Financial analysis of axis bank

After going through the Press Release issued by Axis Bank, it looked quite compelling scheme on paper and anyone can go ahead with the same without giving any second thought. Only visible catch is that all the EMI payments should be paid on time. From Layman perspective 1 year waiver on 15 year loan is equivalent to 6. Some financial cruncher will read it as direct discount of 6.

Financial analysis of axis bank

Alpen Bank The main issue that Alpen bank is facing is whether or not they should launch the credit card business in the Romania market and which group of target audience they should select while applying the launching strategy. Moreover, clarified positioning strategy and customer segmentation is also needed to secure the success of the program.

In the case, it seemed that Alpen had the opportunity to act since economic environment in Romania had changed from after its entering into the EU: However, such a growth was not enough compared with other countries of the region. Besides, to launch the credit card business in Romania might be risky and do harm to the customer base.

Then what should Financial analysis of axis bank do? All the calculations in the charts were based on revenue potential and acquisition costs. Comparing between the 2 options, it seemed that choosing affluent customers only would be easier to achieve since number of the required customers of breakeven point with a ROI of 5 million is smaller than that of choosing both middle class and affluent customers.

Moreover, as customer base grew, profits of selecting affluent customers only were bigger than those of selecting both middle class and affluent customers because of the fact that there was significantly lower card utilization for middle-class customers.

Thus, in order to successfully launch the credit card business into Romania, Alpen bank needs to pick its target audience which is composed of affluent customers only. However, all of these are based on the premise that Alpen can acquire enough customers within 2 years; otherwise, it will lose money.

Moreover, direct sales and branch cross-selling will work more efficiently since they have much higher effective hit rate than the other options regardless the target audience choices. Thus, these tools can provide a flexible space for Alpen to move on to other potential strategies in the long-term.

Regarding the positioning strategy, Alpen should emphasize on its current strength since it is much easier and safer for a brand to maintain its current image rather than explore a new one. Alpen has already established the reputation for excellence in serving affluent clientele.

With such reputation and brand awareness among its target audience, Alpen seems to be more likely to make profits with launching its credit card business into Romania market. First, determine the relative value of each segment.

Financial analysis of axis bank

Find the number of potential cardholders by segment and weight the value of each segment by calculating the percent of the total potential cardholders each segment represents. Calculate the share of total revenue potential accounted for by the www.

Complete the exercise for each segment and total to determine the average annual revenue per customer. Recreate this table to establish the parameters for implementing marketing communication plans to acquire customers.

The exercise can be done for both all customers and affluent customers. Mail, Sales, Cross-Sell 45, 0. The case adds the information regarding fixed costs. Existing Customer - Infrastructure 5, 5, 6, 7, Advertising Expense 2, 2, 2, 2, Profit Loss -2, 1, 6, 11, Cumulative Profit Loss -2,5, 17, www.

Infrastructure 5, 5, 6, 7, Advertising Expense 2, 2, 2, 2, Profit Loss5, 12, 19, Cumulative Profit Loss5, 17, 37, Breakeven of customers:Financial Leverage Ratio - Axis Bank Ltd.

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Financial analysis of axis bank

Financial leverage ratio also known as financial leverage or leverage is a measure of how much assets a company holds relative to its equity. At your request, you are being redirected to a third party site. Please read and agree with the disclaimer before proceeding further.

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Analysis; Axis Bank, Raipur Smart City launch payment platform. The Axis Bank Limited Equities Center is a collection of modules for Axis Bank equity research and analysis.

Using equity center you examine different market driven as well as company specific characteristics using powerful technical, fundamental, predictive and other Axis Bank . Financial express has given number two position and BT-KPMG has rated AXIS bank as the best bank with some 26 parameters Here is a SWOT analysis of Axis Bank - .

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Axis Bank Ltd. Fundamental Analysis, Financial Performance, Ratio Analysis