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7/31/2019 Axis IR Presentation May 2012
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Aiming at Balanced Growth
May 2012
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1
Contents
Key Macro Trends
Business Model & Strategy
Financial Snapshot
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India Opportunity
Source: IMF, RBI, Govt of India
27%
31%
36%
26%
30%
32%33%
35%
37%
32%34%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10
Indias Savings Rate as a % of GDP
Public sector savings Corporate savings HH financial saving
HH Physical Savings gross domestic saving
High Savings rate
Underpenetrated banking sector
38%
41%
45%
53%
54%
55%
57%
59%
60%
30% 40% 50% 60% 70%
S Korea
USA
China
Brazil
Indonesia
Mexico
Malaysia
India
S Africa
Population below 30 years as a % of total population
Favourable demographics
Robust GDP growth
0%
2%
4%
6%
8%
10%
12%
0
10000
20000
30000
40000
50000
60000
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
(
in
billion)
GDP % Growth
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3
Key Opportunities for Banking Sector
636 750815 880
220
290340
590
0%
20%
40%
60%
80%
100%
1991 2001 2008 2030
Rural population (mn) Urban population (mn)
Urban GDP share (%) (RHS)
11482
75
120
2250
6
20
4
18221
290
2010 (E) 2020 (F)
> 1000
500 - 1000
200 - 500
90 - 200
< 90
Growing prosperityDistribution of households (mn) by income categories
CAGR (%)
3%
5%
9%
16%
13%
0
1000
2000
3000
4000
5000
6000
2012-13 2013-14 2014-15 2015-16 2016-17
(
inb
n)
Private Investment in Infrastructure
(Twelfth Plan)Public Private
Rapid urbanisation
Transformation of payments landscape
HH income
(`000 per annum)
Source: Planning Commission , NCAER, Indian Urbanization Econometric Model; Indian Banking 2020, Report by BCG in association with
FICCI and IBA, Analyst and sector reports
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Contents
Key Macro Trends
Business Model & Strategy
Financial Snapshot
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Axis Bank Overview
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
Source: Capitaline, Company results
* Weighted average based on BS size
62%
37%28%
36%
19%23%
26%
12%
23%20%
0%
10%
20%
30%
40%
50%
60%
70%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer banks*
Advances growth (%)
Deposit Growth (%)
Indias 3rd Largest Private Sector Bank
Assets of over ` 2,856 bn, Net Worth of ` 218 bn
Assets and Net Profits 5 year CAGR of ~31% and ~45% CAR of 13.66% with Tier I at 9.45% as on 31st Mar, 2012
8000+ corporate clients, ~12 mn Saving Accounts
1,622 branches in India with Overseas presence in UK, UAE,
Hong Kong, Singapore, Shanghai and Colombo
Widely held and professionally managed Bank
Business Indicators AXISPeer Banks
Avg. Min Max
Business Size (` bn) 3,899 8,468 4,421 19,373
Tier-1 capital 9.5% 10.8% 9.3% 12.7%
RoA 1.7% 1.3% 0.9% 1.8%
RoE 21.2% 16.1% 11.1% 19.0%
Net NPA 0.25% 0.94% 0.20% 1.82
49%
34%
20%
34%
16%20%
26%
9%
18%16%
0%
10%
20%
30%
40%
50%
60%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer banks*
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369
597
816
1,043
1,424
1,698
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY07 FY08 FY09 FY10 FY11 FY12
Consistent Growth Across Business Indicators
Advances ( bn) Deposits ( bn)
Particulars FY07 FY08 FY09 FY10 FY11 FY12
Branches + Ext.
counters544 644 792 983 1,390 1,622
ATMs 2,341 2,764 3,595 4,293 6,270 9,924
Centers Covered 332 405 515 643 921 1,050
Growing Pan India Presence
7
11
18
25
34
42
0
5
10
15
20
25
30
35
40
45
FY07 FY08 FY09 FY10 FY11 FY12
Net Profits ( bn)
588
876
1,174
1,413
1,892
2,201
0
500
1,000
1,500
2,000
2,500
FY07 FY08 FY09 FY10 FY11 FY12
* FY07 to FY12 CAGR
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1.2
1.41.7 1.7 1.7
1.1 1.2 1.21.3
1.3
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Superior Track Record of Growth and Profitability
50%
35%
22%
34%
18%
26%
21%
12%16%
11%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
63%69%
39%35%
25%
36%
26%
18%
9%
33%
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer banks*
Source : Capitaline
16.1
19.9 19.9 20.121.2
15.616.8 16.8 16.4 16.1
FY08 FY09 FY10 FY11 FY12
Axis Bank Peer Banks
Indicates fund raising done by Axis Bank
Asset growth (%) PAT growth (%)
RoA (%) RoE (%)
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
* Weighted average based on BS size
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Evolution of Axis Banks Business Model
Corporate lender
Corporate deposits
Slow growth
Phase 1: upto FY 03
Developed CASA franchise
Fee income diversity in revenue
Period of very high growth in
business and network
Phase 2: FY 04 09
Predictable, consistent profitable growth
Reduced risk concentration
Increase share of customer wallet Improve operating leverage
Above industry growth
Phase 3: FY 10 onward
Particulars FY03 FY 09 FY 12
Balance sheet size (` bn) 196 1,477 2,856
CASA as % of total deposits 23% 43% 42%
PAT (` bn) 1.9 18.2 42.4
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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 inCorporate Banking &
Infrastructure linked Financial
services
Business Strategy Along Four Key ThemesLeveraging Domestic Growth Opportunities
Strong product offering complemented by a Pan India distribution
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Strong product offering complemented by a Pan-India distribution
channel
Increasing Presence - Centers covered
Retail
Customer
Channels Products
Phone
Branch
Deposit &
Investment
Products
ATM
Mobile
Internet
Savings & Fixed Deposits; Demat /
Online Trading;
Mutual Funds; Life Insurance;
General Insurance; Gold Coins
Branches & Extension counters
332 405
515
643
921
1050
FY07 FY08 FY09 FY10 FY11 FY12
Metro Urban Semi-urban RuralTotal
Branches
Mar'08 34% 41% 21% 4% 644
Mar'09 31% 40% 23% 6% 792
Mar'10 29% 38% 26% 7% 983
Mar'11 27% 33% 32% 8% 1390
Mar'12 28% 30% 32% 10% 1,622
1
Multi-channel Pan-India Presence with a Full Suite of Products
Home Loans; Auto Loans;
Personal & Other Loans
Loans
Debit Cards; Credit Cards;
Prepaid Cards; Remittance Cards, MealCards, Travel Currency
& Gift Cards
Cards
Payment
Solutions
Utility Bill, School Fee Payments
ECS Mandates & NEFT/RTGS
Spends through cards Online Tax
Payments IPOSmart
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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
Number of Saving Accounts (in mn)
culminating in a strong retail franchiseCASA and Retail term deposits ( bn)
337
561
745
929
1,113
1,393
1
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
Period SB Accounts
31 Mar-07 4.7
31 Mar-08 6.2
31 Mar-09 7.6
31 Mar-10 8.1
31 Mar-11 9.4
31 Mar-12 11.9
#Mar07 to Mar12 CAGR* FY07 to FY12 CAGR
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56
33
24
47
Axis Avg.* Min Max
79%
83%
87%
84%
92%
FY08 FY09 FY10 FY11 FY12
CASA/Branch higher than peers ( crores)
1
Secured Retail Advances as % of Total Retail Advances
Stable retail funding mix & thrust on secured retail assets
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
Source: Company results
* Weighted average based on BS size
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
Peer Banks
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Recognition for High Quality Customer Service
This independent survey covered 18 Cities and 9,486 bank account holders across India
Hindustan Times MARS Banking Satisfaction study 2010
13
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14
End to End Infrastructure Player
Credit SyndicationInvestment
BankingTreasury
Non-Bank
Units
Business
Banking
Corporate Bank : Originate and Distribute Model
Corporate Banking: A key driver
of overall bank performance
Source: Research Reports, Company Results
4750
56 58
FY09 FY10 FY11 FY12
CB share (%) in feesFY12
Corp
Bank54%
SME
14%
Retail
22%
Agri &
Others10%
64
38 38
18
18 14
7
16 27
-
71
1121 20
CY09 CY10 CY11
SBI IDBI Axis ICICI Others
Institution
Rank
(CY11
YTD)
Rank
(CY10)
Rank
(CY09)
Axis Bank 1 1 1
ICICI Bank 2 2 10
I-Sec Primary 3 5 4
Citi 4 12 9
KMCC 5 11 8
CB share (%) in aggregate
loans FY12
Debt Private Placement League Table Loan syndication market share (%)
Source: Bloomberg
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Strong Treasury enhancing Syndication capabilities
Treasury & Cap Markets Fees ( bn)
Placement & Syndications (Debentures / Bonds)
Placement & Syndications ( bn)
(Debentures / Bonds)
A dominant player in placement and syndication of debt
issues
Ranked No.1 Debt Arranger by Bloomberg for CY 2011
Recent Awards:
Banker Magazine: Bank of the year India; 2011 Asia Money: Best Domestic Debt House India; 2011
Euromoney: Best Debt House - India; 2011
Finance Asia: Best Bond House India; 2011
Forex Turnover ( bn)
4
76
8
10
0
2
4
6
8
10
12
FY08 FY09 FY10 FY11 FY12
1,592
2,958
4,020
5,049
3,389
0
1,000
2,000
3,000
4,000
5,000
6,000
FY08 FY09 FY10 FY11 FY12
573691 689
830
1,130
0
200
400
600
800
1,000
1,200
FY08 FY09 FY10 FY11 FY12
1* FY07 to FY12 CAGR
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Diversified portfolio across 3 segments: Medium
Enterprises Group, Small Enterprises Group and
Supply Chain Finance
Driven through 32 SME centres, with dedicated teams
for sales and credit
Risk management
- Qualitative Credit Assessment in addition to
rating
- Exit/Watch list category
- Collection managers
Commercial banking products
- Current accounts, forex, trade services
Retail banking solutions
- Salary account products, Wealth & Priority
Banking services, Insurance
Advisory services
- Financial advisory, private equity, M&A and
capital market solutions
Lending Other Offerings
Full-service Offering to SME Customers
SME
franchise
16
Growth in SME Loan portfolio and customer base
CAGR = 20% CAGR = 23%
11,537
16,07718,269
21,40623,7967,871
12,907 13,47814,817 15,727
0
5,000
10,000
15,000
0
6,000
12,000
18,000
24,000
30,000
FY08 FY09 FY10 FY11 FY12
Loan Portfolio Customer base(` crores)
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9 8 10 7 9
19 15 13 11 12
62 64 62
5957
9 12 13 18 18
1 1 2 5 5
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
SME 1 SME 2 SME 3 SME 4 SME 5-8
4 33
2 315 16 22 23
30
58 54 47 4340
22 22 18 25 19
1 5 10 7 8
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
AAA AA A BBB
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18
Payments Solutions Across Government,
Corporate and Business Segments
Leading player in Electronic Benefit Transfer (EBT) through Smart
Cards under IT Enabled FI Model
Leading Bank in G2B e-Governance initiatives
Leading bank in Merchant Acquiring Business with installed base
of more than 2 lac EDC Machines
Synergies with current account franchise
Amongst select set of Indian banks offering host-to-host
transactional banking facility
Amongst leading Banks in electronic payments
Continue to
capture end to
end payment
opportunitiesacross different
customer
segments
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19
Contents
Key Macro Trends
Business Model
Financial Snapshot
M i D i b L C t D it
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3.473.33
3.75 3.65 3.59
FY08 FY09 FY10 FY11 FY12
Margins Driven by Low Cost Deposits
Cost of funds (%)
1 Defined as the ratio of Current and Savings bank deposits to Total deposits2 Mar08 to Mar12 CAGR
Net Interest Margin (%)
6.02
6.50
5.20 4.96
6.28
FY08 FY09 FY10 FY11 FY12
200 248322 369 398
200258
338409
517
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
915
Current and Savings bank deposits ( bn) Low cost deposits ratio1
45.7%
43.1%
46.7%
41.1% 41.5%
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
Savings deposits
Current deposits
400
506
660778
20
Diversified Fee Income Franchise
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Diversified Fee Income Franchise
Fee income ( bn)
* FY07 to FY12 CAGR
Note: Previous years figures have been restated where required
34.1% 37.2% 32.7% 33.9%
Large & Mid
Corporate
37%
Retail
Banking
27%
Treasury &
CapitalMarkets
21%
BusinessBanking
9%
Agri & SME
6%
Fee Income as % of Operating Revenue
Fee profile (FY12)
14.9
24.5
29.2
37.9
47.3
FY08 FY09 FY10 FY11 FY12
21
35.2%
I d i i ib i
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Industry-wise Distribution
Rank Sectors
Outstanding as on 31st Mar 2012 (%)&
Total Fund-based Non-fund based
1. Financial Companies** 11.16 12.72 8.10
2. Power Generation 10.30 4.66 21.42
3. Infrastructure Construction* 8.79 6.80 12.71
4. Engineering & Electronics 6.24 3.35 11.94
5. Metal & Metal Products 5.80 4.27 8.81
6. Trade 3.76 3.24 4.78
7. Food Processing 3.36 4.05 2.01
8. Chemicals 2.67 1.80 4.38
9. Shipping & Logistics 2.31 2.48 1.96
10. Real estate 2.26 3.22 0.38
& Percentages stated above are on the total fund and non-fund based outstanding across all loan segments
* Financing of projects (roads, ports, airports etc)
** Includes Housing Finance Companies and other NBFCs
22
Superior Risk Management and Strong Asset Quality
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Net NPA as at year-end
FY08 0.36%
FY09 0.35%
FY10 0.36%
FY11 0.26%
FY12 0.25%
Superior Risk Management and Strong Asset Quality
(` bn)
2
NPAs: Axis vs Peers
4 5 9 13 16 183 2 3 4 45
0.6%
0.4% 0.4% 0.4%
0.3% 0.3%
1.0%
0.7%
1.0%
1.1%
1.0%0.9%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
0
2
4
6
8
10
12
14
16
18
20
Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12
Gross NPAs Net NPAs Net NPA (%) Gross NPAs (%)
0.9%
3.3%
1.0%
4.4%
0.3%
1.3%
0.2%
1.8%
Axis Avg.* Min Max
GNPA NNPA
Restructured Assets
Cumulative Restructured Assets: ` 31 bn
(1.6% of gross customer assets) as on 31st
Mar 2012 vs. ` 19 bn as on 31st Mar 2011
Restructured assets of`13 bn added duringFY12
Loans amounting to `11.2 bn have a 2 yearstrack-record of repayment
* Weighted average based on Advances
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI
Source: Company results
Peer Banks
Capital Strength
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10.17%9.26%
11.18%9.41% 9.45%
3.56%4.43%
4.62%
3.24%4.21%
13.73% 13.69%
15.80%
12.65%13.66%
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
Tier 1 capital ratio Tier 2 capital ratio Total Capital Adequacy Ratio
Capital Strength
Capital Adequacy Ratio (%)
24
Summary
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25
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
Safe Harbor
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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
26
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Thank You