• Q3 FY22
  • Quarter-3 Results 2021-22

Major Highlights of Q3FY22

Strong growth across deposits and loans, robust operating performance, improving asset quality

Strong growth in granular deposits

  • Deposits on QAB basis grew by 22% YOY and 3% QOQ, Net Loans grew 17% YOY and 7% QOQ
  • On QAB basis, SA grew 24% YOY and 4% QOQ, CA deposits grew 27% YOY and 13% QOQ
  • On QAB basis, CASA grew 25% YOY and 7% QOQ, CASA ratio stood at 44%, up 189 bps YOY and 146 bps QOQ
  • On QAB basis, Term deposits grew 19% YOY and 0.5% QOQ, of which Retail term deposits grew 12% YOY and 1% QOQ

Loan growth delivered in all business segments

  • Retail loans grew 18% YOY and 6% QOQ, ~80% of the book is secured. Home loans and SBB1 portfolio grew 20% YOY & 51% YOY
  • Q3FY22 Retail disbursements were up 37% YOY and 19% QOQ basis Home loan, SBB, PL disbursements up 22%, 88% & 39% YOY
  • SME loans grew 20% YOY and 9% QOQ, SME disbursements were up 91% QOQ
  • Corporate loans grew 13% YOY & 7% QOQ; Mid-corporate book grew 44% YOY & 17% QOQ

Robust operating performance

  • Operating profit grew 17% YOY and 4% QOQ, PAT at `3,614 crores, up 224% YOY and 15% QOQ
  • NII grew 17% YOY and 10% QOQ, NIM improved by 14 bps QOQ to 3.53%, improved 2 bps YOY2
  • Fee income grew 15% YOY and 3% QOQ, granular fee constituted 92% of overall fees
  • Retail fee grew 16% YOY and 6% QOQ; Retail cards fee grew 21% YOY and 8% QOQ

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR)3 stood at 18.72% with CET 1 ratio of 15.33%
  • `5,012 crores of COVID provisions, not considered for CAR calculation provide cushion of 63 bps over the reported CAR
  • Average Liquidity Coverage Ratio (LCR) during Q3FY22 was over 113%
  • Excess SLR of `82,935 crores

Continue to maintain strong position in Payments and Digital space

  • Over 0.77 million credit cards acquired in Q3FY22, highest ever for any quarter; incremental CIF market share of ~16% in last 2 quarters
  • 2nd largest player in Merchant Acquiring with terminal market share of 16%, incremental share of 42% in 8MFY22
  • 15% market share in UPI transactions & 20% in P2M Acquiring (by throughput) in Q3
  • Among the highest rated mobile apps with Apple App | Google Play store ratings of 4.6 | 4.6; mobile banking market share stood at 15%

Declining slippages and NPA's, moderating credit costs, limited restructuring

  • Gross loan slippages declined by 24% QOQ. Net loan slippage ratio (annualized) stood at 0.06%, improving 380 bps YOY and 38 bps QOQ
  • Annualized credit cost for Q3FY22 at 0.44%, declined by 258 bps YOY4 and 10 bps QOQ
  • GNPA at 3.17% declined by 138 bps YOY & 36 bps QOQ, NNPA at 0.91% declined 28 bps YOY & 17 bps QOQ, PCR healthy at 72%
  • Coverage5 ratio at 130% improved 576 bps QOQ and 1406 bps YOY, Covid-19 restructuring implemented loans at 0.63% of GCA

Key subsidiaries consistently delivered strong performance

  • Domestic subsidiaries reported a total PAT of `872 crores in 9MFY22, up 61% YOY; Return on investments in subsidiaries at 64%
  • Axis AMC's 9MFY22 PAT grew 54% YOY, Axis Securities 9MFY22 PAT grew 48% YOY
  • Axis Finance ROE stood at 19.8%, asset quality metrics remain stable with net NPA of 0.9%, near zero restructuring
  • Axis Capital completed 43 ECM deals in 9MFY22, with PAT up 88% YOY

1. SBB : Small Business Banking
2. NIM for Q3FY21 adjusted for interest on income tax refund of `153 crores, translating to 8 bps
3. including profit for 9MFY22
4. per IRAC
5. Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
QAB: Quarterly Average Balance

Key Metrics for Q3FY22

Snapshot (As on December 31st, 2021) (in ` Crores)

Profit & Loss Absolute (in ` Crores) YOY Growth
  Q3FY22 9MFY22 Q3FY22 9MFY22
Net Interest Income 8,653 24,313 17% 12%
Fee Income 3,344 9,242 15% 26%
Operating Expenses 6,331 17,034 25% 31%
Operating Profit2 6,162 18,276 17% 5%
Net Profit 3,614 8,908 224% 128%

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

Balance Sheet Absolute (in ` Crores) YOY Growth
  Q3FY22    
Total Assets 11,13,066   20%
Net Advances 6,64,866   17%
Total Deposits^ 7,71,670   20%
Shareholders' Funds 1,10,746   12%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q3FY22 / 9MFY22 Q3FY21 / 9MFY21
Diluted EPS* (in `) (Q3/9M) 46.61 / 38.44 14.47 / 17.61
Book Value per share (in `) 361 323
ROA* (Q3/9M) 1.30% / 1.12% 0.48% / 0.56%
ROE* (Q3/9M) 14.19% / 12.01% 4.91% / 6.13%
Gross NPA Ratio 3.17% 4.55%**
Net NPA Ratio 0.91% 1.19%**
Basel III Tier I CAR1 16.46% 16.48%
Basel III Total CAR1 18.72% 19.31%

* Annualised

1 including profit for 9MFY22

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

Deposits (QAB) 22% YOY
CASA+RTD#

18% YOY (QAB#) | 15% YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 17% YOY
Retail
SME
Corporate

18% YOY | 20% YOY | 13% YOY

 

Profit After Tax (` in Crores) 224% YOY
  • Q3FY22
    3,614
  • Q3FY21
    1,117

 

Provisions (` in Crores) 64% YOY
  • Q3FY22
    1,335
  • Q3FY21**
    3,757

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

Domestic Branch Network*  
  • Dec-21
    4,700
  • Mar-21
    4,594
  • Mar-20
    4,528
  • Mar-19
    4,050

* Includes extension counters

Results at a Glance

Net profit at `3,614 crores, up 224% YOY and 15% QOQ; Operating profit up 17% YOY & 4% QOQ

  • NII grew 17% YOY & 10% QOQ, NIM* improved 14 bps QOQ and 2 bps YOY^ to 3.53%
  • Fee income grew 15% YOY and 3% QOQ, granular fee constituted 92% of overall fees
  • Retail fee grew 16% YOY and 6% QOQ; Retail Cards fee grew 21% YOY and 8% QOQ

Loan growth delivered in all business segments

  • Retail loans grew 18% YOY and 6% QOQ, Retail disbursements up 37% YOY and 19% QOQ
  • SME loans grew 20% YOY and 9% QOQ
  • Corporate loan book grew 13% YOY and 7% QOQ, Mid-corporate book grew 44% YOY & 17% QOQ

Strong growth in granular deposits

  • Deposits on QAB1 basis grew by 22% YOY & 3% QOQ
  • On QAB basis, CASA deposits grew 25% YOY & 7% QOQ; CASA ratio stood at 44%, up 189 bps YOY
  • On QAB basis, Retail term deposits grew 12% YOY and 1% QOQ
  • 2.15 million new liability relationships added in the quarter

Retain strong positioning in Payments and Digital Banking

  • Credit card spends up 52% YOY & 22% QOQ
  • 2nd largest player in Merchant Acquiring with market share of 16%, incremental share of 42% in 8MFY22
  • 15% market share in UPI transactions and 20% in UPI P2M acquiring
  • The Bank's digital auto loans and personal loans went live on the account aggregator framework

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) including profit for 9MFY22 stood at 18.72% with CET 1 ratio of 15.33%
  • COVID provisions of `5,012 crore, not in CAR calculation provides additional cushion of 63 bps
  • Average Liquidity Coverage Ratio (LCR) during Q3FY22 was over 113%, excess SLR2 of `82,935 crores

Declining loan slippages and NPA's, moderating credit costs, limited restructuring

  • Net loan slippage ratio (annualized) at 0.06%, improved 380 bps YOY and 38 bps QOQ
  • Annualized credit cost for Q3FY22 at 0.44%, declined by 258 bps YOY & 10 bps QOQ, PCR healthy at 72%
  • GNPA at 3.17% declined by 138 bps YOY & 36 bps QOQ, NNPA at 0.91% declined 28 bps YOY & 17 bps QOQ
  • On an aggregated basis3, Coverage ratio at 130% improved 576 bps QOQ & 1,406 bps YOY
  • Covid-19 restructuring implemented loans at 0.63% of GCA, amongst the lowest in the industry

Bank's domestic subsidiaries deliver strong performance, annualized profit4 closer to ~ `1,157 crore

  • Axis AMC's 9MFY22 PAT grew 54% YOY to `252 crores, AAUM growth of 43% YOY
  • Axis Finance 9MFY22 PAT grew 81% to `251 crores; asset quality remains stable, with near zero restructuring
  • Axis Capital 9MFY22 PAT stood at `166 crores, up 88% YOY
  • Axis Securities 9MFY22 PAT at `174 crores, was up 48% YOY

* Net Interest Margins
^ NIM for Q3FY21 adjusted for interest on income tax refund of `153 crores, translating to 8 bps
1 QAB – Quarterly Average Balance
2 Statutory Liquidity ratio
3 (specific+ standard+ additional + Covid)
4 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group