GR

EQUITY

SHARES OF

AXIS BANK SYBBI

ST.GONSALO GARCIA COLLEGE ,

VASAI

SUBMITTED TO –

PROFESSOR MILDRED PEREIRA KARKI

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GROUP MEMBERS

Sr.No Name Roll No Marks

1 Reshma Jadhav 11

2 Shabnam Khan 14

3 Alton Lobo 17

4 Mrunmai Meher 20

5 Anupriya Nadar 34

6 Anu Thattil 36

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TABLE OF CONTENTS

Sr.No Topic

1. Introduction

2. Shareholding Pattern of Axis Bank

3. Axis Bank’s Shareholding Return

4. Equity Dividends of Axis Bank

5. Annual Report on Share Price of Axis

Bank on BSE

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INTRODUCTION

DEFINITION AND MEANING OF EQUITY SHARES

An equity share is a perpetual liability because it signifies an owners legal

demand upon the assets of the entity in which the equity share if held. Businesses

procure money for their operations by issuing debt and equity capital. Companies are

legally bound to pay their creditors interest income along with the original capital

amount. There are two forms of equity capital: Preference (Preferred) Shares and

Equity (Common) Shares. The preference shareholders have priority over equity

shareholders in payments of dividends and when the company is terminated.

Equity shareholders are the actual owners of the company. They have voting rights

and share all the money remaining after the business' obligations are met.

Equity shares are those shares which are ordinary in the course of company's business.

They are also called as ordinary shares. These shareholders do not enjoy preference

regarding payment of dividend and repayment of capital. Equity shareholders are

paid dividend out of the profits made by a company. Higher the profits, higher will be

the dividend and lower the profits, lower will be the dividend.

In terms of investment strategies, equity (stocks) is one of the principal asset classes.

The other two are fixed-income (bonds) and cash/cash-equivalents. These are used in

asset allocation planning to structure a desired risk and return profile for an investor's

portfolio

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FEATURES OF EQUITY SHARES

(1) Owned capital: Equity share capital is owned capital because it is the money of

the shareholders who are actually the owners of the company.

(2)Fixed value or nominal value: Every share has fixed value or a nominal value. For

example, the price of a share is Rs. 10/- which indicates a fixed value or a nominal

value.

(3) Distinctive number: Every share is given a distinct number just like a roll number for

the purpose of identification.

(4) Attached rights: A share gives its owner the right to receive dividend, the right to

vote, the right to attend meetings, the right to inspect the books of accounts.

(5) Return on shares: Every shareholder is entitled to a return on shares which is known

as dividend. Dividend depends on the profits made by a company. Higher the profits,

higher will be the dividend and vice versa.

(6) Transfer of shares: Equity shares are easily transferable, that is if a person buys

shares of a particular company and he does not want them, he can sell them to any

one, thereby transferring the shares in the name of that person.

(7) Benefit of right issue: When a company makes fresh issue of shares, the equity

shareholders are given certain rights in the company. The company has to offer the

new shares first to the equity shareholders in the proportion to their existing

shareholding. In case they do not take up the shares offered to them, the same can

be issue to others. Thus, equity shareholders get the benefits of the right issue.

(8) Benefit of Bonus shares: Joint stock companies which make huge profits, issue

bonus shares to their ordinary shareholders out of the accumulated profits. These

shares are issued free of cost in proportion to the number of existing equity share

holding. In case they do not take up the shares offered to them, the same can be

issued to others. Thus, equity shareholders get the benefits of the right issue.

(9) Irredeemable: Equity shares are always irredeemable. This means equity capital is

not returnable during the life time of a company.

(10)Capital appreciation: The nominal or par value of equity shares is fixed but the

market value fluctuates. The market value mainly depends upon profitability and

prosperity of the company. High rate of dividend is paid with high rate of profit, the

shareholders capital is appreciated through an appreciation in the market value of

shares. (I.e. higher the rate of dividend, higher the market value of the shares.)

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AXIS BANK

Axis Bank Limited (BSE: 532215, LSE: AXBC) is an Indian financial services firm

headquartered in Mumbai, Maharashtra. It had begun operations in 1994, after

the Government of India allowed new private banks to be established.

The Bank was promoted jointly by the Administrator of the Specified Undertaking of

the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General

Insurance Corporation Ltd., National Insurance Company Ltd., Th``e New India

Assurance Company, The Oriental Insurance Corporation and United India Insurance

Company UTI-I holds a special position in the Indian capital markets and has

promoted many leading financial institutions in the country.

As on the year ended 31 March, 2012, Axis Bank had an operating revenue of 134.37

billion and a net profit of 42.42 billion. Axis Bank (erstwhile UTI Bank) opened its

registered office in Ahmedabad and corporate office in Mumbai in December 1993.

The first branch was inaugurated in April 1994 in Ahmedabad by Dr. Manmohan Singh,

then the Honourable Finance Minister. The Bank, as on 31st March, 2012, is capitalized

to the extent of Rest. 4.132 billion With the public holding (other than promoters and

GDRs) at 54.08%.

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SHAREHOLDING PATTERN OF AXIS BANK

In the above table, it gives us a statistical information about the shareholding

pattern of Axis Bank

Sr. No. Shareholder/ Category Position as on 30/09/2012

No. of shares held % shareholding

A Promoters

1 SUUTI 97,224,373 23.45

2 LIFE INSURANCE CORPORATION OF INDIA 39,770,156 9.59

3 GENERAL INSURANCE CORPORATION OF INDIA 7,575,000 1.83

4 THE NEW INDIA ASSURANCE COMPANY LIMITED 3,786,078 0.91

5 NATIONAL INSURANCE COMPANY LIMITED 3,412,000 0.82

6 THE ORIENTAL INSURANCE COMPANY LIMITED 1,461,812 0.35

7 UNITED INDIA INSURANCE COMPANY LIMITED 1,171,373 0.28

Total promoter shareholding A 154,400,792 37.25

B Domestic shareholders

8 INDIAN FIS AND BANKS 7,524,524 1.82

9 INDIAN MUTUAL FUNDS 19,949,511 4.81

10 INDIAN BODIES CORPORATE 31,862,567 7.69

11 INDIAN RESIDENTS 26,532,081 6.40

Total domestic shareholding B 85,868,683 20.71

C Foreign shareholders

12 FIIs 135,902,364 32.78

13 FDI (GDR) 37,098,743 8.95

14 FOREIGN BODIES – DR 36,401 0.01

15 FOREIGN BANKS 28,686 0.01

16 NRIS/FOREIGN EMPLOYEES 1,190,825 0.29

16 Foreign National 100 0.00

Total Foreign shareholding C 174,257,119 42.04

Total - A+B+C 414,526,594 100.00

GR The Shareholding pattern table is divided into three categories of shareholders:-

A. PROMOTERS

B. DOMESTIC SHAREHOLDERS

C. FOREIGN SHAREHOLDERS

In all there are 414,526,594 shares which makes 100% of shareholding.

A. PROMOTERS Promoters can be an individual or a company that helps to raise money

for some investment activities for a fee or they are compensated with shares.

The Promoters for Axis Bank are

SUUTI (Specified Undertaking of UTI), LIFE INSURANCE CORPORATION OF INDIA,

GENERAL INSURANCE CORPORATION OF INDIA,

THE NEW INDIA ASSURANCE COMPANY LIMITED,

NATIONAL INSURANCE COMPANY LIMITED,

THE ORIENTAL INSURANCE COMPANY LIMITED,

UNITED INDIA INSURANCE COMPANY LIMITED.

In all the Promoters hold 154,400,792 shares i.e. 37.25% of shareholding in which the

maximum amount of shares held by a promoter is SUUTI (Specified Undertaking of UTI)

Who holds 97,224,373 i.e. 23.45% of shareholding and the minimum amount of shares

are held by UNITED INDIA INSURANCE COMPANY LIMITED which is 1,171,373 of shares

and 0.28% of shareholding.

B. DOMESTIC SHAREHOLDERS DOMESTIC SHAREHOLDERS are the shareholders from the local or domestic country

or residents i.e. they are from India. They are the actual shareholders of the company.

There are four types of shareholders

INDIAN FIS (Financial Institutions) AND BANKS

INDIAN MUTUAL FUNDS

INDIAN CORPORATE BODIES

INDIAN RESIDENTS

In all Domestic Shareholders hold 85,868,683 of shares and 20.7% is the

shareholding.

Maximum domestic shares are held by Indian Corporate Bodies which are 31,862,567

shares and the shareholding is 7.59%.

Minimum domestic shares are held by Indian Financial Institutions and banks which are

7,524,524 i.e. 1.82 of shares are held by them.

GR C. FOREIGN SHAREHOLDERS

As the name suggests foreign shareholders are not locals they are foreigners

I.e. they are not from India.

They are

FII’s (Foreign Institutional Investors)

FDI (GDR) [Foreign Direct Investment (Global Depository Receipt)]

FOREIGN BODIES – DR

FOREIGN BANKS

NRIS/FOREIGN EMPLOYEES

Foreign National’s

Total Foreign shareholding is 174,257,119 shares that is 42.04% of shareholding.

Maximum Foreign shares are held by FII’s (Foreign Institutional Investors) which are

135,902,364 shares and the shareholding is 32.78%.

Minimum Foreign shares are held by Foreign Nationals which are 100 shares and the

shareholding is 0%.

As on 12 October 2012 in all the share capital of Axis Bank is 415 crores.

The shareholders’ funds are 25,234 crores. Book value per share was 608.74 and the

market capitalization is 46,415 crores.

In all of 414,526,594 shares the maximum amount of shares are held by FII’s (Foreign

Institutional Investors) which are 135,902,364 shares and the shareholding is 32.78%.

The minimum amount of shares are held by General Insurance Corporation which is

4.20%.

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The above bar diagram shows the Bank’s Shareholder returns from fiscal year 2008 to

first half of fiscal year of 2013

The above diagram shows 3 parts

1) Book value per share

2) Return on equity

3) Return on asset

1) Book value per share

It is a net asset value of a company calculated by total assets minus intangible

asset (patents, goodwill) and liabilities.

In the above bar diagram the book value of the shares shows an increasing

value from 245.14 in fiscal year of 2008 to 608.74 to first half of fiscal year of 2013.

The book value of share in the fiscal year 2009 was 284.50. The book value of

share in the fiscal year 2010 was 395.99. The book value of share in the fiscal

year 2011 was 462.77. The book value of share in the fiscal year 2012 was 552.00.

Axis Bank’s Shareholder Returns

( ̀ )

A strong franchise demonstrating consistent value creation over time

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2) Return on Equity

The amount of net income returned as a percentage of shareholders

equity. Return on equity measures a corporation's profitability by revealing how much

profit a company generates with the money shareholders have invested.

The return on equity for fiscal year 2008 was 16.09% which was lowest of all.

The return on equity for fiscal year 2009 was 19.93%.

The return on equity for fiscal year 2010 was 19.89%.

The return on equity for fiscal year 2011 was 20.83%.

The return on equity for fiscal year 2012 was 21.22% which is highest of all.

The return on equity for first half of fiscal year 2013 is 19.77%.

3) Return on Asset

An indicator of how profitable a company is relative to its total assets. ROA

gives an idea as to how efficient management is at using its assets to generate

earnings. Calculated by dividing a company's annual earnings by its total assets, ROA

is displayed as a percentage. Sometimes this is referred to as "return on investment".

The return of asset for fiscal year 2008 was 1.24% which was lowest of all.

The return of asset for fiscal year 2009 was 1.44%.

The return of asset for fiscal year 2010 was 1.67%.

The return of asset for fiscal year 2011 was 1.68% which is highest of all.

The return of asset for fiscal year 2012 was 1.68% which remained constant from 2011.

The return of asset for first half of fiscal year 2013 is 1.56%.

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Equity Dividend of Axis Bank

The above table is the equity dividends from financial year ending March

2008 to financial year ending March 2012 from the Profit and Loss A/c of Axis Bank ltd.

Equity Divident - The annual cash flow that an equity investor receives

EPS (Earning per share)-The portion of a company's profit allocated to each

outstanding share of common stock. Earnings per share serves as an indicator of a

company's profitability.

In the above table,

As on March 2008 Total shares in issue by the ending financial year 2007-2008 were

3,577.10 lakhs. The equity dividend was 251.64 which was 70.34%.

The earning per share (EPS) annualized was RS.29.94 which was lowest of all.

As on March 2009 Total shares in issue by the ending financial year 2008-2009 were

3,590.50 lakhs. The equity dividend was 420.52 which was 117.13%.

The earning per share (EPS) annualized was RS. 50.57.

As on March 2010 Total shares in issue by the ending financial year 2009-2010 were

4,051.74 lakhs. The equity dividend was 567.45 which was 140.05%.

The earning per share (EPS) annualized was RS. 62.06.

As on March 2011 Total shares in issue by the ending financial year 2010-2011 were

4,105.46 lakhs. The equity dividend was 670.36 which was 163.28%.

The earning per share (EPS) annualized was RS. 82.54.

KEY ITEMS

Year March’12 March’11 March’10 March’09 March’08

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 770.07 670.36 567.45 420.52 251.64

Equity Dividend (%) 186.36 163.28 140.05 117.13 70.34

Shares in Issue (Lakhs) 4,132.04 4,105.46 4,051.74 3,590.05 3,577.10

EPS - Annualised (Rs.) 102.67 82.54 62.06 50.57 29.94

GR As on March 2012 Total shares in issue by the ending financial year 2011-2012 were

4,132.04lakhs. The equity dividend was 770.07 which was 186.36%.

The earning per share (EPS) annualized was RS. 102.67.

According to the Eighteenth Annual Report of the Bank together with the Audited

Statement of Accounts, Auditors'' Report and the report on business and operations of

the Bank for the financial year ended 31st March 2012 presented by the Board of

Directors,

It showed that there was growth in the proposed dividend of 14.88% as on March

2012. The proposed dividend for the financial year 2010-2011 was 670.36 which

increased to 770.80 in the financial year 2011-2012.

PARTICULARS 2011-12 2010-11 GROWTH

Proposed Dividend 770.08 670.36 14.88%

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Annual Report on Share Price of Axis Bank on BSE

The above graph shows the price of shares of Axis Bank from 1st January

2012 to 7th January 2013. The graph shows increasing value in the price of shares it also

shows the volume of the shares.

As on 5th January 2012 the price of shares were the lowest till now the price of share

was 869.30 and the volume of shares was 4, 83,549.

On January 25th 2012, Price of Share: 1059.75 and Volume of Shares: 4, 83,549.

On February 24th 2012, Price of Share: 1184.70 and Volume of Shares: 4, 37,762.

On March 30th 2012, Price of Share: 1145.90 and Volume of Shares: 2, 80,253.

On April 24th 2012, Price of Share: 1114.15 and Volume of Shares: 2, 89,663.

On May 30th 2012, Price of Share: 1001.85 and Volume of Shares: 1, 17,306.

On June 27th 2012, Price of Share: 1000.80 and Volume of Shares: 1, 52,711.

On July 25th 2012, Price of Share: 1028.35 and Volume of Shares: 1, 31,956.

On August 31st 2012, Price of Share: 999.00 and Volume of Shares: 3, 00,969.

On September 28th 2012, Price of Share: 1136.75 and Volume of Shares: 1, 86,840.

On October 30th 2012, Price of Share: 1184.70 and Volume of Shares: 3, 48,672.

On November 29th 2012, Price of Share: 1305.55 and Volume of Shares: 2, 32,578.

On December 28th 2012, Price of Share: 1358.55 and Volume of Shares: 2, 61,532.

GR On January 4th 2013, Price of Share: 1378.20 and Volume of Shares: 1, 51,673 was

marked as the highest share price till 4th January 2013.

On January 7th 2012, Price of Share: 1386.70 and Volume of Shares: 16,310. Broke the

previous record on 4th January 2013 and is now the latest highest share price of Axis

Bank.

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Conclusion

We hereby conclude that the observation and finding of the

equity capital as a source of finance in Axis Bank gave us

knowledge about the Shareholding Pattern of Axis Bank, Axis

Bank’s Shareholding Return, Equity Dividends of Axis Bank,

Annual Report on Share Price of Axis Bank on BSE.

GR

Bibliography

www.investopedia.com

www.axisbank.com

www.economictime.com

www.thefreedictionary.com