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Aiming at Balanced Growth
May 2012
1
Contents
Key Macro Trends
Business Model & Strategy
Financial Snapshot
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
India’s 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
bill
ion
)
GDP % Growth
3
Key Opportunities for Banking Sector
636 750 815 880
220
290 340
590
0%
20%
40%
60%
80%
100%
1991 2001 2008 2030
Rural population (mn) Urban population (mn)
Urban GDP share (%) (RHS)
114 82
75 120
22 50 6
20 4
18 221
290
2010 (E) 2020 (F)
> 1000
500 - 1000
200 - 500
90 - 200
< 90
Growing prosperity Distribution 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
(` in
bn
)
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
4
Contents
Key Macro Trends
Business Model & Strategy
Financial Snapshot
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 (%)
India’s 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
5
Business Indicators AXIS
Peer 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*
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. counters
544 644 792 983 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)
6
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
1.2 1.4
1.7 1.7 1.7
1.1 1.2 1.2 1.3 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 20.1 21.2
15.6 16.8 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 (%)
7
Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI * Weighted average based on BS size
8
Evolution of Axis Bank’s 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
9
Build a full-service offering to SME customers
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 Along Four Key Themes Leveraging Domestic Growth Opportunities
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 Rural Total
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
10
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, Meal
Cards, Travel Currency & Gift Cards
Cards
Payment Solutions
Utility Bill, School Fee Payments ECS Mandates & NEFT/RTGS
Spends through cards Online Tax Payments IPOSmart
113 200 248 322 369 398 121
200 258
339 409
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 franchise CASA and Retail term deposits (` bn)
337
561
745
929
1,113
1,393
11
89
136 161
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
8 9
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
# Mar’07 to Mar’12 CAGR * FY07 to FY12 CAGR
56
33
24
47
Axis Avg.* Min Max
79%
83%
87%
84%
92%
FY08 FY09 FY10 FY11 FY12
CASA/Branch higher than peers (` crores)
12
Secured Retail Advances as % of Total Retail Advances
Stable retail funding mix & thrust on secured retail assets
As on CASA 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
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
14
End to End Infrastructure Player
Credit Syndication Investment
Banking Treasury
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 fees – FY’12
Corp
Bank54%
SME
14%
Retail
22%
Agri &
Others10%
64
38 38
18
18 14
7
16 27
-
7 1
11 21 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
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
7 6
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
573
691 689
830
1,130
0
200
400
600
800
1,000
1,200
FY08 FY09 FY10 FY11 FY12
15 * FY07 to FY12 CAGR
• 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 16,077
18,269
21,406 23,796 7,871
12,907 13,478 14,817 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)
9 8 10 7 9
19 15 13 11 12
62 64 62 59 57
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 3 3 2 3
15 16 22 23 30
58 54 47 43 40
22 22 18 25 19
1 5 10 7 8
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
AAA AA A BBB <BBB or unrated
Credit Profile
Rating distribution of Large and Mid-corporate Loans1 (%)
Secured loans as a % of Total Aggregate Loans
Rating distribution of SME loans1 (%)
1 As per internal ratings
83.8% 86.6% 84.5%
81.7% 86.4%
Mar'08 Mar'09 Mar'10 Mar'11 Mar'12
17
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
opportunities
across different
customer
segments
19
Contents
Key Macro Trends
Business Model
Financial Snapshot
3.47 3.33
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 deposits 2 Mar’08 to Mar’12 CAGR
Net Interest Margin (%)
6.02 6.50
5.20 4.96
6.28
FY08 FY09 FY10 FY11 FY12
200 248 322 369 398 200
258
338 409
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
660 778
20
Diversified Fee Income Franchise
Fee income (` bn)
* FY07 to FY12 CAGR Note: Previous year’s figures have been restated where required
34.1% 37.2% 32.7% 33.9%
Large & Mid Corporate
37%
Retail Banking
27%
Treasury & Capital
Markets 21%
Business Banking
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%
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
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)
23
NPAs: Axis vs Peers
4 5 9 13 16 18 3 2 3 4 4 5
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 during FY12
● Loans amounting to ` 11.2 bn have a 2 years track-record of repayment
* Weighted average based on Advances Peer banks : BOB, HDFC Bank, ICICI, PNB and SBI Source: Company results
Peer Banks
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
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
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”, “future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue”
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
Thank You