management round table 12 13

7/31/2019 Management Round Table 12 13

1/13

Aiming at Balanced Growth

May 2012


2/13

1

Axis Bank Overview

Snapshot for the year ended 31st 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 &RuralBanking

Investment

Banking

Large &MidCorporate

Retail

BankingSME

Infra

Others

Retail

Liabilities

Retail

Assets &Cards

ThirdParty

Products


3/13

2

Build a full-service offering to

SMEcustomers

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 ThemesLeveraging Domestic Growth Opportunities


4/13

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 9th

as on 31st

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 retailforex 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 toreduce share of mortgages to ~60% by 2015

Cross-selling to branch customers key focus area

Assets


5/13

113200 248

322 369 398121

200258

339409

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 StrategyCASA and Retail term deposits ( bn)

337

561

745

929

1,113

1,393

89

136161

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

89

10

13

0

2

4

6

8

10

12

14

FY07 FY08 FY09 FY10 FY11 FY12

#Mar07 to Mar12 CAGR* FY07 to FY12 CAGR

As onCASA 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


6/13

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

3.753.65 3.59

Net Interest Margin FY09 - FY12 (%)

For entire FY For the quarter

ROA (entire FY) ROE (entire FY)

Stable NIM & Profitability Trends

19.9319.89

20.13

21.22

1.681.681.67

1.44


7/13

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 theprevalent 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


8/13

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 31st

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


9/13

Asset Quality Trends

0.92 0.91 0.900.96

1.01

1.21 1.231.13 1.13 1.12

1.09

1.011.06 1.08

1.10

0.94

0.470.43

0.390.35

0.410.45 0.46

0.36 0.35 0.340.29

0.260.31

0.340.39

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


10/13

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


11/13

1.2

1.41.7 1.7 1.7

1.1 1.2 1.21.3

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%



63%69%

39%35%

25%

36%

26%

18%

10%

28%


Axis Bank Peer banks*

Source : Capitaline

16.1

19.9 19.9 20.121.2

15.616.8 16.8 16.4

14.2



Asset growth (%) PAT growth (%)

RoA (%) RoE (%)

1

Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI

* Weighted average based on BS size


12/13

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,willcontinue,anticipate,estimate,intend,

plan,contemplate,seekto,future,objective,goal,strategy,philosophy,project,should,willpursue

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


13/13

Thank You

1

management round table 12 13

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