Performance Analysis For AXIS Bank And Union Bank Of India

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Dr. M. Geeta , Dr. C.N. Sivanand


The banking sector plays a pivotal role in the economic development of India. After economic reforms, this has led a severe competition among the commercial banks in India, which resulted in mergers of banks. Sound financial health of the bank, boost confidence in stake holders as a whole. The present study is to analyze the financial performance through CRAMELS ratio’s, forecasting of Return on Net worth, through excel and relationship between Return on Assets and Gross nonperforming assets, through excel for the two banks namely, Axis bank and UBI bank. CRAMELS is based on the CAMEL analysis, which was introduced in US in 1979.The research study is descriptive and empirical based on the annual reports of the banks.  Various ratios are used and composite ranking technique is used to compare, the yearly performance of banks. Excel, is used to forecast RON and study the relationship between ROA and GNPA. The findings are, through CRAMELS, the Axis bank’s performance is better than the Union Bank of India. Both bank’s ROA and GNPA have negative correlation .Both the banks, RON are forecasted positively. The conclusion is the public sector banks have to be consistent in its operations, and both banks to follow stringent credit policy to sustain in business.

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