INTRODUCTION

Axis bank is a leading private sector bank and a financial

services company in India.

The bank commenced its operations in April 1994.

It offers a wide range of products and services to corporate

and retail consumers through variety of delivery channels.

Over the last 21 years the bank has grown both in size of its

asset base and physical network of branches, extension

counters and ATMs.

 The bank has experienced a significant growth while

maintaining stable asset quality and enhancing its low cost

structure.

The bank has a network of 2589 domestic branches and

extension counters and 12,355 ATMs spread over 1,714

centers across India.

As at 31st March 2015, the bank also had 7 overseas offices

with branches in Shanghai, Singapore, Hongkong, the DIFC,

Colombo and representative offices in Abu Dhabi and Dubai.

The bank foreign branches primarily offer corporate banking,

 Income streams
The banks core incomes stream compromises interest

income earned on its large and mid-corporate, SME and

retail loan portfolio, as well as money market operations

and investment portfolio.

The bank also earns fee and commission income from the

processing of the loans, documentary credits, bank

guarantees, placement and syndication, cash management

services, advisory services.

The bank also earns trading profits from proprietary trading

 The Indian
Banking
Sector in 2015
As the domestic economy
remained sluggish, the growth in Credit Offtake
the Indian banking sector too
20 Credit %
14.3
remained under pressure in FY15. 15 9.4 Offtake
Credit Off take slowed down to
10 Logarithmi
5
9.4% in FY15 from 14.3% recorded 0 c (Credit
in FY14. Offtake)
The growth in deposits of
scheduled commercial banks was
%
10.7% in FY15 as compared to Growth in Deposits
14.1% in FY14.
1514.1 Growth in Logarithmi
There remains a wide disparity in 10.7
the credit performance of public 10 Deposits c (Growth
in
and private sector banks.
5 Deposits)
The credit growth of public sector
banks has halved to 7.1% as 0
compared to private sector banks
FY14
which has improved to 18.7% from
17% in FY15.
Cont..
(US$ Billion)
Total money supply
increased at a CAGR of 11.14
percent during FY06-16*.
Between FY06-16*, narrow
money supply rose at a CAGR
of 7.69% to US$ 392.8 billion.
Broad money supply
1839
1783
increased at a CAGR of 6.49% 1602 1605
1570
to US$ 395.3 billion. 1452
1206
Money supply grew at a 1064
1026
CAGR of 11.14% to US$1.8 759
640
trillion by the end of Oct15.
The Gross NPAs of banks
increased over the one last
year from 3.9% to 4.6% as on
March 2015.
 The capital adequacy ratio of banks slipped from over 13% to

12.9% as on march 2015.

PSBs continued to report lowest CAR that stood below 12%,

Whereas private banks recorded a CAR of around 16% as on

March 2015.

In terms of profitability, the return on assets remained static at

0.8% whereas the return on equity dipped slightly from 10.7% to

10.4% in FY15.

The base rate of major banks remained unchanged at 10%-

10.25% in FY15.
 RISK MANAGEMENT OF THE BANK
The risk management objective of the Bank is to balance the

trade-off between risk and return, and ensure optimum risk

adjusted return on capital.

Pursuant to review of the risk profile of the Bank, the Board has

not come across any element of risk which would threaten the

existence of the Bank.

The Risk Management Committee (RMC), a committee

constituted by the Board, approves policies related to risk and

reviews various aspects of risk arising from the businesses

undertaken by the Bank.

RISKS THAT CAN EFFECT THE BANK:
Credit Risk: The risk of financial loss if a client, issuer
of securities that the Bank holds or any other
counterparty fails to meet its contractual obligations.
Market Risk: The risk of losses in on and off-balance
sheet positions arising from the movements in market
price as well as the volatilities of those changes, which
may impact the Banks earnings and capital.
Operational risks: This may emanate from inadequate
and or missing controls in internal processes, people
and systems or from external events
 Liquidity Risk: The risk stemming from the lack of
marketability of an investment that cannot be bought
or sold quickly enough to prevent or minimize the loss.
THE MANAGEMENT TEAM OF AXIS
BANK
 NAME DESIGNATION
SANJIV MISRA CHAIRMAN
SHIKHA SHARMA MANAGING DIRECTOR & CEO
K.N.PRITHVIRAJ DIRECTOR
V.R.KAUNDINYA DIRECTOR
PRASAD R MENON DIRECTOR
SAMIR K.BARUA DIRECTOR
SOM MITTAL DIRECTOR
IREENA VITTAL DIRECTOR
ROHIT BHAGAT DIRECTOR
USHA SANGWAN DIRECTOR
S.VISHANATHAN EXECUTIVE
DIRECTOR&HEAD(CORPORATE
BANKING)
SANJEEV K. GUPTA EXECUTIVE DIRECTOR & CFO
SANJEEV KAPOOR COMPANY SECRETARY
FINANCIAL ANALYSIS
The bank continued to show a
healthy growth in both business NET PROFIT
and earnings.
7,357.82
Net profit of the bank was
(Rs in Crores)
7,352.82 crores for the year 6,217.67
ended 31st march 2015 as
compared to last years 6,217.67 5,179.43
crores registering growth of
4,242.21
18.345%.
3,388.49
This growth was achieved on NET
the back of balanced business PROFIT
growth across all banking CAGR
segments 20.66%
The CAGR of Net profits for the
last five years stood at 20.66%.
Operating revenue for the year
2014-15 increased by 16.70% to
22,589 crores.
 Operating Revenue
(Rs in Crores)
25,000
22,589

20,000 19,357

16,217
15,000 13,438
Operating Revenue
11,195 Logarithmic
10,000 (Operating Revenue)

5,000

0
 Other Income
There has been healthy growth
in the banks core income
streams: net interest income(NII), 8,365
fees and other income. (Rs in Crores)
NII increased by 19.01% to Rs.
13,224 crores from Rs 11,951
crores last year and constituted Other
62.97% of the operating revenue. Income
Fee, trading and other income Exponential
increased by 12.96%to 8365
(Other
Income)
crores from 7,405 crores last year. 7,405
The operating expenses grew by
16.49% to 9,203.74 crores from
7,900.77 crores last year.
This has enhanced the operating
profit by 16.84% to 13,385 crores.

2013-14 2014-15
 The robust growth in NII for the year 2014-15 was

achieved on the back of an expansion in the Balance Sheet

size and healthy growth in low-cost Current Account and

Savings Bank (CASA) deposits.

During the year, the cost of deposits decreased to 6.31%

from 6.43% last year, primarily due to a decrease in cost of

term deposits by 16 basis points to 8.67% from 8.83% last

year.

Other income comprising fees, trading profit and

miscellaneous income increased by 12.96% to 8,365.04

 Fee income increased by 13.26% to
6,778.98 crores from 5,985.44 crores last
year and remains very well diversified with
Fee Income
38.39% retail banking, 26.60% from
corporate banking and balance contributed
by treasury, business banking and SME
Retail
segments.
Banking
Fee income continues to remain a
Corporate
significant part of the Banks earnings and
Banking
constituted 30.01% of its operating 35% 38% Treasury,
revenue.
27% SME,Busin
A key factor for the slower growth in fee
ess
income has been the slowdown in Banking
corporate banking fees due to lack of fresh
new investments and projects being
undertaken.
The core income now constitute 94.15% of
the operating revenue, reflecting the
stability and sustainability of the Banks
earnings.
 The healthy growth in business and
earnings has resulted in an all round Return on Equity(%)
Improvement in various financial 21.2
parameters and ratios during the year.
Basic Earnings Per Share (EPS) was 20.5
31.18 compared to 26.51 last year, 20.1
while the Diluted Earnings Per Share
was 30.85 compared to 26.45 last
year. Return on
18.6
Return on Equity (RoE) was 18.57% Equity(%)
18.2
compared to 18.23% Last year, while
Book Value Per Share was 188.47
compared to 162.69 last year.
Return on Assets (RoA) was 1.83%
compared to 1.78% last year.
The Bank continued to maintain a
healthy asset-quality with a ratio of
Gross NPAs to gross customer assets
at 1.34%, and Net NPA ratio at 0.44%.
 The Bank displayed healthy growth
in several key Balance Sheet Return on Assets %
parameters for the year ended 31st
March 2015.
The total deposits of the Bank
increased by 14.77% to 322,442
crores against 280,945 crores last
year.
Savings Bank deposits increased by Return on
13.52% to 88,292 crores, while 1.83 Assets %
Current Account deposits increased 1.78
by 15.24% to 56,108 crores.
On a daily average basis, Savings 1.7
1.68
1.68
Bank deposits increased by 16.82%
to 72,694 crores, while Current
Account deposits increased by
10.72% to 34,634 crores.
As on 31st March 2015, domestic
retail term deposits grew 27.75%
 In accordance with RBIs guidelines on issuance of long term

bonds for financing of infrastructure and affordable housing,

the Bank successfully raised 5,705 crores of long term

Infrastructure bonds during the year.

The slowdown in economic activity has been much more

prolonged than envisaged earlier and is reflected in the non-

food credit growth of 13.2% for 2014-15.

Total advances of the Bank as on 31st March 2015 increased

by 22.17% to 281,083 crores from 230,067 crores as on 31st

March 2014, due to a balanced growth across all segments.

 Corporate advances comprised 44.89% of total loans and

increased by 23.42% to 126,184 crores, Retail loans comprised

39.82% of total loans and increased by 27.15% to 111,932 crores

while total SME advances grew by 7.96% to 42,967 crores and

constituted 15.29% of total loans.

Secured loans accounted for 87% of the total retail loans. The total

investments of the Bank increased by 16.55% to 132,343 crores,

of which investments in Government and approved securities, held

mainly for SLR requirement, increased by 18.15% to 82,229 crores.

Other investments, including corporate debt securities, increased

by 14.03% to 50,114 crores.

ENHANCING SHAREHOLDER VALUE
Earnings Per Share
increased from 26.45 to
30.85
Earnings Per Share(Diluted) Rs
Proposed Dividend up
from 200% to 230%
Dividend %

Dividend
Earnings %
Per Exponenti
Share(Dilu al
ted) Rs (Dividend
%)
 CAPITAL RESERVES:
The Bank is well capitalized with an overall Capital
Adequacy Ratio (CAR) of 15.09% as on 31st March 2015,
computed under Basel III norms, which is well above the
benchmark requirement of 9% stipulated by the Reserve
Bank of India (RBI).
NAME OF THE % OF PAID-UP
SHAREHOLDER CAPITAL
SUUTI 11.59
LIC & GROUP ENTITIES 12.61
GIC & FOUR PSU 3.85
INSURANCE CO
OVERSEAS INVESTORS 46.90
FDI (GDR ISSUE) 3.72
OTHER INDIAN 6.62
FINANCIAL
INSTITUTIONS
OTHERS 14.71
Cash Flow Analysis:
Net profit after Tax rose to Rs. 110,568,345 as on 31/03/2015 from

Rs. 93,486,266 as on 31/03/2014.

Provision for restructured assets declined to Rs. 818,769 as

compared to Rs. 1,947,624 in the last year.

Net Cash flow from Operating activities stood at Rs.(129,220,164) as

on 31st March 2015 compared to Rs. 167,025,562 as on 31 st March

2014.

Net Cash flow from Investing activities stood at Rs. (79,896,525) as

on 31st March 2015 compared to Rs. (142,474,810) as on 31 st March

2014.
 Net cash flow from Financing activities stood at Rs.

288,459,972 as on 31st March 2015 compared to Rs.

54,901,471 as on 31st March 2014.

Cash and Cash Equivalents at the End of the year

stood at Rs. 360,990,318 as on 31st March 2015

compared to Rs. 282,386,946 as on 31st March 2014.