Axis Bank Quarterly Results for Q2FY21

Steady performance for the quarter, incorporating the impact of income de-recognition and provisions per IRAC norms and prudent accounting practices towards further strengthening of balance sheet

Steady growth in stable and granular retail deposits continues to aid loan growth

Loan book (including TLTRO) grew by 9% YOY
On QAB basis, CASA and RTD deposits grew 16% YOY. CASA ratio at 42%, improved 232 bps YOY and 158 bps QOQ
On QAB basis, SA grew 14% YOY and 4% QOQ, Retail SA grew 20% YOY, CA grew 15% YOY and 4% QOQ
Retail SA witnessed broad based growth of 19% YOY led by our focus on deepening and premiumisation

Robust operating performance

Reported NII up 14% YOY; NII before interest reversal was up 19% YOY
Reported NIM stood at 3.59% for Q3FY21, NIM before interest reversal stood at 3.89%
Fee income grew 5% YOY and 6% QOQ. Retail fee contributed 64% of overall fees
Operating profit grew 6% YOY to `6,096 crores, Core* operating profit was up 10% YOY

Balanced performance across business segments

Retail loans grew 9% YOY and 4% QOQ, 81% of Retail book is secured,
Disbursements in secured segments like HL, LAP & Auto were up 23% YOY, 11% YOY and 10% YOY, SBB disbursement up 35% YOY
Corporate loans (incl. TLTRO investments) grew 11% YOY, SME loans grew 6% QOQ and are 91% secured
94% of incremental sanctions in Corporate were A- and above

Maintain leadership position in Digital

For 9MFY21 period, the Bank retains leadership position in Digital with 19% market share in UPI transactions & 17% in Mobile Banking
Our focus is on reimagining end-end journeys, transforming our core and becoming a partner of choice for ecosystems

Well capitalized with adequate liquidity buffers

Overall capital adequacy (incl. profit for 9M) stood at 19.31% with CET 1 ratio of 15.36% as at the end of Dec'20
Average Liquidity Coverage Ratio (LCR) during Q3FY21 was 106%, exit LCR at the end of Q3 FY21 was ~ 119%
Average excess SLR during Q3FY21 was `51,886 crores

Strengthening and derisking of Balance Sheet

GNPA declined from 5.00% to 3.44% YOY, absent standstill benefit GNPA declined from 5.00% to 4.55% YOY
PCR absent standstill benefit at 75%, improved 15% YOY,
SACR improved from 0.74% to 2.08% YOY and Coverage ratio improved from 74% to 116% YOY
Limited restructured loans at 0.42% of GCA, overall provision coverage of 26%, unsecured retail provided at 100%

Our key subsidiaries have delivered strong performance

Axis AMC’s PAT for 9MFY21 grew 140% YOY to `164 crores
Axis Securities PAT for 9MFY21 period at `118 crores was over 7x of its full year FY20 PAT
Axis Finance asset quality metrics remain stable with net NPA of 1.7%, nil restructuring
Axis Capital completed 37 transactions in 9MFY21

The domestic subsidiaries reported a total PAT of `541 crores in 9MFY21, up 72% YOY and already at 113% of total subsidiary FY20 profits

QAB: Quarterly Average Balance
* Operating profit excluding trading profit and exchange gain on capital repatriated from overseas branch
Coverage Ratio = Aggregate provisions (specific + standard + additional + COVID) / IRAC GNPA
Standard Assets Coverage Ratio (SACR) = Standard asset provisions plus additional provisions plus COVID provision / Standard loans

Key Metrics for Q3FY21

Snapshot (As on December 31^st, 2020) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)		YOY Growth
	Q3FY21	9MFY21	Q3FY21	9MFY21
Net Interest Income	7,373	21,684	14%	18%
Fee Income	2,906	7,310	5%	(10%)
Operating Expenses	5,053	13,017	12%	5%
Operating Profit	6,096	18,838	6%	7%
Net Profit	1,117*	3,911	(36%)	30%

* Net of impact of prudent choices ~ `1,050 crs

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q3FY21
Total Assets	938,049	15%
Net Advances	582,754	6%
Total Deposits^	654,140	11%
Shareholders' Funds	98,817	15%

^ period end balances

Key Ratios	Absolute (in ` Crores)
	Q3FY21 / 9MFY21	Q3FY20 / 9MFY20
Diluted EPS* (in `) (Q3/9M)	14.47 / 17.61	24.71 / 14.91
Book Value per share (in `)	323	306
ROA* (in %) (Q3/9M)	0.48 / 0.56	0.86 / 0.50
ROE* (in %) (Q3/9M)	4.91 / 6.13	8.83 / 5.86
Gross NPA Ratio	3.44%	5.00%
Net NPA Ratio	0.74%	2.09%
Basel III Tier I CAR¹	16.48%	15.54%
Basel III Total CAR¹	19.31%	18.72%

^* Annualised

¹ including profit for 9M

Deposits^# 11% YOY

CASA+RTD

16%YOY (QAB^#)

17%YOY (End Balance)

^#QAB - Quarterly Average Balance

Advances (incl TLTRO) 9% YOY

Retail Advances

9% YOY

Operating Profit (in ` Crores) 6% YOY

Q3FY21

6,096

Q3FY20

5,743

Profit After Tax (in ` Crores) 36% YOY

Q3FY21

1,117*

Q3FY20

1,757

* Net of impact of prudent choices ~ `1,050 crs

Results at a Glance

Robust operating performance, Net Interest Income (NII) grew 14% YOY:

Reported NII up 14% YOY; NII before interest reversal was up 19% YOY
Reported NIM stood at 3.59% for Q3FY21, NIM before interest reversal was 3.89%
Fee income grew 5% YOY and 6% QOQ. Retail fee contributed 64% of overall fees
Operating profit grew 6% YOY to `6,096 crores, Core* operating profit was up 10% YOY
PAT adversely impacted by ~ `1,050 crores on account of prudent expense and provisioning charges in Q3

Steady growth in stable and granular retail deposits:

On QAB¹ basis, CASA plus Retail term deposits grew 16% YOY. CASA ratio at 42%, improved 232 bps YOY and 158 bps QOQ, led by our focus on deepening and premiumisation
On QAB basis, SA grew 14% YOY & 4% QOQ, Retail SA grew 20% YOY, CA grew 15% YOY & 4% QOQ

Well capitalized with adequate liquidity buffers:

Overall capital adequacy (incl. profits for 9MFY21) at 19.31% with CET 1 ratio of 15.36% as of Q3FY21 end
Average LCR² during Q3FY21 was 106% with exit LCR ~ 119%, excess SLR of `51,886 crores

Balanced performance across business segments:

Loan book (including TLTRO^ investments) grew by 9% YOY
Retail loans grew 9% YOY and 4% QOQ; 81% of the Retail book is secured
Retail disbursements for the quarter were at all-time highs. Disbursements in secured segments like HL, LAP & Auto grew 23% YOY, 11% YOY and 10% YOY respectively, SBB disbursements grew 35% YOY
Corporate loans (including TLTRO investments) grew 11% YOY, SME loan book grew 6% QOQ

Retain leadership position in Digital:

19% market share in UPI transactions and 17% in Mobile Banking for 9MFY21 period; total Card spends were up 28% QOQ with Credit Card spends up 31% QOQ
For 9MFY21 period, digital contribution in sourcing of saving accounts improved YOY to 71% from 59% and that for disbursements of personal loans increased to 56% from 43%

Strengthening and de-risking of balance sheet, visible through improving asset quality metrics:

NNPA³ at 0.74% / 1.19%, PCR⁴ increased to 79% / 75% from 60% YOY
Cumulative provisions (standard + additional other than NPA) translate to 2.08% of our standard loans
On an aggregated basis (specific+ standard+ additional + COVID), our coverage ratio stands at 116% of GNPA as at end of 31^st December, 2020

Bank's domestic subsidiaries delivered strong results with reported total PAT exceeding FY20 profits^$ :

Cumulative 9MFY21 PAT at `541 crores, up 72% YOY
Axis AMC's net profit for 9MFY21 more than doubled YOY to `164 crores, AAUM growth of 44% YOY
Axis Securities PAT for 9MFY21 period at `118 crores was 7x of its FY20 PAT
Axis Capital 9MFY21 PAT stood at `88 crores, up 17% YOY
Axis Finance PAT for 9MFY21 was `139 crores; asset quality remains stable, with nil restructuring

* Excluding trading profit and gain / loss on capital repatriated from overseas branch
^ Targeted long term repo operations
$ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group
¹ QAB – Quarterly Average Balance
² LCR – Liquidity Coverage Ratio
³ NNPA% stated on (reported basis) / (per IRAC norms)
⁴ PCR% stated on (reported basis) / (per IRAC norms)

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