Comparative Analysis of Financial Performance- A Study of AXIS Bank and ICICI Bank

Abstract

The banking sector holds significant importance in the economic development of a nation. India's banking system boasts a vast network of branches that offer various financial services to the public. In today's financial landscape, assessing financial performance is crucial from the perspectives of various stakeholders, including management, lenders, owners, and investors. Understanding financial performance aids in predicting, comparing, and evaluating a company's earning capacity, facilitating economic and investment decisions. Companies typically provide financial information through statements and reports, and the financial performance of a bank can be analyzed using data from its quarterly and annual reports.

This study aims to compare the financial performance of Axis Bank and ICICI Bank based on factors such as Net Profit and key ratios like Return on Equity, Capital Adequacy Ratio, Total Income to Capital Employed Ratio, and Total Debt to Owners Fund Ratio, among others. The study period spans from 201314 to 2017-18. The findings indicate that while ICICI Bank demonstrates stronger financial performance and stability in terms of Net Profit compared to Axis Bank, Axis Bank exhibits superior management efficiency in terms of Return on Equity when compared to ICICI Bank.