Axis Bank Limited · NSE:AXISBANK
Axis Bank — Q2 FY24 Earnings Presentation
94 slides from Axis Bank's earnings presentation, Oct 25, 2023
Slide 1: Exchange filing cover letter
AXIS/CO/CS/387/2023-24 October 25, 2023 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 – 400
Slide 2: Press release: financial results Q2 and H1 FY24
PRESS RELEASE AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER 2023 H1FY24 PAT at `11,661 crores growing 23% YOY, H1 consolidated ROE at 19.04% up 179 bps YOY, driven by NIMs at 4.11%, 30%YOY H1 fee growth, 23% YOY loan growth, aided by 15% YOY RTD1 growth o Q
Slide 3: Performance at a Glance
Performance at a Glance • Healthy operating performance o Net Interest Income grew 19% YOY and 3% QOQ, Net Interest Margin at 4.11%, up by 15 bps YOY and 1 bps QOQ o Core Operating revenues grew 22% YOY and 6% QOQ, Core Operating profit grew 12% YOY and 5% QOQ o Consolidated ROE | ROA at 18.67% | 1.
Slide 4: Profit & Loss Account: Period ended 30th September 2023
Profit & Loss Account: Period ended 30th September 2023 Operating Profit and Net Profit The Bank’s operating profit for the quarter grew 12% YOY to `8,632 crores. Core Operating profit for Q2FY24 grew 12% YOY and 5% QOQ to `8,733 crores. Net profit at `5,864 crores in Q2FY24 grew by 10% YOY. Net Int
Slide 5: Deposits and advances growth
4% QOQ. The share of CASA deposits in total deposits stood at 44%. On QAB basis, total deposits grew 16% YOY and 1% QOQ, within which savings account deposits grew 17% YOY and 1% QOQ, current account deposits grew 11% YOY; and total term deposits grew 17% YOY and 3% QOQ. The Bank’s advances grew 23%
Slide 6: Wealth Management Business – Burgundy
Portal. On WhatsApp banking, the Bank now has over 16.5 million customers on board since its launch in 2021. Wealth Management Business – Burgundy The Bank’s wealth management business is among the largest in India with assets under management (AUM) of `4,53,096 crores as at end of 30th September 20
Slide 7: Key Subsidiaries' Performance
across 2,676 centres as at 30th September, 2022. As on 30th September, 2023, the Bank had 15,806 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 30th September 2023. Key Subsidiaries’
Slide 8: Financial Performance Q2FY24
` crore Financial Performance Q2FY24 Q2FY23 % Growth Net Interest Income 12,315 10,360 19% Other Income 5,034 3,855 31% - Fee Income 4,963 3,776 31% - Trading Income (101) (86) - - Miscellaneous Income 172 165 5% Operating Revenue 17,349 14,216 22% Core Operating Revenue# 17,450 14,302 22% Operating
Slide 9: Business Performance
` crore As on As on Business Performance th th % Growth 30 September’23 30 September’22 Total Deposits (i)+(ii) 9,55,556 8,11,015 18% (i) CASA Deposits 4,23,866 3,74,846 13% - Savings Bank Deposits 2,92,313 2,52,244 16% - Current Account Deposits 1,31,553 1,22,602 7% CASA Deposits as % of Total Depo
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 Q2FY24 NSE: AXISBANK BSE: 532215 LSE (GDR): AXB
Slide 12: Axis Bank at a glance
Axis Bank at a glance 3rd 46 mn+ 99,350+ 5,152 Axis Bank Employees Branches* largest Private Bank in India Customers 5.3% 4.8% 6.0% 14.1% Market Share Assets 1 Deposits 1 Advances 1 Credit Cards 2 Profitability 4.11% 2.41% 2.60% Net Interest Margin 3 Cost to Assets 3 Operating Profit Margin 3 Balanc
Slide 13: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 3
Slide 14: Major highlights
Major highlights H1FY24 PAT at `11,661 crores growing 23% YOY, H1 consolidated ROE at 19.04% up 179 bps YOY, driven by NIMs at 4.11%, 30% YOY fee growth, 23% YOY loan growth, aided by 15% YOY retail term deposit growth • Q2FY24 PAT at `5,864 crores with consolidated ROE of 18.67% • Net Interest Inco
Slide 15: Key metrics for Q2FY24
Key metrics for Q2FY24 Snapshot (As on 30th September 2023) Deposits Advances Absolute (₹ Cr) QOQ YOY Growth (a) (c) 18% YOY 23% YOY (b) Q2FY24 Q1FY24 H1FY24 Q2FY24 Q2FY24 H1FY24 16% YOY 26% YOY (d) Net Interest Income 12,315 11,959 24,273 3% 19% 23% Fee Income 4,963 4,488 9,451 11% 31% 30% Profit &
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% 0.40% 0.20% 18.8% 19.0% 0.00% 13.7% 8.2% Consolidated ROE 2.7% FY20 FY21 FY22 FY23 H1FY24 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 Q2FY24 7
Slide 18: Deposit and Loan growth performance
Deposit and Loan growth performance All figures in ₹ Billion Deposit mix (QAB)^ Segment loan mix Domestic loan growth at 26% YOY & 5% QOQ YOY QOQ YOY QOQ 23% 5% 9,002 9,111 16% 1% 8,973 8,524 8,453 8,585 7,847 8,034 1,919 7,623 1,913 0.3% 7,310 21% 3% 1,816 (21%) 24% 2,817 NRTD 1,608 2,683 2,730 (31
Slide 19: Trend in CASA growth
Trend in CASA growth (a) CASA QAB growth (YOY) 21% 16% 13% 9% 15% 16% CAGR# 394,569 342,055 302,712 111,469 14% CAGR# 249,377 100,299 215,552 90,301 76,739 17% CAGR# 64,992 283,100 212,411 241,756 150,560 172,638 Sep-19 Sep-20 Sep-21 Sep-22 Sep-23 SA CA #Sep-19 to Sep-23 SA QAB as % of period end CA
Slide 20: Operating revenue up 22% YOY, Core Operating profit up 12% YOY
Operating revenue up 22% YOY, Core Operating profit up 12% YOY, PAT up 10% YOY Operating expense All figures in ₹ Crores Operating revenue YOY QOQ 28% 34% 22% 2% 14% 8% 14% 17,046 17,349 16,031 16,530 Opex YOY (b) 14,215 growth (b) 5,087 5,034 31% 1% (a) 8,232 8,717 4,572 4,788 7,362 3,855 6,499 6,7
Slide 21: Net interest margin improved 15 bps YOY
Net interest margin improved 15 bps YOY Advances mix by rate type Cost of Funds MCLR Duration Split 31% (Sep-23) 5.17% 2% ~ 69% of loans floating 1M 5.03% 3% 1% 1% 4.75% 17% 3M, 2% 4.34% 4.09% 6M, 4% 3.87% 3.83% 3.89% 3.77% 46% 12M, 10% Repo linked MCLR linked Other EBLR* Q2FY22 Q3FY22 Q4FY22 Q1FY23
Slide 22: NIM improvement led by structural drivers
NIM improvement led by structural drivers across the businesses 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.
Slide 23: Strong growth in fees; granularity built across segments
Strong growth in fees; granularity built across our business segments All figures in ₹ Crores Retail Banking fees 38% YOY Retail fee mix 11% QOQ 44% 46% 44% 3,494 3,119 3,146 2,526 2,725 18% 21% ^ 18% 18% 17% 20% 22% 18% 14% TPP Retail Cards & Payments Retail Assets excl cards & Retail Liabilities &
Slide 24: Cost growth at 34% YoY
Cost growth at 34% YoY; integration expenses contribute 4% to YoY growth; continue to invest in technology and growth related businesses; YoY Incremental Opex in Q2FY24 was led by Growth Business and Integration related expenses 9% 51% 27% 13% Incremental YOY cost break up (Rs 2,218 Crore) (YoY ↑ 34
Slide 25: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 15
Slide 26: Strong capital position with adequate liquidity
Strong capital position with adequate liquidity Net accretion to CET-1 of 54 bps in H1FY24 Bank’s Capital Adequacy Ratio 1.29% 0.75% 19.12% 18.54% 14.02% 14.56% 17.64% 17.84% 17.53% 15.84% 3.72% 3.30% 3.62% 3.28% 4.19% 15.40% 4.57% 15.24% 14.56% 14.02% 18 bps of net 13.34% 11.27% accretion in Q2 FY
Slide 27: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 17
Slide 28: Retail Banking
Retail Banking ~43 Mn 4th `4.53 Tn Individual Largest issuer of AUM in wealth customers Credit Cards management 23% 24% 58% YOY growth in YOY growth in Share of Retail advances Rural advances Advances~ 17% 44% 70% YOY Growth in SA CASA ratio Share in QAB* deposits (MEB**) total fee^ ~ share in Bank’
Slide 29: Deposit franchise continues to grow faster than the 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 ~550 bps reduction in outflow rates i
Slide 30: Led by multiple initiatives across the Bank
…led by multiple initiatives across the Bank Focus on Productivity & Exclusively curated Digital, transformation Premiumization Bharat Banking Micro market strategy product propositions Partnerships 31% CAGR in Burgundy 16% 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 All figures In ₹ Cr Overall Burgundy AUM^ has grown strongly 31% CAGR* 69% YOY 6% QOQ Burgundy Private 453,096 adjudged as “Best Private Bank” for 357,447 Client Acquisition, 260,768 268,754 Asia 213,085 123,298 132,702 147,002 79,127 5
Slide 32: Retail loan book remains well diversified
`5 trillion Retail loan book remains well diversified Retail book ~ 76% of our retail book is secured (in ₹ Billion) in Rs Crores Sep-23 QOQ YOY % Prop Retail disbursement trends and mix Home Loans 1,59,173 2% 9% 31% 24% 25% 25% 22% Rural loans 74,663 4% 24% 14% 22% 23% 21% 23% 20% YOY 17% Unsecured
Slide 33: Small Business Banking continues to grow strongly
Small Business Banking segment is well diversified and continues to grow strongly… SBB portfolio (in `Cr.) Well diversified customer base • `50,292 crores overall book with Business Loan book of 42% YOY 9% QoQ `12,358 crores • 75% value contribution from Secured products (working 50,292 capital, ove
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: Rural portfolio is well diversified
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 660+ 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 7th consecutive quarter In million 1.21 1.11 1.13 1.11 0.99 1.04 1.04 Pre-covid 0.77 quarterly average = 0
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 3.89 mn CIF for Flipkart Axis Bank
Slide 39: Retail spends up 72% YOY
Retail spends up 72% YOY, and related market share up ~236 bps YOY All figures In ₹ Cr Trend in Credit Card spends market share Trend in Debit Card spends Overall Q2FY24 CC spends ` 54,006 Crores YOY QOQ 12.3% 60% 5% 11.5% * 13,259 1.2% 1% 11% 12,247 9.6% 10.1% 1.2% * 11,457 11,415 8.9% 1.0% 10,707
Slide 40: 2nd largest Merchant Acquiring Bank
We are the 2nd 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 2nd Credit C
Slide 41: Empowering merchants through Integrated Ecosystem solutions
Empowering merchants through Integrated Ecosystem solutions DIGITAL DUKAAN MicroPay POS Solution Android POS with advanced solution Features • Powered by latest Android version I 5-inch touch screen display. In-built • Accepts Visa, MasterCard, RuPay Cards and Bharat QR(including UPI) camera with LE
Slide 42: Well distributed branch network
We have a very well distributed branch network; added 207 branches in Q2 Domestic branch network* Branch presence across categories Axis Virtual Centre 5,152 4,903 4,758 17% 4,528 4,594 30% ~3.3 mn Customer 6 30% connect ^ Centers 23% 1500+ Virtual RMs Mar-20 Mar-21 Mar-22 Mar-23 Sep-23 Metro Urban
Slide 43: Corporate & Commercial Banking
Corporate & Commercial Banking 33% 27% 37% YOY growth in YOY growth in YOY growth in Domestic corporate SME loan book Mid Corporate book loans 17% 89% 89% YOY growth in Share of corporate Incremental sanctions Corporate & CBG fees advances to clients to A-and above** rated A-and above 11% 8% 27% RTG
Slide 44: Coalition Greenwich Awards
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 driving synergies across One Axis
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 21% 3% 281,657 268,334 27,565 32% 3% 232,582 32,299 15% 12% 11% 11% 224,062 32,287 44,741 254,092 33% 4% 89% 236,035 85% 88% 89%
Slide 47: Overseas Corporate loan book is 97% India linked
Overseas Corporate loan book is 97% 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 f
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 11% YoY growth in Current Account quarterly registered for internet/mobile banking average Balances (Q2FY24) Foreign LC Market Share Forex Turnover Market Share Market Share main
Slide 49: Well placed to benefit from corporate bond market
We remain well placed to benefit from a vibrant Corporate Bond market Placement & Syndication of Debt Issues All figures in ₹ Crores Movement in corporate bonds Amount mobilized / arranged^ Market share and Rank* 22% 21% 20% 17% 18% 56,051 54,977 13% YOY 3rd 2nd 50,811 47,761 44,990 39,553 35,088 17
Slide 50: neo for Business
neo for Business, Axis’ mobile first preposition for MSMEs, is enabling us to become the operational bank of choice Digital DIY onboarding ~5000 business on-boarded per month since Existing and Guest commercial launch Invoicing/Bills GST/TDS compliant Payment and Bene addition IMPS, NEFT/RTGS, IFT H
Slide 51: Industry-wise Distribution (Top 10)
Industry-wise Distribution (Top 10) All figures in ` Crores Outstanding1 as on 30th Sep’23 Total Rank Advances Investments Non-fund based Sectors Value (in % terms) 1. Financial Companies2 71,681 30,974 21,712 1,24,367 11.21% 2. Engineering & Electronics 18,640 1,285 36,778 56,703 5.11% 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% 42,328 CAGR# in combined MSME, MC and 38,078 40% CAGR# SBB segment since Mar’20 26,481 95,954 19% CAGR# 17,148 89,398 13,117 75,223 51,620 59,034 15.6% 42,982 50,292 45% CAGR# Axis Bank’s Increm
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% 16% 9% 35% 10% 27% 17% 2% 8% 3% 11% 3% 3% 6% 2% 11% 4% 5% 22% 17% 4% 4% 6% 4% Trade Retail and Wholesale Food and Beverages Textile Engineering Others West 1 West 2
Slide 56: Digital Banking
Digital Banking 95% 85% 74% 71% 70% 56% Digital Credit cards Individual RTDs New SA New MF SIP PL disbursed transactions1 issued2 (H1FY24) volume (H1FY24) acquisition3 volume (H1FY24) (end-to-end digital) (in H1FY24) D2C products 250+ 300+ 4.8 @ ~13 Mn 121400+ ~3325 Employee tool Mobile App Mobile B
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 - 74% 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 2300+ SUBZERO People dedicated to digital agenda Axis Bank’s DESIGN SYSTEM Modular micro-services based architecture ~300 ~350 ~
Slide 59: Leadership in technology with several industry firsts
A Leadership in technology with several industry firsts… 1st 1st Cloud 1st Indian Bank to be Bank to hollow the core Only among peers to member of for elite merchants on UPI have 3 Enterprise grade Banking Industry landing zones Architecture Network Leading player in UPI (BIAN) Payer PSP (a) ~2.5x 4
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 Building data stack 3.0 for next level of analytics and have created service data lake for enhanced customer experience Data Stack 3.0 - Cloud Personalization – 15k+ nudge va
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 Axis Mobile App 4.8 Hyper personalized | Intuitive | Seamless 4.6 Highest rating of 4.8 on Google Play Store with 2.2 mn+ reviews across 64 global banks, 8
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 Q2FY24 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 Q2FY24 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 123% 318% • Consolidated balances
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 Q2FY24 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 56% 75% 79% 69% 85% 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
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 Q2FY24 59
Slide 70: Stable asset quality across all segments
Stable asset quality visible across all segments GNPA at 1.73% & NNPA at 0.36% Segmental composition Retail CBG WBG Total 65%^ 71%^ 92%^ 79%^ 2.50% 2.38% 2.02% 1.96% 1.73% 1.32% 2.53% 0.51% 0.47% 0.39% 0.41% 0.36% 1.73% 0.47% 1.08% 0.21% 0.36% 0.31% Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 GNPA NNPA GNPA
Slide 71: Legacy asset quality issues adequately addressed
Legacy asset quality issues adequately addressed Overall Credit Costs: FY10 to Q2FY24 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% 2.15% 1.32% 1.91% 1.87% 0.35% 1.89% 1.35% 1.56% 1.68% Jun'16 Mar'19 Sep'23 Long term (FY03 to Q2FY24) 1.
Slide 72: Detailed walk of NPAs over recent quarters
Detailed walk of NPAs over recent quarters All figures in ₹ Crores Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Gross NPAs - Opening balance A 21,037 19,894 19,961 18,604 18,158 Gross NPAs acquired from Citi B - - 396 - - Fresh slippages C 3,383 3,807 3,375$ 3,990 3,254 Upgradations & Recoveries D 2,826 2,088
Slide 73: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 63
Slide 74: 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 Environmental Social Governance among global banks on DJSI in 2022 ~12,152 tCO2e* 1.3 Mn 1
Slide 75: 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 76: 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 77: Sparsh, our Customer Obsession program
Sparsh, our Customer Obsession program, is running with focus on impact, sustenance & employee engagement Sparsh now embedded across all customer touchpoints, Building a culture of Customer Obsession: Sparsh Week processes & metrics A pan-bank event with a series of engaging customer-centric activit
Slide 78: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 68
Slide 79: 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 80: Axis Finance: PAT up 26% YOY
Axis Finance : PAT up 26% YOY, Retail book up 49% YOY 42% CAGR** All figures in ₹ Crores Growth in Assets under Finance (AUF) 31% YOY 26,834 Major Highlights 22,969 • 49% YOY growth in Retail book, retail mix up ~523 bps YOY to 44% 20,445 11,799 17,059 9,495 7,920 (44%) • 20% YOY growth in Wholesale
Slide 81: Axis AMC: Revenue up 8% YOY
Axis AMC : Revenue up 8% YOY All figures in ₹ Crores Overall QAAUM 20% CAGR* Equity QAAUM 29% CAGR* 5% YOY 1% YOY 259,818 259,795 241,415 248,343 143,546 148,283 150,209 137,074 196,549 98,822 138,402 61,968 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 Mar-20 Mar-21 Mar-22 Mar-23 Sep-22 Sep-23 * CAGR f
Slide 82: Axis Capital: Strong positioning in ECM
Axis Capital : Strong positioning in Equity Capital Markets H1FY24 Ranking* (includes IPO, FPO, QIP, REIT, OFS & Rights) Major Highlights Rank Banker No of Deals* 1 Peer 1 19 • 48 IB deals closed in H1FY24 that include 34 ECM and 6 M&A deals 2 Axis Capital 17 • 2nd rank in ECM deals 3 Peer 2 17 • 43
Slide 83: Axis Securities: PAT up 14% YOY
Axis Securities : PAT up 14% YOY Total customer base (in mn) 13% YOY 3rd largest bank led retail brokerage in terms of customer base 23% CAGR* Major Highlights 5.15 4.86 4.54 • 13% YOY growth in customer base in Q2FY24 4.17 3.63 • 54% of the volumes in Q2FY24 was from Mobile trading 2.10 2.27 • 58%
Slide 84: 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 85: Freecharge: Building capabilities in four key areas
Freecharge: Building capabilities in four key areas – Consumer Lending, Merchant Business, Payments for Lending, and Payment Aggregation Merchant Business Payment Aggregation Consumer Payments & Lending • 20% growth in number of merchant acquisitions in • GMV & performance maintained despite PA • Av
Slide 86: Agenda
Executive Summary Financial Highlights Capital and Liquidity Position Business Segment Performance Asset Quality Sustainability Subsidiaries’ Performance Other Important Information Quarterly Results Q2FY24 76
Slide 87: 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 88: Shareholding Pattern (as on September 30, 2023)
Shareholding Pattern (as on September 30, 2023) Life Insurance Corporation Others 7.95% 7.26% GDR's 3.35% Foreign Institutional Investors 53.32% Indian Institutions 28.12% ▪ Share Capital `616 crores ▪ Shareholders’ Funds `136,702 crores ▪ Book Value Per Share `444 ▪ Diluted EPS (Q2 FY24) # `75.28 ▪
Slide 89: Financial Performance
Financial Performance Financial Performance (₹ crores) Q2FY24 Q2FY23 % Growth H1FY24 H1FY23 % Growth Interest Income A 26,626 20,239 32% 52,183 38,968 34% Other Income B = C+D+E 5,034 3,855 31% 10,121 6,784 49% - Fee Income C 4,963 3,776 31% 9,451 7,282 30% - Trading Income D (101) (86) - 418 (753)
Slide 90: Financial Performance ($ mn)
Financial Performance Financial Performance ($ mn) Q2FY24 Q2FY23 % Growth H1FY24 H1FY23 % Growth Interest Income A 3,206 2,437 32% 6,284 4,692 34% Other Income B = C+D+E 606 464 31% 1,219 817 49% - Fee Income C 598 455 31% 1,138 877 30% - Trading Income D (12) (10) - 50 (91) - - Miscellaneous Income
Slide 91: Balance Sheet
Balance Sheet Balance Sheet As on 30th Sep’23 As on 30th Sep’22 As on 30th Sep’23 As on 30th Sep’22 % Growth CAPITAL AND LIABILITIES In ` Crores In ` Crores in $ Mn in $ Mn Capital 616 614 74 74 0.3% Reserves & Surplus 1,36,086 1,23,950 16,387 14,926 10% ESOP Outstanding 648 298 78 36 117% Deposits
Slide 92: 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 30.09.2023 Implemented PCR (excluding technical write offs) at 79
Slide 93: 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 94: Thank You
Thank You Quarterly Results Q2FY24 84