• Q3 FY21

  • Quarter-3 Results 2020-21

Major Highlights of Q3FY21

Steady performance for the quarter, incorporating the impact of income de-recognition and provisions per IRAC norms and prudent accounting practices towards further strengthening of balance sheet

Steady growth in stable and granular retail deposits continues to aid loan growth

  • Loan book (including TLTRO) grew by 9% YOY
  • On QAB basis, CASA and RTD deposits grew 16% YOY. CASA ratio at 42%, improved 232 bps YOY and 158 bps QOQ
  • On QAB basis, SA grew 14% YOY and 4% QOQ, Retail SA grew 20% YOY, CA grew 15% YOY and 4% QOQ
  • Retail SA witnessed broad based growth of 19% YOY led by our focus on deepening and premiumisation

Robust operating performance

  • Reported NII up 14% YOY; NII before interest reversal was up 19% YOY
  • Reported NIM stood at 3.59% for Q3FY21, NIM before interest reversal stood at 3.89%
  • Fee income grew 5% YOY and 6% QOQ. Retail fee contributed 64% of overall fees
  • Operating profit grew 6% YOY to `6,096 crores, Core* operating profit was up 10% YOY

Balanced performance across business segments

  • Retail loans grew 9% YOY and 4% QOQ, 81% of Retail book is secured,
  • Disbursements in secured segments like HL, LAP & Auto were up 23% YOY, 11% YOY and 10% YOY, SBB disbursement up 35% YOY
  • Corporate loans (incl. TLTRO investments) grew 11% YOY, SME loans grew 6% QOQ and are 91% secured
  • 94% of incremental sanctions in Corporate were A- and above

Maintain leadership position in Digital

  • For 9MFY21 period, the Bank retains leadership position in Digital with 19% market share in UPI transactions & 17% in Mobile Banking
  • Our focus is on reimagining end-end journeys, transforming our core and becoming a partner of choice for ecosystems

Well capitalized with adequate liquidity buffers

  • Overall capital adequacy (incl. profit for 9M) stood at 19.31% with CET 1 ratio of 15.36% as at the end of Dec'20
  • Average Liquidity Coverage Ratio (LCR) during Q3FY21 was 106%, exit LCR at the end of Q3 FY21 was ~ 119%
  • Average excess SLR during Q3FY21 was `51,886 crores

Strengthening and derisking of Balance Sheet

  • GNPA declined from 5.00% to 3.44% YOY, absent standstill benefit GNPA declined from 5.00% to 4.55% YOY
  • PCR absent standstill benefit at 75%, improved 15% YOY,
  • SACR improved from 0.74% to 2.08% YOY and Coverage ratio improved from 74% to 116% YOY
  • Limited restructured loans at 0.42% of GCA, overall provision coverage of 26%, unsecured retail provided at 100%

Our key subsidiaries have delivered strong performance

  • Axis AMC’s PAT for 9MFY21 grew 140% YOY to `164 crores
  • Axis Securities PAT for 9MFY21 period at `118 crores was over 7x of its full year FY20 PAT
  • Axis Finance asset quality metrics remain stable with net NPA of 1.7%, nil restructuring
  • Axis Capital completed 37 transactions in 9MFY21
    • The domestic subsidiaries reported a total PAT of `541 crores in 9MFY21, up 72% YOY and already at 113% of total subsidiary FY20 profits

QAB: Quarterly Average Balance
* Operating profit excluding trading profit and exchange gain on capital repatriated from overseas branch
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

Key Metrics for Q3FY21

Snapshot (As on December 31st, 2020) (in ` Crores)

Profit & Loss Absolute (in ` Crores) YOY Growth
  Q3FY21 9MFY21 Q3FY21 9MFY21
Net Interest Income 7,373 21,684 14% 18%
Fee Income 2,906 7,310 5% (10%)
Operating Expenses 5,053 13,017 12% 5%
Operating Profit 6,096 18,838 6% 7%
Net Profit 1,117* 3,911 (36%) 30%

* Net of impact of prudent choices ~ `1,050 crs

Balance Sheet Absolute (in ` Crores) YOY Growth
  Q3FY21  
Total Assets 938,049 15%
Net Advances 582,754 6%
Total Deposits^ 654,140 11%
Shareholders' Funds 98,817 15%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q3FY21 / 9MFY21 Q3FY20 / 9MFY20
Diluted EPS* (in `) (Q3/9M) 14.47 / 17.61 24.71 / 14.91
Book Value per share (in `) 323 306
ROA* (in %) (Q3/9M) 0.48 / 0.56 0.86 / 0.50
ROE* (in %) (Q3/9M) 4.91 / 6.13 8.83 / 5.86
Gross NPA Ratio 3.44% 5.00%
Net NPA Ratio 0.74% 2.09%
Basel III Tier I CAR1 16.48% 15.54%
Basel III Total CAR1 19.31% 18.72%

* Annualised

1 including profit for 9M

Deposits# 11% YOY

CASA+RTD

16%YOY (QAB#)
17%YOY (End Balance)

#QAB - Quarterly Average Balance

Advances (incl TLTRO) 9% YOY

Retail Advances

9% YOY

 

Operating Profit (in ` Crores)    6% YOY

Q3FY21
6,096
Q3FY20
5,743

 

Profit After Tax (in ` Crores)    36% YOY

Q3FY21
1,117*
Q3FY20
1,757

* Net of impact of prudent choices ~ `1,050 crs

Results at a Glance

Robust operating performance, Net Interest Income (NII) grew 14% YOY:

  • Reported NII up 14% YOY; NII before interest reversal was up 19% YOY
  • Reported NIM stood at 3.59% for Q3FY21, NIM before interest reversal was 3.89%
  • Fee income grew 5% YOY and 6% QOQ. Retail fee contributed 64% of overall fees
  • Operating profit grew 6% YOY to `6,096 crores, Core* operating profit was up 10% YOY
  • PAT adversely impacted by ~ `1,050 crores on account of prudent expense and provisioning charges in Q3

Steady growth in stable and granular retail deposits:

  • On QAB1 basis, CASA plus Retail term deposits grew 16% YOY. CASA ratio at 42%, improved 232 bps YOY and 158 bps QOQ, led by our focus on deepening and premiumisation
  • On QAB basis, SA grew 14% YOY & 4% QOQ, Retail SA grew 20% YOY, CA grew 15% YOY & 4% QOQ

Well capitalized with adequate liquidity buffers:

  • Overall capital adequacy (incl. profits for 9MFY21) at 19.31% with CET 1 ratio of 15.36% as of Q3FY21 end
  • Average LCR2 during Q3FY21 was 106% with exit LCR ~ 119%, excess SLR of `51,886 crores

Balanced performance across business segments:

  • Loan book (including TLTRO^ investments) grew by 9% YOY
  • Retail loans grew 9% YOY and 4% QOQ; 81% of the Retail book is secured
  • Retail disbursements for the quarter were at all-time highs. Disbursements in secured segments like HL, LAP & Auto grew 23% YOY, 11% YOY and 10% YOY respectively, SBB disbursements grew 35% YOY
  • Corporate loans (including TLTRO investments) grew 11% YOY, SME loan book grew 6% QOQ

Retain leadership position in Digital:

  • 19% market share in UPI transactions and 17% in Mobile Banking for 9MFY21 period; total Card spends were up 28% QOQ with Credit Card spends up 31% QOQ
  • For 9MFY21 period, digital contribution in sourcing of saving accounts improved YOY to 71% from 59% and that for disbursements of personal loans increased to 56% from 43%

Strengthening and de-risking of balance sheet, visible through improving asset quality metrics:

  • NNPA3 at 0.74% / 1.19%, PCR4 increased to 79% / 75% from 60% YOY
  • Cumulative provisions (standard + additional other than NPA) translate to 2.08% of our standard loans
  • On an aggregated basis (specific+ standard+ additional + COVID), our coverage ratio stands at 116% of GNPA as at end of 31st December, 2020

Bank's domestic subsidiaries delivered strong results with reported total PAT exceeding FY20 profits$ :

  • Cumulative 9MFY21 PAT at `541 crores, up 72% YOY
  • Axis AMC's net profit for 9MFY21 more than doubled YOY to `164 crores, AAUM growth of 44% YOY
  • Axis Securities PAT for 9MFY21 period at `118 crores was 7x of its FY20 PAT
  • Axis Capital 9MFY21 PAT stood at `88 crores, up 17% YOY
  • Axis Finance PAT for 9MFY21 was `139 crores; asset quality remains stable, with nil restructuring
   

* Excluding trading profit and gain / loss on capital repatriated from overseas branch
^ Targeted long term repo operations
$ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group
1 QAB – Quarterly Average Balance
2 LCR – Liquidity Coverage Ratio
3 NNPA% stated on (reported basis) / (per IRAC norms)
4 PCR% stated on (reported basis) / (per IRAC norms)

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