Axis IR Presentation May 2012

7/31/2019 Axis IR Presentation May 2012

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Aiming at Balanced Growth

May 2012


2/28

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%




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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


Net Profits ( bn)

588

876

1,174

1,413

1,892

2,201

0

500

1,000

1,500

2,000

2,500


* 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


Axis Bank Peer Banks

Superior Track Record of Growth and Profitability

50%

35%

22%

34%

18%

26%

21%

12%16%

11%



63%69%

39%35%

25%

36%

26%

18%

9%

33%



Source : Capitaline

16.1

19.9 19.9 20.121.2

15.616.8 16.8 16.4 16.1



Indicates fund raising done by Axis Bank

Asset growth (%) PAT growth (%)

RoA (%) RoE (%)




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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


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


12/28

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


Retail Advances Portfolio ( bn)

Retail Fees ( bn)

3

6

89

10

13

0

2

4

6

8

10

12

14


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%


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



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


15/28

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


1,592

2,958

4,020

5,049

3,389

0

1,000

2,000

3,000

4,000

5,000

6,000


573691 689

830

1,130

0

200

400

600

800

1,000

1,200


1* FY07 to FY12 CAGR


17/28

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


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


AAA AA A BBB


19/28

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


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


200 248322 369 398

200258

338409

517


915

Current and Savings bank deposits ( bn) Low cost deposits ratio1

45.7%

43.1%

46.7%

41.1% 41.5%


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


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


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%


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


27/28

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

Documents

Axis IR Presentation May 2012