Axis Bank Performance Evaluation

By
Digvijay Kamble
Hrithik Patil
Sejal Jadhav
Nikunj sharma
Mahesh Dhotre
Prajakta Fulzale
Axis Bank
Axis Bank is India's third largest private sector bank, offering a wide range of
financial services to individuals and businesses.

Founded: 1993 (as UTI Bank)

•Headquarters: Mumbai, Maharashtra
•Services:
Axis Bank
RetailPerformance Evaluation
banking, corporate banking, wealth management, investment banking
•Known for: Strong branch network, digital banking focus, innovative products
•Market Position: Third largest private sector bank in India by assets,
fourth by market capitalization
 Axis Bank at a glance
Axis Bank 3rd 41 mn+ ~91,900 4,903
Customers Employees Branches*
largest Private Bank in
India

Traditional Banking Segment Digital Banking Segment

Market Share 5.4% 5.1% 6.0%
Assets 1 Deposits 2 Advances 2
18% 17%
14%
UPI 3
Mobile 3
Credit
Profitability 4.22% 2.25% Cards ^^ 2.92%
Net Interest Margin 4 Cost to Assets 4 Operating Profit Margin 4

17.64% | 14.02% 0.39%

Balance Sheet CET * Net NPA
CAGR
***

30% 16% 28%

Key Subsidiaries Growth in Axis Finance Growth in Axis AMC
1st Growth in Axis Securities
PAT (FY23) PAT (FY23) Axis Capital’s position new customer additions
(FY23)
in ECM$
 0.39% 81% 14.02%
Strengthened the Net
PCR
NPA CET
Bank significantly Common
2.06% 62% equity
tier
11.27%

18.84% 4.02% 19%

Improved profitability Core Op
. ROE
NIM Profit
considerably Net
CAGR*
8.58% interest
margin 3.43% 4%

6.0% 5.1% 16%

Lifted the growth Advance Deposits Operating
momentum Market Market Revenue
share share CAGR*
4.9% 4.3% 8%

.
A Casa , Loan Growth , Credit card Market
share
CASA deposits Loan growth Credit cards Market Share

Rs Tn 21% YOY 4 4yryrCAGR^

CAGR In Mn
16% CAGR^ 4.5
14.2%
3.7 20.8%
12.7%
3.2 12.3%
14.9% 11.5%
2.6 9.5%
2.4

Mar'19 Mar'20 Mar'21 Mar'22 Mar'23 Industry Axis Bank Mar'19 Mar'21 Mar'22 Mar'23
Axis Bank Focus
segments*

• CASA: Combination current and savings account in one.

• Loan: Borrowing money with interest to be repaid later.

• Credit card: Borrow money for purchases, with repayment and interest due by statement date .
B
Capital adequacy ratio and NPA
1.96%
2.65% 81%
75%
1.91% 72%
69%
15.24% PCR
62%
14.02%
5.26%
4.86%

3.70%

2.82%

2.06% 2.02%
1.56%
1.05%
0.73%
0.39%

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

Gross NPA% Net NPA%

Organic Axis business accreted 69 bps of CET-1 excluding exceptional
items in FY23 as against net consumption of 176 bps during Mar’17-
Mar’22 period

0.39%
17.64% Net NPA as of Mar’23, lowest in
Total Capital Adequacy Ratio the last 36 quarters since Mar’14
as of Mar’23

,
Trend in CASA growth Average CASA growth (YOY) **
19%
18%
12% 12% 13%
16% CAGR#
3,74,131
3,30,227
2,76,756 1,20,015
2,35,177 1,04,544 16% CAGR#
2,09,676 87,846
74,312
66,709
15% CAGR#
2,25,683 2,54,116
1,60,865 1,88,910
1,42,967

Mar-19 Mar-20 Mar-21 Mar-22 Mar-23

SA QAB CA QAB
Mar-19 to Mar-23
#

CA as % of period end SA as % of period end CASA as % of period end

CA balances SA balances CASA balances

91%
86% 94%

93%
78%
75% 92% 86% 86%

* Till Q4FY19 Q4FY19 ^Since Q1FY20 *Till Q4FY19 Q4FY19 ^Since Q1FY20 *Till Q4FY19 Q4FY19 ^Since Q1FY20
Blockchain Milestone

“Axis Bank on Jan 2022

successfully executed industry-first
blockchain-enabled domestic trade
transaction with Arcelor Mittal
Nippon Steel India, and Lalit Pipes
& Pipes Ltd on Secured Logistics
Document Exchange (SLDE), a
government-backed platform”
Retail
Banking

~29 Mn 4th 3.57 Tn

SA customers AUM in wealth management
Largest issuer of Credit Cards

22% 26% 58%

YOY growth in Retail advances** YOY growth in Rural advances Share of Advances~

23% 47% 69%

YOY Growth in SA MEB* deposits** CASA ratio Share in total fee^
(MEB*)
 Digital Banking Overview

95% 82% 76% 70% 70% 58% 4.8 @

Digital Credit cards New MF SIP New SA Individual RTDs PL disbursed Mobile App
transactions^^ issued** (Q4FY23) volume (Q4FY23) acquisition* volume (Q4FY23) (end-to-end digital)
ratings
D2C products (in Q4FY23)

250+ 18% 17% ~12 Mn 113100+ ~2990 300+

Services on Market share in UPI Market share in Mobile Banking Devices on BYOD ~ RPA Bots Employee tool
digital channels (Q4FY23) mobile (Q4FY23) MAU#(Mar-23) Journeys
Transformation

1750+ ~390 65% PB 40%+ Agile

People
In-house New hires from non- Scale big data Lift of bank credit
75+ Enabled teams with
dedicated to development digital banking backgrounds Hadoop clusters model GINI scores Apps on cloud CI/CD, micro-
technology team over bureau services architecture
Capabilities agenda

~7.8 Mn 32%
Non Axis Bank customers using Axis Contribution of KTB channels to overall
Mobile & Axis Pay apps (as of Mar’23) sourcing of Cards (in Q4FY23)
Performance Metrics:

17.64

Company has delivered good profit growth of 91.9% CAGR over last 5 years
 Conclusion:

A frontrunner in India's banking sector, Axis Bank stands out

as a well-respected private institution. Their extensive network
of branches is matched by their dedication to cutting-edge
digital solutions. By consistently innovating, they provide a
diverse range of financial products and services, catering to a
broad customer base. Axis Bank's future success hinges on its
ability to adapt to the ever-changing Indian financial
landscape. This requires leveraging technology while keeping
the customer at the center of their focus.