Analysis of Efficiency Metrics and Essential Financial Ratios for Performance Evaluation of Axis Bank
Title
Analysis of Efficiency Metrics and Essential Financial Ratios for Performance Evaluation of Axis Bank
Authors
Rohini & Robert Edwin Chester
Keywords
AXIS Bank | Efficiency Metrics
Publication Details
Vol: 10; No:4 ; Dec 24 | ISSN: 2455-3921
Abstract
This study provides an in-depth investigation into the efficiency metrics and essential financial ratios of AXIS Bank over a multi-year period, aiming to understand its performance trends, operational efficiency, and overall financial health. The analysis focuses on key financial indicators, including Return on Capital Employed (ROCE), Current Account and Savings Account (CASA) ratio, Net Profit Margin (NPM), Operating Profit Margin (OPM), Return on Assets (ROA), and Return on Equity (ROE). These metrics are critical in evaluating the bank’s ability to generate returns, manage costs effectively, and sustain profitability amidst evolving economic conditions. The findings reveal fluctuating trends in these metrics, reflecting the challenges faced by AXIS Bank in navigating a dynamic banking environment characterized by increasing competition, regulatory pressures, and economic uncertainties. While the CASA ratio demonstrates the bank’s ability to maintain a strong low-cost funding base, declining profitability and efficiency ratios highlight areas requiring immediate strategic focus. This study builds on recent research that emphasizes the importance of financial ratio analysis as a tool for assessing bank performance and identifying key operational and financial challenges. By offering a detailed evaluation of AXIS Bank’s financial efficiency, this research contributes valuable insights for stakeholders, including policymakers, investors, and management. The conclusions drawn aim to assist in formulating strategies that enhance profitability, optimize resources, and ensure sustainable growth in the competitive banking sector.
Correspondence
Dr. P. Rohini, Assistant Professor, Department of Commerce, KL University, Vijayawada, Andhra Predesh, India
