• Q2 FY22
  • Quarter-2 Results 2021-22

Major Highlights of Q2FY22

Strong CASA and fee performance, accelerating loan growth in focus segments, limited restructuring, improving asset quality, resilient balance sheet

Strong growth in granular CASA deposits continues to aid loan growth

  • Deposits on QAB basis grew by 18% YOY and 4% QOQ, Loan book grew 10% YOY and 1% sequentially
  • On QAB basis, SA grew 23% YOY and 5% QOQ, CA deposits grew 18% YOY and 3% QOQ
  • On QAB basis, CASA grew 21% YOY and 5% QOQ, CASA ratio stood at 42%, up 201 bps YOY and 27 bps QOQ
  • On QAB basis, Term deposits grew 15% YOY and 4% QOQ, of which Retail term deposits grew 11% YOY and 3% QOQ

Loan growth driven by focused business segments

  • Retail loans grew 16% YOY and 4% QOQ, ~80% of the book is secured. Home loans and SBB1 portfolio grew 19% YOY & 43% YOY
  • Q2FY22 Retail disbursements were up 54% YOY and QOQ basis Home loan disbursements were up 86% YOY and 54% QOQ
  • SME loans grew 18% YOY and 7% QOQ led by tech driven transformation, SME disbursements were up 76% QOQ
  • Overall corporate disbursements grew 24% QOQ; Mid-corporate book grew by 32% YOY and 10% QOQ

Fee up 17% YOY, PAT up 86% YOY

  • NII grew 8% YOY, NIM stood at 3.39%
  • Fee income grew 17% YOY and 21% QOQ, granular fee constituted 90% of overall fees
  • Retail fee grew 19% YOY and 23% QOQ; and constituted 63% of the overall fees
  • PAT at `3,133 crores, up 86% YOY

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR)2 stood at 20.04% with CET 1 ratio of 15.81% as at the end of Sep'21
  • `5,012 crores of COVID provisions, not considered for CAR calculation provide cushion of 67 bps over the reported CAR
  • Average Liquidity Coverage Ratio (LCR) during Q2FY22 was over 120%
  • Excess SLR of `85,580 crores

Continue to maintain strong position in Digital

  • Maintained strong position in Digital banking with 15% market share in UPI transactions & 19% in P2M Acquiring (by throughput) in Q2
  • Among the highest rated mobile apps with Apple App store rating of 4.6; mobile banking market share stood at 14%
  • The Bank through its subsidiary Freecharge scaled up ‘Buy Now Pay Later’ offering with 14x QOQ growth in customers acquired

Limited restructuring, dominantly secured, high provision buffers

  • GNPA at 3.53%, declined by 75 bps YOY (per IRAC), PCR healthy at 70%
  • SACR at 2.11% improving 6 bps QOQ; Coverage ratio stood at 124% improving 617 bps QOQ
  • Covid-19 restructuring implemented loans at 0.64% of GCA, retail at 0.80%, 93% of retail restructuring is secured with low LTV in the range of ~ 40% - 70%, Overall provision coverage of 24% on restructured book

Key subsidiaries delivered strong performance

  • Domestic subsidiaries reported a total PAT of `267 crores in Q2FY22, up 38% YOY; Return on investments in subsidiaries at 58%
  • Axis AMC's H1FY22 PAT grew 60% YOY, Axis Securities H1FY22 PAT grew 59% YOY
  • Axis Finance ROE stood at 18.5%, asset quality metrics remain stable with net NPA of 1.3%, near zero restructuring
  • Axis Capital completed 31 Investment banking deals in H1FY22, with PAT up 72% YOY

1. SBB : Small Business Banking
2. including profit for H1FY22
QAB: Quarterly Average Balance
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 Q2FY22

Snapshot (As on September 30th, 2021) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q2FY22 Q1FY22 H1FY22 Q2FY22 Q2FY22 H1FY22
Net Interest Income 7,900 7,760 15,660 2% 8% 9%
Fee Income 3,231 2,668 5,899 21% 17% 34%
Operating Expenses 5,771 4,932 10,703 17% 36% 34%
Operating Profit2 5,928 6,186 12,114 (4%) (11%) -
Net Profit 3,133 2,160 5,293 45% 86% 89%

2 Prior year numbers are restated to reflect the change in presentation of income from recoveries and provision for depreciation on investments as per guidelines issued by RBI in Aug 21

Balance Sheet Absolute (in ` Crores) YOY Growth
  Q2FY22    
Total Assets 10,50,738   17%
Net Advances 6,21,719   10%
Total Deposits^ 7,36,286   18%
Shareholders' Funds 1,07,083   10%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q2FY22 / H1FY22 Q2FY21 / H1FY21
Diluted EPS* (in `) (Q2/H1) 40.42 / 34.34 22.59 / 19.29
Book Value per share (in `) 349 319
ROA* (Q2/H1) 1.19 / 1.03 0.73 / 0.60
ROE* (Q2/H1) 12.72 / 10.92 7.95 / 6.86
Gross NPA Ratio 3.53% 4.28%**
Net NPA Ratio 1.08% 1.03%**
Basel III Tier I CAR1 17.54% 16.52%
Basel III Total CAR1 20.04% 19.38%

* Annualised

1 including profit for H1FY22

** as per IRAC norms; for like to like comparison

Deposits# 18% YOY
CASA+RTD#

16% YOY (QAB#) | 15% YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 10% YOY
Retail
SME
Corporate

16% YOY | 18% YOY | 1% YOY

 

Profit After Tax (` in Crores) 86% YOY
  • Q2FY22
    3,133
  • Q2FY21
    1,683

 

Provisions (` in Crores) 60% YOY
  • Q2FY22
    1,735
  • Q2FY21**
    4,343

** as per IRAC norms; for like to like comparison

Domestic Branch Network*  
  • Sep-21
    4,679
  • Mar-21
    4,594
  • Mar-20
    4,528
  • Mar-19
    4,050

* Includes extension counters

Results at a Glance

Strong growth in stable and granular CASA deposits

  • New liability relationships added in Q2FY22 stood at 2.3 million, highest ever in a quarter
  • Deposits on QAB1 basis grew by 18% YOY & 4% QOQ, CASA ratio stood at 42%, up 201 bps YOY
  • On QAB basis, Retail term deposits grew 11% YOY and 3% QOQ

Loan book growth of 10% YOY driven by focused business segments

  • Retail loans grew 16% YOY and 4% QOQ, ~ 80% of the book is secured
  • SME loans grew 18% YOY and 7% QOQ, Mid-corporate loan book grew 32% YOY and 10% QOQ
  • 93% of incremental sanctions in corporate were to those rated A- and above

Net profit at `3,133 crores, up 86% YOY, Fee grew 17% YOY

  • NII grew 8% YOY, NIM* stood at 3.39%
  • Fee income grew 17% YOY and 21% QOQ, granular fee constituted 90% of overall fees
  • Retail fee grew 19% YOY and 23% QOQ; and constituted 63% of the overall fees

Retain strong position in Digital Banking and Payments

  • More than half a million credit cards acquired in Q2FY22, highest in last 10 quarters.
  • Customers acquired on Freecharge platform for Buy Now Pay later product were up 14x QOQ
  • On WhatsApp banking, the Bank has on boarded over 1.9 million customers within nine months of launch

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) including profit for H1FY22 stood at 20.04% with CET 1 ratio of 15.81%
  • COVID provisions of `5,012 crore, not in CAR calculation provides additional cushion of 67 bps
  • Average LCR2 during Q2FY22 around 120%, excess SLR3 of `85,580 crores

Limited restructuring, dominantly secured, high provision buffers

  • Provision on restructured book of `1,533 crores, coverage improved from 23% at Q1 FY22 to 24%
  • Net slippages ratio at 0.46%, `707 crores down by 82% as compared to Q1 FY 22
  • NNPA at 1.08% decreased by 12 bps QOQ and increased by 5 bps YOY5
  • On an aggregated basis (specific+ standard+ additional + Covid), our coverage ratio stands at 124%

Bank’s domestic subsidiaries deliver strong performance, annualized profit closer to ~ `1,025 crore

  • Cumulative H1FY22 PAT4 at `513 crores, up 61% YOY
  • Axis AMC’s H1FY22 PAT grew 60% YOY to `147 crores, AAUM growth of 52% YOY
  • Axis Finance H1FY22 PAT grew 84% to `138 crores; asset quality remains stable, with near zero restructuring
  • Axis Capital H1FY22 PAT stood at `98 crores, up 72% YOY.
  • Axis Securities H1FY22 PAT at `117 crores, was up 59% YOY

* Net Interest Margins
1 QAB – Quarterly Average Balance
2 LCR – Liquidity Coverage Ratio
3 Statutory Liquidity ratio
4 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group
5 compared to Sep-20 figures as per IRAC norms

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