Thursday, October 17, 2013

AXIS BANK - RESULTS FOR - Q2 FY 2013-14 Q E SEP 2013 - NPT UP 21%YoY; NIM 3.79%; CAR :16.35%; N-NPAS:0.37%


RESULTS FOR Q2 & H1 FY 13-14
SEP 2013

AXIS BANK continues to report healthy earnings in terms of growth in core revenues for the quarter and half year  ended 30th Sep 2013.

The Bank’s Core Operating Revenue continues to register healthy growth. With lower growth in the operating expenses, the Bank’s Core Operating Profit and Net Profit have registered a robust growth.

Operating Profit& Net Profit

The Bank’s Operating Profit for H1FY14 and Q2FY14 grew by 35% and 26% YOY respectively. The Bank’s Operating Profit for H1FY14 was Rs.5,593 Cr up from Rs.4,142 Cr for H1FY13.

In Q2FY14, the Operating Profit has risen to Rs.2,750 Cr from Rs.2,178 Cr in Q2 FY13.

Net Profit for Q2FY14 grows 21% YOY to Rs.1,362 Cr, while Net Profit for H1FY14 grows 22% to Rs.2,771 Cr

The Bank’s Retail franchise continues to demonstrate solid growth

Savings Bank Deposits grow 18% YOY
Domestic CASA and Retail Term Deposits constitute 73% of Total Domestic Deposits
Daily Average CASA for Q2 FY14 constitute 39% of Total Deposits .
Retail Advances grew 37%YOY and account for 30% of net advances
Asset Quality is healthy with Net NPA at 0.37%

Bank is well capitalized with a healthy Capital Adequacy Ratio (CAR). Under Basel II, Total CAR & Tier I CAR (without considering H1FY14 profits as stipulated by RBI) is 16.35% & 11.76% respectively.

Total CAR & Tier I CAR considering unaudited H1FY14 profits would have been 17.40% & 12.81% respectively.

Q2 FY14 have registered a growth of 22% and 21% YOY respectively.

Net Profit for H1FY14 rose to Rs.2,771 Cr from Rs.2,277 Cr in H1FY13, and for Q2FY14 Net Profit has risen to  Rs.1,362 Cr from Rs.1,124 Cr in Q2FY13.

Net Interest Income and Net Interest Margin

The Bank’s Net Interest Income (NII) rose 29% YOY to Rs.5,802 Cr during H1FY14 from  Rs.4,507 Cr duringH1FY13. NII for Q2FY14 rose 26% YOY to Rs.2,937 Cr from Rs.2,327 Cr in Q2FY13. 

The Bank recorded a Net Interest Margin of 3.79% in Q2FY14 as against 3.46% in Q2FY13.

Other Income

Other Income (comprising fee, trading profit and miscellaneous income) for H1FY14 grew 21% and stood at Rs.3,547 Cr as against  Rs.2,929 Cr during the same period last year. During the quarter, other income grew 11% YOY and stood at  Rs.1,766 Cr  as against  Rs.1,593 Cr during the same period last year.

During the quarter, fee income grew 7% YOY to reach Rs.1,432Cr. 

The main business segment driving fee growth during the quarter was Business Banking, which grew 19%. 

Fee income from Retail Banking grew 9%, in which fee income from Retail Assets grew 30% YOY, while fee from Retail Liabilities and third party products grew 16% YOY. 

During the quarter, in view of the sharply volatile interest rate movements, trading profits was muted at Rs.5 Cr. 

During the quarter, miscellaneous income stood at Rs.329Cr as against  Rs.43 Cr last year.

Balance Sheet: As on 30thSep2013

The Bank’s Balance Sheet grew16%YOYand stood at Rs.3,51,363 Cr as on 30thSep 2013. 

Advances grew 17% YOY to  Rs.2,01,303 Cr as on 30th Sep2013. 

Retail advances grew 37% YOYto Rs.60,869 Cr as on 30th Sep2013, and accounted for 30% of net advances of the Bank compared to 26% last year. 

SME segment too recorded a healthy growth of 29% YOY and stood at Rs.30,415 Cr. Book value of Bank’s investments portfolio (excluding reverse repo) as on 30th Sep 2013, was Rs.1,08,635 Cr, of which  Rs.66,048 Cr related govt securities, while Rs.27,341were invested in corporate bonds and Rs.15,246 in other securities such as equities, preference shares, mutual funds, priority sector shortfall deposits etc. 

Savings Bank Deposits recorded a healthy growth of 18% YOY to reach Rs.66,494 Cr as on 30th Sep, 2013 and Current Account deposits grew 9% and stood at  Rs.42,966 Cr. On a daily average basis, CASA deposits for Q2 FY14 grew 14% YOY constituting 39% of total deposits, compared to 36% during the same period last year.

During the same period, Domestic Retail Term Deposits grew 17% YOY to comprise 50% of the Domestic Term Deposits of the Bank. 

Domestic CASA and Retail Term Deposits constituted73% of Total Domestic Deposits as on 30th Sep 2013compared to 67% last year. Domestic Retail Deposits constituting Savings Bank Deposits and Retail Term deposits, grew 16%YOYand stood at  Rs.1,74,471Cr as on 30th Sep 2013.

Capital Adequacy and Shareholders’ Funds

The shareholders’ funds grew 44% YOY and stood at Rs.36,224 Cr as on 30th Sep 2013. The Bank is well capitalised and Capital Adequacy Ratio as on 30th Sep 2013 under Basel II was 16.35% (excluding unaudited NPT for H1FY14) and Tier-I CAR was 11.76%(excluding unaudited NPT for H1FY14).If the net profit of Rs.2,771Cr for H1FY14 is included, the total CAR and Tier-I CAR as on 30th Sep 2013 would be17.40% and 12.81% respectively. The overall CAR and Tier-I CAR of the Bank computed under Basel III as on 30th Sep 2013 was 15.85% and 11.68% respectively, excluding the net profit for H1FY14.Asset Quality as on 30th Sep2013.

Gross NPAs and Net NPAs stood at 1.19% and 0.37%, as against 1.10% and 0.35% respectively as on 30th June 2013.

The Bank held provision coverage of 80% as on 30th Sep 2013 (as a proportion of Gross NPAs including prudential write-offs). 

The provision coverage before accumulated write-offs was 89%. As on 30th Sep 2013, the Bank’s Gross NPA was Rs.2,734 Cr as against  Rs.2,490 Cr as on 30th June  2013. 

During the quarter, the Bank added Rs.618 Cr to Gross NPAs, recoveries and upgrades were Rs.266 Cr and write-offs were  Rs.107 Cr.

The cumulative value of assets restructured till 30th Sep 2013, stood at  Rs.4,807 Cr against Rs.4,211Cr as on 30th June 2013, constituting  2.10% of gross customer assets.


During Q2FY14 ,the Bank added 204 branches and 308 ATMs to its network across the country and at the end of 30th Sep 2013, had a network of 2,225 domestic branches and extension counters and 11,796 ATMs situated in 1,502 cities and towns, compared to 1,741domestic branches and extension counters, and 10,297ATMs situated in 1,113 cities and towns last year.


Ø  TOTAL ASSETS    : Rs.351361 cr
Ø  Net Advances      : Rs.201,303 cr
Ø  Total Deposits      : 2,55,365 Cr
Ø  Net Profit (Q2FY14) :    Rs.1,362 Cr(+21%)
Ø  Net Profit (H1FY14)      Rs.2,771 Cr (+29%)
Ø  Shareholders’ Funds     Rs.36,224 crore
Ø  ROA (for H1FY14)  :     1.65%
Ø  ROE (for H1FY14)  :     16.64%
Ø  Net NPA Ratio    :          0.37%
Ø  Basel II Tier-I CAR2  :           12.81%
Ø  Basel II Total CAR2  :  17.40%
Ø  Basel III Tier I CAR   :          11.68%
Ø  Basel III Total CAR   :  15.85%
Ø  Saving Bank Accounts (No.) : 132 lac
Ø  Branches                     :   32,225
Ø  Foreign Offices             :  7
Ø  ATMs                            :  11,796

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