AXIS BANK
RESULTS REVIEW FOR
2nd QTR ENDING
SEP, 2011
AXIS
BANK is one of the Fastest Growing Large Private Banks in the country. It has
performed well in the 2nd quarter ending Sep,2011.
The
Q2 FY12 NET PROFIT is Rs.920.32 CR., UP BY 25.19% YOY, and H1 FY12
Net Profit is Rs.1,862.67 CR, UP BY 26.11% YOY
Financial Highlights
Net Interest Income
(NII) and Net Interest Margin (NIM)
Axis
Bank, at the end of Q2FY12, has a network of 1,446 domestic branches and
extension counters, and 7,594 ATMs situated in 953 cities and towns. During the
quarter, the Bank added 35 branches and 723 ATMs.
The
daily average balances of Savings Bank deposits during the quarter grew
19.90% YOY and those of Current Account deposits grew 18.86% YOY.
Demand deposits constituted 38.28% of the aggregate daily average
deposits during Q2FY12, as against 39.06% in Q2FY11. At the end of the quarter,
Current Account and Savings Bank deposits together accounted for 42.24% of the
total deposits of the Bank.
The
Bank posted a NIM
of 3.78% during Q2FY12, compared to 3.68% during Q2FY11 and 3.28%
during Q1FY12. The sequential uptick in NIM during Q2FY12 was driven by
stronger build-up in CASA deposits, stable funding rates and a pick-up in loan
yields.
Advances grew 26.68% YOY, from Rs.1,10,588 cr as on 30th September
2010 to Rs.1,40,089 cr as on 30th September 2011.
Investments rose to Rs.85,016 cr from Rs.61,942 crs over the same
period, registering a growth of 37.25% YOY.
The NII rose 24.28% YOY to Rs.2007 cr during Q2FY12 from Rs.1,615
cr during Q2FY11.
Fee Income
Fee
income registered a growth of 32.08% YOY, rising to Rs.1,121 cr
during Q2FY12 compared to Rs.849 cr in Q2FY11.
Trading Profits
The
Bank generated Rs.28 crores of trading
profits during Q2FY12, as compared to Rs.108 crores during Q2FY11, a decline of
74.49% YOY. The share of trading profits to operating revenue was 0.85% in
Q2FY12, compared to 4.09% in Q2FY11.
NPAs and Restructured
Assets
Net NPAs, as a proportion of net customer assets, 0.34%
as on 30th September 2011 were at the same level as on 30th September 2010 and
marginally higher than 0.31% as on 30th June 2011.
Gross NPAs as a proportion of gross customer assets stood at
1.08% as on 30th September 2011, compared to 1.12% as on 30th September 2010
and 1.06% as on 30th June 2011.
Provision coverage was 77.69% as on
30th September 2011 (as a proportion of Gross NPAs including prudential
write-offs). The provision coverage (as a proportion of Gross NPAs) before
accumulated write-offs was 89.29%
During
the quarter, the Bank added Rs.496 cr to Gross NPAs. Recoveries and
upgradations of Rs.163 crores and
write-offs of Rs.162 crores during the quarter resulted in a closing position
of Rs.1,744 crores of Gross NPAs on 30th September 2011, as against Rs.1,362
crores at the end of September 2010.
Restructured loans aggregate to Rs.311
crores during Q2FY12. The cumulative value of assets restructured till 30th
September 2011, rose to Rs.2,410 crores (1.49% of gross customer assets).
72.37% of these loans were restructured upto Q2FY11 and were more than a year
old.
Investment Portfolio
The
book value of the Bank’s investment portfolio as on 30th September 2011 was Rs.85,016
crores, of which, Rs.53,971 crores related to government securities while Rs.31,045
crores were invested in other securities such as corporate bonds, equities,
preference shares, mutual funds etc.
Placement
/ Syndication
The
Bank arranged debt aggregating Rs.31,666 crores during Q2FY12 rising 18.32%
over Q2FY11. The Bank was assessed by Prime Database as the No.1 Debt Arranger
for FY11 and also by Bloomberg for the quarter ended June 2011. The Bank was
also recognised as the “Best Domestic Debt House – India; 2011” by Asia Money,
“Best Debt House - India; 2011” by Euromoney and “Best Bond House - India;
2011” by Finance Asia.
Retail
Business
The
number of S.B accounts grew from 86.92 lacs as on 30th September 2010 to 106.43
lacs as on 30th September 2011.
Retail
advances grew from Rs.20,997 crores as on 30th September 2010 to Rs.29,328 crores as on 30th September
2011, a growth of 39.68% YOY.
Retail
Advances accounted for 20.94% of the total advances of the Bank as on 30th September
2011.
The
Bank's International Debit Card issuance has risen to 110 lac debit cards as on
30th September 2011, as compared to 90.57 lac debit cards in force as on 30th September
2010.
The
Bank had over 6.82 lac credit cards in force as on 30th September 2011.
Capital and
Shareholders’ Funds
The Shareholders’ Funds of the Bank were Rs.20,989 crores as on 30th September
2011, compared to Rs.17,682 crores as on 30th September 2010, a growth of
18.70% YOY.
Capital Adequacy Ratio
(CAR) for the Bank was 11.35%,
as on 30th September 2011, compared to 13.68% as on 30th September 2010. As we
can see from the tables below :
Operating Profit has grown by 13.93% QOQ and 19.46% YOY.
Provisions have grown considerably by 130.65% QOQ and 7.08% YOY.
Net Profit has grown to Rs.920.32
cr – by 25.19% YOY – but is still a reduction of (-)2.34% QOQ.
Basic EPS is Rs.22.33 (22.92 in Q1) compared to Rs.18.01 in Q2 FY 11,
an increase of 23.99% YOY.
Return on Assets is quite Healthy
at 1.52%.
% of Gross/Net NPA is also very
Healthy at 0.34%.
PE RATIO : The Annualised EPS can be around Rs.90. At current
Market Price of Rs.854 (52 week high price :Rs.1460.45; 52 week
low price : Rs.851.50), the Price Earnings Ratio works out to just 9.49, which
is very LOW – for such a star scrip. In a normal market, Axis Bank can go much
beyond its 52 week High Price.
FINANCIAL PERFORMANCE
AXIS BANK
|
30-Sep-11
|
30-Jun-11
|
%Growth
|
30-Sep-10
|
%Growth
|
Interest on Advances
|
368782
|
347010
|
6.27
|
242903
|
51.82
|
Income on Investments
|
154864
|
133284
|
16.19
|
112354
|
37.84
|
Income on Balances With RBI
|
1117
|
4791
|
-76.69
|
3837
|
-70.89
|
Others
|
2834
|
3055
|
-7.23
|
3331
|
-14.92
|
Interest Earned
|
527597
|
488140
|
8.08
|
362425
|
45.57
|
Other Income
|
123492
|
116787
|
5.74
|
103324
|
19.52
|
Total Income
|
651089
|
604927
|
7.63
|
465749
|
39.79
|
Interest Expended
|
326871
|
315730
|
3.53
|
200915
|
62.69
|
Employees Cost
|
49862
|
50996
|
-2.22
|
40530
|
23.02
|
Other Operating Expenses
|
96792
|
82353
|
17.53
|
75669
|
27.91
|
Operating Expenses
|
146654
|
133349
|
9.98
|
116199
|
26.21
|
Total Expenditure
|
473525
|
449079
|
5.44
|
317114
|
49.32
|
Operating Profit
|
177564
|
155848
|
13.93
|
148635
|
19.46
|
Provisions
|
40558
|
17584
|
130.65
|
37876
|
7.08
|
Profit before tax
|
137006
|
138264
|
-0.91
|
110759
|
23.7
|
Tax Expense
|
44974
|
44029
|
2.15
|
37245
|
20.75
|
Net Profit
|
92032
|
94235
|
-2.34
|
73514
|
25.19
|
Face Value of Share (in Rs.)
|
10
|
10
|
0
|
10
|
0
|
Paid-up Equity
|
41233
|
41188
|
0.11
|
40884
|
0.85
|
CAR
|
11.35
|
12.53
|
-9.42
|
13.68
|
-17.03
|
Basic EPS
|
22.33
|
22.92
|
-2.57
|
18.01
|
23.99
|
Diluted EPS
|
22.13
|
22.67
|
-2.38
|
17.72
|
24.89
|
% of Gross/Net NPA
|
0.34
|
0.31
|
9.68
|
0.34
|
0
|
Return on Assets
|
1.52
|
1.61
|
-5.59
|
1.5
|
1.33
|
Snapshot
for the period ended 30th September 2011
|
|
Total
Assets (1)
|
`2,506.11 billion
|
Net
Loans (1)
|
`1,400.89 billion
|
Total
Deposits (1)
|
`1,944.55 billion
|
Net
Worth as on 30.09.2011(1)
|
`200.74 billion
|
ROE
|
19.47%
|
ROA
|
1.57%
|
Saving
bank accounts
|
10.64
million
|
Branches
and Extension Counters
|
1,446
|
Foreign
Offices
|
6
|
*
* * E N D * * *
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