Axis Quarterly Report 2019-20 for Q2FY20

Major Highlights of Q2FY20

Strong Profitability Performance

PBT for Q2FY20 stood at `2,433 crores, up 109% YOY
Net loss of `112 crores, driven by a one-time tax impact of `2,138 crores due to changes in corporate tax rate. Ex of this extraordinary item, PAT would have been `2,026 crores, up 157% YoY

Operating Profitability remains strong

NII up 17% YOY
NIM increased sequentially to 3.51% from 3.40%
Operating profit up 45% YOY

Provision Coverage enhanced

PCR improved sequentially to 79% from 78%
The Bank also holds ~ `2,600 crores of provisions for various contingencies

Asset quality metrics largely stable

NPA ratios continue to improve
97% of Gross slippages in corporate came from BB and below rated clients
Outstanding BB & Below corporate loans declined by 16% QOQ

Loan book growth remains healthy

Domestic loan book grew 19% YOY
Retail book grew 23% YOY and domestic corporate loans grew 18%
Retail loans now constitute 52% of the overall loan book

Deposit Franchise had a strong quarter

Total Deposits up 23% YOY on quarterly average basis
CASA + Retail Term Deposits up 21% YOY on quarterly average basis

Key Metrics for Q2FY20

Snapshot (As on Sept. 30^th, 2019) (in ` Crores)

Profit & Loss	Absolute (in ` Crs)		YOY Growth
	Q2FY20	H1FY20	Q2FY20	H1FY20
Net Interest Income	0	0	0%	0%
Fee Income	0	0	0%	0%
Operating Expenses	0	0	0%	0%
Operating Profit	0	0	0%	0%
Profit Before Tax	0	0	0%	0%
Net Profit / (Loss)	(112)	0	-	(16%)

Balance Sheet	Absolute (in ` Crs)	YOY Growth
	Q2FY20
Total Assets	0	0%
Net Advances	0	0%
Total Deposits	0	0%
Shareholders' Funds	0	0%

Key Ratios	Absolute (in ` Crs)	YOY Growth
	Q2FY20	Q2FY19
Diluted EPS* (in `) (Q2/H1)	(1.69) / 9.59	12.17 / 11.55
Book Value per share (in `)	0	0
ROA* (in %) (Q2/H1)	(0.06) / 0.31	0.43 / 0.41
ROE* (in %) (Q2/H1)	(0.68) / 3.98	5.43 / 5.18
Gross NPA Ratio	0.03%	0.96%
Net NPA Ratio	0.99%	0.54%
Basel III Tier I CAR¹	0.25%	0.04%
Basel III Total CAR¹	0.45%	0.45%

^* Annualised

¹ including profit for H1

Deposits 22% YOY

CASA+RTD
21%YOY (Quarterly Average Balance) 19%YOY (End Balance)

Domestic Advances 19% YOY

Retail Advances^
23% YOY

^ As proportion of Total Advances

Operating Profit (` in crores)

Q2FY20

5,952

Q2FY19

4,094

45% YOY

Profit Before Tax (` in crores)

Q2FY20

2,433

Q2FY19

1,167

109% YOY

Domestic Branch Network*

Sept-19

4,284

March-19

4,050

March-18

3,703

March-17

3,304

March-16

2,904

March-15

2,589

* Includes extension counters

Results at a Glance

Strong Profitability performance:

PBT for Q2FY20 stood at `2,433 crores, up 109% YOY
Net loss of `112 crores for the quarter, driven by a one-time tax impact of `2,138 crores due to changes in corporate tax rate. Ex of this extraordinary item, PAT would have been `2,026 crores, up 157% YoY
Book Value Per Share improved sequentially from `272 to `298

Operating Profitability remains strong:

Operating profit for Q2FY20 grew 45% YOY and stood at `5,952 crores
Net Interest Income grew 17% YOY to `6,102 crores; NIM was 3.51%, highest in the last 9 quarters
Fee income grew 11% YOY, led by Retail fees, which grew 16% YOY
Operating expenses growth was 6% - significantly lower than growth in revenue. This resulted in a further improvement in Cost to Assets ratio to 2.06% from 2.08% in Q1FY20

Provision Coverage enhanced:

Provision Coverage Ratio of the Bank improved to 79% from 78%
The Bank also holds `2,600 crores of provisions towards various contingencies

Asset quality metrics largely stable:

GNPA and NNPA book both fell for the 6^th straight quarter
GNPA and NNPA ratios were 5.03% and 1.99%, compared to 5.25% and 2.04% after Q1FY20
Gross corporate slippages for the quarter stood at `2,862 crores, of which 97% came from BB and below rated clients (loan and investment exposures)
Outstanding BB & Below corporate loans declined by 16% and stood at 1.1% of customer assets

Strong Loan book growth:

Loan book grew by `24,318 crores QOQ, the largest growth in the last 8 quarters
Domestic loan growth stood at 19% YOY. Retail loan book grew 23% YOY
Retail advances are now 52% of total advances of the Bank

Deposit franchise had a strong quarter:

Total deposits on quarterly average basis grew 23% YOY
CASA and Retail Term Deposits together were up 21% YOY on quarterly average basis
The Bank added 190 branches to its domestic network, the highest in the last 24 quarters

Among the top players in the digital space:

Mobile banking spends grew 60% YOY, credit card spends grew 34% YOY
Market share in UPI transactions stood at 12% for Q2FY20, up 162% YOY
Share of digital channels in personal loan disbursements stood at 43% in Q2FY20

The Bank’s Capital Adequacy Ratio (CAR) has strengthened post capital raise: Common Equity Tier 1 ratio stood at 14.04% compared to 11.68% at the end of Q1FY20.