• Q1 FY22
  • Quarter-1 Results 2021-22
Major Highlights of Q1FY22

Major Highlights of Q1FY22

Healthy CASA deposits growth, steady operating performance, resilient balance sheet

Healthy growth in granular CASA deposits continues to aid loan growth

  • Deposits* on QAB basis grew by 11% YOY and 7% QOQ, Loan* book grew by 12% YOY and was flat sequentially
  • On QAB basis, SA grew 19% YOY and 7% QOQ, RTD deposits grew 11% YOY and 2% QOQ.
  • On QAB basis, CASA grew 19% YOY and 4% QOQ, CASA ratio stood at 42%, up 342 bps YOY

Steady operating performance

  • NII grew 11% YOY, NIM at 3.46%, growing 6 bps YOY
  • Fee income grew 62% YOY on a lower base of corresponding period. Retail fee grew 76% YOY and contributed 62% to overall fees
  • PAT at `2,160 crores, up 94% YOY

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR)1 stood at 19.01% with CET 1 ratio of 15.42% as at the end of Jun'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 Q1FY22 was 115%
  • Excess SLR during Q1FY22 was `74,974 crores

Loan growth driven by all three business segments


  • Retail loans grew 14% YOY and were stable on sequential basis, ~80% of the book is secured.
  • Q1FY22 disbursements in Retail segment up over 3.3 times YOY, secured to unsecured disbursement mix returning to pre covid level of 79:21
  • SME loans grew 18% YOY led by tech driven transformation initiative 'Sankalp'
  • Corporate loans grew 8% YOY and 1.3% QOQ

Continue to maintain strong position in Digital


  • Maintained strong position in Digital banking with 15% market share in UPI transactions & 14% in Mobile Banking for the quarter
  • 67% of SA accounts and 60% of personal loans in Q1FY22 were sourced digitally
  • Bank continues to maintain early leadership in Cloud adoption amongst domestic financial services sector with ~50 apps on Cloud

Balance sheet buffers strengthened with high PCR and additional provisions

  • GNPA at 3.85% YOY declining 87 bps YOY and increase 15 bps QOQ
  • Healthy PCR at 70%
  • SACR improved from 1.56% to 2.05% YOY and Coverage ratio improved from 104% to 118% YOY
  • Covid-19 restructuring implemented loans at 0.33% of GCA, of which 33% is retail, 95% secured with low LTV in the range of ~ 40% -60%, Overall provision coverage of 23% on restructured book

Key subsidiaries delivered strong performance, Max Life stake acquisition complete

  • Domestic subsidiaries reported a total PAT of `245 crores in Q1FY22, up 98% YOY;   Return on investments in subsidiaries at 54%
  • Axis AMC's PAT grew 90% YOY, Axis Securities PAT grew 61% YOY
  • Axis Finance ROE stood at 15.1%, asset quality metrics remain stable with net NPA of 1.8%, near zero restructuring
  • Axis Capital completed 19 Investment banking deals in Q1FY22, with Q1FY22 PAT up 6 times YOY

1. including profit for Q1FY22
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
* Advances and deposits are after netting structured collateralised foreign currency loans. Further there has also been migration of certain loan accounts amongst segments in Q1FY22. Prior period numbers in the presentation have been regrouped as applicable for comparison.

Key Metrics for Q1FY22

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

Profit & Loss Absolute (in ` Crores) YOY Growth
  Q1FY22 YOY growth
Net Interest Income 7,760 11%
Fee Income 2,668 62%
Operating Expenses 4,932 32%
Operating Profit 6,416 10%
Net Profit 2,160 94%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q1FY22  
Total Assets1 10,12,050 14%
Net Advances1 6,14,874 12%
Total Deposits^1 7,13,862 16%
Shareholders' Funds 1,03,890 21%

^ period end balances
1. Advances and deposits are after netting structured collateralised foreign currency loans. Further there has also been migration of certain loan accounts amongst segments in Q1FY22. Prior period numbers in the presentation have been regrouped as applicable for comparison.

Key Ratios Absolute (in ` Crores)  
  Q1FY22 Q1FY21
Diluted EPS* (in `) 28.19 15.79
Book Value per share (in `) 339 305
ROA* 0.86% 0.48%
ROE* 9.11% 5.74%
Gross NPA Ratio 3.85% 4.72%
Net NPA Ratio 1.20% 1.23%
Basel III Tier I CAR** 16.48% 14.62%
Basel III Total CAR** 19.01% 17.47%

* Annualised
** including profit for the quarter

Deposits# 11% YOY

CASA+RTD#

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

#QAB - Quarterly Average Balance

Advances 12% YOY

Retail

14% YOY
SME

18% YOY
Corporate

8% YOY

 

Core Operating Profit (in ` Crores)    13% YOY

Q1FY22
5,896
Q1FY21
5,222

 

Profit After Tax (in ` Crores)    94% YOY

Q1FY22
2,160
Q1FY21
1,112

 

Domestic Branch Network*

    June-21
4,600
March-21
4,594
March-20
4,528
March-19
4,050

* Includes extension counters

Results at a Glance

Steady operating performance, net profit at `2,160 crores, up 94% YOY

  • NII grew 11% YOY, NIM* at 3.46%, growing 6 bps YOY
  • Fee income grew 62% YOY on a lower base, granular fee composition improving
  • Retail fee grew 76% YOY and constituted 62% of the overall fees
  • Core operating profit grew 13% YOY

Loan book growth of 12% YOY driven by all three business segments

  • Retail loans grew 14% YOY and flat on sequential basis, ~ 80% of the book is secured
  • Q1FY22 disbursements in Retail were up around 3.3 times YOY
  • Corporate loans grew 8% YOY and 1.3% QOQ, 94% of incremental sanctions to those rated A- and above
  • SME loans grew 18% YOY led by tech driven transformation initiative 'Sankalp'

Healthy growth in stable and granular CASA deposits

  • Deposits on QAB1 basis grew by 11% YOY & 7% QOQ
  • On QAB basis, SA grew 19% YOY and 7% QOQ, RTD deposits grew 11% YOY and 2% QOQ.
  • On QAB basis, CASA grew 19% YOY and 4% QOQ, CASA ratio stood at 42%, up 342 bps YOY

Retain strong position in Digital Banking

  • 15% market share in UPI transactions and 14% in Mobile Banking for Q1FY22 period
  • Total Credit Card spends were up 84% YOY
  • 60% of Personal loan disbursements were through digital channels
  • Bank’s first edition of 'Grab Deals Fest' received phenomenal response, with over 25x increase in sales

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) including profit for Q1FY22 stood at 19.01% with CET 1 ratio of 15.42%
  • COVID provisions of `5,012 Crores, not in CAR calculation provides additional cushion of 67 bps
  • Average LCR2 during Q1FY22 was 115%, excess SLR3 of `74,974 crores

Balance sheet buffers maintained, high PCR and additional provisions lend strength to the balance sheet

  • NNPA at 1.20% decreased by 3 bps YOY, limited Covid restructuring at 0.33% of which 95% secured
  • Cumulative provisions (standard + additional other than NPA) translate to 2.05% of our standard loans
  • On an aggregated basis (specific+ standard+ additional + Covid), our coverage ratio stands at 118% of GNPA at 30th June, 2021

Bank's domestic subsidiaries deliver strong performance, annualized profit closer to ~ `1,000 crore

  • Cumulative Q1FY22 PAT4 at `245 crores, up 98% YOY
  • Axis AMC’s PAT grew 90% YOY to `73 crores, AAUM growth of 55% YOY
  • Axis Finance PAT grew 86% to `60 crores; asset quality remains stable, with near zero restructuring
  • Axis Capital PAT stood at `47 crores, up 6 times YOY on lower base of corresponding period
  • Axis Securities PAT at `56 crores, was up 61% 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