c

COMPANY
ANALYSIS:
AXIS BANK cc

c c

 c
 cc


c
cc c
cc c

 Preamble
2 Background
3 Products & Services
4 Business Model
4 
alue Propositions
4 2 Target Customers
4 3 Distribution Channels
4 4 Promotions
4  Revenue Stream
4  Core Capabilities
4 
alue Configuration
4 Partner Network
4  Cost Structure
 Business Analysis
  Segment Analysis
 Operational Performance
  Total Income & Growth
 2 Segmental Income Analysis
 3 PBDIT & NIM
 4 Segment PBIT & NIM
  Cost Structure
  Operating Metrics
 Financial Performance
  Net Profit Growth
 2 Debt to Equity Ratio
 3 Return on Capital Employed
 4 Return on Equity
 Capital Market Performance
 Recent Strategies
 Outlook
c c

 ccAxis Bank announces QFY net profit of Rs 4  million, up by 32  YoY There is
growth in Demand Deposits on a daily average basis by 3  YOY with Saving Bank Deposits growth by
3 3 YOY and Current Account Deposits by 3 3 The YoY growth in
c
c and c
cduring QFY was 44  and   respectively
c
c 
!" during QFY was
3  "
cc"cof bank during QFY was  32 The Bank has opened  new branches Two
branches at Andhra Pradesh, two branches at Karnataka and one branch at Orissa New base rate effective
from st July 2 is   as per RBI guidelines

#$!
 Axis Bank was the first

of the new private sector banks to have
begun operations in 4, after the
Government of India allowed new
private banks to be established The Bank
was promoted jointly by Administrator of
the specified undertaking of the Unit
Trust of India (UTI-I), Life Insurance
Corporation of India (LIC) and General
Insurance Corporation of India (GIC)
and other 4 PSU insurance companies
,i e National Insurance Company Ltd ,
The New India Insurance Company Ltd
, The Oriental Insurance Company Ltd
and United India Insurance Company
Ltd The Bank today is capitalized to the extent of Rs 4 44 crores with the public holding (other than
promoters and GDRs) at 4  The Bank·s registered office is at Ahmedabad The Bank has a wide
network of more than 42 branches (including  service branches/CPCs as on 3th June 2) The Bank
has a network of over 444 ATMs (as on 3th June 2) providing 24 hrs a day banking convenience to its
customers This is one of the largest ATM networks in the country The Bank has strengths in both retail &
corporate banking c

c%c&
'" c

cc c
c
c
'"c &!c (c

Personal Banking Accounts Zero balance saving A/c, easy
access saving A/c, corporate salary
A/c, priority banking A/c, senior
citizen·s A/c, power salute, krishi
saving A/c, prime saving A/c,
women·s savings A/c, demat A/c,
Azaadi-No frills, trust/ngo saving
A/c, pensions saving A/c
Deposits Fixed deposits, Recurring
deposits, encash 24, tax saver fixed
deposits
Loans Home loan, Personal loans, Loan
against property, Education loan,
Car loan, Loan against shares,
Loan against security, Consumer
 loan
Cards Credit cards, Debit cards &
prepaid cards
Investments Mohur gold, Mutual funds, Online
trading, Demat A/c
Insurance Safe guard, safe home, safe home
plus, travel companion, Critical
illness, Business advantage, family
health, silver health, motor
insurance, jewellery insurance
Payments Bill pay, electronic clearing service,
visa money transfer, tax-e
payments, direct tax payments,
pension disbursement
Other Services Prepaid mobile recharge, lockers,
e-statement, online shopping and
IPO smart
Corporate Banking Accounts Current A/c·s for govt
organizations, banks, inland road
transport , builders & real estate,
capital market, krishi, global
business, club , local, pharma,
travel, tourism & hospitality and
for chartered accountants
Credit Structured finance, commodity
power and microfinance
Capital Market Debt solutions, private equity
mergers & acquisitions,
trusteeship services, depository,
equity, advisory, custodial & e-
depository services, capital market
funding & e-broking
Treasury Forex, Money market, Retailing of
govt securities, currency futures,
International Business, constituent
SGL facilities
Cash Management Services Payment Solutions & Collection
solutions
Govt Business Indirect, Direct, State & online tax
payments, e-payments & e-
governance tie-ups, authorization,
pension disbursement, new
pension system & other services
NRI Banking Accounts NRE savings & salaries A/c·s,
NRO saving A/c, NRI prime &
priority A/c·s, PIS A/c and RFC
A/c
Deposits NRE and NRO Rupee Deposits,
FCNR Deposits & RFC Term
Deposit
Remittances ACH, smart wire, wire transfer,
 FCC/DDs, easy transfer,
exchange house, xpress money
and axis bank branch
Services Locker & NRI local post box

#"c  c

 c vc
"" There are different products & services offered by Axis Bank to its customers
Axis bank provides personal banking, corporate banking, NRI banking and priority banking to its
customers 24* banking through Internet banking, phone banking, ATM, mobile banking Axis
banks also invests for its customers in gold, mutual funds, online trading, demat a/c and for NRI·s in
PIS a/c Axis bank has different types of insurance schemes for its customers Now through
Electronic clearing service customer can pay different type of utility bills, mutual funds, insurance
premium, loan installments, credit card payments, payment of donations & other bill payments It
provides remittances facility to its NRI customers In addition to this other services provided by
bank includes prepaid mobile charger, online shopping, locker, IPO smart and E-statement
2 c 
!c
 Household, students, corporate, SMEs, farmers, NRI·s, senior citizen,
Government, tax payers are targeted customers of Axis bank
3 c ã"
""c  It includes different branches of axis bank across the country; ATM
machines at different locations and Internet for e-banking are distribution channels for Axis Bank
4 c
" Free international debit card with an accidental insurance cover up to Rs 2 lakhs
received by customers of zero balance saving a/c and krishi savings a/c Priority Banking customers
receives investment privileges and life style privilege and gold credit card as an added privilege they
receive gold standard credit card and gold standard secured credit card without any additional fee and
 reduction on the issuance fee of gold plus credit card and gold plus secured credit card Special
privilege for senior citizen by issuing senior citizen ID cards Free international visa card for primary
& joint a/c holders & health insurance for senior citizens Free international debit card and add-on
card for defence forces Other services include free mobile banking facility, free quarterly statements
and free monthly statements
 c V'c&
 The sources of revenue in axis bank are interest income and charges on
different services provided by bank to its customers It includes interest on different types of loans
provided by bank, interest on overdraft facility, interest on current a/c·s, charges on debit cards,
credit cards, ATM·s, Charges on payment of utility bills, insurance premium, mutual funds, charges
on remittances facilities for NRI·s & others, charges on saving a/c chequebook, charges on stop
payment instructions, charges on a/c services, charges on demand draft, pay order and closure of
a/c·s, charges on collection of outstation cheques, net banking and mobile banking charges All of
these are sources of revenue for Axis Bank
 c 
c""" Axis Bank has a very wide network of more than 42 branches including 
service branches/CPCs and has a network of over 444 ATMs at different locations providing 24
hours a day banking facility to its customers
 c vc"!
" Technology used by Axis Bank includes Internet banking, mobile banking,
phone banking, instant mobile transfer, visa money transfer, power transfer, ATM, remittances
through automated clearing house, smart wire, wire transfer, easy transfer, debit card, credit card, gift
card and remittances cards
 c 

c
)
$ Partner network of Axis Bank Includes Reserve Bank of India, NSDL, Bajaj
Allianz insurance company, joint venture with retail malls, food courts, pilgrimage centre and other
banks and mutual fund companies
 c c&


Major element of overall cost is
interest expended which is 
then other operating expenses is
 after that employee cost
accounts for , Taxes are 
and provisions accounts for 

ccccccccccccccccccccccccccccccccc

#"c*" cc

 c &!c*" cccccccccccccccccc

From overall contribution of axis bank

4 comes from treasury income, 23
from both wholesale banking & retail
banking

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc

ccccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc

cccccccccccccccccccccccccccccccccccccccccccccccccccccccccccc
+
"c 

 c

 c cccc
)

During the quarter ended June 2
total income witnessed a growth of
  compared to June 2due to
increase in int rates The bank advances
grew by 3 YOY from Rs   Mn
 to Rs  Mn Investment rose to Rs 4 Mn from Rs 432  Mn over the period a growth of 24
YOY Fee income registered a growth of  YOY

2 c &!c*" During the quarter ended

June 2 company witnessed growth of 3 in
corporate banking & 2 growth in retail
banking due to retail advances grew from
Rs  mn as at end June 2 to Rs 2 3
mn as at end of June 2, a growth of 2
YOY and increase in corporate credit , growth in
fee income of treasury by 22, agriculture &
SME banking by , business banking by
,capital market by  and retail banking by
 YOY

3 &!c #c%c 
!" During the quarter

ended June 2 the company has witnessed that
wholesale/corporate banking shows the highest
profit of Rs 23 3 mn thereafter treasury banking
shows the second highest profit of Rs 34  mn
and retail banking is on the third position with profit
of Rs  3 mn and at last other banking with a
negative profit of Rs   mn and with highest margin
of  , 2  margin by wholesale banking
and   margin with treasury banking

cc&

 cDuring quarter ended June

2 there is dip in overall cost structure as a  of
total income as compared to June 2 due to
increase in total income There is a dip in interest
expanded by the company during June2
interest expanded as  of total income is 4 
as compared to 4 3 at June 2 due to
decrease in interest rate and also employee cost
during quarter ended June 2 is  as
compared to June 2 is  there is hike in
employee cost due to increase in salaries c

+
"c 
"› c


c
c
c 
!"›
During the quarter ended c
June 2 the company has witnessed
NIM of 3 , higher than
NIM of 3 34 during June 2 and
lower than NIM of 4  during
March 2 Reduction in NIM was
primarily on account of increase in
cost of saving bank deposits and
higher reserve requirements mandated
by Reserve Bank of India c

b
* Net NPA·s as a
proportion of net customer assets,
were  3 as on 3th June 2
compared to  4 as on 3 th June
2 Gross NPA as a proportion of
gross customer assets stood at  3
as on 3 th June 2, compared to
  as on 3 th June 2 The
bank had provision coverage of
 2 as on 3 th June 2 (as a
proportion of Gross NPAs) including
prudential write-offs The provision
coverage (as a proportion of Gross
NPAs) before accumulated write offs
was  

C ,ãcV"c-c.

/

Credit deposits ratio of axis bank
increases YoY basis it is  4 in FY
,   in FY  and   in FY
 due to robust growth of core income
stream such as net interest income and
fee income The core income stream
constitute 4 32 of the operating
revenue of the bank in FY  In FY 
the net interest income grew by Rs
32  mn to Rs 44  mn, rising
3 
ccccccc#"c
cc-0c

/ cccccc

Due to strong revenue growth , key

financial parameters and ratio have
improved, employee productivity also
improved, business per employee
increasing from Rs  mn in FY 
to Rs   mn in FY  according to
axis bank annual report c

ccc

ccccc

ccccccc
"c
cc-0c
/

During the FY  business has

witnessed a growth in profit per
employee due to increase in business
per employee there is strong revenue
growth and productivity of employees
also increases and therefore there is
increase in profit per employee from
Rs  2 mn in FY  to Rs  3 mn
in FY 

"c*.cV"c-0c
/ c

The bank is well capitalised with a

capital adequacy ratio of   as at
the end of FY  compared to3 
as at the end of FY  & 3 3 as at
the end of FY  Tier  capital was
  as at the end of FY , as
against  2 as at the end of FY  &
  as at the end of FY  c

c
!*&*c"ccc1ccc
"›

The CASA depositsdecreased to

43  in FY  as compared to
4  in FY  and increased to
4 3 in FY Due to lower cost of
deposits supported by solid &
sustained growth of the low cost
current account and saving bank
deposits as well as sharp fall in cost of
term deposits

""c 

 c


c
"c
) cDuring the
quarter ended company has
witnessed a growth in profits of
32 YoY from Rs 2 4 mn in
amj  to Rs 4  mn in amj 
due to growth in net interest income
by 44  and growth in fee
income by   The net profir
margin is 4  in amj  &
  in amj  there is also
increase in total income

2 ãcc."cV" c

Debt equity ratio of axis bank in FY

 is  4, in FY  it is  2 and in
FY  it is   It increased in FY 
and decreased in FY  There is
increase in debt equity ratio due to
increase in long term debt and loans
and decrease in debt equity ratio due
to increase in shareholders wealth and
repayment of debt c
c

3 V
cc." cc c

c c
 cc
c
ccc
cc
c
c c
c c cc
 ccc cc! "c

cc c
c  c"c
 #c"c c$c!"c
"c c  cc"c
"" # c

"c 
$c 

 c

In capital market index the price of

shares are moving in the same
direction with sensex but upward
movement The prices of shares of
axis bank are moving fast as
compared to shares of sensex
because of increasing installed
capacity,new branches and ATMs,
launching of new banking products
and reduction in cost

Vc&
!" cc

Growth strategies have focused on building profitable relationships across various customer segments Large
distribution network, potential to improve productitvty are important key drivers of the bank Banks are using
different methods for cutting there cost like sending monthly or quarterly statements to its customers though
emails rather than traditional method of sending through post and reducing there cost of printing & postage
All the banks are using different policies for promotion of its products like free international debit cards with
different saving bank a/c·s, add on cards with debit or credit card without any extra charge and different
facilities like free quarterly e-mail statements, free mobile banking, free cheque book etc
+$ c The target level for the th five year plan (2-2) is to achieve infrastructure investment of 
of GDP There is need for higher infrastructure spending for sustained growth of the economy and quantum
of spending of approximately USD  billion envisaged during the th five year plan is expected to double
to USD  trillion in the next five year plan (22-2)
In banking industry as per Reserve Bank of India expected new rates are : repo rate expected to be  ,
expected reverse repo rates are  , CRR expected to be  , projected USD/INR is 43 , introduction
of basel-iii norms
The bank aims to increase its market share in india·s expanding financial industry through continued
emphasis on building a strong retail franchisee The bank remains committed to developing long term strong
relationship with its customers and insuring that they have access to high quality service as well as the full
suite of financial solution to help achieve their financial objectives For axis bank to be the preffered financial
solutions provider excelling in customer delivery through insight , empowered employees and smart use of
technology