AXIS BANK

28004, 28006, 28007

LIABILITY:2007-2008

2008-2009

20092010

20102011

20112012

CAGR
(5
Years)

Total Deposits

87,626.22

1,17,374.11

1,41,300.22

1,89,237.80

2,20,104.30

30.22%

*Saving Bank Deposits

*Current account
deposits

19,982.41

25,822.12

33,861.80

40,850.31

51,667.96

33.63%

20,044.58

24,821.61

32,167.74

36,917.09

39,754.07

28.60%

FY07
FY08
FY09
FY10
FY11

CASA as % of
Total
Deposits
40%
46%
43%
47%
41%

FY12

42%

As on

CA as % of CASA
Deposits

CASA + Retail
Term Deposits

48%
50%
49%
49%
47%

57%
64%
63%
66%
59%

43%

63%
60

8
6

6.02

Cost of fund
6.5
5.2

56

50

6.28
4.96

40

Cost
Deposit

of

2011-2012
6.47%

CASA/Branch

2010-2011
4.96%

47

33

30

24

20

10

0
FY08

FY09

FY10

FY11

FY12

Axis

Industry Average

Minimum

Maximum

Deposit Rate Axis Bank

Domestic Deposit Rate(1-3 Years)
Less Than 1
Public Sector Banks
Year
3.5-8.5
8.75-9.50
1-2 Years
8.75-9.75 Private Sector Banks
8.00-10.00
2-3 Years
9-9.75 Foreign Banks
3.50-9.75
3-5 Years
9-9.75
5-10 Years
8.5-9.25

Key Feature Products: Insurance Agent Account: - The first of its kind account, especially crafted to suit the banking needs
of professionals functioning as Insurance Agents.
Current account For Pharmaceutical -- A one of its kind banking product for the following entities
in Indian Pharmaceutical Industry: Retail Chemists, C & F agent, Wholesalers, Stockists / Retailers in
the Pharmaceutical segment, Pharmacists.

LENDING BUSINESS:Credit risk exposure for last two years are given below
2010-2011
NonFund
Fund
Based
Based

Industry
Banking & Finance
Infrastructure (excluding
Power)
Chemicals and chemical
products

Rs. In crore

2011-2012
NonFund
Fund
Based
Based

Industry

13,297.45

5,645.37

13,803.58

12,665.25

7,817.20

3,841.41

Trade

7,725.30

11,484.55

Iron and Steel

Power Generation &
Distribution

6,615.02

4,589.93

6,234.81

10,875.80

All Engineering

3,408.43

6,295.54

Food Processing

2,919.02

Cotton Textiles
Gems and Jewelry

Banking & Finance

Infrastructure (excluding
Power)

14,444.41

5,870.61

13,350.47

12,052.89

Trade
Power Generation &
Distribution

8,723.04

5,600.70

7,979.39

18,913.59

NBFCs

7,344.26

1,173.34

Commercial Real-Estate
Chemicals and chemical
products

6,801.44

586.97

6,570.08

6,861.86

123.46

Iron and Steel

5,472.98

5,464.43

2,533.45

387.05

Food Processing

5,178.28

342.5

2,245.15

5,824.70

All Engineering

5,008.31

8,915.27

LIC Housing Finance and HDFC Ltd are the largest borrowers for the bank. Banking and Finance and
Infrastructure are the sectors which get maximum of credit through bank.

20112012

Facility Based
Bills purchased and discounted

3909

Cash credits, overdrafts and loans

repayable on demand
Term loans
Total Advances

Credit to Deposit Ratio

Axis Bank
Scheduled commercial Banks

Profitability
Fund Based
Non Fund
Based

20112012

15379
4341

20102011

10403
3357

%
Increase

47%
29%

3481

46861

34980

118990

103946

169760

142407

20112012

20102011

76.25
NA

Rs. In Crores

20102011

74.65
75.5

Collateral Based
Secured by tangible
assets
Covered by Bank
/Government Guarantees
Unsecured

20112012

Rs. In
Crore
20102011

141716

113102

5024

3240

23020

26065

169760

142407

Mitigation of Concentration Risk:

1. Geographic concentration on
sensitive sectors
2. Residual maturity concentration of
loans and advances
3. Concentration of unsecured loans to
total loans and advances
4. The Bank has individual borrowerwise exposure ceilings based on the
internal rating
5. Concentration by Industry

INVESTMENT BUSINESS:
Axis Bank targets on Equity Capital Markets, Mergers & Acquisitions and PE Advisory, when it comes to
Investment business. During the financial year ended 31st March 2012, the Bank undertook 9 transactions
including 5 IPOs and 2 Open Offers aggregating approximately `8,750 crores. M&A advisory services focus on
domestic and cross-border buy and sell mandates for Indian clients. In the financial year 2011-12, the Bank
successfully closed a sell-side mandate with a valuation of `55 crores. The private equity business works with
the Banks mid-corporate and SME clients and advises them in raising capital from private equity investors.
CATEGORISATION SPLIT UP
In Rs. Crores

2012
HFT

8.91%

4.08 yrs

AFS

39.30% 2.95 yrs

HTM 51.78% 5.03 yrs

2011
4.81%

2012

2.35 yrs

Book value

93,192

34.71% 3.07 yrs

G Secs

58,533

60.48% 5.32 yrs

Other Inv.

34,659

2011
71,992
44,155
27,837

73% of Govt. Securities were considered as HTM in 2012 compared to 89% in 2011 and 99% of the Bonds and
Debentures have been classified under AFS in 2012 and 2011. Under categorization (HFT, AFS, HTM), the value
denotes the % split up of Investments and also shows the Modified Duration excluding Mutual Funds and
Equity Investments
Investment Reserve Account Changes:
Opening Balance
Additions
Deductions
Total

Investment Deposit Ratio

2012
2011
0
1,49,372
0
0
0 (1,49,372)
0
0

2012
2011
Investments
93,19,20,859
71,99,16,208
Deposits
2,20,10,43,033 1,89,23,78,010
ID Ratio
0.42
0.38

Profitability of the Portfolio:

Interest Earned
Interest Earned on
Interest/discount on
advances/bills
Income on Investments
Interest on balances
with RBI & other
interbank funds
Others
Total

In Rs. Crores
2012
2011
15,379.35 10,403.11

Other Income
Other Income on
Commission, Exchange &
Brokerage
Profit/(Loss) on sale of
investments (net)

6,394.27

4,438.68

98.43

182.62

Profit/(Loss) on sale of fixed

assets (net)

122.60

130.39

Profit on exchange
transactions/derivatives
transactions (net)

21,995.00 15,154.81

Income earned by dividends

etc. from Subsidiaries/JVs
Miscellaneous Income
Total

In Rs. Crores
2012
2011
4,341.70 3,357.42
72.83

366.32

20.30

-6.98

673.97

563.60

1.13

0.75

310.29
351.02
5,420.22 4,632.13

CAPITAL:
During the year 2012, the Bank has raised capital of Rs.3, 425 crores by way of sub-ordinated bonds
(unsecured redeemable non-convertible debentures) qualifying as Tier II capital. The raising of this non-equity
capital has helped the Bank continue its growth strategy and has strengthened its capital adequacy ratio. The
Bank is well capitalized with an overall capital adequacy ratio (CAR) of 13.66% at the end of the year, well
above the benchmark requirement of 9% stipulated by Reserve Bank of India (RBI). Of this, Tier I CAR was
9.45%, as against 9.41% last year, while the Tier II CAR was at 4.21%, as against 3.24% last year. During the
year, a total of 2,658,109 equity shares were allotted to employees of the Bank pursuant to the exercise of
options under its Employee Stock Option Scheme. The paid-up capital of the Bank rose to Rs.413.20 crores, as
compared to Rs.410.55 crores last year.
In Rs. Crores
st
As on 31 March
2012
2011
Tier I Capital - Shareholder's Funds
Tier II Capital
Out of which
- Bonds qualifying as Tier II capital
- Upper Tier II Capital
- Other eligible for Tier II Capital
Total Capital qualifying for computation of
CAR
Total Risk-Weighted Assets & Contingencies
Total Capital Adequacy Ratio (CAR)
Out of above
- Tier I Capital
- Tier II Capital
CAR over next 5 yrs:

Tier I
Paid Up Share
Capital
Reserves & Surplus
IPDI
- Foreign Currency
Translation Reserve
- Investment in
Subsidiaries
- DTA
Tier 2
Upper Tier 2 Capital
Lower Tier 2 Capital
General provisions
- Investment in
Subsidiaries
Total Capital
Risk weighted
assets &
Contingencies
Total CAR
Tier I
Tier II

21,886.11
9,758.84

18,503.49
6,366.86

7,737.52
1,374.74
646.58

4,587.60
1,242.80
536.46

31,644.95
24,870.35
2,31,711.39 1,96,562.61
13.66%
12.65%
9.45%
4.21%

9.41%
3.24%
In Rs. Crores
2016
2017
53,863.03
67,673.99

2011
18,503.50

2012
21,886.10

2013
27,378.10

2014
34,209.49

2015
42,889.84

410.55

413.20

493.20

493.20

493.20

493.20

493.20

18,588.28
419.14

22,395.34
448.03

27,340.29
672.05

33,873.35
873.66

42,358.63
1,135.76

53,234.78
1,476.48

67,031.23
1,919.43

12.66

(187.74)

(150.19)

(120.15)

(96.12)

(76.90)

(61.52)

(110.28)

(155.28)

(155.28)

(170.81)

(187.89)

(206.68)

(227.35)

(816.85)
6,366.86
1,242.80
4,587.60
646.74

(1,027.45)
9,758.84
1,374.74
7,737.52
801.86

(821.96)
11,858.84
1,474.74
9,737.52
801.86

(739.76)
13,943.31
1,574.74
11,737.52
801.86

(813.74)
16,026.23
1,674.74
13,737.52
801.86

(1,057.86)
18,107.44
1,774.74
15,737.52
801.86

(1,481.01)
20,186.77
1,874.74
17,737.52
801.86

(110.28)

(155.28)

(155.28)

(170.81)

(187.89)

(206.68)

(227.35)

24,870.36

31,644.94

39,236.94

48,152.80

58,916.07

71,970.47

87,860.76

1,96,562.61 2,31,711.39 3,05,753.11 3,66,411.12 4,39,174.47 5,26,462.81 6,31,179.67

12.65%
9.41%
3.24%

13.66%
9.45%
4.21%

12.83%
8.95%
3.88%

13.14%
9.34%
3.81%

13.42%
9.77%
3.65%

13.67%
10.23%
3.44%

13.92%
10.72%
3.20%

NII
Other Income
Operating
Revenue
Operating
Expenses
Operating
Profit
Provision &
Contingencies
Net Profit
Dividend
R&S
Total
Investments
Total
Advances
Risk weighted
assets &
Contingencies

2011
6,562.99
4,632.13

2012
8,017.75
5,420.22

2013
9,794.97
6,342.39

2014
11,966.14
7,421.46

2015
14,618.57
8,684.11

2016
17,858.94
10,161.59

2017
21,817.57
11,890.44

11,195.12

13,437.97

16,137.37

19,387.60

23,302.68

28,020.52

33,708.00

4,779.43

6,007.10

7,213.80

8,666.73

10,416.87

12,525.86

15,068.30

6,415.69

7,430.87

8,923.57

10,720.87

12,885.81

15,494.67

18,639.71

3,027.20

3,188.66

3,358.73

3,537.87

3,726.57

3,925.33

4,134.70

3,388.49
670.36
18,588.28

4,242.21
770.08
22,395.34

5,564.84
770.08
27,340.29

7,182.99
770.08
33,873.35

9,159.24
770.08
42,358.63

11,569.33
770.08
53,234.78

14,505.01
770.08
67,031.23

71,991.62

93,192.09 1,07,170.90 1,28,605.08 1,54,326.10 1,85,191.32 2,22,229.59

1,42,407.83 1,69,759.54 1,95,223.47 2,34,268.17 2,81,121.80 3,37,346.16 4,04,815.39

1,96,562.61 2,31,711.39 3,05,753.11 3,66,411.12 4,39,174.47 5,26,462.81 6,31,179.67

Net Interest Income and Other Income is expected to grow at same pace as last year, with which Reserves &
Surplus that adds to Tier I Capital can be found. Investments and Advances are assumed to be growing at 1520% with which Riske weighted assets can be found.
With the current growth rate AXIS Bank is expected to raise its Tier I Capital through issue of shares.
The authorized amount is Rs.500 crores out of which 413.92 have already been issued and it is
expected to issue another 80 crores worth of shares in the near future.