Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q1 FY2020 Earnings Presentation
79 slides from Axis Bank's earnings presentation, July 2019
Slide 1: Investor Presentation Quarterly Results Q1FY20
Investor Presentation Quarterly Results Q1FY20 NSE: AXISBANK BSE: 532215 LSE (GDR): AXB
Slide 2: Major Highlights of Q1FY20
Major Highlights of Q1FY20 • NII up 13% YOY, 19% adjusted for one-offs Operating Profitability improved materially • Operating profit up 35% YOY • ROE for the quarter at 9.19% • Domestic loan book grew 19% YOY Growth metrics were healthy • Retail book grew 22% YOY and domestic corporate loans grew 1
Slide 3: Key Metrics for Q1FY20
Key Metrics for Q1FY20 Snapshot (As on June 30th, 2019) (in ` Crores) Deposits 21% YOY Domestic Advances 19% YOY Q1FY20 YOY Growth Net Interest Income 5,844 13% Fee Income 2,663 26% Profit & Loss Operating Expenses 3,820 3% 52% 80% Operating Profit 5,893 35% Net Profit 1,370 95% Q1FY20 YOY Growth CA
Slide 4: Financial Highlights
Financial Highlights 5 Business Segment performance 19 Asset Quality 49 Shareholder Returns and Capital Position 58 Subsidiaries’ Performance 61 Other important information 69 4
Slide 5: Financial Highlights: Balance Sheet
Financial Highlights : Balance Sheet • On QAB basis, total Deposits grew 24% with CASA and Retail term deposits together up 24% • Summary Strong deposit growth enabled healthy domestic loan growth • Share of CASA and Retail term deposits stood at 80% • Domestic loan growth stood at 19%, driven by Re
Slide 6: Granular deposits had strong growth during the quarter
73,374 34,698 1,00,098 24% Dec-14 19% 75,292 37,160 1,05,741 Mar-15 * Retail Term Deposits 18% 79,391 37,679 1,10,067 Jun-15 15% 81,518 37,812 1,12,574 Sep-15 16% 83,329 40,842 1,18,289 Dec-15 SA (QAB) Medium term average = 17% 17% 87,167 44,244 1,23,326 Mar-16 17% 93,255 43,790 1,28,438 Jun-16 CA (
Slide 7: Domestic loan growth remains strong on the back of healthy deposit growth
Domestic loan growth remains strong on the back of healthy deposit growth All figures in ` Crores Deposits* Advances Assets 26% 19% 18% 19% 15% 15% 18% 17% 16% 21% 21% 15% 15% 14% 12% 10% 12% 15% 14% -12% 9% -19% -29% -34% 4,97,276 4,75,105 4,94,798 4,39,650 4,41,074 4,56,121 35,595 38,115 43,758 53
Slide 8: Loan growth was driven by Retail and Domestic Corporate
Loan growth was driven by Retail and Domestic Corporate All figures in ` Crores Retail Advances SME Advances Corporate Advances 22% YOY 8% YOY 3% YOY 2,58,205 2,11,648 1,77,455 1,72,443 24,662 39% YOY 40,487 1,52,793 56,983 61,616 1,31,956 16% YOY Jun-18 Jun-19 Jun-18 Jun-19 Jun-18 Jun-19 Overseas D
Slide 9: Retail and SME now form 64% of the Bank's Loans
Retail and SME now form 64% of the Bank’s Loans All figures in ` Crores 63% 60% 64% 58% 55% 54% 54% 4,94,798 4,97,276 43% 4,39,650 3,73,069 1,83,402 1,77,455 (36%) 3,38,774 1,74,445 2,81,083 1,55,904 61,616 65,584 (12%) 2,30,067 1,55,384 58,740 1,96,966 1,27,644 49,172 1,06,537 44,869 1,13,084 41,50
Slide 10: Financial Highlights: Profit & Loss Statement
Financial Highlights : Profit & Loss Statement • PAT stood at ` 1,370 crores, up 95% YOY • Summary Operating profit grew strongly by 35% YOY • Fee income grew by 26%, led by Retail Fees, which grew 28% • Opex to Assets ratio has improved; Opex growth for Q1 moderated to 3% 10
Slide 11: Earnings have been stable during the quarter
Earnings have been stable during the quarter All figures in ` Crores Net Profit 95% YOY 1,681 1,556 1,505 1,306 1,370 1,225 726 701 790 580 432 319 -2,189 Q1FY17 Q2FY17 Q3FY17 Q4FY17 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 11
Slide 12: Operating Profit growth in Q1 was strong
Operating Profit growth in Q1 was strong All figures in ` Crores Operating Profit and Operating Profit Margin* 35% YOY 5,893 5,525 5,014 Operating profit grew 35% YOY 4,372 4,094 3,672 2.90% 2.97% 2.60% 2.20% 2.47% 2.21% Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 * annualized Operating Profit Margin
Slide 13: Operating jaws improved further during the quarter
Operating jaws improved further during the quarter All figures in ` Crores Operating Revenue 20% YOY 9,712 9,232 8,092 832 711% YOY Operating 354 103 Revenue has 3,173 3,036 8% YOY grown 2,822 … Resulting in widening of positive jaws robustly … 5,706 5,844 13% YOY 5,167 21% 20% Q1FY19 Q4FY19 Q1FY20
Slide 14: The Bank retains a stable, low cost deposit franchise
The Bank retains a stable, low cost deposit franchise CASA + RTD 84% 81% 82% 80% 81% 80% CASA+RTD** Bulk of the Bank’s deposits continue to 54% come from granular, retail sources 47% 48% 46% 44% 41% CASA** Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 ** as % of total deposits Cost of Deposits 6.73% 6.4
Slide 15: NIM adjusted for one-offs was up 11 bps on YOY basis
NIM adjusted for one-offs was up 11 bps on YOY basis... Cost of Funds 5.69% 5.70% 5.34% 5.44% 5.11% 5.23% Cost of funds remained nearly flat q-o-q… Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 NIM - Global NIM - Domestic 3.59% 3.67% 3.59% 3.66% 3.61% 3.56% …however NIM up 11 bps y-o-y ex previously dis
Slide 16: MCLR mix in advances has stabilized
MCLR mix in advances has stabilized Advances mix by Rate type 1 year MCLR (%) 8.90 8.85 8.80 13% 10% 9% 8.80 12% 8.75 8.70 18% 8.70 29% 8.60 42% 8.40 57% 8.25 8.25 8.25 8.25 69% 56% 59% 54% 56% Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 49% 40% 29% 11% MCLR Duration
Slide 17: Retail and Transaction Banking now form 78% of the Bank's Fees
Retail and Transaction Banking now form 78% of the Bank’s Fees All figures in ` Crores Fee Composition* 26% YOY Retail (card) Retail (non card) Transaction Banking Treasury & DCM SME Corporate Credit 3,020 2,615 415 2,663 2,423 2,448 2,376 162 267 2,246 370 101 2,170 79 425 2,117 285 230 573 2,003 1
Slide 18: Retail Fees continue to drive the Bank's fee growth
Retail Fees continue to drive the Bank’s fee growth Fee Growth (YOY) All figures represent YOY growth Retail* Transaction Banking* 37% 28% 24% 16% 22% 18% 11% 12% 10% 6% 7% 7% Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 SME Corporate Credit 8% 8% 0% -1% -2% 5%
Slide 19: Business Segment performance
Financial Highlights Business Segment performance Asset Quality Shareholder Returns and Capital Position Subsidiaries’ Performance Other important information 19
Slide 20: Business Performance: Retail
Business Performance : Retail • Retail Lending has shown strong growth with significant diversification in loan mix over time • Retail Fees remain a major revenue driver for the Bank Summary • The Bank continues the strategy of steady branch expansion • Axis Bank ranks amongst the most valuable bran
Slide 21: Retail Loans have grown and diversified significantly
Retail Loans have grown and diversified significantly All figures in ` Crores Retail Advances have shown strong growth… …with significant dispersion in mix over time 3% 2% 10% 9% 8% 9% 8% 8% 25% CAGR* 12% 6% 1% 2% 3% 4% 2% 3% 4% 3% 6% 2% 4% 5% 5% 7% 7% 8% 8% 2,58,205 6% 8% 9% 8% 11% 7% 2,45,812 8% 8
Slide 22: Our identified new engines of growth continue to grow strongly
Our identified “new engines of growth” continue to grow strongly Sourcing Strategy 83% of sourcing in Q1 was from existing customers 74% 47% of overall sourcing was through Bank branches 46% 46% 38% 36% 22% 25% Growth in Retail book 12% 15% Growth 2% Gold Loan Rural Home Loan LAP Auto Loan Credi
Slide 23: The Bank is a leading player in India's Wealth Management space
The Bank is a leading player in India’s Wealth Management space Relationship Management and Wealth Specialist team of over 557 AUM* of over ` 1,36,789 Crores ($20 Bn) 4th largest Wealth Management business in India Burgundy Performance (FY14-Q1FY20) (Asian Private Banker 2017 League Table**) AUM ^ 3
Slide 24: Retail Fees have shown robust growth
Retail Fees have shown robust growth All figures in ` Crores 1,829 28% YOY 1,651 1,549 407 1,475 207 5% YOY 1,336 289 1,274 1,290 1,244 290 1,188 1,091 308 198 256 262 728 733 400 228 37% YOY 657 607 536 530 533 465 409 432 711 28% YOY 694 557 579 603 461 489 495 435 430 Q4FY17 Q1FY18 Q2FY18 Q3FY18
Slide 25: We continue to invest in Network expansion
We continue to invest in Network expansion New Branches Opened* Domestic Branch Network* 114 100 104 100 4,050 4,094 85 86 3,703 81 76 3,304 2,904 44 2,589 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Jun-19 Very well distributed branch presence a
Slide 26: Amongst the most valuable Brands in India
We have created a differentiated identity and are amongst the most valuable Brands in India Featured amongst Top 20 most valuable brands in India Axis Bank Mobile App Store Rating 4.6 2018 Global Rank 4.6 #14 vs. #32 in 2017 People’s Choice Among 42 leading banks worldwide 26
Slide 27: Business Performance: Digital
Business Performance : Digital • The Bank has a strong position across most digital payment products • We are ranked amongst the top Banks in Mobile Banking spends Summary • Digital channels continue to witness healthy growth • The Bank has emerged as a leading partnership-driven innovator on paymen
Slide 28: Strong market position across most Digital Payment products
We have strong market position across most Digital Payment products Axis Bank market position across products Product Debit Point of Sale Credit Mobile UPI4 Forex Cards1 Terminals ^ Cards2 Banking3 Cards5 Market share 7% 13% 8% 13% 11% 26% Ranking 4th 4th 3rd 4th 1st Source: RBI, Internal Data 1 – b
Slide 29: Investments in analytics have helped build and sustain this strong position
Investments in analytics have helped build and sustain this strong position Deposits & Investments Lending Payments Analytics on payments data has enabled cross- selling of financial and investment products Risk Management Sourcing from internal customers 97% 97% 97% 96% 96% 98% 85% 87% 93% 92% 93%
Slide 30: Credit Cards business is now the 4th largest in the country
Our Credit Cards business has grown strongly in the last 6 years and is now the 4th largest in the country Featured Cards Credit Cards in Force – Market Share* 12.7% 12.6% 11.2% 12.0% 9.8% 8.2% 7.2% 5.6% Co-branded Cards Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 May-19 Market share has more t
Slide 31: Flipkart Axis Bank Credit Card partnership
During the quarter, the Bank launched Flipkart Axis Bank Credit Card, an exclusive partnership with Flipkart Propelling leadership in payments Avenue for sourcing cards to a large & Strong digital distribution channel Partnership with industry leaders as engaged customer base on Flipkart with instan
Slide 32: Flipkart Axis Bank Credit Card is a deeply integrated digital proposition
Flipkart Axis Bank Credit Card is a deeply integrated digitally driven proposition for our customers Real time Issuance over Flipkart & existing Axis Bank channels JIMMY Instant credit card issuance & usage on jimmyboy@gmail.com Flipkart Banner displayed to Customer fills a short Accepts terms and I
Slide 33: Over 56,500 crores of card spends went through Axis Bank in Q1
Over `56,500** crores of card spends went through Axis Bank in Q1 Credit card spends up 29% YOY Debit card spends up 26% YOY Debit Cards Credit Cards 29% YOY 26 % YOY Spends in quarter (` Cr) Spends in quarter (` Cr) 18,633 12,767 12,271 11,653 16,777 16,580 10,516 10,169 14,414 14,311 13,167 8,722
Slide 34: Mobile Banking spends continue to grow strongly
Mobile Banking spends continue to grow strongly 48% of Mobile Banking customers bank only on Mobile App Mobile Banking logins stand at 10.7 times of Internet Banking logins Amongst the highest ranked Banking app on Apple Store (rating of 4.6) & Google Play Store (rating of 4.6) Axis Bank Mobile Bank
Slide 35: Digital Channels now contribute 78% of all transactions
Digital Channels now contribute 78% of all transactions 66% of Bank’s active customers are Digitally active Axis Bank cards are increasingly being used for 78% of all financial transactions are now digital Merchant payments, not at ATMs Transaction Mix* for Retail Credit and Debit card usage Volumes
Slide 36: Nearly half of our Personal loans are sourced through digital channels
Nearly half of our Personal loans are sourced through digital channels Tab sourcing of Savings Accounts has picked Personal loans sourcing through Digital up strongly channels continues to remain steady Proportion of Savings accounts sourced through Proportion of Personal loans sourced through Tab b
Slide 37: UPI has scaled up tremendously
UPI has scaled up tremendously to become a key channel for customer transactions Axis Bank’s UPI Growth story 1 40.6 mn VPAs 2 Over 1100 mn transactions# 3 96,000+ merchants on boarded UPI transaction volumes continue to Quarterly UPI transaction value has grown remain healthy 4x in the last one yea
Slide 38: Leading partnership-driven innovator on payments use cases
The Bank has emerged as a leading partnership-driven innovator on payments used cases Axis AHA Axis Tap & Pay Samsung Pay • Launched an AI-led Virtual Assistant to • Introduced "Axis Tap & Pay‘ mobile • Enabled for Credit & Debit Card across Enhance online customer experience APP, which allow custom
Slide 39: Business Performance: Wholesale Banking
Business Performance : Wholesale Banking • Domestic corporate loan growth has been strong Summary • Significant reduction in concentration risk with incremental sanctions to better rated corporates • Leadership in DCM places us well to benefit from vibrant corporate bond markets 39
Slide 40: Re-organized the Wholesale Bank, creating an integrated franchise
We have re-organized the Wholesale Bank, creating an integrated franchise Re-Oriented Coverage Groups Focused Segmental Large Corporate Mid Corporate Commercial Banking Coverage Bank and Subsidiary Products Liabilities and Transaction Credit Treasury Banking Strengthened Operations and Service Infra
Slide 41: Domestic corporate loans are showing some signs of revival
Domestic corporate loans are showing some signs of revival All figures in ` Crores International book de-grew while domestic loan growth Mix of corporate loan book remains steady was strong Trend in domestic and overseas corporate Corporate loan book mix loan growth (YOY) 3 % YOY 1,77,455 1,72,443 1
Slide 42: Corporate lending portfolio continues to shift towards better rated clients
The corporate lending portfolio continues to shift towards better rated clients All figures in ` Crores 83% of corporate exposure* is rated Fee growth continues to be from Transactions, ‘A’ or better not Corporate Credit 15% 15% 415 32% 425 370 38% 370 1% YOY 285 267 271 31% 30% 7% YOY 495 513 444 4
Slide 43: New originations in Corporate Credit are of better quality and more granular
New originations in Corporate Credit are of better quality and more granular Fresh originations are predominantly from Concentration Risk has reduced significantly entities rated A- or better from peak Percentage of sanctions rated A- & above Exposure to Top 20 single borrowers as a % of Tier I Capi
Slide 44: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) All figures in ` Crores Outstanding1 as on 30th Jun ’19 Total Non-fund Rank Advances Investments based Sectors Value (in % terms) 1. Financial Companies2 42,540 16,712 13,342 72,594 11.44% 2. Engineering & Electronics 11,647 257 26,605 38,509 6.07% 3. Infrastructu
Slide 45: Well placed to benefit from a vibrant Corporate Bond market
We remain well placed to benefit from a vibrant Corporate Bond market All figures in ` Crores Ranked No. 1 arranger for rupee denominated bonds as per Placement & Syndication of Debt Issues Bloomberg for half year ended June 2019. 270% YOY Ranked No. 1 arranger for rupee denominated bonds as per 59,
Slide 46: Business Performance: Commercial Banking
Business Performance : Commercial Banking • Focus on building customer relationships across both assets and liabilities Summary • SME loans grew 8% year on year • Focus remains on building a high rated, predictable SME lending business 46
Slide 47: SME loan growth has been softening over the last year
SME loan growth has been softening over the last year All figures in ` Crores SME Loan growth Loan Mix 19% 19% 8 % YOY 14% 13% 12% 61,616 8% 56,983 9 % YOY 48,859 44,635 65,584 62,238 61,616 60,262 3 % YOY 58,742 56,983 12,348 12,757 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Jun-18 Jun-19 YOY Growth
Slide 48: Focus remains on building a high rated, predictable SME lending book
Focus remains on building a high rated, predictable SME lending book 85% of SME exposure* is rated at least ‘SME3’ 5% 10% 12% • The segment continues to focus on lending to the 12% Priority sector • The Bank’ s SME Awards event “SME 100” acknowledges the best performers in the SME 71% 63% segment. I
Slide 49: Asset Quality
Financial Highlights Business Segment performance Asset Quality Shareholder Returns and Capital Position Subsidiaries’ Performance Other important information 49
Slide 50: Asset Quality
Asset Quality • Gross and Net NPA ratios continue to moderate Summary • BB & Below pool has reduced to 1.3% of Gross Customer Assets • Provision Coverage Ratio increased further, now stands at 78% 50
Slide 51: Slippages were stable and NPA ratios continued to decline
Slippages were stable and NPA ratios continued to decline All figures in ` Crores Gross and Net NPA ratios continue to Slippages have been stable over last few quarters moderate Gross and Net NPA ratio Gross and Net Slippages 16,536 6.77% 6.52% 13,135 5.96% 5.75% 5.26% 5.25% 5.04% 8,936 7,888 3.40%
Slide 52: BB & Below pool remained stable sequentially
BB & Below pool remained stable sequentially All figures in ` Crores BB & Below pool has fallen to 1.3% of customer assets 300 00 7.3% Low Rated Corporate portfolio Rs. 2,242 cr of new downgrades 8.0 % (BB and Below) into BB were effected in Q1FY20. These were mainly exposures to 5.6% groups that ha
Slide 53: In benign risk periods, BB & Below has been 2-3% of corporate loans
In benign risk periods, BB & Below has been 2-3% of corporate loans All figures in ` Crores BB & Below rated Corporate portfolio 250 00 14. 0% 12.5% 12.6% 11.1% 11.1% 12. 0% 200 00 Once this falls below 3%, the 10. 0% book could be deemed to have reverted to long term normal 8.0 % 6.9% 150 00 As a %
Slide 54: Provision Coverage improved further during the quarter
Provision Coverage improved further during the quarter Provision Coverage Ratio on NPAs is now 78% Credit cost Provision Coverage Ratio Credit Cost (Annualised) 6.73% Credit cost 6.68% 77% 78% 75% Net Credit Cost 73% 69% 65% 65% 66% 65% 4.09% 60% 3.61% 4.03% 3.16% 3.56% 2.33% 2.45% 3.12% 2.09% 2.07%
Slide 55: Net Credit Costs
Our long term average credit cost has been 100-115 bps Credit Costs: FY03 to FY19 3.57% 3.53% 2.82% 2.78% 2.30% 2.06% 1.98% 1.91% 1.35% 1.56% 1.85% 1.11% 1.11% 0.99% Credit Costs (Avg)* = 115 bps 0.99% 1.19% 0.70% 1.06% Net Credit Costs (Avg)* = 100 bps 0.61% 0.89% 0.61% 0.62% 0.61% 0.50% 0.54% 0.21
Slide 56: Detailed walk of NPAs over recent quarters
Detailed walk of NPAs over recent quarters All figures in ` Crores Q1FY19 Q2FY19 Q3FY19 Q4FY19 Q1FY20 Gross NPAs - Opening balance A 34,249 32,662 30,938 30,855 29,789 Fresh slippages B 4,337 2,777 3,746 3,012 4,798 Upgradations & Recoveries C 2,917 2,186 1,622 2,376 2,177 Write offs D 3,007 2,315 2
Slide 57: Shareholder Returns and Capital Position
Financial Highlights Business Segment performance Asset Quality Shareholder Returns and Capital Position Subsidiaries’ Performance Other important information 57
Slide 58: Shareholder return metrics continue to improve
Shareholder return metrics continue to improve Return on Assets (in %) Return on Equity (in %) 1.83 18.23 18.57 1.78 1.72 17.49 9.19 8.09 0.65 0.69 7.22 0.63 0.04 0.53 FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 Diluted EPS (`) Book Value Per Share (`) 34.93 272 30.85 2
Slide 59: Capital Ratios remain healthy
Capital Ratios remain healthy Bank has consumed 5 bps of CET1 capital RWA as a proportion to total assets increased during Q1FY19 during the quarter Trend in Capital Adequacy Ratio RWA to Total Assets 16.57% 16.71% 16.45% 16.40% 15.84% 16.06% 79% 80% 11.68% 11.86% 11.71% 78% 77% 11.77% 11.27% 11.68%
Slide 60: Subsidiaries' Performance
Financial Highlights Business Segment performance Asset Quality Shareholder Returns and Capital Position Subsidiaries’ Performance Other important information 60
Slide 61: Axis Finance: Strong growth continues
Axis Finance : Strong growth continues All figures in ` Crores Strong growth in Loan Book Major Highlights 17% YOY 49% CAGR* 8,040 7,962 NIM for Q1FY20 stood at 4.8%; GNPA at 0.36% 6,624 6,817 Enjoys the highest Credit Rating: AAA from CRISIL & A1+ from India Ratings 4,292 3,104 ROE at 18.5% u
Slide 62: Axis AMC: Healthy growth in AUM
Axis AMC : Healthy growth in AUM Average AUM has shown strong growth All figures in ` Crores 29% YOY 1,02,221 84,544 70,902 48,829 33,163 23,483 13,939 FY14 FY15 FY16 FY17 FY18 FY19 Q1FY20 Trend in PAT Major Highlights 57 55 Total Gross revenue of `99 Cr earned during Q1FY20 43 63% YOY Added 1.3
Slide 63: Axis Securities: Strong growth in customer additions
Axis Securities : Strong growth in customer additions Ranked 3rd in total customer base (in mn) 12% YOY Major Highlights 2.10 2.13 Has one of the highest mobile adoption rates in the 1.84 industry with over 58% volumes coming from Mobile 1.39 Introduced India, Trade @ 20 Brokerage Plan on Axis 1
Slide 64: Axis Capital: Leadership position maintained
Axis Capital : Leadership position maintained in volatile capital markets All figures in ` Crores Q1FY20 Ranking based on IPO, QIP, Rights, OFS & IPP Major Highlights Rank Banker No of deals Ranked No 1 in Equity and Equity Linked Deals over the 1 Peer 1 4 last decade 2 Axis Capital 4 Successful
Slide 65: A.TReDs: Invoicemart continues to be a market leader
A.TReDs: The Invoicemart product continues to be a market leader Axis Bank is one of the three entities allowed by RBI to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs TReDS is an electronic platform that connects MSME sellers w
Slide 66: Freecharge: Among the top non-bank financial services platforms
Freecharge: Among the top non-bank financial services platforms in the industry with a significant consumer franchise footprint One of the top financial services App in India … With massive potential for cross selling Bank products Registered with FreeCharge 74 MN Ever transacted on FreeCharge 38 MN
Slide 67: Evolving from Digital payments to Digital Financial Services platform
Business is now focused on evolving from a leading Digital payments platform to a Digital Financial Services platform by offering new services DIGITAL FINANCIAL SERVICES DIGITAL PAYMENTS MOBILE RECHARGES FC CREDITLINE DTH, UTILITIES FC DEBIT EMI MUTUAL FUND & BUS TICKETS INVESTMENTS DEALS INSURANCE
Slide 68: Other important information
Financial Highlights Business Segment performance Asset Quality Shareholder Returns and Capital Position Subsidiaries’ Performance Other important information 68
Slide 69: Treasury Portfolio and Non-SLR Corporate Bonds
Treasury Portfolio and Non-SLR Corporate Bonds Investment Bifurcation Book Value* (` Crores) Category Proportion Government Securities1 129,535 Held Till Maturity (HTM) 61% Corporate Bonds2 29,296 Available For Sale (AFS) 33% Others 16,961 Total Investments 175,792 Held For Trading (HFT) 6% * as on
Slide 70: Credit Ratings (as of Jun'19)
Credit Ratings (as of Jun’19) Rating Agency Long term Issuer rating Outlook S&P Ratings BBB- Stable Moody’s Baa3 Stable Fitch BB+ Stable CRISIL CRISIL AAA Stable CARE CARE AAA Stable ICRA ICRA AAA Stable India Ratings IND AAA Stable 70
Slide 71: Shareholding Pattern (as on June 30, 2019)
Shareholding Pattern (as on June 30, 2019) Others General Insurance 13.22% Corp & Others Life Insurance 2.30% Corporation 10.11% Foreign Institutional SUUTI Investors 5.23% 47.02% & GDR's 2.54% Indian Institutions 19.58% Share Capital ` 524 crores Shareholders’ Funds ` 71,228 crores Book Value
Slide 72: Sustainability At Axis Bank
Sustainability At Axis Bank “Striving to create positive, financial as well as non-financial impact among our diverse stakeholder spectrum across rural and urban India” Green Banking Banking for Emerging India • First certified Green Bond by an Asian Bank, launched in 2016 for • 1.7 million women bo
Slide 73: Major awards won by the Bank and its subsidiaries
Major awards won by the Bank and its subsidiaries Best use of Data & Analytics for Most Innovative Emerging Anti-Money Laundering Technology Business Outcome amongst Technologies Project, India - Implementation Large Banks Ripple Blockchain project • Best Contactless Payments Financial Inclusion Ini
Slide 74: Financial Performance
Financial Performance All figures in ` Crores Financial Performance Q1FY20 Q1FY19 % Growth Interest Income A 15,255 12,777 19% Other Income B = C+D+E 3,869 2,925 32% - Fee Income C 2,663 2,117 26% - Trading Income D 832 103 711% - Miscellaneous Income E 373 705 -47% - Recoveries in written-off a/c’s
Slide 75: Financial Performance ($ mn)
Financial Performance Financial Performance ($ mn) Q1FY20 Q1FY19 % Growth Interest Income A 221 185 19% Other Income B = C+D+E 56 42 32% - Fee Income C 39 31 26% - Trading Income D 12 1 711% - Miscellaneous Income E 5 10 -47% - Recoveries in written-off a/c’s 17 80 -79% Total Income F = A+B 277 227
Slide 76: Balance Sheet
Balance Sheet All figures in ` Crores Balance Sheet As on 30th Jun’19 As on 30th Jun’18 % Growth CAPITAL AND LIABILITIES Capital 524 514 2% Reserves & Surplus 70,704 63,673 11% Deposits 5,40,678 4,47,079 21% Borrowings 1,30,121 1,52,227 -15% Other Liabilities and Provisions 32,539 29,193 11% Total 7
Slide 77: Balance Sheet ($ mn)
Balance Sheet Balance Sheet ($ mn) As on 30th Jun’19 As on 30th Jun’18 % Growth CAPITAL AND LIABILITIES Capital 8 7 2% Reserves & Surplus 1,024 923 11% Deposits 7,834 6,478 21% Borrowings 1,885 2,205 -15% Other Liabilities and Provisions 471 423 11% Total 11,222 10,036 12% ASSETS Cash and Balances w
Slide 78: Safe Harbor
Safe Harbor 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”, “futu
Slide 79: Thank You
Thank You SOA? AXIS BANK 2B yours of progress 79