AXIS BANK LIMITED
Q1 FY 11 RESULTS
COMPARISON
Axis Bank has declared excellent results for Q1 of FY11.The results are compared below with the preceding quarter (Q4 FY10) and also with corresponding quarter of FY10 ( Q1 FY10).
Interest on Advances has gone up well by 11.4% in Q1FY11 to Rs.2311 Cr compared to Rs.2075 Cr in Q4 FY10 – and by 17.1% compared to Rs.1974 Cr in Q1 FY10.
Income on Investments has also gone up well by 9.3% in Q1 FY11 to Rs.935Cr – compared to Rs.856 Cr in Q4 FY10 – and by 7.8% compared to Rs.867 Cr in Q1 FY10.
Over all - Interest Earned has gone up by 11.3% in Q1 FY11 - compared to Q4 FY10 and by 14.5% compared to Q1 FY10.
Total Income has gone up by 10.3% to Rs.4326Cr in Q1 FY11 – from Rs.3922 Cr in Q4 FY10 – and by 12% compared to Rs.3864 Cr in Q1 FY10.
Interest Expended has gone up by 18.5% in Q1 FY11 (Rs.1812Cr) compared to Q4 FY10 (Rs.1528Cr) – but has actually come down by 2.6% compared to Q1 FY10 (Rs.1860 Cr)
The other Major expenditure in Banks, namely, Operating Expenses has gone up by 5.4% in Q1 FY11 (Rs.1065 Cr) – compared to Q4 FY09 (Rs.1010 Cr) – and by 28.6% compared to Q1 FY10 (Rs.828 Cr).
Provisions has gone up by 65% to Rs.333 Cr in Q1 FY11 compared to Q4 FY10 (Rs.202 Cr) – and by 5.6% compared to Q1 FY10 (Rs.315 Cr).
Net Profit in Q1 FY11 is Rs.742 Cr – down by3% compared to Q4FY10 (Rs.765 Cr) – but is a HUGE UP BY 32% compared to Q1 FY10 (Rs.562 Cr)
Capital Adequacy Ratio is slightly down 8% (14.54) compared to Q4 FY10(15.8) – and down by 4.8% compared to Q4 FY10 (15.28). However, CAR is quite healthy at current levels.
Basic EPS is down by 3.5% in Q1 FY11 to Rs.18.26 - compared to Rs.18.92 in Q4 FY10 – but is a HUGE UP by 16.8% compared to Rs.15.64 in Q1 FY10.
PROJECTION FOR FY11 : Last year stand alone EPS was 65.78. Factoring in the same increase of 16.8% for FY11 over FY10 - the likely EPS for the year FY11 – should be around Rs.77-80. The Bank has taken several initiatives in recent past for Branch expansion, ATM expansion, Business expansion and Product expansion – all of which will reflect well in Q2,Q3 and Q4 of FY11.
The % of Gross/Net NPA which was already low at 0.36 in Q4 FY10 and 0.41in Q1 FY10 is further down to 0.35 in Q1 FY11. There is sufficient control on NPAs.
Return on Assets 1.63 in Q1 FY11 is same as Q1FY10 but is slightly down from Q4 FY10 (1.85). This is a very healthy ROA – compared to many Banks.
PE RATIO : At the current Market Price of Rs.1347, the likely EPS of Rs.77 for FY11 gives out a PE ratio of hardly 17.5 – while its competitors ICICI Bank and HDFC Bank are at PE ratios above 22. There is therefore a GOOD upside possible in Axis Bank – from current levels.
Jun-10 | Mar-10 | dif%1 | Jun-09 | dif%2 | |
Interest | 231089 | 207497 | 11.4 | 197356 | 17.1 |
Income on Investments | 93526 | 85601 | 9.3 | 86731 | 7.8 |
Income on Balances With RBI | 3248 | 2720 | 19.4 | 3543 | -8.3 |
Others | 4696 | 3027 | 55.1 | 2926 | 60.5 |
Interest Earned | 332559 | 298845 | 11.3 | 290556 | 14.5 |
Other Income | 100078 | 93354 | 7.2 | 95857 | 4.4 |
Total Income | 432637 | 392199 | 10.3 | 386413 | 12 |
Interest Expended | 181182 | 152838 | 18.5 | 185993 | -2.6 |
Employees Cost | 41642 | 33375 | 24.8 | 30933 | 34.6 |
Other OprtgExpenses | 64808 | 67605 | -4.1 | 51851 | 25 |
Operating Expenses | 106450 | 100980 | 5.4 | 82784 | 28.6 |
Total Expdr Excl.Provisions | 287632 | 253818 | 13.3 | 268777 | 7 |
Operating Profit | 145005 | 138381 | 4.8 | 117636 | 23.3 |
Provisions | 33300 | 20187 | 65 | 31529 | 5.6 |
Profit before tax | 111705 | 118194 | -5.5 | 86107 | 29.7 |
Tax Expense | 37517 | 41707 | -10 | 29903 | 25.5 |
Net Profit After Tax | 74188 | 76487 | -3 | 56204 | 32 |
Extraordinary Items | - | - | - | ||
Net Profit | 74188 | 76487 | -3 | 56204 | 32 |
Face Value (Rs.) | 10 | 10 | 0 | 10 | 0 |
Paid-up Equity | 40744 | 40517 | 0.6 | 35976 | 13.3 |
Dividend (%) | - | 120 | - | ||
Capital Adequacy Ratio | 14.54 | 15.8 | -8 | 15.28 | -4.8 |
Basic EPS before Extraordinary items | 18.26 | 18.92 | -3.5 | 15.64 | 16.8 |
Diluted EPS before Extraordinary items | 17.95 | 18.57 | -3.3 | 15.5 | 15.8 |
a) Gross/Net NPA | 41341 | 41900 | -1.3 | 36712 | 12.6 |
b) % of Gross/Net NPA | 0.35 | 0.36 | -2.8 | 0.41 | -14.6 |
c) Return on Assets | 1.63 | 1.85 | -11.9 | 1.63 | 0 |
Public Shareholding (%) | 54.51 | 53.1 | 2.7 | 50.27 | 8.4 |
ANNOUNCEMENTS
TO THE EXCHANGE
15-07-2010 Axis Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Interest earned of Rs. 332559 lacs for the quarter ending on 30-JUN-2010 against Rs. 290556 lacs for the quarter ending on 30-JUN-2009. Interest expended of Rs. 181182 lacs for the quarter ending on 30-JUN-2010 against Rs. 185993 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 74188 lacs for the quarter ending on 30-JUN-2010 against Rs. 56204 lacs for the quarter ending on 30-JUN-2009. -
06-07-2010 Axis Bank Limited has submitted to the Exchange a copy of the proceedings of the Annual General Meeting held on June 08, 2010.
08-06-2010 Axis Bank Limited has informed the Exchange that at the meeting of the Board of Directors of the Bank held on June 8, 2010, Shri M. S. Sundara Rajan, former CMD, Indian Bank has been appointed as an Additional Independent Director with immediate effect. -
31-05-2010 Axis Bank Limited has informed the Exchange vide its letter dated May 31, 2010 that "We understand that there are rumours about Axis Bank acquiring a regional bank. In the interest of investors, we would like to clarify that these rumours are completely unfounded and are not correct". -
11-05-2010 Axis Bank Limited has informed the Exchange that the Board of Directors of the Bank has on May 11, 2010 passed a resolution approving the allotment of Senior Notes aggregating to SGD 40 Million under the MTN programme through its Hong Kong branch. -
20-04-2010 Axis Bank Limited has informed the Exchange that the Board of Directors of the Bank at its meeting held on April 20, 2010 has recommended the payment of dividend @ Rs. 12.00 per equity share i.e. 120% on equity shares of the Bank and the same will be payable after it is approved by the shareholders at the Annual General Meeting scheduled to be held on June 08, 2010. The Bank had declared dividend of Rs. 10.00 per equity share i.e. 100% for the previous year 2008-09. -
20-04-2010 Axis Bank Limited has informed the Exchange regarding the consolidated Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 1163905 lacs for the year ending on 31-MAR-2010 against Rs. 1082911 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 663263 lacs for the year ending on 31-MAR-2010 against Rs. 714892 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 247814 lacs for the year ending on 31-MAR-2010 against Rs. 181293 lacs for the year ending on 31-MAR-2009. -
20-04-2010 Axis Bank Limited has informed the Exchange regarding the standalone Results for the quarter ended on 31-MAR-2010 as follows: Interest earned of Rs. 298845 lacs for the quarter ending on 31-MAR-2010 against Rs. 303922 lacs for the quarter ending on 31-MAR-2009. Interest expended of Rs. 152838 lacs for the quarter ending on 31-MAR-2010 against Rs. 200662 lacs for the quarter ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 76487 lacs for the quarter ending on 31-MAR-2010 against Rs. 58145 lacs for the quarter ending on 31-MAR-2009. -
20-04-2010 Axis Bank Limited has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2010 as follows: Interest earned of Rs. 1163802 lacs for the year ending on 31-MAR-2010 against Rs. 1083548 lacs for the year ending on 31-MAR-2009. Interest expended of Rs. 663353 lacs for the year ending on 31-MAR-2010 against Rs. 714927 lacs for the year ending on 31-MAR-2009. Net Profit / (Loss) of Rs. 251453 lacs for the year ending on 31-MAR-2010 against Rs. 181536 lacs for the year ending on 31-MAR-2009.
20-04-2010 Axis Bank Limited has informed the Exchange that the Bank is holding 20,68,960 equity shares, which constitutes 6.53% of the total equity share capital of the Company, through primary market transactions. A copy of the same shall be available on the NSE website (http://www.nseindia.com) under Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).
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Shadow on the Axis Culture
ReplyDeleteRef Business India 25/07/2010
Axis Bank has grown by putting aggressive pressure on the branches and ignored fundamental aspects of banking such as operational efficiency, staff accountability, audit & compliance and hence the bank is facing a serious issues with a high NPAs, serious frauds through senior branch officials due to business pressure and also unethical HR practices like withdrawal of ESOP’s up to the level of AVPs and frequent changes in PMS & Promotion policies has increased staff attrition rate. It’s a time to re look into those issues seriously and grow clean & green in order to bring the permanent light from the dark shadow
Sanjay Prabhu – Pune
Ex Employee & Share Holder of Axis Bank
RBI brings Private Bank CEOs’ salaries under scrutiny
ReplyDeleteAxis Bank is another such bank where in the MD takes 3 crores salary plus 100000 ESOP, DMD takes 2 lacs ESOPs per year, where as the other hard working branch employees upto the level of AVP does not get any ESOPs, although they are the real gems and pillars of the bank who contribute to the business of the bank. Other cream of Top management consisting of 2% of the employees in the grade of VP, SVP, Presidents enjoys annual ESOPS between 12000 to 40000 ESOPS every year. This shows the greed and unethical conduct of the top management in looting the investors money. Company Law Board should do necessary amendment in Company Law and should give the ownership rights to each and every employee of the organisation and there should not be a large gaps as seen in Axis Bank while distributing the ESOPs between the lower grade and the highest grade employee.
Some people say that they are Out of Box Thinkers and hence they are eligible for higher remuneration – Out of Box Thinking is nothing but putting pressure on mid and lower level employees in order to achieve the budgets and force them to mis-sell the Insurance, MF, Forex Derivative and other bank products to customers and then force branch employees to get involved into various frauds arising out of mis-selling. Yes this is called Out of Box Thinking of the top management.
Is there any Accountability concept in Private Sector Bank ? No
Is the Whistle Blower policy implemented in its True Spirit ? No
Is the CEO responsible for the frauds & collapse of the financial institutions? No
If yes then why the RBI, SEBI & ED has not taken any action on the banks promoters and CEOs like GTB, CBL, BoR ( including finance companies like Lloyds Finance ) which has collapsed and later merged with nationalized banks. Do our regulatory authority had been protecting the Investors Interest or the CEO’s interest? How serious is there Audit procedure?
There have been serious frauds happening in Govt Accounts such as JNNURM, Municipal Corporation Accounts, Central Excise, Agri Credit at Rajkot, Lucknow, Forex Frauds in Kolkatta and Mumbai which has been happening for last 3 years and the bank auditors could not unearth the frauds. SEBI, RBI, Enforcement Directorate & Economic Offence Wing should investigate in to the matter and fix accountability on the Top Officials of Axis Bank. Even some officials at Vice President level have used the public money for paying the fees of his children’s personal benefits, by debiting the suspense account and the auditors have failed to investigate in to the matter, as the auditor himself was involved in various frauds in the bank.
If this practices continues, you will see similar situations in next 3 years, and the RBI will have to merge this white private sector elephants with nationalized bank and hence we should control the Salary of CEO and implement strict vigilance and staff Accountability in private sector banks.
I suggest all of you to read " If god was a Banker " by Ravi subramaniam and my experience with Private Sector Bank is a similar story, its all about looting the public money for the fun and enjoyment of Top Officials.
Recently the European Parliament approved the world’s toughest curbs on unsound remuneration practices in banks as an efforts to limit risk in a sector shored up by taxpayers and the Indian government too has seen the financial scams earlier and we look forward to Regulatory Authority in implementing the accountability concept in Private Sector Bank.
Ex Employee & Shareholder of Axis Bank
sanjaymprabhu@gmail.com