Quarter 3 - FY 2022-23

Major Highlights of

Q3FY23

Q3FY23 PAT at `5,853 crores, up 62% YOY driven by NII growth, NIM expansion, higher fees and moderation in operating expenses

Strong operating performance

NII grew 32% YOY and 11% QOQ, NIM at 4.26%, improved by 73 bps YOY and 30 bps QOQ
Fee income grew 23% YOY and 6% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 30% YOY and 8% QOQ
Operating profit grew 51% YOY & 20% QOQ, Operating expense growth moderates from 14% YOY in Q2FY23 to 8% YOY in Q3FY23
PAT at `5,853 crores grew 62% YOY & 10% QOQ
Q3FY23 consolidated ROA (annualized) at 2.00%, up 57 bps YOY and 13 bps QOQ, with subsidiaries contributing 8 bps

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

Overall capital adequacy ratio (CAR) including profit for 9MFY23 stood at 19.51% with CET 1 ratio of 15.55%
`5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 55 bps over the reported CAR
Net accretion to capital of 179 bps, CET-1 41 bps in Q3FY23, self-sustaining capital structure for 9MFY23
Excess SLR of `60,568 crores

Healthy loan growth delivered across all business segments

Net loan book grew 15% YOY and 4% QOQ; Loans (gross of loans sold under IBPC) grew 16% YOY and 4% QOQ
Corporate loans grew 8% YOY and 9% QOQ
SME loans grew 24% YOY, Mid-Corporate (MC) up 42% YOY, SBB+SME+MC mix at `1,537 bn | 20% of loans, up ~510 bps in last 2 years
Retail loans grew 17% YOY & 1% QOQ, SBB¹, Cards and Rural loans portfolio grew 60% YOY, 39% YOY & 27% YOY

Steady growth in granular deposits, improving quality visible

Deposits on QAB basis grew by 9% YOY & 2% QOQ; QAB SA grew 10% YOY & 1% QOQ, QAB CA grew 9% YOY & 10% QOQ
On QAB basis CASA grew 10% YOY and 4% QOQ
CASA ratio on QAB basis stood at 44%, up 18 bps YOY and 48 bps QOQ
Average LCR during Q3FY23 was ~116%

Continue to maintain strong position in Payments and Digital space

1.04 million credit cards acquired in Q3FY23, incremental spends CIF market share of ~16% in last three months*
2^nd largest player in Merchant Acquiring with terminal market share of 17.9%, incremental share of 43% in last three months*
Axis Mobile app is the world's highest³ rated mobile banking app on Google Play store with ratings of 4.8 and ~11 million MAU
350+ APIs hosted on Bank’s API Developer Portal with 275 Retail APIs

Declining NPAs and gross slippages, moderate credit costs

GNPA at 2.38% declined by 79 bps YOY & 12 bps QOQ, NNPA at 0.47% declined 44 bps YOY & 4 bps QOQ, PCR healthy at 81%
Coverage² ratio at 139%, Standard Covid-19 restructuring implemented loans at 0.30% of GCA
Gross slippage ratio (annualized) at 2.03%, declined 56 bps YOY, Net slippage ratio (annualized) stood at 0.93%
Annualized credit cost for Q3FY23 at 0.65%

Key subsidiaries continue to deliver steady performance

Total annualised 9MFY23 PAT of domestic subsidiaries at `1,252 crs, up 8% YOY; Return on investments in subsidiaries at 50%
Axis Finance 9MFY23 PAT grew 35% YOY, ROE at 17.7%, asset quality metrics improve with net NPA declining 55 bps YOY to 0.37%
Axis AMC's 9MFY23 PAT grew 16% YOY
Axis Capital 9MFY23 PAT at `110 crores
Axis Securities 9MFY23 revenue up 10% YOY, PAT at `151 crores

Q3 FY23 Consolidated ROE (annualized) at 19.81%, up 465 bps YOY, with subsidiaries contributing 47 bps

^1. SBB : Small Business Banking
^2. Coverage Ratio = Aggregate provisions (specific + standard + additional + COVID) / IRAC GNPA
^3. Across 59 global banks, 8 global neo banks and 50 Indian fintech apps with 15 lakh+ reviews
QAB: Quarterly Average Balance
MAU: Monthly Active Users
* : Based on RBI data from Sept'22 to Nov'22

Key Metrics

for Q3FY23

Snapshot (As on December 31^st, 2022) (in ` Crores)

Profit & Loss	Absolute (in ` Crores)			QOQ	YOY Growth
	Q3FY23	Q2FY23	9MFY23	Q3FY23	Q3FY23	9MFY23
Net Interest Income	11,459	10,360	31,204	11%	32%	28%
Fee Income	4,101	3,862	11,540	6%	23%	25%
Operating Expenses	6,847	6,585	19,928	4%	8%	17%
Operating Profit	9,277	7,716	22,881	20%	51%	25%
Net Profit	5,853	5,330	15,308	10%	62%	72%

Balance Sheet	Absolute (in ` Crores)	YOY Growth
	Q3FY23
Total Assets	12,23,509	10%
Net Advances	7,62,075	15%
Total Deposits^	8,48,173	10%
Shareholders' Funds	1,30,645	18%

^ period end balances

Key Ratios	Absolute (in ` Crores)
	Q3FY23 / 9MFY23	Q3FY22 / 9MFY22
Diluted EPS (Annualised in `) (Q3/9M)	74.60 / 65.90	46.61 / 38.44
Book Value per share (in `)	425	361
ROA (Annualised) (Q3/9M)	1.92% / 1.73%	1.30% / 1.12%
ROE (Annualised) (Q3/9M)	19.34% / 17.58%	14.19% / 12.01%
Gross NPA Ratio	2.38%	3.17%
Net NPA Ratio	0.47%	0.91%
Basel III Tier I CAR*	16.15%	16.46%
Basel III Total CAR*	19.51%	18.72%

^* including profit for 9M

Deposits^#

9% YOY

CASA^#

10% YOY (QAB^#) | 10% YOY (End Balance)

^#QAB - Quarterly Average Balance

Advances

15% YOY

16% YOY¹

Retail

SME

Corporate

17% YOY | 24% YOY | 8% YOY 12% YOY¹

¹ gross of loans sold under IBPC

Operating Profit
(in ` Crores)

51% YOY

20% QOQ

Q3FY23

9,277
Q3FY22

6,162

Profit After Tax
(in ` Crores)

62% YOY

Q3FY23

5,853
Q3FY22

3,614

Performance at a Glance

Strong operating performance, net profit grew 62% YOY and 10% QOQ to `5,853 crores

NIM at 4.26%, improved by 73 bps YOY and 30 bps QOQ, NII grew 32% YOY and 11% QOQ
Fee income grew 23% YOY & 6% QOQ, Retail fee grew 30% YOY & 8% QOQ, Retail cards fee up 44% YOY
Operating profit grew 51% YOY and 20% QOQ, Core operating profit grew 53% YOY and 13% QOQ
Q3FY23 Consolidated ROE (annualized) at 19.81%, up 465 bps YOY, subsidiaries contribute 47 bps

Healthy loan growth delivered across all business segments

Credit Card advances grew 39% YOY, Personal loans grew 21% YOY & 3% QOQ
SBB grew 60% YOY & 8% QOQ, Rural loans grew 27% YOY
Mid-Corporate (MC) book up 42% YOY and 11% QOQ
SME + SBB + MC mix at `1,53,652 crores | 20% of loans, up ~510 bps in last 2 years

Steady growth in granular deposits, early visibility of improving quality

On QAB¹ basis, SA grew 10% YOY and 1% QOQ, CA grew 9% YOY and 10% QOQ
On QAB basis, total deposits grew 9% YOY and 2% QOQ
Average LCR² during Q3FY23 was ~116%

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

Overall capital adequacy ratio (CAR) including profit for 9MFY23 stood at 19.51% with CET 1 ratio of 15.55%
COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of 55 bps
Net CET-1 accretion of 41 bps in Q3FY23, 31 bps for 9MFY23

Retaining strong position in Payments and Digital Banking

17% market share in UPI transactions and 11% in UPI P2M acquiring (by throughput)
Mobile banking market share stood at 15%, Axis Mobile & Axis Pay have ~6.8mn non-Axis Bank customers
85+ digital partnerships across platforms and ecosystems; ~8.9 mn customers on WhatsApp banking
350+ APIs hosted on Bank's API Developer Portal with 275 Retail APIs

Declining NPA's and gross slippages, moderate credit costs

GNPA at 2.38% declined by 79 bps YOY & 12 bps QOQ, NNPA at 0.47% declined 44 bps YOY & 4 bps QOQ
PCR healthy at 81%; On an aggregated basis³, Coverage ratio at 139%
Annualized, gross slippage ratio declined 56 bps YOY to 2.03%, net slippage ratio at 0.93%
Annualized credit cost for Q3FY23 at 0.65%
Non-recurring, one-time / prudent items impacted gross and net slippage by 22 bps and credit cost by 11 bps

Bank's domestic subsidiaries continue to deliver steady performance; annualized profit⁴ at `1,252 crores, with a return on investment of 50%

Axis Finance 9MFY23 PAT grew 35% YOY to `340 crores; asset quality remains stable, CAR healthy at 22.2%
Axis AMC 9MFY23 PAT grew 16% YOY to `292 crores
Axis Capital 9MFY23 PAT stood at `110 crores
Axis Securities 9MFY23 PAT at `151 crores

¹ QAB – Quarterly Average Balance
² Liquidity Coverage Ratio
³ (specific+ standard+ additional + COVID)
⁴ Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

Quarter-3 Results 2022-23