|
Report Date : |
15.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
AXIS BANK LIMITED [w.e.f. 30.07.2007] |
|
|
|
|
Formerly Known as : |
UTI BANK LIMITED |
|
|
|
|
Registered Office : |
Trishul 3rd Floor, Opposite, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2011 |
|
|
|
|
Date of Incorporation : |
03.12.1993 |
|
|
|
|
Com. Reg. No.: |
04-020769 |
|
|
|
|
Capital Investment
/ Paid-up Capital : |
Rs.4105.458 Millions |
|
|
|
|
CIN No.: [Company
Identification No.] |
L65110GJ1993PLC020769 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMU00484B / MUMU01693G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AAACU2414K |
|
|
|
|
Legal Form : |
A Public Limited Liability Bank. The Bank’s shares are listed on the stock exchanges |
|
|
|
|
Line of Business : |
Subject is engaged in Banking Activities. |
|
|
|
|
No. of Employees
: |
77983 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (77) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
||
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
|
|
|
|
|
|
|
Maximum Credit Limit : |
USD 759000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
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Litigation : |
Clear |
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|
|
|
Comments : |
Subject is a well-established and reputed bank having fine track. The
bank is progressing very well. Fundamentals are strong and healthy. Directors
are reported as experienced and respectable businessmen. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The bank can be considered normal for business dealings at usual trade
terms and conditions. It can be regarded as promising business partners in a medium to
long-rum. Note: Enam Securities will merge its investment Banking, Institutional
and retail equities business with Axis Bank. Axis Bank cuts Enam Securities
buyout deal value by one-third to Rs.13.96 bln. The deal was approved by the RBI. The bank still requires approval from the high
court and expects the deal to be finalized by October- December of current
financial year 2012-13. |
NOTES:
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Trishul 3rd Floor, Opposite, |
|
Tel. No.: |
91-79-26409322 |
|
Fax No.: |
91-79-26409321 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Axis House, |
|
Tel. No.: |
91-22-24252525 / 43252525 |
|
Fax No.: |
91-22-43251800 |
|
|
|
|
Central Office : |
131, |
|
Tel. No.: |
91-22-67074407 |
|
Fax No.: |
91-22-22186944 / 1429 |
|
|
|
|
Factory : |
Karvy Computershare
Private Limited Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad-500081, |
|
Tel. No.: |
91-40-23420815 to 23420824 |
|
Fax No.: |
91-40-23420814 |
DIRECTORS
AS ON 31.03.2011
|
Name : |
Mr. Adarsh Kishore |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mrs. Shikha Sharma |
|
Designation: |
Managing Director and Chief Executive Officer |
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|
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|
Name : |
Mr. S. K. Chakrabarti |
|
Designation : |
Deputy Managing Director |
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|
Name : |
Mr. J. R. Varma |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. H. Patil |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Rama Bijapurkar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. B. L. Vaish |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. M. V. Subbiah |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. N. Prithviraj |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. V. R. Kaundinya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. B. Mathur |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. K. Roongta |
|
Designation: |
Director |
|
|
|
|
Name : |
Mr. Prasad R. Menon |
|
Designation: |
Director |
|
|
|
|
Name : |
Mr. R. N. Bhattacharyya |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. S. Chatterjee |
|
Designation : |
Executive Director |
|
|
|
|
Name : |
Mr. M. M. Agrawal |
|
Designation : |
Deputy Managing Director |
|
|
|
|
Name : |
Prof. Samir K Barua |
|
Designation: |
Director |
|
|
|
|
Name : |
Mr. A. K. Dasgupta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Som Mittal |
|
Designation : |
Director |
MANAGEMENT
|
Name : |
Mr. P.J. Oza |
|
Designation : |
Company Secretary |
|
|
|
|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Executive Director (Corporate Banking) |
|
|
|
|
Name : |
Mr. Somnath Sengupta |
|
Designation : |
Executive Director and Chief Financial Officer |
|
|
|
|
Name : |
Mr. Snehomoy Bhattacharya |
|
Designation : |
Executive Director (Human Resources) |
|
|
|
|
Name : |
Mr. S. K. Nandi |
|
Designation : |
President and Chief Audit Executive |
|
|
|
|
Name : |
Mr. R. K. Bammi |
|
Designation : |
President and Head - Retail Banking |
|
|
|
|
Name : |
Mr. P. Mukherjee |
|
Designation : |
President - Treasury and International Banking |
|
|
|
|
Name : |
Mr. S. S. Bajaj |
|
Designation : |
President and Chief Compliance Officer |
|
|
|
|
Name : |
Mr. Vinod George |
|
Designation : |
President - Wholesale Banking Operations |
|
|
|
|
Name : |
Mr. M. V. Subramanian |
|
Designation : |
President - Business Banking |
|
|
|
|
Name : |
Mr. S. K. Mitra |
|
Designation : |
President and Head – Distribution |
|
|
|
|
Name : |
Mr. B. Gopalakrishnan |
|
Designation : |
President – Law |
|
|
|
|
Name : |
Mr. Bapi Munshi |
|
Designation : |
President and Chief Risk Officer |
|
|
|
|
Name : |
Mr. C. Babu Joseph |
|
Designation : |
Executive Trustee and Chief Executive Officer - Axis Bank Foundation |
|
|
|
|
Name : |
Mr. Sonu Bhasin |
|
Designation : |
President and Head - Retail Products and Sales Management |
|
|
|
|
Name : |
Mr. Sanjeev K. Gupta |
|
Designation : |
President - Finance and Accounts and Investor Relations |
|
|
|
|
Name : |
Mr. V. K. Bajaj |
|
Designation : |
President - Mid Corporates |
|
|
|
|
Name : |
Mr. Sidharth Rath |
|
Designation : |
President - Infrastructure Business |
|
|
|
|
Name : |
Mr. A. R. Gokulakrishnan |
|
Designation : |
President - Stressed Assets |
|
|
|
|
Name : |
Mr. Rajendra D. Adsul |
|
Designation : |
President – SME |
|
|
|
|
Name : |
Mr. R. V. S. Sridhar |
|
Designation : |
President (Treasury - Global Markets) |
|
|
|
|
Name : |
Mr. Lalit Chawla |
|
Designation : |
President - Corporate Credit |
|
|
|
|
Name : |
Mr. Rajesh Kumar Dahiya |
|
Designation : |
President - Human Resources |
|
|
|
|
Name : |
Mr. Nilesh Shah |
|
Designation : |
President - Strategic Initiatives |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding
of promoters and Promoter Group |
|
|
|
1. Indian |
|
|
|
Financial Institutions / Banks |
154443470 |
40.87 |
|
Sub Total |
154443470 |
40.87 |
|
|
|
|
|
(2) Foreign |
|
|
|
Total shareholding
of Promoter and Promoter Group (A) |
154443470 |
40.87 |
|
|
|
|
|
(B) Public
Shareholding |
|
|
|
|
|
|
|
1. Institutions |
|
|
|
Mutual Funds / UTI |
19370979 |
5.13 |
|
Financial Institutions / Banks |
7271199 |
1.92 |
|
Insurance Companies |
28709567 |
7.60 |
|
Foreign Institutional Investors |
136116421 |
36.02 |
|
Sub Total |
191468166 |
50.67 |
|
|
|
|
|
2. Non
Institutions |
|
|
|
Bodies Corporate |
5290207 |
1.40 |
|
|
|
|
|
Individual |
|
|
|
Individual shareholders holding nominal share capital up to Rs.0.100
million |
20063759 |
5.31 |
|
Individual shareholders holding nominal share capital in excess of
Rs.0.100 million |
3861426 |
1.02 |
|
|
|
|
|
Any other
[specify] |
2781311 |
0.74 |
|
Hindu Undivided Family |
249787 |
0.07 |
|
Trusts |
314533 |
0.08 |
|
Clearing Members |
1165666 |
0.31 |
|
Foreign Bodies |
3439 |
-- |
|
Foreign Bodies D R |
51929 |
0.01 |
|
Non Residents Individuals/Foreign Individuals |
995957 |
0.26 |
|
Sub Total |
31996703 |
8.47 |
|
|
|
|
|
Total Public
shareholding (B) |
223464869 |
59.13 |
|
|
|
|
|
Total (A) + (B) |
377908339 |
100.00 |
|
|
|
|
|
Shares
held by custodians and against which depository receipts have been
issued (C) |
-- |
-- |
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
35295613 |
-- |
|
Sub
Total |
35295613 |
-- |
|
|
|
|
|
Total (A) + (B)
+(C) |
413503952 |
- |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Banking Activities. |
GENERAL INFORMATION
|
No. of Employees : |
77983 [Approximately] |
||||||||||||||||||||||||||||||
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|
Bankers : |
Reserve Bank of |
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|
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|
Facilities : |
|
||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
Good |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
|
|
Subsidiaries : |
§ Axis Securities and Sales Limited § Axis Private Equity Limited § Axis Trustee Services Limited § Axis Asset Management Company Limited § Axis Mutual Fund Trustee Limited § Axis U.K. Limited |
|
|
|
|
Associate : |
§ Bussan Auto Finance India Private Limited |
|
|
|
|
Promoters |
§
Administrator of the Specified Undertaking of
the Unit Trust of §
Life Insurance Corporation of § General Insurance Corporation and four Government-owned general insurance companies - New India Assurance Company Limited, National Insurance Company Limited, United India Insurance Company Limited and The Oriental Insurance Company Limited |
CAPITAL STRUCTURE
AFTER 17.06.2011
Authorised Capital : Rs.5000.000
Millions
Issued, Subscribed & Paid-up Capital : Rs.4132.039 Millions
AS ON 17.06.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
412,690,962 |
Equity Shares |
Rs.10/- each |
Rs.4126.910
Millions |
|
|
|
|
|
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500,000,000 |
Equity Shares |
Rs.10/- each |
Rs.5000.000 Millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
410,545,843 |
Equity Shares |
Rs.10/- each |
Rs.4105.458
Millions |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
CAPITAL AND LIABILITIES |
|
|
|
|
Capital |
4105.458 |
4051.741 |
3590.051 |
|
Reserves & Surplus |
185882.797 |
156392.749 |
98545.835 |
|
Employees' Stock Options
Outstanding (Net) |
0.000 |
1.734 |
12.111 |
|
Deposits |
1892378.010 |
1413002.175 |
1173741.052 |
|
Borrowings |
262678.824 |
171695.512 |
155198.710 |
|
Other Liabilities and
Provisions |
82088.627 |
61334.608 |
46132.728 |
|
TOTAL |
2427133.716 |
1806478.519 |
1477220.487 |
|
|
|||
|
ASSETS |
|
|
|
|
Cash and Balances with
Reserve Bank of |
138861.630 |
94820.456 |
94192.103 |
|
Balances with Banks and
Money at Call and Short Notice |
75224.929 |
57218.631 |
55976.854 |
|
Investments |
719916.208 |
559748.156 |
463303.514 |
|
Advances |
1424078.286 |
1043409.464 |
815567.658 |
|
Fixed Assets |
22731.456 |
12224.199 |
10728.873 |
|
Other Assets |
46321.207 |
39057.613 |
37451.485 |
|
TOTAL |
2427133.716 |
1806478.519 |
1477220.487 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Interest Earned |
151548.058 |
116380.215 |
108354.856 |
|
|
|
Other Income |
46321.338 |
39457.819 |
28968.781 |
|
|
|
TOTAL |
197869.396 |
155838.034 |
137323.637 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest Expended |
85918.230 |
66335.261 |
71492.742 |
|
|
|
Operating Expenses |
47794.281 |
37097.223 |
28582.127 |
|
|
|
Provisions and contingencies |
30271.979 |
27260.217 |
19095.184 |
|
|
|
TOTAL |
163984.490 |
130692.701 |
119170.053 |
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
BEFORE TAX |
33884.906 |
25145.333 |
18153.584 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
AFTER TAX |
33884.906 |
25145.333 |
18153.584 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
34274.337 |
23480.865 |
15538.689 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Statutory Reserve |
8471.227 |
6286.333 |
4538.396 |
|
|
|
Transfer to/(from) Investment Reserve |
[149.372] |
148.750 |
0.622 |
|
|
|
Transfer to Capital Reserve |
47.630 |
2239.176 |
1467.231 |
|
|
|
Transfer to General Reserve |
3388.491 |
3.109 |
0.000 |
|
|
|
Proposed dividend (includes tax on dividend) |
6703.560 |
5674.493 |
4205.159 |
|
|
BALANCE CARRIED
TO THE B/S |
49697.707 |
34274.337 |
23480.865 |
|
|
|
|
|
|
|
|
|
|
Earnings/[Loss]
Per Share (Rs.) |
82.95 |
65.78 |
50.61 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2011 |
30.09.2011 |
31.12.2011 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Interest Earned |
|
48814.000 |
52759.700 |
57769.600 |
|
Income On Investments |
|
13328.400 |
15486.400 |
17752.300 |
|
Interest On Balances With RBI Other Inter Bank Funds |
|
479.100 |
111.700 |
154.700 |
|
Interest / Discount On Advances / Bills |
|
34701.000 |
36878.200 |
39635.600 |
|
Others |
|
305.500 |
283.400 |
227.000 |
|
Other Income |
|
11678.700 |
12349.200 |
14298.100 |
|
Total Income |
|
60492.700 |
65108.900 |
72067.700 |
|
Interest Expended |
|
31573.000 |
32687.100 |
36366.600 |
|
Operating Expenses |
|
13334.900 |
14665.400 |
15109.100 |
|
Total Expenditure |
|
13334.900 |
14665.400 |
15109.100 |
|
Operating Profit Before Provisions and Contingencies |
|
15584.800 |
17756.400 |
20592.000 |
|
Exceptional Items |
|
0.000 |
0.000 |
0.000 |
|
Provisions and contingencies |
|
1758.400 |
4055.800 |
4223.300 |
|
Profit Before Tax |
|
13826.400 |
13700.600 |
16368.700 |
|
Tax |
|
4402.900 |
4497.400 |
5346.000 |
|
Profit After Tax |
|
9423.500 |
9203.200 |
11022.700 |
|
+/- Extraordinary Items |
|
0.000 |
0.000 |
0.000 |
|
+/- Prior period items |
|
0.000 |
0.000 |
0.000 |
|
Net Profit |
|
9423.500 |
9203.200 |
11022.700 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
17.12
|
16.13 |
13.22 |
|
|
|
|
|
|
|
(PBT/Sales) |
(%) |
22.36
|
21.61 |
16.75 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.98
|
2.02 |
1.79 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.18
|
0.16 |
0.18 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.81
|
1.45 |
1.97 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
20.52
|
20.13 |
21.74 |
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report
(Yes / No) |
|
1) Year of Establishment |
Yes |
|
2) Locality of the firm |
Yes |
|
3) Constitutions of the firm |
Yes |
|
4) Premises details |
No |
|
5) Type of Business |
Yes |
|
6) Line of Business |
Yes |
|
7) Promoter’s background |
No |
|
8) No. of employees |
Yes |
|
9) Name of person contacted |
No |
|
10) Designation of contact person |
No |
|
11) Turnover of firm for last three years |
Yes |
|
12) Profitability for last three years |
Yes |
|
13) Reasons for variation <> 20% |
-- |
|
14) Estimation for coming financial year |
No |
|
15) Capital in the business |
Yes |
|
16) Details of sister concerns |
Yes |
|
17) Major suppliers |
No |
|
18) Major customers |
No |
|
19) Payments terms |
No |
|
20) Export / Import details (if applicable) |
No |
|
21) Market information |
-- |
|
22) Litigations that the firm / promoter |
-- |
|
23) Banking Details |
Yes |
|
24) Banking facility details |
Yes |
|
25) Conduct of the banking account |
-- |
|
26) Buyer visit details |
-- |
|
27) Financials, if provided |
Yes |
|
28) Incorporation details, if applicable |
Yes |
|
29) Last accounts filed at ROC |
Yes |
|
30) Major Shareholders, if available |
No |
BACKGROUND
The bank was incorporated in 1993 and provides a complete suite
of corporate and retail banking products.
HISTORY
Subject is one of the fastest growing bank in private
sector. It was incorporated in the year 1993 as " The Bank (UTI Bank
Limited) ", which provided corporate and retail banking products and was
among the few banks to be granted a license under the new guidelines issued in
1993 to carry on banking business in
FINANCIAL
PERFORMANCE:
In 2010-11 both business and earnings grew strongly with the Bank
reporting a net profit of Rs.33884.900 millions for the year ended 31 March, 2011,
rising 34.76% over the net profit of Rs.25145.300 millions in the previous
year. The solid growth of business across segments has been reflected in a set
of robust financial indicators.
The Bank's total income increased 26.97% to reach Rs.197869.400 millions
during 2010-11, compared to Rs.155838.000 millions last year. Operating revenue
during this period increased 25.08% to Rs.111951.200 millions while operating
profit increased by 22.42% to Rs.64156.900 millions. The growth in revenues may
be attributed to the performance of the Bank's core income streams: net
interest income (Nil), fee and other income. Nil increased by 31.14% to
Rs.65629.900 millions from Rs.50044.900 millions last year, while fee and other
income increased by 17.39% to Rs.46321.300 millions from Rs.39457.800 millions
last year. Nil increased by 31.14% as a result of healthy growth of both assets
and low-cost Current Account and Savings Bank (CASA) deposits, on a daily
average basis. During the year, total earning assets, on a daily average basis,
rose 34.70% to Rs.1795730 millions from Rs.1333090 millions last year. A 32.81
% growth of low-cost CASA deposits, on a daily average basis, from Rs.448390 millions last year to Rs.595510
millions, helped the Bank contain funding costs, which had risen in the last
quarter of the year due to the hardening of interest rates on term deposits.
Other income comprising fees, trading profit and miscellaneous income
also rose 17.39% to Rs.46321.300 millions in 2010-11 from 539457.800 millions
last year. Fee income constituted 33.86% of the operating revenue of the Bank
and rose 29.59% to Rs.37903.700 millions from Rs.29249.600 millions last year.
The Bank earns fee income from a diverse set of products and businesses such as
client based merchant foreign exchange trade, service charges from account
maintenance, transaction banking including cash management services,
syndication and placement fees, processing fees from loans and commission on
non-funded products such as letters of credit and bank guarantees, inter-change fees on ATM-sharing
arrangements and fee income from the distribution of third-party personal
investment products. During the year, proprietary trading profits fell 39.57%
to Rs.4969.700 millions from Rs.8223.800 millions last year, primarily due to
adverse market conditions in the debt and equity markets. Miscellaneous income
was buoyant, rising 73.75% mainly due to strong recoveries of loans and
derivative receivables written-off in previous years. During the year, such
recoveries amounted to Rs.3252.200 millions compared to Rs.1744.300 millions
last year.
During the year, the operating revenue of the Bank increased 25.08% to
Rs.111951.200 millions from Rs.89502.700 millions last year. The core income
streams (Nil, fee and miscellaneous income) constituted 95.56% of the operating
revenue, reflecting the stability and sustainability of the Bank's earnings.
Operating expenses increased by 28.84% to Rs.47794.300 millions from
Rs.37097.200 millions last year, on the back of the continuing growth of the
Bank's network and infrastructure required for supporting existing and new
businesses. During the year, the Cost: Income ratio was 42.69% compared to
41.45% last year.
During the year, the operating profit of the Bank increased 22.42% to Rs.64156.900
millions from Rs.52405.500 millions last year. During this period, provisions
(excluding provisions for tax) charged to the Profit and Loss account were
Rs.12800.300 millions compared to Rs.13891.900 millions last year. Of this,
provisions for loan losses were Rs.9551.200 millions compared to Rs.13570.400
millions last year, while the provision for standard assets was Rs.1661.600
millions. The Bank accelerated its provisioning requirements in some portfolios
as a measure of prudence, increasing the overall provision coverage. The Bank
also provided Rs.150.600 millions compared to Rs.564.700 millions last year
against restructured assets. During 2010-11, the Bank restructured loans of
Rs.404 millions, significantly lower than Rs.16330 millions last year. The Bank
continued to maintain a generally healthy asset-quality with a ratio of Gross
NPAs to gross customer assets of 1.01% compared to 1.13% last year and a Net
NPA ratio (percentage of Net NPAs as percentage of net customer assets) of
0.26% compared to 0.36% last year. With higher levels of provisions, built over
and above regulatory norms during the year, the Bank has further improved its
provision-coverage to 80.90% (after considering prudential write-offs) from
72.38% last year.
Due to a consistent trajectory of core earnings, there has been an
all-round improvement in various financial metrics. The Return on Equity (RoE)
improved to 20.13% from 19.89% last year. Basic Earnings Per Share (EPS) rose
to Rs.82.95 from Rs.65.78 last year, while the Diluted Earnings Per Share was
Rs.81.61 compared to Rs.64.31 last year. The Book Value Per Share increased
from Rs.395.99 on 31 March, 2010 to Rs.462.77 on 31 March, 2011, while Return
on Assets (RoA) improved to 1.68% from 1.67% last year. Employee productivity
has also improved with Profit per Employee increasing to Rs.14.35 lacs from
Rs.11.63' lacs last year and Business per Employee increasing to Rs.136.600
millions from Rs.111.100 millions last year. Hardening of interest rates on
Term Deposits in the final quarter of the year pushed up the cost of funds,
compressing the Net interest Margin by 10 basis points of the year to 3.65%
from 3.75% last year. The quarterly NIMs during the year were as follows: 3.71%
in Q1, 3.68% in Q2, 3.81% in Q3 and 3.44% in Q4.
The total assets of the Bank were Rs.2427130 millions, rising 34.36%
from Rs.1806480 millions last year. As on 31 March, 2011, total deposits stood
at Rs.1892380 millions against Rs.141,300 millions last year, a growth of
33.93%. Low-cost demand deposits: Current Accounts and Savings Bank (CASA)
deposits were Rs.777670 millions as on 31 March, 2011 against Rs.660300
millions last year, constituting 41.10% of total deposits as compared to a
proportion of 46.73% last year. At the end of March 2011, Savings Bank deposits
increased by 20.64% toRs.408500 millions, while current account deposits
increased by 14.76% toRs.369170 millions. During 2010-11, the percentage share
of CASA in total deposits, on a daily average basis, was 39.40% compared to
40.39% last year. On a daily average basis, Savings Bank deposits increased by
36.03% to Rs.360720 millions, while Current Account deposits increased by
28.15% to Rs.234790 millions. During the year, total advances increased by
36.48% to Rs.1424080 millions. Of this, corporate advances (comprising large,
infrastructure and mid-corporate accounts) grew 44.60% toRs.759220 millions.
During this period, advances to the SME segment increased by 17.17% to
Rs.214060 millions, while agricultural lending (including lending to
microfinance) stood at Rs.173200 millions, increasing 35.88% over the last
year. Retail loans increased 33.32% to Rs.277590 millions. The total
investments of the Bank increased 28.61 % to Rs.719920 millions. Investments in
government and approved securities, mainly held to meet the Bank's SLR
requirement, increased 29.25% to Rs.441980 millions. Other investments,
including corporate debt securities, increased 27.62% to Rs.277940 millions. As
on 31 March, 2011, the total assets of the Bank's overseas branches stood
atRs.222450 millions constituting 9.16% of the Bank's total assets.
As a conscious strategy of building a network of branches and ATMs with
effective penetration, the Bank continued to enlarge its geographical coverage
of centres with potential for growth, especially in the areas with potential
for lowcost CASA deposits, lending to retail, agriculture and SME segments and
the distribution of third party products. During the year, 407 new branches were added to the Bank's network
taking the total number of branches and extension counters (ECs) to 1,390. Of
"these, 564 branches/ECs are in semi-urban and rural areas and 826
branches/ECs are in metropolitan and urban areas. The Bank is present in all
states and
CAPITAL AND RESERVES
The Eiank is well capitalised at present with an overall Capital
Adequacy Ratio (CAR) of 12.65% at the end of the year, well above the benchmark
requirement of 9% stipulated by Reserve Bank of India. Of this, Tier I CAR was
9.41% against 11.18% a year earlier, while the Tier II CAR was at 3.24% against
4.62% a year earlier.
During the year , 5,371,724 equity shares were allotted to employees of
the Bank pursuant to the exercise of options under its Employee Stock Option
Scheme. The paid-up capital of the Bank as on 31 March, 2011 rose to
Rs.4105.500 millions from Rs.4051.700 millions as on 31 March, 2010.
The Bank's shares are listed on the NSE and the BSE. The GDRs issued by
the Bank are listed on the London Stock Exchange (LSE). The Bonds issued by the
Bank under the MTN programme are listed on the Singapore Stock Exchange. The
listing fees relating to all stock exchanges for the current year have been
paid. With effect from 26 March, 2001, the shares of the Sank have been
included and traded in the BSE's Group 'A' stocks. With effect from 27 March,
2009, the Bank's shares have been included and traded as part of the main NIFTY
Index of the NSE. Earlier, the shares of the Bank were part of the NIFTY Junior
Index of the NSE.
SUBSIDIARIES
The Bank has set up six wholly-owned subsidiaries: Axis Securities and Sales
Limited, Axis Private Equity Limited, Axis Trustee Services Limited, Axis Asset
Management Company Limited, Axis Mutual Fund Trustee Limited and Axis U.K.
Limited
Axis Securities and Sales Limited is primarily in the business of
marketing of credit cards and retail asset products as well as retail broking.
The objective of this subsidiary is to build a specialised force of sales
personnel and optimise operational efficiency by providing greater control over
the sales functions, as compared to a Direct Sales Agent (DSA) model, as well
as undertake retail broking business. Axis Private Equity Limited, primarily
carries on the activities of managing equity investments and provides venture
capital support to businesses. Axis Trustee Services Limited is engaged in
trusteeship activities (e.g. acting as debenture trustee and as trustee to
various securitisation trusts). Axis Asset Management Company Limited Primarily
undertakes theactivities of managing a mutual fund business and the Axis Mutual
Fund Trustee Limited was set up to act as the trustee for the mutual fund
business. On 7 March, 2011, the Bank has incorporated a new subsidiary namely
Axis U.K. Limited as a private limited company registered in the United Kingdom
(UK) with the main purpose of filing an application with Financial Services
Authority (FSA), UK for a banking license in the UK and for the creation of
necessary infrastructure for the subsidiary to commence banking business in the
UK. As on 31 March, 2011, Axis U.K. Limited had not commenced operations.
PROPOSED ACQUISITION OF ENAM SECURITIES PRIVATE LIMITED BY AXIS
SECURITIES AND SALES LIMITED
At their meetings held on 17 November, 2010, the Board of Directors of
the Bank, Enam Securities Private Limited (ESPL) and Axis Securities and Sales
Limited (ASSL), a wholly-owned subsidiary of the Bank, approved the acquisition
of certain businesses undertaken by ESPL directly and through its wholly owned
subsidiaries, by ASSL by way of a demerger. It is envisaged that these
businesses will be transferred to ASSL, pursuant to a Scheme of Arrangement, as
may be approved by . the relevant High Courts under Sections 391 to 394 and
other relevant provisions of the Companies Act, 1956 and subject to receipt of
necessary requisite approvals. The appointed date for the purpose of the
Demerger under the Scheme shall be 1 April, 2010. The valuation of ESPL
business was assessed at Rs.20670 millions in consideration for the demerger,
the Bank will issue shares in the ratio of 5.7 equity shares of the Bank (aggregating
13,782,600 equity shares) of the face value of Rs.10 for every 1 equity
share (aggregating 2,418,000 equity shares) of Rs.10 each held by shareholders
of ESPL.
MANAGEMENT
DISCUSSION AND ANALYSIS:
MACRO-ECONOMIC
ENVIRONMENT
The Indian economy
has emerged rapidly from the slowdown caused by the global financial crisis of
2007-09 and remains one of the fastest growing economies of the world. After
dipping to 6.8% in 2008-09, GDP growth had recovered sharply 1 to 8% and is
projected to remain above this level in 2010-11. Economic and financial events
over the year, however, have increased concerns about the sustainability of the
growth momentum.
On the global
front, although some of the developed economies seemed to have recovered
quickly in the latter half of 2010, they now face growing headwinds, which will
probably lead to a moderation of growth in the latter half of 2011. Europe's
sovereign debt burden continues to remain high on investors' minds, despite the
establishment of the European Financial Stability Facility and the fragile
fiscal situation of 'peripheral' Europe will cast a shadow on the relatively
stronger core'. The
high inflation,
fiscal stress and the current account deficit. The impact of each of these is
likely to be felt with varying intensity during the course of 2011-12. High and
persisting inflation has emerged as a significant risk factor in sustaining
The second stress
point has been a high fiscal deficit, which had increased in the two previous
years as a result of the fiscal stimulus introduced to counter the effects of
the financial crisis. Persisting high fiscal deficits have the effect of
increasing interest rates, due to the consequent market borrowings by the
Government, thereby squeezing private investments. The Budget for 2011-12 has
attempted to restrain the deficit, in line with the earlier stated intention of
adhering to the Fiscal Responsibility and Budget Management agreement (FRBM).
The third concern
was a high current account deficit, particularly in the context of weakening
capital flows, which have hitherto managed to compensate the rising trade
deficit. The current account deficit was a manifestation of strong domestic
demand (which fuelled imports) and global weakness (which kept export
performance moderate). his pressure has abated somewhat during the past few
months, with rising exports and slowing (non-oil) imports. However, a strong rebound in
Although capital
inflows have remained strong,, there have also been large outflows from
The banking
sector, which remains the primary channel of financial intermediation, has seen
a slowdown in deposit growth in 2010-11, due to multiple factors. Public holding
of cash increased sharply in the early part of the year and has subsequently
remained high. As highlighted earlier, net foreign funds inflows have also
remained relatively subdued, with the large portfolio inflows early in the year
being balanced by capital outflows and the high merchandise trade deficit. A
third factor was an unusually large accretion of central Government surpluses,
partially due to the telecom 3G auctions, which had remained sequestered with
the RBI over much of the year.
The Reserve Bank
of India (RBI) has sought to contain inflation and temper inflationary
expectations with a gradual and calibrated monetary policy tightening,
beginning in early 2010. The initial intention was moving from an accommodative
phase into normalisation, but thereafter changed into a tightening phase with
confidence about growth impulses remaining robust and concerns about persisting
high inflation. Combined with the tight liquidity conditions, this has resulted
in a ' much larger increase in banks' cost of funds. Consequently, consistent
with the desired transmission of policy signals, banks have progressively
increased their lending rates.
The higher cost of
funds for borrowers is beginning to have an effect, although it is still too
early to spot definitive trends given the presumed lags in monetary policy
transmission. Industrial growth has slowed, not just because of statistical base effects, but even in
seasonally adjusted month on month terms. There are reports of increasing
automobile and housing inventories.
PROSPECTS FOR
FISCAL 2012
The fundamental
drivers of
Global economic
and financial conditions can be expected to remain adverse for some time,
particularly in the aftermath of
In
Increasing
savings, high interest rates, an expected lower rise in currency driven
by lower food prices, are likely to help deposits to grow stronger in fiscal
2012. However, in light of the inflationary pressures and rising interest
rates, there is a likelihood that the credit growth momentum might slow in
2011-12.
OVERVIEW OF
FINANCIAL AND BUSINESS PERFORMANCE
During 2010-11,
the Bank continued to grow its key businesses and revenues. Having laid down
its key business objectives and a common vision for its employees, it took
several steps in fulfilling these goals. The Bank continued to derive benefit
from its corporate relationships and retail liabilities franchise as well as
build upon its liabilities franchise as well as build upon its SME, consumer
lending, agriculture and rural banking businesses. The Bank focused on
strengthening its retail risk management capabilities, sharpening risk appetite
in the SME business and filling product gaps in both corporate as well as
retail businesses. During the year, the Bank partnered with Max New York Life
for marketing its life insurance products and also launched online broking
through its subsidiary, Axis Securities and Sales Limited
The Bank undertook
a significant organisational restructuring initiative during the year,
replacing four erstwhile Zones with twenty six Circles with a view to providing
closer and more focused business and operations support to branches on the
ground. Several other initiatives taken by the Bank during the year are
outlined below.
§
A consumer strategy for developing consumer
insights through customer research.
§
Leadership development programs aimed at providing
growth opportunities to employees.
§
Review of processes for delivering superior quality
of services to customers.
The Bank's
Corporate Office has moved to its own premises, Axis House, which houses all
corporate office functions under one roof and is designed to the highest
specifications of environmental friendliness.
BUSINESS OVERVIEW
An overview of
various business segments along with the performance during 2010-11 and their
future strategies is presented below.
RETAIL BANKING
Retail banking is
one of the key drivers of the Bank's growth strategy and encompasses a wide
range of products that are delivered through multiple channels to customers who
are offered a complete suite of products across deposits, loans, investment
solutions and cards.
RETAIL DEPOSITS
The Bank has
focused on increasing its retail deposit base, particularly demand deposits.
Within this category, Savings Bank deposits have grown at a Compounded Annual
Growth Rate (CAGR) of 38% over the last five years. Savings Bank deposits grew
to Rs.408500 millions on 31 March, 2011 from Rs.338620 millions as on 31 March,
2010 registering a growth of 21%. On a daily average basis, Savings Bank
deposits grew by 36% to Rs.360720 millions over the preceding year. Retail term
deposits (defined as term deposits uptoRs.50 millions) grew by 25% from
Rs.268480 millions on 31 March, 2010 to Rs.334570 millions on 31 March, 2011.
RETAIL ASSETS
The Retail Assets
portfolio of the Bank rose from Rs.208210 millions at the end of FY 2010 to
Rs.277590 millions on 31 March, 2011, registering a 33% growth. Retail assets
constituted 19% of the Bank's total loan portfolio on 31 March, 2011 and has a
large proportion of secured assets in the form of residential mortgages and
auto loans. These portfolios comprise 79% of the total retail assets portfolio.
During the year, the Bank focused on strengthening its retail risk management
capabilities. Credit risk on the retail loans portfolio continued to improve
through the year as a result of these initiatives. The gross NPA ratio in
retail assets has improved to 1.49% on 31 March, 2011 from 1.86% last year.
Over the last two years, unsecured personal loans have witnessed a slowdown
across the industry and the Bank has also witnessed a modest growth in this
segment. With prospects of an improvement in the risk environment, the Bank is
planning to develop a prudent strategy in the coming year to re-enter the market to offer unsecured
loans. The focus of the Bank, however, continues to be on the secured loan
segment, including housing loans and auto loans.
INVESTMENT PRODUCTS
The distribution
of third party products is a well-established business for the Bank, with an
emphasis upon mutual funds and Bancassurance. During the year, the Bank tied up
with Max New York Life for distribution of life insurance products. A number of
new processes like 100% welcome calling and Product Suitability Matrix have
been implemented to ensure a high quality sales process for the life insurance
business. During the year, the Bank has been adjudged the Best Mutual Fund
distributor for the year 2010 (Bank Distributor Category) in the recently
concluded Wealth Forum Advisor Awards 2010. Assets under Management (AUM) of
the Mutual Fund of the Bank have witnessed a 41 % growth over the last year
with the customer base for mutual fund products of the Bank growing by 31 %.
The Bank launched a perpetual SIP campaign titled 'Sleep In Peace' which has
resulted in a substantial increase in enrolment of new SIPs during the year. The
Bank has entered into an arrangement with Axis Securities and Sales Limited -
ASSL (a 100% subsidiary of the Bank) to provide Axis Direct, an Online Trading
platform, to its customers.
CARD PRODUCTS
The cards business
of the Bank comprises three product types - prepaid cards (pay before), debit
cards (pay now), and credit cards (pay later). The Bank has a dominant market
leadership position in prepaid cards. As of 31 March, 2011, the Bank has a
prepaid card base of approximately 3.4 million dominated by payroll and gift
cards Foreign currency denominated travel prepaid cards is an extremely popular
offering of the Bank. The Bank is a market leader in this business with a sales
volume of USD 661 million in 2010-11 and is well positioned to benefit from the
growing opportunities for such cards. The Bank has a base of approximately 10
million debit cards as on 31 March, 2011, which places it among the leading
players in this business. With increasing merchant spends on debit cards, the
Bank plans to continue to invest in product differentiation and feature
enhancement of its debit card products for individuals and small businesses in
the year ahead. The Bank also offers credit cards, with a portfolio of
approximately 6.33 lac credit cards in circulation as of 31 March, 2011. The
Bank proposes to build the requisite scale in this business, while containing
delinquencies and expenses incurred in operations, by leveraging its existing
customer base.
PREMIUM OFFERINGS
The Bank launched
the private banking business (named 'Privee') in the domestic market in
September 2009 to cater to ultra affluent individuals and families by offering
them unique investment opportunities. Axis Bank Privee offers its client access
to a wide array of end-to-end custom-tailored financial solutions including,
but not limited to banking solutions, investment solutions and lending
solutions. Axis Bank Privee offers sophisticated investment and advisory
services to clients who entrust the Bank with Assets under Management (AUM) of more
than Rs.2 millions. Privee is presently offered in seven cities in
The Bank launched
Axis Bank Wealth in 2008-09 targeting customer with a total relationship value
of between Rs.3.000 millions and Rs.20.000 millions. The value proposition aims
at delivering a 'one Bank' experience to clients and is positioned as a
holistic solution to clients across their banking, investment and asset
requirements. The proposition is delivered to clients through wealth managers
and service relationship managers at various branches.
ALTERNATE CHANNELS
In 2010-11, the
Bank added 1,977 ATMs to reach 6,270 ATMs as of 31 March, 2011 against 4,293
ATMs as of 31 March, 2010. The Bank has emerged as a pioneer in transaction-based
pricing model in total ATM outsourcing which envisages no capital expenditure
for the Bank. Under this model, payment is on a purely pay-per-use model for
the Bank's customer transactions and a revenue sharing with the service
provider (called as Independent ATM Deployer (IAD)) for other bank
transactions. Along with the ATM network, other channels such as internet
banking, mobile banking and phone banking, have grown well and a strong
architecture of alternate channels has been created, providing higher levels of
convenience and service quality to customers. During the year, the Bank
launched several innovative products to enhance the usage of self-service
channels such as full-service mobile banking, mobile refills through internet
and mobile phone, mobile-based funds transfer through IMPS (a service initiated
by NPCI), funds transfer through IMT (where the beneficiary can withdraw funds
through an ATM without the use of a card), Bunch Note Acceptor (BNA) machines
for instant credit in case of cash deposit and Virtual Cards which allow
customers to create a one-time usage electronic virtual card by debiting their
accounts. All these measures will enhance customer convenience and servicing
quality.'
OPERATIONS
The business model
of the Bank has separated production and distribution functions within the
Bank, with transaction processing and customer databases becoming increasingly
centralised and product sales and customer service being the primary function
of branches. The separation of functions has helped in reducing transaction
costs, in addition to ensuring streamlined operations. Operational processes
for delivery of products and services were constantly refined during the year,
from the perspective of implementation of best practices, risk identification
and containment. Operational instructions were issued on a continual basis and
efforts were made to introduce risk-free working at branches.
RETAIL BANKING
OPERATIONS
The oversight function
in the Bank has been strengthened through centralised monitoring of the working
of the branches in respect of KYC, AML, other regulatory compliances, cash
management, clearing operations and internal housekeeping resulting in superior
compliance and higher operational efficiencies. Control functions were
reinforced through operational guidelines issued to branches and close
supervision by 26 Circle Retail Banking Operations Officers. High-end note
sorting machines have been provided to 286 cash intensive branches and 13 Cash
Point Counters (CPCs) had been set up in 8 major cities to ensure enhanced
customer service and better handling of cash. Two new Currency Chests were
operationalised at Hubli and
WHOLESALE BANKING
OPERATIONS
Wholesale Banking
Operations (WBO) is responsible for providing best in class services to
non-retail customers of the Bank through the deployment of skilled manpower and
appropriate technology. The WBO group comprises four verticals - Corporate
Banking Operations, Trade and Forex Operations, Treasury Operations and
Centralised Collections and Payments Hub.
Corporate Banking
Operations (CBO) involves delivery, control, monitoring and administration of
credit facilities of large and mid-corporate and SME customers. It also
processes domestic trade finance and channel finance transactions. CBO operates
through Credit Management Centres (CMC) iocated at 8 major cities, while credit
operations at Tier II cities are adrninistered through 50 Mini-Credit
Management Centres. At Tier III cities, corporate credit services including
domestic trade finance operations are provided through dedicated officials at
credit intensive centres. With a view to offer enhanced customer services and
build direct interface with the customers, three Corporate Banking Branches
(CBBs) have been opened in Chennai, Kolkata and Mumbai. The forex operations
team at branches is managed by the Trade Finance Centre, ensuring better
customer services as well as meticulous compliance of regulatory and internal
control guidelines.
CONTINGENT LIABILITIES
(Rs. in millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
Claims against the bank not acknowledged as debts |
2344.295 |
2712.325 |
|
Liability for partly paid investments |
0.000 |
0.000 |
|
Liability on account of outstanding forward exchange and derivative contracts : |
|
|
|
a) Forward Contracts |
1940496939 |
1265355295 |
|
b) Interest Rate Swaps, Currency Swaps, Forward Rate Agreement and Interest Rate Futures |
1647016628 |
1317574459 |
|
c) Foreign Currency Options |
141258629 |
56162649 |
|
Total |
3728772196 |
2639092403 |
|
|
|
|
|
Guarantees given on behalf of constituents : |
|
|
|
- In |
464332544 |
332315553 |
|
- Outside |
76278216 |
41767220 |
|
Acceptances, endorsements and other obligations |
249276960 |
164634485 |
|
Other items for which the bank is contingently liable |
18969073 |
2290037 |
|
Grand Total |
4539973284 |
3182812023 |
Unaudited
financial results for the nine months ended 31.12.2011
[Rs. in millions]
|
PARTICULARS |
For The Quarter Ended 31.12.2011 |
For The Quarter Ended 30.09.2011 |
For The Nine Months Ended 31.12.2011 |
|
|
(Reviewed) |
(Reviewed) |
(Reviewed) |
|
1. Interest earned (a)+(b)+(c)+(d) |
577.696 |
527.597 |
1593.433 |
|
(a) Interest/discount on advances/bills |
396.356 |
368.782 |
1112.148 |
|
(b) Income on Investments |
177.523 |
154.864 |
465.671 |
|
(c) Interest on balances with Reserve Bank of |
1.547 |
1.117 |
7.455 |
|
(d)
Others |
2.270 |
2.834 |
8.159 |
|
2. Other Income (Refer note 2) |
142.981 |
123.492 |
383.260 |
|
3. TOTAL INCOME (1+2) |
720.677 |
651.089 |
1976.693 |
|
4. Interest Expended |
363.666 |
326.871 |
1006.267 |
|
5. Operating expenses |
151.091 |
146.654 |
431.094 |
|
(i) Employees cost |
54.204 |
49.862 |
155.062 |
|
(ii) Other operating expenses |
96.887 |
96.792 |
276.032 |
|
6. TOTAL
EXPENDITURE (4) + (5) (Excluding Provisions and Contingencies) |
514.757 |
473.525 |
1437.361 |
|
7.
OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies) |
205.920 |
177.564 |
539.332 |
|
8.
Provisions (other than tax) and Contingencies (Net) |
42.233 |
40.558 |
100.375 |
|
9.
Exceptional Items |
- |
- |
- |
|
10.
Profit from Ordinary Activities before Tax (7-8-9) |
163.687 |
137.006 |
438.957 |
|
11. Tax
expense |
53.460 |
44.974 |
142.463 |
|
12. Net Profit from Ordinary Activities after Tax
(10-11) |
110.227 |
92.032 |
296.494 |
|
13.
Extraordinary Items (net of tax expense) |
- |
- |
- |
|
14. Net
Profit for the period (12-13) |
110.227 |
92.032 |
296.494 |
|
15. Paid-up equity share capital (Face value
Rs. 10/- per share) |
41.257 |
41.233 |
41.257 |
|
16. Reserves excluding revaluation reserves |
- |
- |
- |
|
17.
Analytical Ratios |
|
|
|
|
(i) Percentage of Shares held by Government of
India |
NIL |
NIL |
NIL |
|
(ii) Capital Adequacy Ratio |
11.78% |
11.35% |
11.78% |
|
(iii)
Earnings per Share (EPS) for the period/year (before and after extraordinary
items) -Basic -Diluted |
26.73 26.53 |
22.33 22.13 |
71.98 71.42 |
|
(iv) NPA
Ratios |
|
|
|
|
(a)
Amount of Gross Non Performing assets |
191.451 |
174.380 |
191.451 |
|
(b)
Amount of Net Non Performing assets |
68.293 |
54.877 |
68.293 |
|
(c) % of
Gross NPAs |
1.10 |
1.08 |
1.10 |
|
(d) % of
Net NPAs |
0.39 |
0.34 |
0.39 |
|
(v)
Return on Assets (annualized) |
1.68 |
1.52 |
1.61 |
|
18. Public Shareholding # -Number of shares -Percentage of shareholding |
221,268,827 53.63% |
214,692,854 52.07% |
221,268,827 53.63% |
|
19.
Promoters and promoter group shareholding# Pledged/Encumbered - Number of shares |
NIL |
NIL |
NIL |
|
-Percentage of shares (as a % of the total
shareholding of promoter and promoter group) -Percentage of shares (as a % of the total
share capital) |
|
|
|
|
Non
Encumbered -Number
of shares -Percentage
of shares (as a % of the total shareholding of promoter and promoter group) -Percentage
of shares (as a % of the total share capital) |
154,905,823 100.00% 37.55% |
153,446,231 100.00% 37.21% |
154,905,823 100.00% 37.55% |
# excludes
shares held by custodian against which Global Depositary Receipts have been
issued.
1. Statement of assets and liabilities as on
31.12.2011 is given below
[Rs. in millions]
|
Particulars |
As on 31.12.2011 |
|
|
(Reviewed) |
|
CAPITAL
AND LIABILITIES |
|
|
Capital |
41.257 |
|
Reserves
and Surplus |
2172.189 |
|
Deposits |
20869.303 |
|
Borrowings |
3076.658 |
|
Other
Liabilities and Provisions |
771.601 |
|
TOTAL |
26931.008 |
|
|
|
|
ASSETS |
|
|
Cash and
Balances with Reserve Bank of |
1666.216 |
|
Balances
with Banks and Money at Call and Short Notice |
291.543 |
|
Investments |
9026.328 |
|
Advances |
14873.916 |
|
Fixed
Assets |
225.460 |
|
Other
Assets |
847.545 |
|
TOTAL |
26931.008 |
2. 'Other
income' includes gains from securities transactions, commission earned from
guarantees/letters of credit, fees earned from providing services to customers,
selling of third party products and ATM sharing fees.
3. The
Bank is awaiting approval of the RBI for the modified Scheme of Arrangement in
respect of the acquisition of certain business undertaken by Enam Securities
Private Limited (ESPL) by the Bank's wholly owned subsidiary, Axis Securities
and Sales Limited (ASSL), by way of a demerger with effect from 1st
April, 2010. Pending receipt of approval from RBI and other regulatory
authorities, no effect of the acquisition has been given in the above results.
4. During
the quarter ended 31st March, 2011, the Bank had revised with
retrospective effect its estimate of lease term in the case of assets taken on
operating leases to include the secondary period of the lease as against the
primary lease period as considered earlier. Had the effect of this change been
given in the results for the quarter and nine months ended 31st December,
2010, operating expenses for the quarter and nine months ended 31st
December, 2010 would have been higher by Rs.250.800 millions and Rs.691.100
millions respectively and the profit before tax for the quarter and nine months
would have been lower by the same amount.
5.
Disclosure about investor complaints:
|
Complaints at the beginning of the
quarter |
Received during the quarter |
Disposed off during the quarter |
Unresolved as on 31.12.2011 |
|
Nil |
282 |
282 |
- |
6. The
above results have been approved by the Board of Directors of the Bank at its
meeting held at Mumbai today.
7. These
results for the periods ended 31st December, 2011 have been
subjected to a "Limited Review" by the statutory auditors of the Bank.
8.
Previous period figures have been regrouped and reclassified, where necessary,
to make them comparable with current period figures.
Segment Results
[Rs. in millions]
|
|
Particulars |
For The Quarter Ended 31.12.2011 |
For The Quarter Ended 30.09.2011 |
For The Nine Months Ended 31.12.2011 |
|
|
|
(Reviewed) |
(Reviewed) |
(Reviewed) |
|
1 A b c d |
Segment
Revenue Treasury Corporate/Wholesale
Banking Retail
Banking Other
Banking Business Total |
945.988 432.925 349.944 9.876 1738.733 |
850.207 418.354 313.639 7.738 1589.938 |
2610.506 1254.851 937.422 23.463 4826.242 |
|
|
Less:
Inter segment revenue |
1018.056 |
938.849 |
2849.549 |
|
|
Income
from Operations |
720.677 |
651.089 |
1976.693 |
|
2 a b c d 3 |
Segment
Results After Provisions & Before Tax Treasury Corporate/Wholesale
Banking Retail
Banking Other
Banking Business Total
Profit Before Tax |
31.843 120.721 3.537 7.586 163.687 |
13.081 121.052 (2.862) 5.735 137.006 |
53.736 367.357 0.116 17.748 438.957 |
|
a b c d e |
Capital
Employed Treasury Corporate/Wholesale
Banking Retail
Banking Other
Banking Business Unallocated Total |
391.135 5458.207 (3758.491) 10.036 112.559 2213.446 |
393.315 5476.638 (3872.824) 8.786 93.032 2098.947 |
391.135 5458.207 (3758.491) 10.036 112.559 2213.446 |
Note: Previous period figures have been regrouped and
reclassified, where necessary, to make them comparable with current period
figures.
WEBSITE DETAILS
BUSINESS DESCRIPTION
Subject is an India-based bank. The Bank operates in four segments: treasury operation, which includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding; retail banking, which includes lending to individuals/small businesses subject to the orientation, product and granularity criterion, and also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and nonresident Indian services (NRI); corporate/wholesale banking, which includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services, and other banking business, which includes para banking activities. For the fiscal year ended 31 March 2011, Subject's interest income increased 30% to RS151.55B. Net interest income after LLP increased 46% to RS52.86B. Net income increased 35% to RS33.4B. Net interest income reflect an increase in interest income on bills, increased income on investments and higher other inter-bank funds income and decrease in loan loss provisions. Net income also reflects an increase in other income.
Subject is principally engaged in offering banking and
financial services to its customers. Axis Bank offers credit services to micro,
small and medium enterprises. As on March 31, 2011, the bank had a network of
1390 branches and extension counters and 6,270 ATMs. Geographically, it has
operations in all states and
Subject (Axis Bank) offers a broad range of retail and
corporate banking products and services in
Provision of a wide range of banking services Commercial banks and trust companies (accepting deposits) chartered under the National Bank Act. Commercial Banking
BOARD OF DIRECTORS:
Dr. Adarsh Kishore
Dr. Adarsh Kishore has been appointed as Non-Executive Chairman
of the Board of Subject He is former Finance Secretary, Government of India and
former Executive Director, International Monetary Fund representing
Mrs. Rama Bijapurkar
Mrs. Rama Bijapurkar is Independent Director of Subject She has an Honours graduate degree in Science and also holds a Post Graduate Diploma in Management from IIM, Ahmedabad. She is an Independent Management Consultant, specialising in Market Strategy and also a visiting faculty at IIM, Ahmedabad.
Dr. R. H. Patil
Dr. R. H. Patil is Independent Director of Subject He has a
Masters degree in Economics and also a Doctorate in International Economics. He
has been a Director of the Bank since 17th January, 2005. He is presently the
Chairman of the Clearing Corporation of India Limited. Dr. Patil, Independent
Director of China Special Steel Holdings Company Limited, was the first
Managing Director of National Stock Exchange of India and has also worked for
seven years with Reserve Bank of
Mr. K. N. Prithviraj
Mr. K. N. Prithviraj is Director - Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India of Subject He was appointed as an Additional Director of the Bank w.e.f. 9th January, 2008. He was the former Chairman and Managing Director of the Oriental Bank of Commerce and is presently the Administrator of the Specified Undertaking of the Unit Trust of India. He is a post graduate in Economics. He is a member of the Remuneration and Nomination Committee and the Share holders/Investors Grievance Committee of the Board.
Mrs. Shikha Sharma
Mrs. Shikha Sharma was appointed as Chief Executive Officer, Managing Director, Whole Time Director of Subject with effect from June 01, 2009. In a career spanning 29 years, Shikha Sharma has had a wide exposure across the entire spectrum of financial services and has held several leadership positions across various market businesses. In 2000 she became the Managing Director and founder CEO of ICICI Prudential Life Insurance Company.
Mr. M. V. Subbiah
Mr. M. V. Subbiah is Independent Director of AXIS Bank
Limited He serves as a Director of Lakshmi Machine Works Limited, ICI India
Limited, Chennai Wellingdon Corporate Foundation, Chennai Heritage (Section 25
Company), SRF Limited and Parry Enterprises India Limited Partner of Muruguppa
and Sons and Kadamane Estates Company. He is a Trustee of Vellayan Chettiar
Trust, Muna Vena Murugappan Trust, AMM Foundation and India Foundation for the
Arts. He is a Member of Advisory Board of Oracle India Private Limited.
PRESS
RELEASE
20th
January, 2012
AXIS BANK
ANNOUNCES Q3FY12 NET PROFIT OF RS.11020.000 MILLION, UP BY 23.66% YOY, AND 9MFY12
NET PROFIT OF Rs.2,965 CRORES, UP BY 25.19% YOY
Results at a
Glance
Net Profit during Q3FY12 rose to Rs.11020.000 Millions from Rs.8910.000
Millions in Q3FY11, registering a growth of 24% YOY. Net Profit for 9MFY12
stood at Rs.29650.000 Millions, up by 25% from Rs.23680.000 Millions for
9MFY11.
Demand Deposits grew by 32% YOY
to Rs.867560.000 Millions during Q3FY12
from Rs.659310.000 Millions during
Q3FY11, with Savings Bank deposits growing by 21% YOY and Current Account
deposits by 47%.CASA ratio as a result moved up to account for 42% of aggregate
deposits.
The YOY growth in Net Interest Income and Fee Income during Q3FY12 was
23% and 26%respectively. Net Interest Margin during Q3FY12 was 3.75% compared
to 3.81% in Q3FY11 and 3.78% in Q2FY11.
The Bank is well-capitalised with a Capital Adequacy Ratio of 11.78%
(without reckoning 9MFY12 profit, as stipulated by Reserve Bank of India) as at
the end of 9MFY12 compared to 12.46% as at the end of 9MFY11 and 11.35% at the end of Q2FY12. Tier-I capital was 8.25% as at the end of
9MFY12, as against 8.86% at the end of 9MFY11 and 8.48% at the end of Q2FY12. Capital Adequacy
including 9MFY12 profits would have been 13.11% with Tier-I capital ratio of
9.58%.
Financial
Highlights
Net Interest
Income (NII) and Net Interest Margin (NIM)
The Bank continued to extend its presence across the country and at the
end of Q3FY12, had a network of 1,493 domestic branches and extension counters
and 8,324 ATMs situated in 971 cities and towns. During the quarter, the Bank
added 47 branches and 730 ATMs. The daily average balances of Savings Bank
deposits during the quarter grew 19% YOY and those of Current Account deposits
grew 4% YOY. Demand deposits constituted 37% of the aggregate daily average deposits
during Q3FY12, as against 38% in the
previous quarter. At the end of the quarter, Current Account and Savings Bank
deposits together accounted for 42% of the total deposits of the Bank. The Bank
posted a NIM of 3.75% during Q3FY12, compared to 3.81% during Q3FY11 and 3.78%
during Q2FY12.
The Bank’s advances grew 20% YOY from Rs.1235330.000 Millions as on 31st
December 2010 to Rs.148739 Millions as on 31st December 2011 while investments
rose to Rs.902630.000 Millions from Rs.596230.000 Millions over the same
period, registering a growth of 51% YOY. The NII rose 23% YOY to Rs.21400.000
Millions during Q3FY12 from Rs.17330.000 Millions during Q3FY11.
Fee Income
Fee income registered a growth of 26% YOY, rising to Rs.12230.000
Millions during Q3FY12 compared to Rs.9680.000 Millions in Q3FY11, with
contributions from all the major businesses in the Bank. Fee income from Large
and Mid Corporate Credit (including Infrastructure) grew 34% YOY, Retail
banking fees grew 26% YOY, Treasury and Debt Capital Markets fees grew 25% YOY and Agriculture and SME Banking fees grew
13% YOY. Fees in Business Banking grew 15% YOY. Fee income from Equity Capital Markets
(including Trusteeship Services) contracted 12% YOY. Compared to Rs.25590.000
Millions during 9MFY11, fee income during 9MFY12 stood at Rs.34000.000
Millions, up by 33% YOY.
Trading Profits
The Bank generated Rs.1180.000
Millions of trading profits
during Q3FY12, as compared to
Rs.1350.000 Millions during Q3FY11, a
decline of 13% YOY.
The share of trading profits to
operating revenue was 3% in Q3FY12, compared to 5% in Q3FY11.
NPAs and
Restructured Assets
Net NPAs, as a proportion of net customer assets were 0.39% as on 31st
December 2011against 0.34% as on 30th September 2011. Gross NPAs as
a proportion of gross customer
assets stood at 1.10%
as on 31stDecember 2011, compared to 1.09% as on 31st December 2010 and
1.08% as on 30th September 2011. The Bank had provision coverage of
75.28% as on 31st December 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 87.68%.
During the quarter, the Bank added Rs.5350.000 Millions to Gross NPAs.
Recoveries and upgrades of Rs.1210.000 Millions and write-offs of Rs.2430.000
Millions during the quarter resulted in a closing position of Rs.19150.000
Millions of Gross NPAs on 31st December 2011, as against
Rs.17440.000 Millions at the end of September 2011.
The Bank restructured loans aggregating Rs.2950.000 Millions during
Q3FY12. The cumulative value of assets restructured till 31st December 2011,
rose to Rs.27010.000 Millions (1.55% of gross customer assets). 69% of these
loans were restructured upto Q3FY11 and were more than a year old.
The segment-wise break-up
of restructured assets as on 31st
December 2011 is as follows:
|
Large and Mid-Corporate Credit |
75% |
|
SME |
9% |
|
Agri. including Micro finance |
11% |
|
Capital Markets |
5% |
The sector-wise breakup of restructured assets as on 31st December 2011
was as follows:
|
Shipping |
17% |
|
Petroleum |
17% |
|
Textiles |
16% |
|
Micro finance |
8% |
|
Iron and Steel |
5% |
|
Others |
37% |
Investment
Portfolio
The book value of the Banks investment portfolio as on 31st December
2011 was Rs.90,2630.000 Millions, of which, Rs.559190.000 Millions related to
government securities while Rs.343440.000 Millions were invested in other
securities such as corporate bonds, equities, preference shares, mutual funds
etc. 82% of the government securities
have been classified in the HTM category while 96% of the Bonds and Debentures
portfolio have been classified in the AFS category. The distribution of the
investment portfolio in the three categories as well as the modified duration
as on 31st December 2011 in each category was as follows:
|
Category |
Percentage |
Duration* |
|
HFT |
6.19% |
4 years |
|
AFS |
37.38% |
2.9 years |
|
HTM |
56.43% |
5.2 years |
* Excluding mutual funds and equity investment
BUSINESS OVERVIEW
PLACEMENT /
SYNDICATION
The Bank arranged debt aggregating Rs.302970.000 Millions during Q3FY12
rising 45% over Q3FY11. The Bank was assessed as the No.1 Debt Arranger for Calendar Year 2011 by Bloomberg. The bank was
assessed No.2 debt arranger for the half year ended September 2011 by Prime
Database. The Bank also won awards for the “Best Domestic Bank – India 2011”
and “Best Domestic Bond House – India; 2011” from „The Asset Triple A Country
Awards 2011‟ instituted by the Asset Magazine.
The Bank was also adjudged “Bank of the year – India 2011” by the Banker
magazine and also won the award for the “Best Bank in the Private Sector” by
NDTV- Profit.
RETAIL BUSINESS
The number of Savings Bank accounts grew from Rs.9.196 Millions as on
31st December 2010 to Rs.11.397 Millions as on 31st December 2011. Retail
advances grew from Rs.251910.000 Millions as on 31st December 2010 to
Rs.332640.000 Millions as on 31st December 2011, a growth of 32% YOY. Retail
Advances accounted for 22% of the total advances of the Bank as on 31st December 2011. The Bank's International
Debit Card issuance has risen to Rs.11.400 Millions debit cards as on 31st December 2011, as compared to Rs.9.600 Millions debit cards in force as on
31st December 2010. The Bank had over Rs.0.723 Millions credit cards in force
as on 31st December 2011. The Bank offers personal investment products including life insurance
products, general insurance products, online trading accounts and mutual funds of leading manufacturers as
also wealth advisory services and Mohur - gold coins and bars - through select branches.
INTERNATIONAL
BUSINESS
The Bank has seven international
offices - branches at Singapore, Hong
Kong, Dubai (at the DIFC) and Colombo
and representative offices at Shanghai, Dubai and Abu Dhabi which focus on
corporate lending, trade finance, syndication, investment banking, risk
management and liability businesses. The total assets under overseas operations
were USD 5.42 billion as on 31st December 2011, as compared to USD 4.99 billion
as on 31st December 2010, a growth of 9%.
CAPITAL AND
SHAREHOLDERS’ FUNDS
The Shareholders‟ Funds of the Bank were Rs.221340.000 Millions as
on 31st December 2011 growing 19% YOY from Rs.186220.000 Millions as on 31st
December 2010. The Capital Adequacy Ratio (CAR) for the Bank was 11.78%, as on
31st December 2011, compared to 12.46% as on 31st December 2010. The Tier-I
capital adequacy ratio was8.25% as on 31st December 2011, compared to 8.86% as
on 31st December 2010. The profit of 9M for both financial years has not been
reckoned for computation of Tier-I capital, as stipulated by Reserve Bank of
India. If the net profit of Rs.29650.000
Millions for 9MFY12 is included, the total CAR and Tier-I CAR as on 31st December 2011 would have been
13.11% and 9.58% respectively.
(Rs.
In Millions)
|
Financial
Performance |
Q3FY12 |
Q3FY11 |
%Growth |
9MFY12 |
9MFY11 |
%Growth |
|
Net Profit |
11022.700 |
8913.600 |
23.66 |
29649.400 |
23683.800 |
25.19 |
|
EPS
Diluted (?) |
265.300 |
214.400 |
23.74 |
714.200 |
570.400 |
25.21 |
|
|
|
|
|
|
|
|
|
Net
Interest Income |
21403.000 |
17331.200 |
23.49 |
58716.600 |
48619.900 |
20.77 |
|
|
|
|
|
|
|
|
|
Other
Income |
14298.100 |
11477.100 |
24.58 |
38326.000 |
31817.300 |
20.46 |
|
- Fee
Income |
12225.600 |
9676.500 |
26.34 |
34001.800 |
25592.300 |
32.86 |
|
- Trading
Income |
1176.600 |
1347.200 |
(12.66) |
2155.400 |
4388.600 |
(50.89) |
|
- Miscellaneous
Income |
895900 |
453.400 |
97.60 |
2168.800 |
1836.400 |
18.10 |
|
|
|
|
|
|
|
|
|
Operating
Revenue |
35701.100 |
28808.300 |
23.93 |
97042.600 |
80437.200 |
20.64 |
|
Core
Operating Revenue* |
34524.500 |
27461.100 |
25.72 |
94887.200 |
76048.600 |
24.77 |
|
Operating Expenses (incl. depreciation) |
15109.100 |
12223.500 |
23.61 |
43109.400 |
34488.400 |
25.00 |
|
Operating
Profit |
20592.000 |
16584.800 |
24.16 |
53933.200 |
45948.800 |
17.38 |
|
Core
Operating Profit** |
19415.400 |
15237.600 |
27.42 |
51777.800 |
41560.200 |
24.59 |
* Core Operating Revenue =
Operating Revenue - Trading Income
** Core Operating Profit = Operating Profit - Trading Income
(Rs.
In Millions)
|
Condensed
Unconsolidated Balance Sheet |
As on 31st
December '11 |
As on 31st
December '10 |
|
|
|
|
|
CAPITAL AND LIABILITIES |
|
|
|
Capital |
4125.700 |
4099.000 |
|
Reserves and Surplus |
217218.900 |
182125.300 |
|
Deposits |
2086930.300 |
1558105.600 |
|
Borrowings |
307665.800 |
255953.100 |
|
Other Liabilities and Provisions |
77160.100 |
66775.400 |
|
Total |
2693100.800 |
2067058.400 |
|
|
|
|
|
ASSETS |
|
|
|
Cash and Balances with Reserve
Bank of India and Balances with Banks and Money at Call and Short Notice |
195775.900 |
167706.800 |
|
Investments |
902632.800 |
596225.400 |
|
Advances |
1487391.600 |
1235326.900 |
|
Fixed Assets |
22546.000 |
20040.500 |
|
Other Assets |
84754.500 |
47758.800 |
|
Total |
2693100.800 |
2067058.400 |
(Rs.
In Millions)
|
Business Performance |
As on 31st
December '11 |
As on 31st December '10 |
% Growth |
|
Total Deposits |
2086930.000 |
1558110.000 |
33.94 |
|
|
|
|
|
|
Demand Deposits |
867560.000 |
659310.000 |
31.59 |
|
- Savings Bank Deposits |
472970.000 |
391320.000 |
20.86 |
|
- Current Account Deposits |
394590.000 |
267990.000 |
47.24 |
|
Demand Deposits as % of Total
Deposits |
41.57% |
42.31% |
|
|
|
|
|
|
|
Term Deposits |
1219370.000 |
898800.000 |
35.67 |
|
|
|
|
|
|
Demand Deposits on a Cumulative
Daily Average Basis for the quarter |
712040.000 |
628990.000 |
13.20 |
|
Demand Deposits as % Total
Deposits (CDAB basis) for the quarter |
37.42% |
41.29% |
|
|
|
|
|
|
|
Net Advances |
1487390.000 |
1235330.000 |
20.40 |
|
- Large and Mid-Corporate |
840830.000 |
705180.000 |
19.24 |
|
- SME |
206920.000 |
170530.000 |
21.34 |
|
- Agriculture/Micro Finance |
107000.000 |
107720.000 |
-0.67 |
|
- Retail Advances* |
332640.000 |
251900.000 |
32.05 |
|
|
|
|
|
|
Investments |
902630.000 |
596230.000 |
51.39 |
|
|
|
|
|
|
Balance Sheet Size |
2693100.000 |
2067060.000 |
30.29 |
|
|
|
|
|
|
Net NPA as % of Net Customer
Assets |
0.39% |
0.29% |
|
|
Gross NPA as % of Gross Customer
Assets |
1.10% |
1.09% |
|
|
|
|
|
|
|
Equity Capital |
4130.000 |
4100.000 |
0.73 |
|
Shareholders' Funds |
221340.000 |
186220.000 |
18.86 |
|
Capital Adequacy Ratioand |
11.78% |
12.46% |
|
|
- Tier Iand |
8.25% |
8.86% |
|
|
- Tier II |
3.53% |
3.60% |
|
* Retail Advances are defined as loans to individuals other than
Agricultural Credit.
and Total CAR and Tier-I CAR would be 13.11% and 9.58% on inclusion of
9MFY‟12 net profits of Rs.29650.000 Millions
PRESS RELEASE
16.02.2012, 07.59 PM
RBI OK FOR AXIS
BANK-ENAM MERGER LIKELY NEXT WEEK: SOURCE
New Delhi: Fifteen months after the deal was struck, the proposed merger of investment banking and equities businesses of Enam Securities Pvt Ltd with Axis Bank Ltd is set to get the green signal from the Reserve Bank of India, sources told NewsWire18 on Thursday.
"All formalities are complete. All conditions that the RBI had insisted on
have been complied with. The approval from the RBI should come next week,"
one of the sources said.
The RBI approval is the most crucial for the deal--it being a merger of two
financial entities.
RBI had frowned upon Axis's invitation to Enam co-founder and Chairman Vallabh
Bhansali to join the Bank's board.
"It is unlikely that Vallabh will join the board. At least not in the
immediate future," another source said.
The RBI had also felt that Axis had overvalued Enam's businesses in question.
Under the deal, Enam Securities will merge its investment banking,
institutional and retail equities, distribution of financial products, loans
against shares and related businesses with Axis Bank.
Thereafter, Axis will sell the business to its own fully-owned subsidiary Axis
Securities and Sales Limited for 2.74 bln rupees.
In the all share-swap deal, Enam shareholders will get 5.7 shares of Axis Bank
for every share held in Enam, translating into an approximately 3.37%
shareholding in the bank.
The new structure had emerged after another objection raised by RBI—this one
pertaining to Axis bank issuing its own shares to Enam shareholders even though
the business was being acquired by a subsidiary and not the parent itself.
After the RBI clearance, the deal will take another six months to complete with
the parties then needing to approach the capital market regulator and the
Gujarat high court for their approvals.
(Agencies)
Tags: Dainik Jagran news, news on Jagran post, Axis Bank-Enam merger, RBI, Enam co-founder and Chairman Vallabh Bhansali, Gujarat high court
AXIS BANK CUTS ENAM
SECURITIES' BUYOUT DEAL VALUE BY ONE-THIRD TO RS 13.96 BLN
28.04.2012, 07.38 PM IST
New Delhi: India's third largest private sector lender Axis Bank has cut the valuation of the transaction to acquire the equities and investment banking businesses of financial services firm Enam Securities Private Limited by almost one-third of the original deal size to Rs 13.96 billion in view of the prevailing market conditions.
Earlier, in 2010, Axis Bank had valued the businesses at Rs 20.7 billion. The deal was approved by the the Reserve Bank of India on April 25.
"Pursuant to the revised scheme and in consideration for the proposed demerger, Enam shareholders would receive Axis Bank shares in the ratio of 5 shares for every 1 share held in Enam, translating into approximately 2.93% shareholding in Axis Bank," the bank said in a statement Friday.
Axis Bank Managing Director and Chief Executive Officer Shikha Sharma said the bank still requires approval from the high court and expects the deal to be finalized by the October-December quarter of current financial year 2012-13.
Prior to revision in the deal valuation, Enam shareholders were being offered one share of Axis Bank for every 5.7 shares of Enam, which translated into a 3.35% stake in the bank.
Also, now there will not be any board seat for any member of Enam Securities, the statement said, adding that Enam Securities will nominate two directors to the board of Axis Securities Ltd, the broking arm of the private sector lender.
Earlier, ENAM's co-founder and chairman Vallabh Bhansali had been roped in to join the board of Axis Bank, according to media reports. However, the banking regulator had objected to the move.
The bank had submitted a revised deal structure to the RBI in September 2011, the reports added.
The private sector lender will have the right to use the ENAM brand, Sharma told reporters while announcing the bank's January-March quarter financial earnings for fiscal 2011-12 Friday.
Earlier on November 17, 2010, Axis Bank's board had approved the acquisition of Enam Securities' financial services businesses directly and through its subsidiaries.
Axis Bank's fourth quarter (January-March) net profit for fiscal 2011-12 rose 25.2% to Rs 12.77 billion from Rs 10.2 billion in the same quarter a year ago, driven by higher income from interest and investments and fall in provisions.
Shares of Axis Bank Saturday closed at Rs 1,120.65, up 1.58%, on the Bombay Stock Exchange (BSE).
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws, regulations
or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.52.71 |
|
|
1 |
Rs.86.34 |
|
Euro |
1 |
Rs.69.23 |
INFORMATION DETAILS
|
Report Prepared
by : |
NIT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
77 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.