Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q3 FY2024 Earnings Presentation
96 slides from Axis Bank's earnings presentation, Jan 23, 2024
Slide 1: Exchange filing cover letter
AXIS/CO/CS/559/2023-24 January 23, 2024 Listing & Compliance Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor, 1st Floor, Plot No. C/1, “G” Block, P. J. Towers, Bandra-Kurla Complex, Dalal Street Bandra (E), Mumbai – 400 051 Fort, Mumbai –
Slide 2: Press release: financial results Q3 and nine months FY24
PRESS RELEASE AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND NINE MONTHS ENDED 31st DECEMBER 2023 Q3FY24 Operating profit at `9,141 crores up 6% QOQ, PAT at `6,071 crores up 4% QOQ; Consolidated ROE at 18.61%, aided by a balanced sequential deposit and loan growth of 5% and 4% respectivel
Slide 3: Performance at a Glance
Performance at a Glance • Healthy operating performance o Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01% o Core Operating revenues grew 14% YOY and 2% QOQ, operating profit grew 6% QOQ o Consolidated ROE | ROA at 18.61% | 1.84%, subsidiaries contributed 54 bps | 9 bps respe
Slide 4: Profit & Loss Account: Period ended 31st December 2023
Profit & Loss Account: Period ended 31st December 2023 Operating Profit and Net Profit The Bank’s operating profit for the quarter stood at `9,141 crores, grew 6% QOQ. Core Operating profit for Q3FY24 stood at `8,850 crores. Net profit at `6,071 crores in Q3FY24 grew by 4% YOY. Net Interest Income a
Slide 5: Advances and deposits growth
17% YOY and 2% QOQ. The share of CASA deposits in total deposits stood at 42%. On QAB basis, total deposits grew 18% YOY and 4% QOQ, within which savings account deposits grew 16% YOY, current account deposits grew 5% YOY and 4% QOQ; and total term deposits grew 22% YOY and 6% QOQ. The Bank’s advanc
Slide 6: Wealth Management Business – Burgundy
The Bank now has over 100+ partnerships across platforms and ecosystems and has 400+ APIs hosted on its API Developer Portal. On WhatsApp banking, the Bank now has over 18.8 million customers on board since its launch in 2021. Wealth Management Business – Burgundy The Bank’s wealth management busine
Slide 7: Branch network and key subsidiaries' performance
branches and extension counters situated in 2,734 centres as at 31st December, 2022. As on 31st December, 2023, the Bank had 15,931 ATMs and cash recyclers spread across the country. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 Virtual Relationship Managers as on 31st
Slide 8: Financial performance and balance sheet
` crore Financial Performance Q3FY24 Q3FY23 % Growth Net Interest Income 12,532 11,459 9% Other Income 5,555 4,572 22% - Fee Income 5,170 4,008 29% - Trading Income 291 428 (32%) - Miscellaneous Income 94 136 (31%) Operating Revenue 18,087 16,031 13% Core Operating Revenue# 17,796 15,603 14% Operati
Slide 9: Business performance and shareholders' funds
` crore As on As on Business Performance st st % Growth 31 December’23 31 December’22 Total Deposits (i)+(ii) 10,04,900 8,48,375 18% (i) CASA Deposits 4,23,458 3,77,915 12% - Savings Bank Deposits 2,90,363 2,51,392 16% - Current Account Deposits 1,33,095 1,26,523 5% CASA Deposits as % of Total Depos
Slide 10: Safe Harbor
A presentation for investors is being separately placed on the Bank's website: www.axisbank.com. For press queries, please contact Ms Piyali Reddy at 91-22-24252021 or email: Piyali.Reddy@axisbank.com Safe Harbor Except for the historical information contained herein, statements in this release whic
Slide 11: Investor Presentation
Investor Presentation Quarterly Results Q3FY24 NSE: AXISBANK BSE: 532215 LSE (GDR): AXB
Slide 12: Axis Bank at a glance
Axis Bank at a glance 3rd ~ 48 mn 99,600+ 5,252 Axis Bank Employees Branches* largest Private Bank in India Customers 5.4% 5.0% 5.9% 14.0% Market Share Assets 1 Deposits 1 Advances 1 Credit Cards 2 Profitability 18.86% 4.01% 2.64% 2.49% Consolidated ROE (9MFY24) Net Interest Margin 3 Operating Profi
Slide 13: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 3
Slide 14: Major highlights
Major highlights Q3FY24 operating profit ` 9,141 crores, up 6% QOQ, PAT at ` 6,071 crores up 4% QOQ; Consolidated ROE at 18.61%, aided by a balanced sequential deposit and loan growth of 5% and 4% respectively • Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01% Healthy operati
Slide 15: Key metrics for Q3FY24
Key metrics for Q3FY24 Snapshot (As on 31st December 2023) Deposits Advances Absolute (₹ Cr) QOQ YOY Growth (a) (c) 18% YOY 22% YOY (b) Q3FY24 Q2FY24 9MFY24 Q3FY24 Q3FY24 9MFY24 18% YOY 23% YOY (d) Net Interest Income 12,532 12,315 36,805 2% 9% 18% Fee Income 5,169 4,963 14,620 4% 29% 29% Profit & 3
Slide 16: Consistent improvement in shareholder return metrics
We have delivered consistent and robust improvement in shareholder return metrics Trend in Consolidated ROA and ROE 2.00% 1.8% 1.8% 1.80% 1.60% 1.3% 1.40% 0.7% 1.20% 1.00% 0.80% 0.60% Consolidated ROA 0.2% 18.8% 18.9% 0.40% 0.20% 0.00% 13.7% 8.2% Consolidated ROE 2.7% FY20 FY21 FY22 FY23 9MFY24 Quar
Slide 17: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 7
Slide 18: Deposit and Loan growth performance
Deposit and Loan growth performance All figures in ₹ Billion Deposit mix (QAB)^ Segment loan mix YOY QOQ Loan growth (gross of IBPC sold) at 23% YOY & 4% QOQ YOY QOQ 9,468 9,323 22% 4% 9,111 18% 4% 9,002 8,973 8,524 8,453 8,585 8,034 2,150 7,623 13% 1% 1,913 1,919 34% 2,853 (a) 12% 2,817 1,816 (23%)
Slide 19: Retail term deposit growth and CASA trend
Retail Term deposit growth continues to gain traction 19% 15% 15% 14% 17% 11% 12% YOY Growth 8% 6% 4% 1% -1% 0% 3,39,262 3,32,025 3,18,484 3,03,706 2,90,519 2,90,423 2,89,910 2,88,076 2,86,612 2,85,482 2,82,925 2,75,607 2,68,175 Dec-20 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Mar-23 J
Slide 20: Operating profit up 6% QOQ, PAT up 4% QOQ
Operating profit up 6% QOQ, PAT up 4% QOQ All figures in ₹ Crores Operating revenue Operating expense YOY QOQ 28% 34% 32% 18,087 13% 4% 8% 14% 17,046 17,349 16,031 16,530 Opex YOY (b) (b) (b) 5,555 growth 8,717 8,946 5,087 5,034 22% 10% (a) 8,232 4,572 4,788 7,362 6,753 5,544 6,107 6,234 4,472 5,198
Slide 21: Net interest margin
Net interest margin Advances mix by rate type Cost of Funds MCLR Duration Split 31% (Dec-23) ~ 69% of loans floating 5.35% 2% 5.17% 3% 1% 3M, 2% 5.03% 4.75% 15% 4.34% 4.09% 3.77% 3.83% 3.89% 6M, 4% 12M, 9% 48% Repo linked MCLR linked Other EBLR* Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY2
Slide 22: Trend in structural NIM drivers
Trend in structural NIM drivers 1 3 Improvement in composition reflected Improvement in balance sheet mix 2 Reducing share of low yielding RIDF bonds through improvement in average CASA% Retail & SME as % of loan book 67% 68% 69% 62% 64% As a % to total assets 5.1% 4.7% 3.5% 43.6% 43.2% 2.3% 42.9% 1
Slide 23: Strong growth in fees; granularity across segments
Strong growth in fees; granularity built across our business segments All figures in ₹ Crores Retail Banking fees 36% YOY Retail fee mix 6% QOQ 45% 3,698 41% 44% 3,494 3,119 3,146 2,725 19% 21% 21% ^ 19% 17% 18% 21% 18% 16% TPP Retail Cards & Payments Retail Assets excl cards & Retail Liabilities &
Slide 24: Cost growth at 32% YoY
Cost growth at 32% YoY; integration expenses contribute 4% to YoY growth; continue to invest in technology and growth related businesses YoY Incremental Opex in Q3FY24 was led by Growth Business 10% 47% 30% 13% and Integration related expenses 273 Incremental YOY cost break up 665 (Rs 2,192 Crore) (
Slide 25: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 15
Slide 26: Strong capital position with adequate liquidity
Strong capital position with adequate liquidity Bank’s Capital Adequacy Ratio 1.77% 1.38% 19.12% 0.70% 18.54% 14.02% 13.71% 17.64% 17.53% 16.63% 15.84% 3.72% 3.30% 4.19% 3.62% 2.92% Organic net accretion 15.40% 4.57% 15.24% to CET-1 of 39 bps in 14.02% 13.71% 9MFY24 13.34% 11.27% CET-1 Mar'23 Accret
Slide 27: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 17
Slide 28: Retail Banking
Retail Banking ~45 Mn 4th `5.05 T n Individual Largest issuer of AUM in wealth customers Credit Cards management 27% 34% 59% YOY growth in YOY growth in Share of Retail advances Rural advances Advances~ 16% 42% 72% YOY Growth in SA CASA ratio Share in QAB* deposits (MEB**) total fee^ ~ share in Bank
Slide 29: Deposit franchise growing faster than industry
Deposit franchise continues to grow faster than the industry with improvement in quality and composition… We have grown faster than industry consistently… …with improvement in the quality of deposits… …while delivering healthy CASA levels and reducing borrowings ~600 bps reduction in outflow rates i
Slide 30: Multiple initiatives across the Bank
…led by multiple initiatives across the Bank Focus on Productivity & Exclusively curated Digital, transformation Premiumization Bharat Banking Partnerships Micro market strategy product propositions 32% CAGR in Burgundy 10% YOY growth in new 63K+ extensive distribution Project NEO aiding higher 52%
Slide 31: Leading player in India's Wealth Management space
The Bank is a leading player in India’s Wealth Management space Overall Burgundy AUM^ has grown strongly 32% CAGR* 78% YOY 12% QOQ 5.05 Burgundy Private 3.57 adjudged as “Best Private Bank” for 2.84 2.61 Client Acquisition, 2.13 Asia 1.23 1.33 1.47 0.79 5th Annual Wealth Tech Awards Mar-17 Mar-18 Ma
Slide 32: Retail loan book remains well diversified
`5.5 trillion Retail loan book remains well diversified Retail book ~ 75% of our retail book is secured (1) (in ₹ Billion) in Rs Crores Dec-23 QOQ YOY % Prop Retail disbursement trends and mix Home Loans 1,62,813 2% 10% 30% 25% 25% 22% 22% 22% Rural loans 79,765 7% 34% 15% 20% 21% 23% YOY 17% 27% Un
Slide 33: Small Business Banking growing strongly
Small Business Banking segment is well diversified and continues to grow strongly… SBB portfolio (in `Cr.) Well diversified customer base • `53,535 crores overall book with Business Loan book of 40% YOY 6% QoQ `13,317 crores 53,535 • ~75% value contribution from Secured products (working capital, ov
Slide 34: Innovative product offerings and transformation initiatives
…led by our innovative product offerings and transformation initiatives SBB Equipment Finance ➢ Loans up to 10Cr for Industrial & Health Care Equipment Industrial Machine Tools Plastic Injection Packaging Printing Healthcare Diagnostic Therapeutic Imaging Pathology Life support One Axis approach • P
Slide 35: 'Bharat Banking' strategy delivering early results
‘Bharat Banking’ strategy delivering early results ▪ Drive higher business growth and increase market share in Rural and Semi Urban (RuSu) markets through asset led liability strategy ▪ Lending opportunities in RuSu markets to complement the Bank’s overall PSL strategy meaningfully Focus on building
Slide 36: Diversified rural portfolio
Rural portfolio is well diversified, offering holistic and integrated financial solutions by leveraging technology and partnerships Well diversified rural lending portfolio with … focused on capitalizing opportunities in each … and leveraging technology and partnerships presence across 674+ district
Slide 37: Strong growth in Credit Card issuances
Strong growth in Credit Card issuances Increase in Cards in force (CIF) market share with increasing card issuances aided by KTB^ partnerships Axis Bank Magnus Credit Card ~1mn+ cards issued for 8th consecutive quarter In million 1.21 1.26 1.11 1.13 1.11 0.99 1.04 1.04 Pre-covid 0.77 quarterly avera
Slide 38: Flipkart Axis Bank Credit Card
End to End Digital KTB acquisition journey with best in class early activation and spend metrics for Flipkart Axis Bank Credit Card Customer clicks on Customer fills up the Flipkart Axis Bank form and submits the Credit card banner application and can view details 4.07 mn CIF for Flipkart Axis Bank
Slide 39: Retail spends up 88% YOY
Retail spends up 88% YOY, and related market share up ~310 bps YOY All figures In ₹ Cr ‘GRAB DEALS’, Axis Bank's exclusive shopping platform has scaled up significantly 107% YOY increase in GMV (Q3FY24) 58% YOY growth in Q3FY24 transactions Trend in Credit Card spends market share Trend in Debit Car
Slide 40: Largest Merchant Acquiring Bank
We are the largest Merchant Acquiring Bank led by ‘One Axis’ focus, improved product capabilities and partnerships Market share in POS terminals One Axis approach – Taking Bank to Merchant Rank Curated solution offerings : Payment solutions, Deposits, Business loans, 2nd 2nd 2nd 2nd 1st Credit Cards
Slide 41: Merchant ecosystem solutions
Empowering merchants through Integrated Ecosystem solutions Soundbox MicroPay POS Solution Android POS with Features advanced solution Features • Instant audio confirmation of payments done via BQR • Accepts Visa, MasterCard, RuPay Cards and Bharat QR(including UPI) • Multilingual support for 10 lan
Slide 42: Well distributed branch network
We have a very well distributed branch network; added 350 branches in 9MFY24 of which 100 in Q3FY24 Axis Virtual Centre Domestic branch network* Branch presence across categories 5,252 ~3.8 mn 4,758 4,903 18% Customer 6 4,528 4,594 31% connect ^ Centers 1500+ Virtual RMs 29% 23% Mar-20 Mar-21 Mar-22
Slide 43: Corporate & Commercial Banking
Corporate & Commercial Banking 20% 26% 30% YOY growth in YOY growth in YOY growth in Domestic corporate SME loan book Mid Corporate book loans 15% 89% 88% YOY growth in Share of corporate Incremental sanctions Corporate & CBG fees advances to clients to A-and above** rated A-and above 4% 9% 28% RTGS
Slide 44: Coalition Greenwich Awards for 3rd consecutive year
Recognized at the Coalition Greenwich Awards for 3rd consecutive year Market Penetration - Local Banks Market Penetration - Local Banks 2023 Greenwich Excellence Awards for Indian Large Corporate Banking Indian Middle Market Banking Indian Middle Market Banking • Effective Senior Management Support
Slide 45: Relationship led franchise across One Axis entities
Strong relationship led franchise driving synergies across One Axis entities… We have re-oriented the organisation structure in Corporate & Commercial Banking for delivering execution excellence • Segregated the responsibilities of coverage and product groups to ensure sharper focus • Corporate & Co
Slide 46: 89% of the book rated A- and above
…with 89% of the book rated A- and above Corporate Loans 89% of the corporate loan book is Incremental sanctions to corporates rated A- or better rated A- & above YOY QOQ 13% 1% (a) 2,85,244 15% 3% 2,68,334 29,037 28% 5% 2,32,582 32,299 15% 12% 11% 11% 2,24,062 32,287 44,741 2,56,206 20% 1% 2,36,035
Slide 47: Overseas corporate loan book
Overseas Corporate loan book is 95% India linked • The Bank’s International strategy is to focus on Indian corporates that have global operations • We have consolidated our overseas business through branches in Dubai, Singapore and Gift City (India) Overseas corporate loan book Funding is primarily
Slide 48: Strengthened proposition as a Transaction Bank
We have strengthened our proposition as a Transaction Bank Current Account Digital Adoption 71% Current Account customers 4% QOQ growth in Current Account quarterly registered for internet/mobile banking average Balances (Q3FY24) Foreign LC Market Share TxB, Forex & Trade related fees Increase in Ma
Slide 49: neo for Business MSME proposition
neo for Business, Axis’ MSME proposition launched in Sep’23, is getting scaled up with c.25000 customers onboard Newly introduced beyond banking features 1 Digital DIY onboarding Existing and Guest Tally account integration to sync invoices, bills and Invoicing/Bills contacts, thus simplifying accou
Slide 50: Transaction Banking APIs
Transaction Banking APIs, under neo by Axis Bank, continue to deliver quality outcomes Business Impact Best-in-class API proposition • Industry leading Transaction Banking API product suite – depth & breadth of APIs across Trade & Cash 3.7X 1.8X 7.0X 4.8X • Industry leading Corporate Developer API I
Slide 51: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) All figures in ` Crores Outstanding1 as on 31st Dec’23 Total Rank Advances Investments Non-fund based Sectors Value (in % terms) 1. Financial Companies2 73,019 28,566 30,864 1,32,449 11.42% 2. Engineering & Electronics 18,454 3,384 36,743 58,581 5.05% 3. Infrastru
Slide 52: Business Performance: Commercial Banking
Business Performance Commercial Banking
Slide 53: Strong growth in SBB+SME+MC book
Strong growth in SBB+SME+MC book despite tightening our risk standards 21% 20% 18% 15% 14% 28% CAGR*# 28% CAGR# in combined MSME, MC and 39% CAGR# SBB segment since Mar’20 44,975 38,078 26,481 19% CAGR# 1,00,043 17,148 89,398 13,117 59,034 75,223 13.0% 51,620 42,982 53,535 44% CAGR# Axis Bank’s Incr
Slide 54: Commercial Banking benefitting from technology led transformation
Commercial Banking business benefitting from technology led transformation • One of the most profitable segments of the Bank with high PSL coverage • Data driven credit decisions, minimal documentation, simplified products and digitized operations aiding higher business growth CBG Advances New to Ba
Slide 55: SME lending book is well diversified
SME lending book is well diversified Book by Loan size Well diversified Geographical mix Well diversified Sectoral mix 14% 16% 16% 25% 17% 9% 34% 10% 17% 2% 8% 27% 3% 11% 3% 3% 7% 2% 11% 4% 5% 22% 17% 4% 4% 5% 4% Trade Retail and Wholesale Food and Beverages Textile Engineering Others West 1 West 2
Slide 56: Digital Banking
Digital Banking 96% 86% 76% 71% 68% 52% Digital Credit cards Individual RTDs New SA New MF SIP PL disbursed transactions1 issued2 (9MFY24) volume (9MFY24) acquisition3 volume (9MFY24) (end-to-end digital) (in 9MFY24) D2C products 250+ 300+ 4.8 @ ~13 Mn 155k+ ~3450 Employee tool Mobile App Mobile Ban
Slide 57: Our digital strategy: open by Axis Bank
Our digital strategy: open by Axis Bank Setup open by Axis Bank – A Fully Digital Bank within the Bank - Distinctive In-house Digital Capability across People, Tech & Processes Acquire New Customers at Scale - 76% of retail individual TDs acquired digitally * Become a Digital Consumer Lending Powerh
Slide 58: Proprietary, distinctive, digital native capabilities
A Proprietary, distinctive, digital native capabilities 1 Team 2 Design capabilities 3 Engineering and technology Agile product development lifecycle Continuous deployment 2400+ SUBZERO People dedicated to digital agenda Axis Bank’s DESIGN SYSTEM Modular micro-services based architecture ~350 ~400 ~
Slide 59: Leadership in technology with several industry firsts
A Leadership in technology with several industry firsts… 1st 1st 1st Indian Bank to be ISO Indian Bank to roll-out MS Indian Bank to launch certified for its AWS GenAI Co-pilot BBPS for B2B and Azure Cloud security 7000+ 75M 800 WAN Links Upgraded Daily API Hits Best-in-class BitSight (a) rating in
Slide 60: Personalization capability and alternate data
A Built best-in-class personalization capability and are leveraging alternate data to scale up our customer centric franchise Personalization Partnership and digital public Modern data and tech infra led lending growth infrastructure Combination of Data Science + Lending decisions backed by Strong d
Slide 61: World's highest rated Mobile Banking App
B Distinctive customer experience : World’s highest rated Mobile Banking App, doubling up as our largest branch Store Rating Bank on-the-go with ‘open’ 4.8 Hyper personalized | Intuitive | Seamless 4.7 Highest rating of 4.8 on Google Play Store with 2.4 mn+ reviews across 64 global banks, 82 fintech
Slide 62: Redesigned FD journey
B Distinctive customer experience: redesigned FD journey Best in class 3 click FD journey Customised options for Cross-selling OD against FD selecting tenure during premature closure journey Option to enter deposit name, employee code and default re- invest Quarterly Results Q3FY24 52
Slide 63: Hyper personalised nudges
B Distinctive customer experience: Hyper personalised nudges Regulatory and Servicing Cross sell and upsell Payment and investment Quarterly Results Q3FY24 53
Slide 64: Account Aggregator based use cases
C We continue to scale up Account Aggregator based use cases Recently launched ‘One View’ on Axis Mobile Multiple use cases live in asset onboarding journeys Small Business Personal Loan Auto Loan Loan Peer Bank 1 Peer Bank 2 Two-Wheeler Credit Cards Home Loan Loan 28% 228% • Consolidated balances f
Slide 65: New products driven by OPEN philosophy
C We continue to introduce new products driven by our OPEN philosophy… Personal loans Central Bank Digital KCC Digital Gold loans Bill Pay on Flipkart Digital Currency NEW NEW NEW NEW REDESIGNED Quarterly Results Q3FY24 55
Slide 66: Scaling up existing products
C …while significantly scaling up existing products 24x7 Personal loan 24x7 Auto loan Digital FD Cards portfolio Forex Card 24x7 Personal loan 52% 61% 44% 74% 83% Share of PL disbursed digitally* YOY increase in Auto loans YOY increase in retail individual Cross sell / Up sell digitally Share of For
Slide 67: UPI scaled up as key channel
C UPI has scaled up tremendously to become a key channel for customer transactions We have developed best-in-class UPI stack that enables us to offer cutting edge customized solutions across SDK, Intent, Collect and Pay offerings apart from new use cases like UPI AutoPay Dedicated IT cloud infrastru
Slide 68: Partnerships as a channel to expand customer base
Partnerships as a channel has significant potential to expand our customer base We have 100+ Partnerships across Platforms and Ecosystems Product Specific (API banking) Transaction banking (White-labelled banking) • Channel to acquire & service customers, complete customer ownership with Bank • Bank
Slide 69: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 59
Slide 70: Declining gross NPA, slippages and credit costs
Declining gross NPA, slippages and credit costs; stable asset quality visible across all segments GNPA at 1.58% & NNPA at 0.36% Segmental composition Retail CBG WBG Total 63%^ 73%^ 92%^ 78%^ 2.38% 2.02% 1.96% 1.73% 1.58% 1.28% 2.20% 0.47% 0.39% 0.41% 0.36% 0.36% 1.58% 0.47% 1.05% 0.19% 0.36% 0.29% Q
Slide 71: Legacy asset quality issues adequately addressed
Legacy asset quality issues adequately addressed Overall Credit Costs: FY10 to Q3FY24 3.57% 3.53% Trend in BB corporate book Credit Cost 7.29% (Fund based as % of GCA) 2.82% Net Credit Cost 2.78% 1.91% 2.15% 1.32% 1.87% 0.29% 1.89% 1.35% Long term (FY03 to FY23) 1.56% 1.68% Jun'16 Mar'19 Dec'23 1.11
Slide 72: Detailed walk of NPAs over recent quarters
Detailed walk of NPAs over recent quarters All figures in ₹ Crores Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Gross NPAs - Opening balance A 19,894 19,961 18,604 18,158 16,757 Gross NPAs acquired from Citi B - 396 - - - Fresh slippages C 3,807 3,375$ 3,990 3,254 3,715 Upgradations & Recoveries D 2,088 2,699
Slide 73: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 63
Slide 74: Ranked 1st in Corporate Governance among financial sector peers
Ranked 1st in Corporate Governance among the financial sector peers Indian Corporate Governance rating across various metrics 1st Ranked No. 1 in corporate 77 5th Rank 74% governance scorecard in the Responsibilities of the financial sector Governance Score 4% of companies in the board S&P BSE 100*
Slide 75: Our ESG Progress
Our ESG Progress Our Purpose Statement: Banking that leads to a more inclusive and equitable economy, thriving community and a healthier planet Steady Performance on Global ESG Benchmarks Above 80th percentile among global banks on DJSI in 2023 Environmental Social Governance ~12,152 tCO2e* 1.3 Mn 1
Slide 76: Committed to Positive Climate Action and SDGs
Committed to Positive Climate Action and Achieving the SDGs In September 2021, the Bank announced commitments aimed at supporting India’s low-carbon and equitable economic transition towards achieving the SDGs and India’s commitments under the Paris Agreement Our Commitment Unit Progress As of March
Slide 77: Striving for Operational Excellence
Striving for Operational Excellence Committed to reducing our operational carbon footprint The Bank’s 3 largest offices, in Mumbai and Bangalore are running on 100% renewable power 7.05 MW functional captive solar power capacity at close to 250 locations*, helping avoid approximately 3,066 tCO2e ann
Slide 78: Sparsh, our Customer Obsession program
Sparsh, our Customer Obsession program, is committed to delivering Smart Banking by improving institutional capabilities across the Bank Sparsh embedded across all customer touchpoints, Sparsh is committed to deliver Smart Banking: Industry-first LIVE processes & metrics Initiatives Getting more cus
Slide 79: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 69
Slide 80: Value creation in key group entities
Significant value creation happening in our key group entities Detailed One Axis presentation Link Invst Banking Consumer Retail Fintech Asset Management Trustee TReDS platform Insurance & Inst Equities focused NBFC Brokerage platform One of the fastest Leadership position in AAA rated NBFC with 3rd
Slide 81: Axis Finance: PAT up 25% YOY
Axis Finance : PAT up 25% YOY, Retail book up 45% YOY Growth in Assets under Finance (AUF) 29,562 42% CAGR** All figures in ₹ Crores, other than % 700 38% YOY Major Highlights 23,340 811 13,000 • 45% YOY growth in Retail book, retail mix up ~210 bps YOY to 44% 21,447 1,660 17,261 (44%) 637 9,495 • 4
Slide 82: Axis AMC: Revenue up 9% YOY
Axis AMC : Revenue up 9% YOY All figures in ₹ Crores, other than % Overall QAAUM 19% CAGR* Equity QAAUM 30% CAGR* 6% YOY 13% YOY 2,59,818 2,62,398 1,63,914 2,41,415 2,48,220 1,43,546 1,44,772 1,37,074 1,96,549 98,822 1,38,402 61,968 Mar-20 Mar-21 Mar-22 Mar-23 Dec-22 Dec-23 Mar-20 Mar-21 Mar-22 Mar-
Slide 83: Axis Capital: Leading in Equity Capital Markets
Axis Capital : Among the leading players in Equity Capital Markets 9MFY24 Ranking* (includes IPO, FPO, QIP, REIT, OFS & Rights) Major Highlights Rank Banker No of Deals* 1 Peer 1 38 • 71 IB deals closed in 9MFY24 that include 52 ECM and 6 M&A deals 2 Peer 2 32 • 3rd rank in ECM deals 3 Axis Capital`
Slide 84: Axis Securities: PAT up 31% YOY
Axis Securities : PAT up 31% YOY Total customer base (in mn) 12% YOY 3rd largest bank led retail brokerage in terms of customer base 23% CAGR* Major Highlights 5.30 4.86 4.73 4.17 • 12% YOY growth in customer base in Q3FY24 3.63 • 52% of the volumes in Q3FY24 was from Mobile trading 2.10 2.27 • 57%
Slide 85: Axis Trustee: Revenue up 22% YOY
Axis Trustee: Revenue up 22%YOY All figures in ₹ Crores 21% YOY Asset Under Trust 16% CAGR* Major Highlights 36,50,877 • No of Mandates up by 25% 29,94,794 30,01,067 30,16,663 26,43,586 • Awarded By Assocham in “Debenture Trustee” segment 21,26,291 • Digital Escrow (P2P) & Revamped Website launched
Slide 86: A.TREDS: Invoicemart setting a new benchmark
A.TREDS: Invoicemart setting a new benchmark in TReDS A.TREDS is the largest TReDS entity which operates on a perpetual license, allowed by RBI to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs The TReDS platform connects MSME se
Slide 87: Freecharge: Building capabilities in three key areas
Freecharge: Building capabilities in three key areas – Merchant Business, Payment Aggregation, and Consumer Payments & Lending Merchant Business Payment Aggregation Consumer Payments & Lending • 2.1% growth in number of merchant • Increased deepening and engagement with • Average order value per use
Slide 88: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q3FY24 78
Slide 89: Awards and recognitions
Our winning mindset is reflected in multiple awards and recognitions… Won ‘Domestic Retail Bank of the Won “Infosys Finacle Award”, Won BFSI Tech “Best Product Best BFSI Customer year’ and ‘Digital Transformation for AI implementation Innovation in BFSI (Sarathi)” Award Experience of the year for Be
Slide 90: Shareholding Pattern (as on December 31, 2023)
Shareholding Pattern (as on December 31, 2023) Life Insurance Corporation Others 7.94% 6.94% GDR's 3.22% Foreign Institutional Investors 53.93% Indian Institutions 27.97% ▪ Share Capital `617 crores ▪ Shareholders’ Funds `142,984 crores ▪ Book Value Per Share `464 ▪ Diluted EPS (Q3 FY24) (Annualised
Slide 91: Financial Performance (₹ crores)
Financial Performance Financial Performance (₹ crores) Q3FY24 Q3FY23 % Growth 9MFY24 9MFY23 % Growth Interest Income A 27,961 22,226 26% 80,144 61,194 31% Other Income B = C+D+E 5,555 4,572 22% 15,676 11,356 38% - Fee Income C 5,169 4,008 29% 14,620 11,290 29% - Trading Income D 291 428 (32%) 709 (3
Slide 92: Financial Performance ($ mn)
Financial Performance Financial Performance ($ mn) Q3FY24 Q3FY23 % Growth 9MFY24 9MFY23 % Growth Interest Income A 3,360 2,671 26% 9,631 7,354 31% Other Income B = C+D+E 668 549 22% 1,884 1,365 38% - Fee Income C 621 482 29% 1,757 1,357 29% - Trading Income D 35 51 (32%) 85 (39) - - Miscellaneous In
Slide 93: Balance Sheet
Balance Sheet Balance Sheet As on 31st Dec’23 As on 31st Dec’22 As on 31st Dec’23 As on 31st Dec’22 % Growth CAPITAL AND LIABILITIES In ` Crores In ` Crores in $ Mn in $ Mn Capital 617 615 74 74 0.3% Reserves & Surplus 1,42,367 1,30,030 17,109 15,626 9% ESOP Outstanding 745 364 90 44 105% Deposits 1
Slide 94: Limited restructuring, largely secured and well provided
Limited restructuring, largely secured and well provided; Declining BB & Below Book All figures in ₹ Crores Bank’s Net NPA* and Fund based BB and Below* portfolio Update on restructured book Outstanding Covid (1+2) restructuring as on 31.12.2023 Implemented PCR (excluding technical write offs) at 78
Slide 95: 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 96: Thank You
Thank You Quarterly Results Q3FY24 86