AXIS BANK
RESULTS FOR FIRST QUARTER
(Q1 FY 2012-13)
Results at a Glance
Ø Net Profit during Q1FY13 rose
to Rs.1,154 Cr from Rs.942 Cr in Q1FY12, registering
a growth of 22% YOY.
Ø Demand Deposits grew 17% YOY
from Rs.74,414 Cr as on 30th June 2011 to Rs.86,942 Cr as on 30th
June 2012. Savings Bank deposits in the same period grew 23% YOY.
Current and Savings Bank deposits were 39% of aggregate deposits at the
end of June 2012.
Ø Net Interest Income
and
Other Income for Q1FY13 registered a growth of 26% and 14% respectively.
Net Interest Margin for Q1FY13 was 3.37% compared to 3.28% in
Q1FY12. Operating profit for Q1FY13 grew 26% YOY.
Ø Asset quality was
healthy with Net NPA at 0.31%.
Ø The Bank is
well-capitalised with a Capital Adequacy Ratio of 13.51% (including
net profit for Q1) as at the end of Q1FY13 compared to 13.01% (including
net profit) as at the end of Q1FY12. Tier-I capital was 9.49% (including
net profit for Q1) of risk weighted assets at the end of Q1FY13, compared to 9.84%
(including net profit) as at the end of Q1FY12.
D E T A I L
S
Operating
profit rose 26% YOY to Rs.1,964 Cr
during Q1FY13 from Rs.1,558 Cr during Q1FY12. The net profit during Q1FY13 rose
to Rs.1,154 Cr from Rs.942 Cr in Q1FY12 registering a growth of 22% YOY.
ITEM :: Q1 FY13 :: Q1
FY 12 :: Growth %
Net
Profit : 1,153.52 : 942.35
: 22%
EPS
Diluted (Rs.) : 27.73 : 22.67 :: 22%
At the current rate of EPS (not taking into account any
future Growth), the annualized EPS
works out to Rs.111.
At the current
Market price of around Rs.1050/-,
the PE Ratio works out to
9.46 – which is TOO LOW for the Axis Bank. There is good scope for Axis Bank
market Price to improve – as market sentiment improves. In any case, it is a GOOD BUY for Medium / Long Term Investors.
Net
Interest Income rose 26% YOY to Rs.2,180
Cr during Q1FY13 from Rs.1,724 Cr during Q1FY12. The net interest margin was 3.37% in Q1FY13, compared to 3.28% during
Q1FY12.
Fee
income during Q1FY13 stood at Rs.1,154
Cr up 9% YOY. Retail Banking
registered a growth of 17% YOY, rising to Rs.322 Cr. Business Banking fees grew 16% YOY and stood at Rs.110 Cr. Treasury and DCM segment fees grew 13%
YOY and stood at Rs.238 Cr. Fee income
from Agriculture & SME Banking grew 36% YOY to reach Rs.63 Cr. Large and
Mid-Corporate Credit (including Infrastructure) fees contracted marginally by
1% YOY and stood at Rs.409 Cr. Fee income from Equity Capital Markets
(including Trusteeship Services) too saw a contraction by 29% YOY and stood at Rs.12 Cr.
The Bank generated Rs.150
Cr of trading profits during Q1FY13,
compared to Rs.70 Cr during Q1FY12, a growth of 114% YOY. Share of trading
profits to operating revenue was 4% in Q1FY13, compared to 2% in Q1FY12.
Shareholders’
funds of the Bank were Rs.24,253
Cr as on 30th June 2012 growing 21% YOY from Rs.20,017 Cr as on 30th June 2011.
Capital
Adequacy Ratio (CAR) for the Bank
was 13.03% (excluding net profit for Q1FY13), as on 30th June 2012, compared to
12.53% (excluding net profit for Q1FY12) as on 30th June 2011.
Tier-I capital adequacy ratio was 9.02% (excluding net profit
for Q1FY13) as on 30th June 2012, compared to 9.36% (excluding net profit for
Q1FY12) as on 30th June 2011.If the net profit of Rs.1,154 Cr for Q1 this year
is included, the total CAR and Tier-I CAR as on 30th June 2012 would be 13.51%
and 9.49% respectively.
Demand
deposits grew 17% YOY from Rs.74,414 Cr as on 30th June 2011 to Rs.86,942
Cr as on 30th June 2012. On a daily average basis, demand deposits constituted
36% of total deposits during Q1FY13, as against 37% in Q1FY12. The daily
average balances in CASA deposits during the quarter grew 16% YOY, buoyed up by
S.B.deposits which grew 22% over the year. At the end of the quarter, CASA deposits together accounted for
39% of total deposits of the Bank.
Advances grew 30% YOY from Rs.1,31,900 Cr as on 30th June 2011 to Rs.1,71,146
Cr as on 30th June 2012. However, normalised YOY growth in advances would be
21% adjusting for currency depreciation of 25% during the year and a relatively
lower base caused by run-offs in short-term loans in the previous period.
Investments rose to Rs.87,986 Cr from Rs.75,307 Cr over the same period,
registering a growth of 17% YOY.
NPAs
and Restructured Assets : Gross
NPAs as proportion of gross
customer assets and Net NPAs as a
proportion of net customer assets were unchanged vis-à-vis previous year and
stood at 1.06% and 0.31% respectively for the period ended 30th June 2012. The
Bank held a provision coverage of
79% as on 30th June 2012. The provision
coverage (as a proportion of Gross NPAs) before accumulated write-offs was 90%.
During the quarter, the Bank added Rs.456 Cr to Gross NPAs.
Recoveries and upgrades of Rs.62 Cr and write-offs of Rs.108 Cr during the
quarter resulted in a closing position of Rs.2,092 Cr of Gross NPAs as on 30th
June 2012, as against Rs.1,573 Cr as on 30th June 2011.
The Bank restructured assets aggregating Rs.628 Cr during
Q1FY13. The cumulative value of assets restructured till 30th June 2012, rose
to Rs.3,827 Cr (1.95% of gross customer assets). Of the outstanding pool,
assets amounting to Rs.1,231 Cr have displayed a satisfactory repayment
track-record of two years. Adjusting for these assets, restructured assets
would constitute 1.32% of gross customer assets. The segment-wise break-up of restructured
assets as on 30th June 2012 is as follows:
Large and Mid-Corporate Credit : 80% : SME : 6% ;
Agri. including Micro finance
: 7% ; Capital
Markets : 7% ;
The sector-wise breakup of restructured assets as on 30th
June 2012 was as follows.
Textiles : 14%
; Petroleum : 12% ; Edible
Oils :
12% ;
Shipping : 11%
; Infrastructure : 9% ; Others : 42%
Network : The Bank, at the end of Q1FY13, had a network of 1,674
domestic branches and extension counters and 10,337 ATMs situated in 1,080
cities and towns. During the quarter, the Bank added 52 branches and 413 ATMs.
Retail
Business : No.
of S B accounts grew 26% from 99.02 lacs as on 30th June 2011 to 124.45 lacs as
on 30th June 2012. Retail advances grew from Rs.27,022 Cr as on 30th June 2011
to Rs.40,591 Cr as on 30th June 2012, a growth of 50% YOY. Retail Advances
accounted for 24% of the total advances of the Bank as on 30th June 2012. The
Bank's International Debit Card issuance has risen to 131 lac debit cards as on
30th June 2012, as compared to 105 lac debit cards in force as on 30th June
2011. The Bank had over 8.24 lac credit cards in force as on 30th June 2012.
Placement
/ Syndication : The
Bank arranged debt aggregating Rs.27,695 Cr during Q1FY13 rising 45% over
Q1FY12. The Bank was assessed as the No.1 Debt Arranger Rupee denominated bonds
for six month period ended June 2012 by Bloomberg. The Bank was assessed No.1
debt arranger for the year ended March 2012 by Prime Database.
Enam
Update :
During the current
quarter, pursuant to the order passed by the High Court of Gujarat at
Ahmedabad, the equity shareholders and unsecured creditors of the Bank have at
their meetings held on 23rd June 2012, approved the Scheme of Arrangement in
respect of the demerger of the financial services business from Enam Securities
Private Limited to the Bank and a simultaneous sale of such businesses to Axis
Sales & Securities Limited, a wholly owned subsidiary of the Bank, with
effect from 1st April, 2010. The Bank is now awaiting the necessary approvals
under applicable law from various regulatory authorities to the Scheme of
Arrangement and consequently, no effect of the acquisition has been given in
the results for the current quarter.
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