assumed is 0.001 < 0.05than hypothesis is rejected. The Significant p value is 0.001> 0.05 than equal variance assumed is 0.001< 0.05 than hypothesis is rejected.

Conclusion The present study and discussions thereon, certainly reveals that the financial performance of Axis Bank and HDFC Bank. Based on the study HDFC Bank financial performance is better than the Axis Bank. But in some cases, the financial performance of Axis Bank and HDFC Bank are good during the study period of five years.

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8. Dr. A.Murthy and Dr. S.GurusamyManagement Accounting Theory & Practice Vijay Nicole Imprints Private Limited. Chennai. 9. www.axisbank.com 10. www.hdfcbank.com

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