A Comparative Study on Financial Performance Analysis of Kotak Mahindra Bank and Axis Bank

Abstract

The banking industry is important to a nation's economic growth. India's banking system is characterized by a significant number of bank branches that provide a wide range of financial services to the public. Financial performance is a common topic of discussion among numerous stakeholders in the modern financial sector, including managers, lenders, owners, and investors. The ability to predict, compare, and assess a company's earning potential is made possible by having knowledge of its financial performance. Additionally, it supports financial and investment choices, by way of financial statements and reports, any business discloses financial data.

This research paper presents a comprehensive comparative analysis of the financial performance of Kotak Mahindra Bank and Axis Bank over the five-year period from 2018-19 to 2022-23. The study aims to evaluate key financial indicators, including Net Profit Margin, Return on Assets, Earnings Per Share, Current Ratio, Quick Ratio, Net Interest Margin, Dividends Per Share, and Earning Yield, and to determine if there are significant differences between the two banks. The research employs statistical methods, including T-test and ANOVA, to test hypotheses related to financial performance indicators.