• Q2 FY21
  • Quarter-2 Results 2020-21

Major Highlights of Q2FY21

Steady growth in deposits continue to drive loan growth

  • QAB deposit book growth 13% YOY, Loan book grew by 11% YOY
  • On QAB basis, CASA + RTD ratio was 84%, up 357 bps QOQ
  • On QAB basis, SA grew 15% YOY & 2% QOQ, CA grew 18% YOY & 3% QOQ
  • Retail SA witnessed broad based growth of 20% YOY led by our focus on deepening and premiumisation

Strong operating performance

  • NII up 20% YOY; NIM at 3.58% for Q2FY21
  • Fee income grew 67% QOQ and 4% YOY, Retail grew 82% QOQ, Wholesale grew 46% QOQ
  • Cost to Assets ratio declined from 2.00% to 1.97% QOQ
  • Operating profit grew 16% YOY to `6,898 Crores, Core* operating profit was up 18%YOY

Strong capital position with adequate liquidity buffers

  • Overall capital adequacy (incl. profit for H1) stood at 19.38 with CET 1 ratio of 15.38% as at the end of Q2FY21
  • Average Liquidity Coverage Ratio (LCR) during Q2FY21 was 117%
  • Average excess SLR during Q2FY21 was `34,763 Crores

Balanced performance across business segments

  • Retail loans grew 12% YOY and 2% QOQ
  • ~ 80% of Retail book is secured, home loans constitute 36% with average LTV’s in the range of 50-60%
  • Disbursements in secured segments like HL, LAP & Auto revert to 85-95% of Q2FY20, Rural & SBB disbursement up 19% and 17% YOY
  • Corporate loans (including TLTRO investments) grew 22% YOY, SME loan book grew 6% QOQ

Maintain leadership position in Digital

  • Credit Card spends up 49% QOQ with Retail Spends up 51% QOQ
  • Bank retains leadership position in Digital with 20% market share in UPI transactions and 18% in Mobile Banking
  • Scaled up video KYC based 'Full Power Digital Savings Account' and launched a Full Power Digital Current Account during the quarter

Strengthening and derisking of Balance Sheet, plays out in asset quality metrics

  • GNPA declined from 5.03% to 4.18% YOY
  • PCR at 77%, Coverage ratio improved significantly from 76% to 124% YOY, SACR improved from 0.82% to 2.20% YOY
  • BB book increase largely based on probable restructuring



Our key Subsidiaries have delivered strong performance

  • Axis AMC’s net profit for H1FY21 more than tripled YOY to `92 Crores
  • Axis Securities PAT for H1FY21 period at `74 Crores was over 4X of its full year FY20 PAT
  • Axis Finance asset quality metrics remain stable with net NPA of 2.1%, 30+ book one of the lowest among its peers
  • Axis Capital completed 21 transactions in H1FY21 comprising 18 ECM transactions

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) / GNPA
Standard Assets Coverage Ratio (SACR) = Standard asset provisions plus additional provisions plus COVID provision / Standard loans

Key Metrics for Q2FY21

Snapshot (As on September 30th, 2020) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q2FY21 Q1FY21 H1FY21 Q2FY21 Q2FY21 H1FY21
Net Interest Income 7,326 6,985 14,311 5% 20% 20%
Fee Income 2,752 1,651 4,404 67% 4% (17%)
Operating Expenses 4,236 3,728 7,963 14% 5% 1%
Operating Profit 6,898 5,844 12,742 18% 16% 8%
Net Profit 1,683 1,112 2,795 51% - 122%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q2FY21    
Total Assets 909,463   12%
Net Advances 576,372   11%
Total Deposits^ 635,454   9%
Shareholders' Funds 97,664   16%

^ period end balances

Key Ratios Absolute (in ` Crores)  
  Q2FY21 / H1FY21 Q2FY20 / H1FY20
Diluted EPS* (in `) (Q2/H1) 22.59 / 19.29 (1.69) / 9.59
Book Value per share (in `) 319 298
ROA* (in %) (Q2/H1) 0.73 / 0.60 (0.06) / 0.31
ROE* (in %) (Q2/H1) 7.95 / 6.86 (0.68) / 3.98
Gross NPA Ratio 4.18% 5.03%
Net NPA Ratio 0.98% 1.99%
Basel III Tier I CAR1 16.52% 15.25%
Basel III Total CAR1 19.38% 18.45%

* Annualised

1 including profit for H1

Deposits# 13% YOY

CASA+RTD#

20%YOY (QAB)
17%YOY (End Balance)

#QAB - Quarterly Average Balance

Advances 11% YOY

Retail Advances

12% YOY

Operating Profit (` in Crores)    16% YOY | 18% QOQ

Q2FY21
6,898
Q2FY20
5,952

Profit After Tax (` in Crores)    51% QOQ

Q2FY21
1,683
Q1FY21
1,112
Q2FY20
-112

Results at a Glance

Strong operating performance, net profit at `1,683 Crores, compared to loss in same quarter last year:

  • Net Interest Income in Q2FY21 grew 20% YOY to `7,326 Crores, NIM stood at 3.58% in Q2FY21
  • Fee income grew 67% QOQ and 4% YOY, Retail fee income grew 82% QOQ and 0.5% YOY while corporate & commercial banking fee grew 46% QOQ and 10% YOY
  • Operating profit for Q2FY21 grew by 16% YOY to `6,898 Crores; PAT for the quarter stood at `1,683 Crores

Steady growth in Deposits continues to drive Loan growth:

  • Total deposits grew 13% YOY on quarterly average basis (QAB)
  • Savings Account deposits grew 15% YOY, Current Account deposits grew 18% YOY and Retail Term Deposits (RTD) were up 25% YOY on QAB basis.
  • CASA + RTD deposits ratio improved by 536 bps YOY and 357 bps QOQ to 84%

Strengthened capital position with adequate liquidity buffers:

  • Overall capital adequacy at 19.38% with CET 1 ratio of 15.38% as of Q2FY21 end, including H1 profit
  • Average Liquidity Coverage Ratio (LCR) during Q2FY21 was 117% with excess SLR of `34,763 Crores

Performance improving across business segments

  • Retail loans grew 12% YOY and 2% QOQ;
  • 80% of Retail book is secured, home loans constitute 36% with average LTV’s of 50% to 60%
  • Corporate loans (including TLTRO investments) grew 22% YOY, SME loan book grew 6% QOQ

Digital is the new way to bank at Axis

  • Bank solidifies its position in Digital payments space with 20% market share in UPI transactions and 18% in Mobile Banking during the quarter; total Card spends up 49% QOQ
  • Share of digital channels in sourcing FDs and personal loan disbursements in H1 stood at 73% and 58%

Strengthening and de-risking of Balance Sheet, visible through improving Asset quality metrics

  • NNPA at 0.98%, PCR increased to 77% from 62% YOY
  • Cumulative provisions (standard + additional other than NPA) translate to 2.20% of our standard loans
  • On an aggregated basis (specific+ standard+ additional + COVID), our coverage ratio stands at 124% of GNPA as at end of 30th September, 2020

Our key Subsidiaries have delivered healthy performance

  • Axis AMC’s net profit for H1FY21 more than tripled YOY to `92 Crores, AAUM growth of 48% YOY
  • Axis Securities PAT for H1FY21 period at `74 Crores was over 4x of its full year FY20 PAT, with strong net new customer additions
  • Axis Finance asset quality remains stable, 30+ book one of the lowest among its peers
  • Axis Capital completed 21 transactions in H1FY21 comprising 18 ECM transactions
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