Description
Increase in market share in CASA - 18% growth yoy, CASA deposits continued to
be ~40% of total deposits
• Improved ranking in SB with 26% growth yoy ranked 9
th
as on 31
March 2012
• Significant improvement in funding mix; Retail TDs grew 43% yoy and account
for 37% of total TDs
• Distribution rollout continues; 1,622 branches in 1,050 centres, 10,000+ ATMs
• Branch productivity (CASA per branch) continues to be best-in-class
• Robust growth in insurance sales and investment products, cards and retail
forex as product per customer continue to grow
• Retail Assets are 22% of loans, targeted to reach ~30% of loans by 2015
• Mortgages currently constitute 75% of retail loans, product diversification to
reduce share of mortgages to ~60% by 2015
• Cross-selling to branch customers key focus area
Aiming at Balanced Growth
May 2012
1
Axis Bank Overview
Snapshot for the year ended 31
st
March 2012
Branches and Extension Counters 1,622
Foreign Offices 7
ATMs 9,924
Savings Bank Accounts 119 lacs
Total Assets
`2,85,628 crores
Net Loans `1,69,760 crores
Total Deposits
`2,20,104 crores
Net worth as on 31.3.2012
`21,781 crores
Market Capitalization as on 30.3.2012 `47,361 crores
Return on Average Equity 21.22%
Return on Average Assets 1.68%
Business
Banking
Treasury
Agri &
Rural
Banking
Investment
Banking
Large &
Mid
Corporate
Retail
Banking
SME
Infra
Others
Retail
Liabilities
Retail
Assets &
Cards
Third
Party
Products
2
Build a full-service offering to
SME customers
Continue to build and
strengthen Retail Banking
franchise
Capture end-to-end
opportunities in Payments
across customer segments
Leverage strengths in
Corporate Banking &
Infrastructure linked Financial
services
Business Strategy : Four Key Themes
Leveraging Domestic Growth Opportunities
Retail Banking Highlights in FY12 and Way Forward
• Increase in market share in CASA - 18% growth yoy, CASA deposits continued to
be ~40% of total deposits
• Improved ranking in SB with 26% growth yoy ranked 9
th
as on 31
st
March 2012
• Significant improvement in funding mix; Retail TDs grew 43% yoy and account
for 37% of total TDs
• Distribution rollout continues; 1,622 branches in 1,050 centres, 10,000+ ATMs
• Branch productivity (CASA per branch) continues to be best-in-class
• Robust growth in insurance sales and investment products, cards and retail
forex as product per customer continue to grow
Liabilities
• Retail Assets are 22% of loans, targeted to reach ~30% of loans by 2015
• Mortgages currently constitute 75% of retail loans, product diversification to
reduce share of mortgages to ~60% by 2015
• Cross-selling to branch customers key focus area
Assets
3
113
200
248
322
369
398
121
200
258
339
409
517
103
160
239
268
335
479
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11 Mar '12
Retail Term Deposits
Savings accounts deposits
Current accounts deposits
Progress on Retail Banking Strategy
CASA and Retail term deposits (` bn)
337
561
745
929
1,113
1,393
4
89
136
161
208
278
376
0
50
100
150
200
250
300
350
400
FY07 FY08 FY09 FY10 FY11 FY12
Retail Advances Portfolio (` bn)
Retail Fees (` bn)
3
6
8
9
10
13
0
2
4
6
8
10
12
14
FY07 FY08 FY09 FY10 FY11 FY12
#
Mar’07 to Mar’12 CAGR
*
FY07 to FY12 CAGR
As on
CASA as % of
Total Deposits
CA as % of CASA
Deposits
CASA + Retail
Term Deposits*
FY07 40% 48% 57%
FY08 46% 50% 64%
FY09 43% 49% 63%
FY10 47% 49% 66%
FY11 41% 47% 59%
FY12 42% 43% 63%
*Retail Term Deposits are defined as term deposits up to ` 5 crores
Composition of deposits
Profitability ratios (Q1FY09 - Q4FY12) (%)
RoE ROA
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
3.33
3.75
3.65
3.59
Net Interest Margin FY09 - FY12 (%)
For entire FY For the quarter
ROA (entire FY) ROE (entire FY)
Stable NIM & Profitability Trends
19.93
19.89
20.13
21.22
1.68
1.68 1.67
1.44
Corporate Banking & SME: Slower Growth in Current Environment
• Significant franchise for the Bank, contributing ~54% of loans and 37% of fee
income
• Headwinds on growth, particularly in project finance in near term given the
prevalent macroeconomic environment
• NPAs and restructuring, though elevated remains within tolerance range
– Expect restructuring run rate similar to FY12
• Focus on deepening customer relationships and leveraging corporate banking
relationships for other Bank products
• Overseas business at ~11% of Balance Sheet; continues to remain India-centric
Corporate
Banking
• Contributes ~14% of total loans with over 15,700 customers
• Focus on cross-selling payment and forex products to SME customers
• Slowed SME growth to below portfolio growth given current macro-
environment
• Improvement in risk profile: SME 3 & above contribute ~80% of loans
• Supply chain financing a focus area within SME
SME
6
Update on Power Sector
Power sector share in loan outstanding was 4.7% and in Non-fund based outstanding (Letters of
Credit & Guarantees) was around 21% (wt. avg, share of 10.30%) as on 31
st
March, 2012
• Focus on private sector generation projects
• Out of Non-fund based outstanding, approximately 20% are backed with Letters of
Comfort from other Infrastructure Finance Companies
Project completion schedules
• ~25% of loans represent operational capacities
• Nearly 19% & 45% of projects under implementation are expected to become
operational in FY13 & FY14 respectively
7
Asset Quality Trends
0.92
0.91
0.90
0.96
1.01
1.21
1.23
1.13 1.13
1.12
1.09
1.01
1.06
1.08
1.10
0.94
0.47
0.43
0.39
0.35
0.41
0.45
0.46
0.36
0.35
0.34
0.29
0.26
0.31
0.34
0.39
0.25
Gross NPAs Net NPAs
Gross NPA and Net NPA ratio (Q1FY09 – Q4FY12) (%)
Outlook for FY 13
Slippages and restructuring
• Expect run rate of slippages
and restructuring similar to
FY12
Credit costs
• Projected at ~85 bps of
loans
8
Summary
– Gained market share and maintained above industry profitability
– Diversified revenue streams
– Strong retail deposit franchise
– Robust asset quality
Combining growth
& profitability
– Continue to build on key strengths of the franchise
– Leverage customer relationships with a complete product portfolio
– Pursue growth opportunities in key businesses
Aiming for
balanced growth
9
1.2
1.4
1.7 1.7
1.7
1.1 1.2
1.2
1.3
1.7
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Superior Track Record of Growth and Profitability
50%
35%
22%
34%
18%
26%
21%
12%
17%
19%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
63%
69%
39%
35%
25%
36%
26%
18%
10%
28%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer banks*
Source : Capitaline
16.1
19.9 19.9
20.1
21.2
15.6
16.8 16.8
16.4
14.2
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Asset growth (%) PAT growth (%)
RoA (%) RoE (%)
10
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
* Weighted average based on BS size
Except for the historical information contained herein, statements in this release which contain words or phrases such as
“will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,
“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue”
and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-
looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ
materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not
limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and
expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes, investment
income, cash flow projections, our exposure to market risks as well as other risks. Axis Bank Limited undertakes no
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
Safe Harbor
11
Thank You
12
doc_984943198.pdf
Increase in market share in CASA - 18% growth yoy, CASA deposits continued to
be ~40% of total deposits
• Improved ranking in SB with 26% growth yoy ranked 9
th
as on 31
March 2012
• Significant improvement in funding mix; Retail TDs grew 43% yoy and account
for 37% of total TDs
• Distribution rollout continues; 1,622 branches in 1,050 centres, 10,000+ ATMs
• Branch productivity (CASA per branch) continues to be best-in-class
• Robust growth in insurance sales and investment products, cards and retail
forex as product per customer continue to grow
• Retail Assets are 22% of loans, targeted to reach ~30% of loans by 2015
• Mortgages currently constitute 75% of retail loans, product diversification to
reduce share of mortgages to ~60% by 2015
• Cross-selling to branch customers key focus area
Aiming at Balanced Growth
May 2012
1
Axis Bank Overview
Snapshot for the year ended 31
st
March 2012
Branches and Extension Counters 1,622
Foreign Offices 7
ATMs 9,924
Savings Bank Accounts 119 lacs
Total Assets
`2,85,628 crores
Net Loans `1,69,760 crores
Total Deposits
`2,20,104 crores
Net worth as on 31.3.2012
`21,781 crores
Market Capitalization as on 30.3.2012 `47,361 crores
Return on Average Equity 21.22%
Return on Average Assets 1.68%
Business
Banking
Treasury
Agri &
Rural
Banking
Investment
Banking
Large &
Mid
Corporate
Retail
Banking
SME
Infra
Others
Retail
Liabilities
Retail
Assets &
Cards
Third
Party
Products
2
Build a full-service offering to
SME customers
Continue to build and
strengthen Retail Banking
franchise
Capture end-to-end
opportunities in Payments
across customer segments
Leverage strengths in
Corporate Banking &
Infrastructure linked Financial
services
Business Strategy : Four Key Themes
Leveraging Domestic Growth Opportunities
Retail Banking Highlights in FY12 and Way Forward
• Increase in market share in CASA - 18% growth yoy, CASA deposits continued to
be ~40% of total deposits
• Improved ranking in SB with 26% growth yoy ranked 9
th
as on 31
st
March 2012
• Significant improvement in funding mix; Retail TDs grew 43% yoy and account
for 37% of total TDs
• Distribution rollout continues; 1,622 branches in 1,050 centres, 10,000+ ATMs
• Branch productivity (CASA per branch) continues to be best-in-class
• Robust growth in insurance sales and investment products, cards and retail
forex as product per customer continue to grow
Liabilities
• Retail Assets are 22% of loans, targeted to reach ~30% of loans by 2015
• Mortgages currently constitute 75% of retail loans, product diversification to
reduce share of mortgages to ~60% by 2015
• Cross-selling to branch customers key focus area
Assets
3
113
200
248
322
369
398
121
200
258
339
409
517
103
160
239
268
335
479
Mar '07 Mar '08 Mar '09 Mar '10 Mar '11 Mar '12
Retail Term Deposits
Savings accounts deposits
Current accounts deposits
Progress on Retail Banking Strategy
CASA and Retail term deposits (` bn)
337
561
745
929
1,113
1,393
4
89
136
161
208
278
376
0
50
100
150
200
250
300
350
400
FY07 FY08 FY09 FY10 FY11 FY12
Retail Advances Portfolio (` bn)
Retail Fees (` bn)
3
6
8
9
10
13
0
2
4
6
8
10
12
14
FY07 FY08 FY09 FY10 FY11 FY12
#
Mar’07 to Mar’12 CAGR
*
FY07 to FY12 CAGR
As on
CASA as % of
Total Deposits
CA as % of CASA
Deposits
CASA + Retail
Term Deposits*
FY07 40% 48% 57%
FY08 46% 50% 64%
FY09 43% 49% 63%
FY10 47% 49% 66%
FY11 41% 47% 59%
FY12 42% 43% 63%
*Retail Term Deposits are defined as term deposits up to ` 5 crores
Composition of deposits
Profitability ratios (Q1FY09 - Q4FY12) (%)
RoE ROA
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
3.33
3.75
3.65
3.59
Net Interest Margin FY09 - FY12 (%)
For entire FY For the quarter
ROA (entire FY) ROE (entire FY)
Stable NIM & Profitability Trends
19.93
19.89
20.13
21.22
1.68
1.68 1.67
1.44
Corporate Banking & SME: Slower Growth in Current Environment
• Significant franchise for the Bank, contributing ~54% of loans and 37% of fee
income
• Headwinds on growth, particularly in project finance in near term given the
prevalent macroeconomic environment
• NPAs and restructuring, though elevated remains within tolerance range
– Expect restructuring run rate similar to FY12
• Focus on deepening customer relationships and leveraging corporate banking
relationships for other Bank products
• Overseas business at ~11% of Balance Sheet; continues to remain India-centric
Corporate
Banking
• Contributes ~14% of total loans with over 15,700 customers
• Focus on cross-selling payment and forex products to SME customers
• Slowed SME growth to below portfolio growth given current macro-
environment
• Improvement in risk profile: SME 3 & above contribute ~80% of loans
• Supply chain financing a focus area within SME
SME
6
Update on Power Sector
Power sector share in loan outstanding was 4.7% and in Non-fund based outstanding (Letters of
Credit & Guarantees) was around 21% (wt. avg, share of 10.30%) as on 31
st
March, 2012
• Focus on private sector generation projects
• Out of Non-fund based outstanding, approximately 20% are backed with Letters of
Comfort from other Infrastructure Finance Companies
Project completion schedules
• ~25% of loans represent operational capacities
• Nearly 19% & 45% of projects under implementation are expected to become
operational in FY13 & FY14 respectively
7
Asset Quality Trends
0.92
0.91
0.90
0.96
1.01
1.21
1.23
1.13 1.13
1.12
1.09
1.01
1.06
1.08
1.10
0.94
0.47
0.43
0.39
0.35
0.41
0.45
0.46
0.36
0.35
0.34
0.29
0.26
0.31
0.34
0.39
0.25
Gross NPAs Net NPAs
Gross NPA and Net NPA ratio (Q1FY09 – Q4FY12) (%)
Outlook for FY 13
Slippages and restructuring
• Expect run rate of slippages
and restructuring similar to
FY12
Credit costs
• Projected at ~85 bps of
loans
8
Summary
– Gained market share and maintained above industry profitability
– Diversified revenue streams
– Strong retail deposit franchise
– Robust asset quality
Combining growth
& profitability
– Continue to build on key strengths of the franchise
– Leverage customer relationships with a complete product portfolio
– Pursue growth opportunities in key businesses
Aiming for
balanced growth
9
1.2
1.4
1.7 1.7
1.7
1.1 1.2
1.2
1.3
1.7
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Superior Track Record of Growth and Profitability
50%
35%
22%
34%
18%
26%
21%
12%
17%
19%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
63%
69%
39%
35%
25%
36%
26%
18%
10%
28%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer banks*
Source : Capitaline
16.1
19.9 19.9
20.1
21.2
15.6
16.8 16.8
16.4
14.2
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Asset growth (%) PAT growth (%)
RoA (%) RoE (%)
10
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
* Weighted average based on BS size
Except for the historical information contained herein, statements in this release which contain words or phrases such as
“will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”,
“plan”, “contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue”
and similar expressions or variations of such expressions may constitute "forward-looking statements". These forward-
looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ
materially from those suggested by the forward-looking statements. These risks and uncertainties include, but are not
limited to our ability to successfully implement our strategy, future levels of non-performing loans, our growth and
expansion, the adequacy of our allowance for credit losses, our provisioning policies, technological changes, investment
income, cash flow projections, our exposure to market risks as well as other risks. Axis Bank Limited undertakes no
obligation to update forward-looking statements to reflect events or circumstances after the date thereof.
Safe Harbor
11
Thank You
12
doc_984943198.pdf