AXIS BANK LIMITED
RESULTS FOR Q2 & H1 FY
13-14
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.
Network
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.
OVERVIEW
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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