The Retail Banking segment continues to be a key driver of the Bank’s overall growth strategy. It encompasses a wide array of products and services across deposits, loans, investments and payment solutions which are delivered
through multiple channels to the Bank’s customers. The Bank has over the years developed long-term relationships with its customers by being their preferred financial solutions partner on account of its excellent customer
delivery through insights and superior services. The Bank has also succeeded in making banking simple for masses by smart use of technology. The Bank has always focused on meeting the financial needs of its customers by providing
high quality products and services through regular customer engagement in convenient manner.
During the year, the Bank continued to focus on increasing its retail deposits base, particularly demand deposits. Savings Bank deposits crossed Rs. One lac crores and have grown at a Compounded Annual Growth Rate (CAGR) of 21%
over the last five years. As on 31 March, 2016, the Bank had over 172 lac savings account customers, registering a growth of 15%. As on 31 March, 2016, the retail term deposits grew 14.42% and stood at Rs. 121,955 crores, constituting
64.69% of the total term deposits compared to 59.86% last year. The Retail Assets portfolio has grown at a Compounded Annual Growth Rate (CAGR) of 31% over the last five years. The Bank continued to increase its share of retail
loans to total advances which stood at 41% compared to 29% in March 2012. Including SME loans that qualify as regulatory retail, the share of retail loans to total loans would be 46%. The retail loans portfolio continues to
be focused on secured products, predominantly mortgages. Secured loan products accounted for 86% of retail loans, of which Home loans accounted for 45%, retail agricultural loans accounted for 17%, auto loans 9%, loans against
property 8%, personal loans and credit cards were 11%, while non-schematic loans comprising loan against deposits and other securities accounted for 10%.
Despite a subdued property market in fiscal 2016, the Home Loan industry grew well at around 18%. The Bank’s Home Loan book size grew by 17%. During the year, Super Saver Home Loan was launched where customer can park his
short term funds and save interest on his loan to the extent of excess funds parked. Rural agricultural lending was another focus area for the Bank. The Bank launched Rural & Semi Urban (RUSU) Home loans, a Home loan product
specifically for Rural and Semi-Urban customer. As on 31 March, 2016, the Bank’s outstanding loans in the agricultural sector grew at a healthy 29% to Rs.23,218 crores from Rs.17,960 crores last year. Asha Home loans
increased by 201% from Rs.628 crores as on 31 March, 2015 to Rs.1,891 crores as on 31 March, 2016. The Bank is one of the largest debit card issuers in the country, with a base of over 155 lacs. The Bank had over 24 lac credit
cards in force as of 31 March, 2016, making it the 4th largest credit card issuer in the country. The credit cards portfolio saw a substantial increase in spends by 44%, to Rs.19,432 crores from Rs.13,535 crores last year.
The Bank is also one of the largest acquirers of point-of-sale terminals in the country with an installed base of around 3 lacs. The Bank achieved 54% YoY growth in volumes from E-commerce merchants with Rs.6,927 crores spend
in FY16 against Rs.4,504 crores in FY15.
The Bank offers a complete suite of banking and investment products under its NRI Services for Indians living and working overseas. As on 31 March, 2016, the Bank’s aggregate NRI deposits (Savings Bank + Term Deposits) stood
at Rs.43,425 crores registering a year-on-year growth of 6%. The Bank offers a range of forex and remittances products to its retail customers, which include travel currency cards, inward and outward wire transfers, traveller’s
cheques, and foreign currency notes, remittance facilities through online portal as well as through collaboration with correspondent banks, exchange houses and money transfer operators. The Bank continued to have a market leadership
position in Travel Currency Cards with 16 currency options other than INR being offered. Additionally, the Bank offers a Multi-Currency Forex Card, aimed at frequent travellers to multiple countries. The aggregate load value
on travel currency cards crossed USD 6.5 billion during the year. The Bank continues to increase the number of geographies from which NRIs can send money to India with the extension of AxisRemit Online to 3 new geographies
in this fiscal year, bringing the total number of originating geographies to 10. The volumes of retail remittances also rose by 21% (excluding the volumes attributable to partner bank deposits) during the year and the Bank
processed outward remittances of over USD 2 billion and inward remittances of around USD 6 billion.
The Bank distributes investment products such as mutual funds, Bancassurance products (Life, Health and General Insurance) and online trading products through its branches. For the Life Insurance distribution, the Bank distributes
products of Max Life Insurance Company. Since the Bank’s strategic bancassurance tie-up with Max Life Insurance Company in 2010, the Bank has successfully helped insure over 8 lac lives through its distribution channels.
In General Insurance, the Bank has a tie-up with Tata AIG (American International Group) and during the year sold more than 3 lac policies and collected Rs.219 crores of premiums which is 7% over last year. The Bank offers
online trading services to its customers in collaboration with Axis Securities Ltd. (a 100% subsidiary of the Bank) under the name Axis Direct - an enhanced and simplified online trading platform. During the year, the Bank
opened more than 3 lac online trading accounts, and in the process crossed 1 million total customers count.
The Bank regards Financial Inclusion (FI) as an integral component of its rural strategy to further extend its reach in the rural market. The Bank’s FI initiatives maintained momentum this year with the Bank opening around
6 lac basic savings bank accounts through its branches and Business Correspondents (BC) network. As of 31 March, 2016, Bank’s FI customer base is being serviced through a network of 587 rural branches and more than 31,300
BC agents spread over 3,272 villages.
During the year, the Bank added 315 branches and its geographical reach extends to 29 states and 6 Union Territories, covering 1,855 centres and 608 districts. As on 31 March, 2016, the Bank had a network 2,904 branches/ECs as
compared to 2,589 last year. Around 20% of the Bank’s branches are in rural areas and 74% of the Bank’s rural branches are in unbanked locations. As on 31 March, 2016, the Bank had 12,743 ATMs. The Bank has also
deployed 1,181 Automated Deposit Machines (for cash deposits into customer accounts) and has extended this facility for 24x7 availability in certain branches, which have integrated self-service lobbies. Axis Bank was the first
private sector Bank to introduce recyclers and first bank in India to have 1000+ recyclers which can accept and dispense cash. As on 31 March, 2016, the Bank had deployed 1,148 recyclers. The Bank continues to see strong momentum
towards the adoption of digital channels by customers. Electronic channels now contribute 87% of all customer induced transactions in the Bank’s retail base. The Bank’s Internet Banking user base is growing at 23%
and transaction volumes are growing at 17% YoY. The Mobile Application further continued its growth with close to 25 lac users generating a monthly transaction value of over Rs.54,932 crores. The transaction volumes on Axis
Mobile have increased almost 4.35 times over last year, outpacing every other channel by a wide margin.
Source: Annual Report 2015-2016