MIRA INFORM REPORT

Report Date :

16.10.2012

IDENTIFICATION DETAILS

Name :	AXIS BANK LIMITED (w.e.f. 30.07.2007)
Formerly Known As :	UTI BANK LIMITED
Registered Office :	Trishul 3^rd Floor, Opposite, Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006 Gujarat
Country :	India
Financials (as on) :	31.03.2012
Date of Incorporation :	03.12.1993
Com. Reg. No.:	04-020769
Capital Investment / Paid-up Capital :	Rs.4132.039 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 :	31738 [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 912000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
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 – June 30, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	ICRA
Rating	AAA (Ties II Bonds)
Rating Explanation	Having the highest degree of safety regarding timely servicing of financial obligation. It carry lowest credit risk.
Date	February 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	Trishul 3^rd Floor, Opposite, Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006 Gujarat, India
Tel. No.:	91-79-26409322
Fax No.:	91-79-26409321
E-Mail :	p.oza@axisbank.com rajendra.swaminarayan@axisbank.com
Website :	http://www.axisbank.com
Corporate Office :	Axis House, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai – 400 025, Maharashtra, India
Tel. No.:	91-22-24252525 / 43252525
Fax No.:	91-22-43251800
Central Office :	131, Maker Tower – F, Cuffe Parade, Colaba, Mumbai – 400 005, Maharashtra, India
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, Andhra Pradesh, India
Tel. No.:	91-40-23420815 to 23420824
Fax No.:	91-40-23420814
List Of Centers:	Located At · Andhra Pradesh · Bihar · Arunachal Pradesh · Assam · Chattisgarh · Dadra & Nagar UT · Daman & Diu UT · Delhi · Goa · Gujarat · Haryana · Karnataka · Kerala · Himachal Pradesh · Jammu Kashmir · Jharkhand · Maharashtra · Madhya Pradesh · Manipur · Meghalaya · Mizoram · Nagaland · Orissa · Pondicherry UT · Punjab · Rajasthan · Sikkim · Tamil Nadu · Uttarakhand · West Bengal · Tripura · Uttar Pradesh Overseas Located At · Singapore · Hong Kong · Dubai · Shanghai · Abu Dhabi · Colombo

DIRECTORS

AS ON 31.03.2012

Name :	Mr. Adarsh Kishore
Designation :	Chairman
Name :	Mrs. Shikha Sharma
Designation:	Managing Director and Chief Executive Officer
Name :	Mrs. Rama Bijapurkar
Designation :	Director
Name :	Mr. K. N. Prithviraj
Designation :	Director
Name :	Mr. V. R. Kaundinya
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. Prasad R. Menon
Designation:	Director
Name :	Mr. R. N. Bhattacharyya
Designation :	Director
Name :	Mr. S. Chatterjee
Designation :	Executive Director
Name :	Mr. A. K. Dasgupta
Designation :	Deputy Managing Director
Name :	Prof. Samir K Barua
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. 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 30.09.2012

Category of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Financial Institutions / Banks	154400792	40.91
Sub Total	154400792	40.91
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	154400792	40.91
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	19949511	5.29
Financial Institutions / Banks	7524524	1.99
Insurance Companies	26747389	7.09
Foreign Institutional Investors	135902364	36.01
Sub Total	190123788	50.37
(2) Non-Institutions
Bodies Corporate	5115178	1.36
Individuals
Individual shareholders holding nominal share capital up to Rs. 0.100 Million	20848934	5.52
Individual shareholders holding nominal share capital in excess of Rs. 0.100 Million	4127638	1.09
Any Others (Specify)	2811521	0.74
Hindu Undivided Families	273292	0.07
Trusts	421870	0.11
Clearing Members	962947	0.26
Foreign Banks	28686	0.01
Foreign Bodies - D R	36401	0.01
Foreign Nationals	100	0.00
Non Resident Indians	1088225	0.29
Sub Total	32903271	8.72
Total Public shareholding (B)	223027059	59.09
Total (A)+(B)	377427851	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	0	0.00
(1) Promoter and Promoter Group	0	0.00
(2) Public	37098743	0.00
Sub Total	37098743	0.00
Total (A)+(B)+(C)	414526594	0.00

BUSINESS DETAILS

Line of Business :

Subject is engaged in Banking Activities.

GENERAL INFORMATION

No. of Employees :

31738 [Approximately]

Bankers :

Reserve Bank of India

Facilities :

Borrowings	Rs. In Millions 31.03.2012	Rs. In Millions 31.03.2011
I. Borrowings in India
(i) Reserve Bank of India	1150.000	0.000
(ii) Other Banks #	4472.000	14237.000
(iii)Other institutions and agencies**	121210.990	64072.286
II. Borrowings outside India $	213883.731	184369.538
Total	340716.721	262678.824
# Borrowings from other banks include Subordinated Debt of Rs.3596.000 Millions (previous year Rs.3646.000 Millions) in the nature of Non-Convertible Debentures, Perpetual Debt of Nil (previous year Nil) and Upper Tier II instruments of Rs.59.10 Millions (previous year Rs.591.000 Millions) ** Borrowings from other institutions and agencies include Subordinated Debt of Rs.83917.000 Millions (previous year Rs.49667.000 Millions) in the nature of Non-Convertible Debentures, Perpetual Debt of Rs.2140.000 Millions (previous year Rs.2140.000 Millions) and Upper Tier II instruments of Rs.248.40 Millions (previous year Rs.2484.000 Millions) $ Borrowings outside India include Perpetual Debt of Rs.2340.300 Millions (previous year Rs.2051.400 Millions) and Upper Tier II instruments of Rs.10672.400 Millions (previous year Rs.9353.000 Millions)

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 India (UTI-1) § Life Insurance Corporation of India (LIC) § 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

AS ON 31.03.2012

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
413,203,952	Equity Shares	Rs.10/- each	Rs.4132.039 Millions

AFTER 31.03.2012

Authorised Capital : Rs.5000.000 Millions

Issued, Subscribed & Paid-up Capital : Rs.4145.265 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

Particulars	31.03.2012	31.03.2011	31.03.2010
CAPITAL AND LIABILITIES
Capital	4132.039	4105.458	4051.741
Reserves & Surplus	223953.384	185882.797	156392.749
Employees' Stock Options Outstanding (Net)	0.000	0.000	1.734
Deposits	2201043.033	1892378.010	1413002.175
Borrowings	340716.721	262678.824	171695.512
Other Liabilities and Provisions	86432.757	82088.627	61334.608
TOTAL	2856277.934	2427133.716	1806478.519
ASSETS
Cash and Balances with Reserve Bank of India	107029.214	138861.630	94820.456
Balances with Banks and Money at Call and Short Notice	32309.943	75224.929	57218.631
Investments	931920.859	719916.208	559748.156
Advances	1697595.386	1424078.286	1043409.464
Fixed Assets	22593.250	22731.456	12224.199
Other Assets	64829.282	46321.207	39057.613
TOTAL	2856277.934	2427133.716	1806478.519

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2012	31.03.2011	31.03.2010
	SALES
		Interest Earned	219946.474	151548.058	116380.215
		Other Income	54202.163	46321.338	39457.819
		TOTAL	274148.637	197869.396	155838.034
Less	EXPENSES
		Interest Expended	139769.024	85918.230	66335.261
		Operating Expenses	60070.995	47794.281	37097.223
		Provisions and contingencies	31886.564	30271.979	27260.217
		TOTAL	231726.583	163984.490	130692.701
	PROFIT / [LOSS] BEFORE TAX		42422.054	33884.906	25145.333
Less	TAX		0.000	0.000	0.000
	PROFIT / [LOSS] AFTER TAX		42422.054	33884.906	25145.333
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		49697.707	34274.337	23480.865
Less	APPROPRIATIONS
		Transfer to Statutory Reserve	10605.513	8471.227	6286.333
		Transfer to/(from) Investment Reserve	0.000	[149.372]	148.750
		Transfer to Capital Reserve	519.047	47.630	2239.176
		Transfer to General Reserve	0.000	3388.491	3.109
		Proposed dividend (includes tax on dividend)	7700.725	6703.560	5674.493
	BALANCE CARRIED TO THE B/S		73294.476	49697.707	34274.337
	Earnings/[Loss] Per Share (Rs.)		102.94	82.95	65.78

QUARTERLY RESULTS

PARTICULARS	30.06.2012
Type	1^st Quarter
Audited / UnAudited	UnAudited
Interest Earned	64828.600
Income On Investments	18063.200
Interest On Balances With Rbi Other Inter Bank Funds	229.200
Interest / Discount On Advances / Bills	46245.400
Others	290.800
Other Income	13355.100
Total Income	78183.700
Interest Expended	43030.000
Operating Expenses	15517.100
Total Expenditure	15517.100
Operating Profit Before Provisions and Contingencies	19636.600
Exceptional Items	0.000
Provisions and contingencies	2588.400
Profit Before Tax	17048.200
Tax	5513.000
Profit After Tax	11535.200
+/- Extraordinary Items	0.000
+/- Prior period items	0.000
Net Profit	11535.200

LOCAL AGENCY FURTHER INFORMATION

Check List by Info Agents	Available in Report [Yes/No]
Year of Establishment	Yes
Locality of the Firm	Yes
Constitution of the firm	Yes
Premises details	No
Type of Business	Yes
Line of Business	Yes
Promoters background	No
No. of Employees	Yes
Name of Person Contacted	No
Designation of contact person	No
Turnover of firm for last two years	Yes
Profitability for last three years	Yes
Reasons for variation <> 20%	-
Estimation for coming financial year	No
Capital the business	Yes
Details of sister concerns	Yes
Major Suppliers	No
Major Customers	No
Payment Terms	No
Export / Import Details [If Applicable]	No
Market Information	-
Litigations that the firm / promoter involved in	-
Banking Details	Yes
Banking Facility Details	Yes
Conduct of the banking account	-
Buyer visit details	-
Financials, if provided	Yes
Incorporation details, if applicable	Yes
Last accounts filed at ROC	Yes
Major Shareholders, if applicable	Yes
Date of Birth of Proprietor/Partner/Director, if available	No
PAN of Proprietor/Partner/Director, if available	No
Voter ID No of Proprietor/Partner/Director, if available	No
External Agency Rating, if available	Yes

FINANCIAL PERFORMANCE:

The Bank continued to show a steady growth both in business and earnings with a net profit of Rs.42422.100 Millions for the year ended 31st March 2012, registering a growth of 25.19% over the net profit of Rs.33884.900 Millions last year. The strong growth in earnings was a result of robust business growth across all banking segments indicative of a clear strategic focus. During the year, the Basic Earnings Per Share (EPS) was at Rs.102.94 and a Return on Equity (ROE) at 21.22%.

During the year, the total income of the Bank increased by 38.55% to reach Rs.274148.700 Millions as compared to Rs.197869.400 Millions last year. Operating revenue increased by 20.03% to Rs.134379.700 Millions while operating profit increased by 15.82% to Rs.74308.700 Millions. The growth in earnings was mainly due to a rise in core income streams such as net interest income (NII) and fee income. NII increased by 22.17% to Rs.80177.500 Millions as compared to Rs.65629.900 Millions last year. Fee, trading and other income increased by 17.01% to Rs.5420.22 Millions from Rs.46321.300 Millions last year. The strong growth in income was partly off set by an increase in operating expenses including depreciation by 25.69% to Rs.60071.000 Millions.

During the year, the growth in NII may be attributed to an expansion in the balance sheet size and healthy low-cost Current Account and Savings Bank (CASA) deposits. The total earning assets on a daily average basis increased by 24.30% to Rs.22320.600 Millions, as compared to Rs.17957.300 Millions last year. This was partly offset by a rise in funding costs due to hardening of general interest rates, particularly on term deposits during the year. The steady growth of low-cost CASA deposits, which on a daily average basis increased by 18.96% to Rs.70,845 Millions from Rs.595510.00 Millions last year, helped in containing the cost of funds. Overall, the daily average cost of funds in the year increased to 6.28% from 4.96% last year. During the year, the cost of deposits increased to 6.47% from 4.96% last year primarily due to an increase in cost of term deposits by 211 basis points (from 6.81% to 8.92%) as well as the cost of savings bank deposits. During the year, the yield on earning assets increased by 125 basis points to 9.66% from 8.41% last year.

Other income comprising fees, trading profit and miscellaneous income increased by 17.01% to Rs.54202.200 Millions in 2011-12 from Rs.46321.300 Millions last year and constituted 40.34% of operating revenue of the Bank. Fee income is a significant part of the earnings and is generated from a diverse set of businesses in the Bank. The main sources of fee income are 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 by 27.25% to Rs.361.56 Millions from Rs.4969.700 Millions last year, owing to adverse market conditions in the debt and equity markets. Miscellaneous income dropped by 3.79%, mainly due to lower recoveries of loans written-off in earlier years. During the year, such recoveries accounted to Rs.2918.400 Millions.

During the year, the operating revenue of the Bank increased by 20.03% to Rs.134379.700 Millions, as compared to Rs.111951.200 Millions last year. The core income streams (NII, fee and miscellaneous income) constituted 97.31% of the operating revenue, reflecting the stability and sustainability of the Bank’s earnings. Operating expenses increased by 25.69% to Rs.60071.000 Millions from Rs.47794.300 Millions last year, as a result of the growth of the Bank’s network and other infrastructure required for supporting the existing and new businesses. The Cost to Income ratio of the Bank was 44.70% compared to 42.69% last year.

During the year, the operating profit of the Bank increased by 15.82% to Rs.74308.700 Millions from Rs.64156.900 Millions last year. During this period, the Bank created total provisions (excluding provisions for tax) of Rs.11430.300 Millions compared to Rs.12800.300 Millions last year. Of this, the Bank provided Rs.860.43 Millions towards loan/investment losses compared to Rs.9551.200 Millions last year, while the provision for standard assets was Rs.1503.000 Millions. The Bank also provided Rs.888.600 Millions compared to Rs.150.600 Millions last year against restructured assets. During the year, the Bank restructured loans of Rs.13002.900 Millions.

The Bank continued to maintain a healthy asset-quality with a ratio of Gross NPAs to gross customer assets of 0.94%, as compared to 1.01% last year, and a Net NPA ratio (Net NPAs as percentage of net customer assets) of 0.25% compared to 0.26% last year. With higher levels of provisions built over and above regulatory norms during the year, the Bank has maintained its provision coverage to 80.91% (after considering prudential write-offs).

The Bank has also shown an all-round improvement in various financial parameters and ratios during the year. Basic Earnings Per Share (EPS) was Rs.102.94 as compared to Rs.82.95 last year, while the Diluted Earnings Per Share was Rs.102.20 compared to Rs.81.61 last year. Return on Equity (RoE) improved to 21.22% from 20.13% last year and Book Value Per Share increased from Rs.462.77 to Rs.551.99. Return on Assets (RoA) is maintained at 1.68% as last year. The hardening of interest rates led to a contraction in the net interest margin (NIM) by 6 basis points for the year to 3.59% from 3.65% last year. On quarter-on quarter basis, the NIM was 3.28% in Q1, 3.78% in Q2, 3.75% in Q3 and 3.55% in Q4.

The Bank has shown robust growth in several key balance sheet parameters for the year ended 31st March 2012. The total assets increased by 17.68% to Rs.2856280.000 Millions on 31st March 2012 from Rs.2427130.000 Millions on 31st March 2011. Total deposits increased by 16.31% and stood at Rs.2201040.000 Millions. Savings Bank deposits increased by 26.48% to Rs.516680.000 Millions, while Current Account deposits increased by 7.68% to Rs.397540.000 Millions. Low-cost demand deposits: Current Accounts and Savings Bank (CASA) deposits were Rs.914220.000 Millions as on 31st March 2012, as compared to Rs.777670.000 Millions last year. As on 31st March 2012, CASA deposits constituted 41.54% of total deposits as compared to 41.10% last year. On a daily average basis, Savings Bank deposits increased by 20.43% to Rs.434420.00 Millions, while Current Account deposits increased by 16.71% to Rs.274030.000 Millions. The percentage share of CASA in total deposits, on a daily average basis, was 37.65% compared to 39.40% last year. The total advances of the Bank increased by 19.21% to Rs.1697600.000 Millions. Out of this, corporate advances (comprising large, infrastructure and mid-corporate accounts) increased by 19.93% to Rs.910530.000 Millions and SME loans increased by 11.16% to Rs.237950.000 Millions. Agricultural lending (including micro finance) stood at Rs.173400.000 Millions, increasing 0.11% over the last year. Retail loans increased by 35.34% to Rs.375700.000 Millions. The percentage share of retail loans to total advances has increased to 22.13% from 19.49% last year. The total investments of the Bank increased by 29.45% to Rs.931920.000 Millions and investments in government and approved securities, held mainly for SLR requirement, increased by 32.43% to Rs.585330.000 Millions. Other investments, including corporate debt securities, increased by 24.70% to Rs.34,659 Millions. As on 31st March 2012, the total assets of the Bank’s overseas branches stood at Rs.323020.000 Millions, constituting 11.31% of the Bank’s total assets.

During the year, the Bank continued to expand its distribution network to enlarge its reach in geographical centres with potential for growth, especially in the areas with potential for low-cost CASA deposits, lending to retail, agriculture and SME segments and the distribution of third-party products. This year, the Bank has added 231 new branches and 1 extension counter, taking the total number of branches and extension counters (ECs) to 1,622, of which 674 branches/ECs are in semi-urban and rural areas and 948 branches are in metropolitan and urban areas. The Bank is present in all the States and Union Territories (except Lakshadweep), covering a total of 1,050 centres. The Bank has also increased its ATM network to 9,924, as compared to 6,270 ATMs last year. In addition to domestic branches, during the year the Bank opened an international branch office in Colombo, Sri Lanka to finance cross-border trade and manufacturing activities. This is in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International Finance Centre) and representative offices at Shanghai, Dubai and Abu Dhabi.

CAPITAL AND RESERVES

During the year, the Bank has raised capital of Rs.34250.000 Millions by way of sub-ordinated bonds (unsecured redeemable non-convertible debentures) qualifying as Tier II capital. The raising of this non equity capital has helped the Bank continue its growth strategy and has strengthened its capital adequacy ratio. The Bank is well capitalised with an overall capital adequacy ratio (CAR) of 13.66% at the end of the year, well above the benchmark requirement of 9% stipulated by Reserve Bank of India (RBI). Of this, Tier I CAR was 9.45%, as against 9.41% last year, while the Tier II CAR was at 4.21%, as against 3.24% last year.

During the year, a total of 2,658,109 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 rose to Rs.4132.000 Millions , as compared to Rs.4105.500 Millions last year. The shareholding pattern of the Bank as of 31st March 2012 was as under:

Sr. No.	Name of Shareholders	% of Paid-up Capital
1	Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI)	23.53
2	Life Insurance Corporation of India	9.69
3	General Insurance Corporation and four PSU insurance companies	4.16
4	Overseas investors (including FIIs/OCBs/NRIs)	33.19
5	Foreign Direct Investment (GDR issue)	8.54
6	Other Indian financial institutions/mutual funds/banks	6.45
7	Others	14.44
	Total	100.000

Save and except 4,00,40,156 shares equivalent to 9.69% of the total paid up capital of the Bank held by LIC, all other holdings are not considered for arriving at the Promoter’s shareholding.

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.

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 and also provides retail broking services. The primary objective of Axis Securities and Sales Limited 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 undertakes the activities of managing the mutual fund business. Axis Mutual Fund Trustee Limited was formed to act as the trustee for the mutual fund business. Axis U.K. Limited is a private limited company registered in the UK. It was formed 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 of 31st March 2012, Axis U.K. Limited has not commenced operations.

PROPOSED ACQUISITION OF ENAM SECURITIES PRIVATE LIMITED

On 17th November, 2010, the Board of Directors of the Bank had approved the acquisition of certain financial services business undertaken by Enam Securities Private Limited (ESPL) directly and through its wholly owned subsidiaries, by Axis Securities and Sales Limited (ASSL), a wholly owned subsidiary of the Bank by way of a demerger. However, pursuant to conditions prescribed by the Reserve Bank of India, certain modifications have been carried out to the demerger structure in terms of a revised Scheme of Arrangement under Sections 391-394 and other relevant provisions of the Companies Act, 1956. Accordingly, the acquisition will now comprise (a) a demerger of the financial services businesses from ESPL to the Bank, in consideration of which the Bank will issue shares to the shareholders of ESPL, and (b) immediately upon completion of the demerger under the Scheme, a simultaneous sale of the financial services businesses will be undertaken from the Bank to ASSL for a cash consideration, with both the aforesaid steps occurring simultaneously. The Reserve Bank of India has on 30th March, 2012, conveyed its no objection to the Scheme. Further, on 27th April, 2012, the Board of Directors of the Bank have approved the reassessment of the valuation of the ESPL business at Rs.1,396 crores and consequently, in consideration for the demerger of the financial services business of ESPL, the Bank will issue shares in the ratio of 5 equity shares of the Bank (aggregating 12,090,000 equity shares) of the face value of Rs.10 each for every 1 equity share (aggregating 2,418,000 equity shares) of Rs.10 each held by the shareholders of ESPL. The sale of the financial services business will be simultaneously undertaken from the Bank to ASSL for a cash consideration of Rs.2740.000 Millions only. The appointed date under the Scheme is 1st April, 2010, and the parties shall proceed with filing the Revised Scheme and other necessary documents with the relevant High Courts and other regulatory authorities for their approval.

MANAGEMENT’S DISCUSSION AND ANALYSIS

MACRO-ECONOMIC ENVIRONMENT

Macro-economic conditions in fiscal 2011-12 continued to be challenging and the continuing uncertainties in the international financial markets had an impact on emerging market economies, including India. Sovereign risk concerns, particularly in the Euro zone, affected financial markets and a fear of defaults by some European countries along with a growth slowdown led to increased risk aversion. The year saw banks overseas reduce their debt exposure to emerging markets, causing a drop in fund flows to emerging markets, affecting India.

In India, managing growth and price stability emerged as key concerns. High and persisting inflation is perceived as a risk to sustaining the country’s growth and it remained high during the most of the current fiscal year, though by year’s end there was a decline. Initially confined to high food prices, inflationary pressures spilled over to other segments, particularly manufactured products. During the year, the dominating objective of RBI’s monetary policy was to control inflation and curb inflationary expectations. As a consequence, RBI hiked the Repo rate from 6.75% to 8.50% (cumulatively 375 basis points between March 2010 and January 2012). Sustained rate increases resulted in a slowing down of investment and growth and GDP is estimated to have grown by 6.9% in fiscal 2011-12, having grown at a rate of 8.4% in each of the two preceding years. While agriculture and services continue to perform well, the slowdown in GDP during the year may be attributed to slower industrial growth. The gross domestic savings has declined, evidenced by a reduction in private savings, primarily household savings in financial assets. The reduction in the financial savings rate of households is partly attributed to inflationary tendencies that resulted in higher growth of private consumption expenditure.

The fiscal deficit for FY 2011-12 has been estimated at 5.9% against the budgetary estimate of 4.6%, the large gap explained by deceleration in tax revenues as well as increase in expenditure, particularly on account of fertiliser and petroleum subsidies. This has led to an increase in the government’s borrowing programme. India’s current account deficit (CAD) rose to record highs in the October to December quarter (Q3) of fiscal 2011-12, and has been comparatively high in the April to December period compared to earlier years. The current account deficit was a manifestation of domestic demand which kept imports high and the global slowdown, which adversely affected India’s exports in the second half of fiscal. The high CAD was made worse by weakening capital flows, mostly due to weak portfolio investment flows which had thus far managed to compensate the trade deficit. As a result, the Balance of Payments position turned negative in Q3, the first quarter in which this has happened since the collapse of Lehman Brothers. This led to a depreciation of the Rupee and a sharp increase in the domestic liquidity deficit.

The banking sector, which remains the largest financial intermediary, saw a slowdown in deposit growth in fiscal 2011-12, primarily due to liquidity pressures and lower financial savings. While the credit off-take was lower than estimated, the subdued deposit growth has resulted in an increase in interest rates at the shorter end of the yield curve. The sovereign yield curve remained high due to the larger than expected magnitude of the Government’s borrowing programme. Shorter term interest rates on private sector borrowings also stayed high due to the liquidity deficit.

PROSPECTS FOR FISCAL 2012-13

The global environment is likely to continue to be an area of concern, although conditions have improved since the beginning of the last financial year. Growth is likely to improve in the second half of 2012 and may support the country’s exports and increase access to global capital. India remains one of the fastest growing economies of the world, with a projected GDP growth rate of 7.6% +/- 0.25%. Falling inflation is also an encouraging factor with the average inflation forecast for FY 2012- 13 at 7.5% compared to the average inflation of nearly 9% last year. There is an expectation that RBI may cut policy interest rates by 75-100 basis points in the course of the year (FY 2012-13) and combined with other measures such as further Open Market Operations (OMOs) and CRR cuts by the RBI as well as an increasein foreign currency inflows, this may lead to a drop in borrowing costs.

The benefit of lower borrowing costs on investment will also be reinforced by a reduced fiscal deficit, budgeted at 5.1% to GDP in fiscal 2012-13 through a capping of subsidies at 2% of GDP. This reduction would open up the scope for higher private sector investment and capex. On the external front, the CAD/GDP ratio is projected to be lower in FY 2012-13 compared to the previous year. The outlook for growth and price stability at this point looks more promising

Trends in Credit, Deposit and Liquidity

As they have stated above, improving profitability, fiscal consolidation and moderating inflation are likely to increase domestic savings and create conditions for higher inflows of foreign capital, thereby improving liquidity. India’s financial savings to GDP ratio in fiscal 2012-13 is likely to be higher than in the previous year, given an expected reallocation from physical assets to financial assets by the household sector as well as relatively better financial performance by the corporate sector.

Aggregate deposits outstanding as on the 30th March 2012 were Rs.61.12 lac crores, showing a year-on-year growth of 17.4%, while bank credit grew by 19.3% at Rs.47.05 lac crores. A deposit growth of between 16% and 16.5% and a bank credit growth of around 17% is expected for FY 2012-13. Although there will be some diversion of demand for debt funds towards external commercial borrowings following the provisions in the Union Budget, the bulk of the increase will come into domestic credit.

OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE

The Bank continued to perform well, both in terms of business growth as well as the financial results reported. The business model of the Bank and the customer-centric branch banking model adopted by it has not only helped maintain existing relationships but has also resulted in new business and customer acquisition, both in the

retail and corporate segments. In the backdrop of several negative factors in the environment, including the slow-down of the economy, tightness of liquidity and hardening interest rates, the Bank has performed well, as stated above, by leveraging upon its basic strengths: an infrastructure of branches and other channels created for maximum reach, a well developed retail franchise and a number of key corporate relationships.

The Bank recorded strong growth during the year, both of business volumes as well as revenues, with the net profit increasing by 25.19% to Rs.42422.100 Millions from Rs.33884.900 Millions last year. During the year, the total income of the Bank increased by 38.55% to Rs.274148.700 Millions, while the operating revenue increased by 20.03% to Rs.134379.700 Millions. During the period, operating profit increased by 15.82% to Rs.74308.700 Millions. As on 31st March 2012, the total assets of the Bank stood at Rs.2856280.000 Millions, increasing by 17.68% over last year. While the total deposits of the Bank increased by 16.31% to Rs.2201040.000 Millions on 31st March 2012, the total advances rose by 19.21% to Rs.1697600.000 Millions. The total demand deposits (Savings Bank and Current Account deposits) increased by 17.56% to Rs.914220.0000 Millions, constituting 41.54% of the total deposits. The Bank continues to enhance shareholder value with the diluted earnings per share for the year increasing to Rs.102.20 from Rs.81.61 last year. As on 31st March 2012, the book value per share of the Bank increased to Rs.551.99 from Rs.462.77 last year.

CAPITAL MANAGEMENT

The Bank strives for continual enhancement of shareholder value by efficiently using capital in order to optimise return on equity. Aiming to achieve this objective, the Bank endeavors to develop an asset structure that will be sensitive to the importance of increasing the proportion of low risk weighted assets. The Bank’s capital management framework helps ensure an appropriate composition of capital and an optimal mix of businesses.

During the year, the Bank raised capital aggregating Rs.34250.0000 Millions of Tier II Capital in the form of subordinated bonds (unsecured redeemable non-convertible debentures) to augment the overall capital base and maintain the momentum of business growth.

The Bank has implemented the Revised Framework of the International Convergence of Capital Measurement and Capital Standards (or Basel II) in 2008. In terms of RBI guidelines, capital charge for credit and market risk for the financial year ended 31st March 2012 is required to be maintained at the higher levels as required under Basel II or 80% of the minimum capital requirement computed under Basel I. In terms of regulatory guidelines on Basel II, the Bank has computed capital charge for operational risk under the Basic Indicator Approach and the capital charge for credit risk has been computed under the Standardised Approach. As on 31st March 2012, the Bank’s Capital Adequacy Ratio (CAR) under Basel II was 13.66% against 12.65%on 31st March 2011 and the minimum regulatory requirement of 9%. Of this the Tier I Capital Adequacy Ratio was 9.45%, as against 9.41% last year, while the Tier II Capital Adequacy Ratio was 4.21%. The following table sets forth the capital, risk-weighted assets and capital adequacy ratios computed as on 31st March 2011 and 2012 in accordance with the applicable RBI guidelines under Basel II.

Rs. in Millions

As on 31st March	2012
Tier I Capital – Shareholders’ Funds	2188.611
Tier II Capital
Out of which
Bonds qualifying as Tier II capital	7737.520
Upper Tier II capital	1374.740
Other eligible for Tier II capital	646.580
Total Capital qualifying for computation of Capital Adequacy Ratio	3164.495
Total Risk-Weighted Assets and Contingencies	23171.139
Total Capital Adequacy Ratio (CAR)	13.66%
Out of above
Tier I Capital	9.45%
Tier II Capital	4.21%

BUSINESS OVERVIEW

An overview of various business segments along with the performance during 2011-12 and their future strategies is presented below.

RETAIL BANKING

The Bank aims to increase its share in India’s expanding financial services sector by continuing to strengthen its retail franchise. Retail Banking continued to be one of the key drivers of the Bank’s growth strategy and it encompasses a wide range of products delivered to customers through multiple channels. The Bank offers a complete suite of products across deposits, loans, investment solutions, payments and cards to help customers achieve their financial objectives. The Bank has maintained its focus on product differentiation as well as a high level of customer-service to enable it to build its retail business. The Bank has pursued an effective customer segmentation strategy over the years to develop the retail liabilities business and increase its retail deposit base, particularly Savings Bank and Current Account deposits. The Savings Bank deposits of the Bank grew to Rs.516680.000 Millions as on 31st March 2012, against Rs.408500.000 Millions last year, registering a strong growth of 26%, with the number of savings bank accounts growing to 1.1935 Millions on the 31st March 2012, registering a growth of 27% over the previous year. In the back drop of deregulation of interest rates on Savings Bank deposits by Reserve Bank of India (RBI), the growth is significant. Over a five year period, Savings Bank deposits have grown at a Compounded Annual Growth Rate (CAGR) of 34%. On a daily average basis, Savings Bank deposits grew by 20% to Rs.434420.000 Millions.

With an objective to widen the retail deposit base, the Bank continued to focus on retail term deposits which grew by 43% to Rs.478660.000 Millions as on 31st March 2012, against Rs.334570.000 Millions last year. As a result, the percentage share of retail term deposits to total term deposits has increased to 37% on 31st March 2012 from 30% last year. The share of aggregate retail deposits, comprising savings bank and retail term deposits in total deposits has increased to 45% on 31^st March 2012 from 39% last year.

The Bank has also focused on increasing its share of retail loans in total loans. The retail assets portfolio of the Bank has increased to Rs.375700.000 Millions as on 31st March 2012 from Rs.277590.000 Millions last year, thereby registering a growth of 35%. Retail assets constituted 22% of the Bank’s total loan portfolio as on 31st March 2012, against 19% at the end of last year. The growth areas identified by the Bank were in the areas of residential mortgages and passenger car loans. Of the total retail loans portfolio, 88.47% is in the form of secured loans (residential mortgages and auto loans). The Bank has continued to develop its risk management capabilities in Retail business, both from a credit and operations risk standpoint. The credit risk on the retail loans portfolio continued to improve through the year and the gross NPA ratio for retail assets improved to 0.85% as on 31st March 2012 from 1.49% last year. The branch channel was effectively utilised for growing the retail assets business, with loan and card products being offered to existing clientele. Unsecured lending business products are also being offered with appropriately conservative risk management guardrails.

In order to build an integrated strategy for Retail NRI business including remittances to and from overseas centres, a new department - ‘International Retail’ has been set up. It focuses specifically on the overseas sales channel, retail foreign exchange business, remittances and retail businesses in overseas centres such as Hong Kong and Sri Lanka, where the Bank has a presence. The products offered in the area of retail forex and remittances include travel currency cards, inward and outward wire transfers, traveller’s cheques, foreign currency notes, remittance facilities through online portals as well as through collaboration with correspondent banks, exchange houses and money transfer operators. The Bank continued to have a market leadership position in Travel Currency Cards with 11 currency options other than INR being offered. The aggregate spends on Travel Currency Cards have crossed USD 2 billion during the year. The volumes of retail remittances too have risen during the year and the Bank processed outward remittances of USD 1.39 billion. Inward remittances accounted for USD 2.77 billion.

The cards business of the Bank has grown steadily as an important and valuable adjunct to the deposit and loan businesses. The Bank offers a wide range of payment solutions to its customers in the form of debit cards, prepaid cards and credit cards. As on 31st March 2012, the Bank has a base of approximately 12.499 Millions debit cards, placing it among the leading players in the country. The Bank is a dominant player in prepaid cards with a card base of approximately 4.671 Millions The credit card base of the Bank on the 31st March 2012 was approximately 0.780 Millions and covers a range of retail and commercial credit cards.

‘Axis Bank Privée’, the brand name for exclusive private banking, gives its clients access to a variety of financial solutions that includes advisory services, investment and lending solutions across 10 cities in the country. Privée follows a client-focused investment process and a team-based approach for managing client relationships. The relationship management team is supported by a team of product specialists, client servicing teams, investment consultants and research experts. The private banking business focuses on addressing both the personal and corporate advisory needs of an entrepreneur or business family by bringing solutions offered by various business groups across the retail and corporate businesses within the Bank under an integrated platform. The Bank launched ‘Axis Bank Wealth’ in 2008-09 targeting customers who have a total relationship value with the Bank of between Rs.3.000 Millions and Rs.20.000 Millions. The value proposition aims at delivering a ‘One Bank’ experience to such customers and is positioned as a complete solution involving banking, investment and asset needs.

The Bank also distributes third party products such as mutual funds, Bancassurance products (life and general insurance), online trading and gold coins through its branches. It is one of the leading banking distributors of mutual funds in India, covering products of all major asset management companies. The Bank also distributes life insurance products of Max New York Life Insurance Company and during the year, it sold more than 0.149 Millions policies with a premium mobilisation of Rs.65.391 Millions. The life insurance business of the Bank grew by 63% in terms of premium collected, recovering from the decline of 0.9% last year. The general insurance business of the Bank, on the other hand, grew 23% in terms of premium collected. During the year, the Bank has sold more than 0.355 Millions general insurance policies. Customers have been provided with the option of renewing and/ or buying policies online through the Bank’s corporate website. The Bank has signed an agreement with Axis Securities and Sales Limited, a wholly-owned subsidiary, to provide Axis Direct, an online trading platform, to its customers. During the year, the Bank opened more than 0.128 Millions online trading accounts. The demand for gold and silver among retail and corporate clientele is rising and the Bank offers gold and silver bars of the highest purity in various denominations to its customers.

In addition to its branch network of 1,622 branches and extension counters spread across 1,050 centres, the Bank added 3,654 ATMs during the year to reach 9,924 as on 31st March 2012 against 6,270 ATMs as on 31st March 2011. The Bank has emerged as a pioneer in the transaction-based pricing model in total ATM outsourcing which envisages no capital expenditure for the Bank. Under this model, payment is based on a pay-per-use model for the Bank’s customer transactions and a sharing of revenue with the service provider {Independent ATM Deployer (IAD)} for other bank transactions. The Bank continues to be the largest private sector bank and the 2nd largest bank in terms of the size of its ATM network in India. Along with the ATM network, other alternate channels such as internet banking, mobile banking and phone banking, have also grown well and a strong architecture of alternate channel has been created, providing higher levels of customer convenience and service quality to customers. A new branch design policy envisages a self-service lobby at the entrance of the branch, which shall house various facilities including ATMs, self-service kiosks and pass book printers. During the year 108 branches which have such self-service lobbies commenced operations.

CORPORATE CREDIT

Capital expenditure, particularly in green field projects remained subdued through the year in view of the prevalent macroeconomic environment, with brown field and smaller ticket projects and working capital loans driving demand for credit from corporate customers. However, existing sanctions continued to witness disbursements, as the projects financed by banks drew down on committed sanctions. The corporate credit portfolio of the Bank comprising advances to large and mid-corporates (including infrastructure) grew by 20% to Rs.910530.000 Millions from Rs.759220.000 Millions last year. This includes advances at overseas branches amounting to Rs.24,890 Millions (equivalent to USD 4.89 billion) comprising mainly the portfolio of Indian corporates and their subsidiaries, as also trade finance. The relationship model introduced last year has shown good results and has helped the Bank to improve its share of wallet due to a marked improvement in cross-selling a wide range of products to the Bank’s corporate customers. The Bank’s focus on fee-based business, foreign exchange business and loan syndication paid rich dividends as well. The Bank continually monitors portfolio diversification through tracking of industry, group and company specific exposure limits. The entire portfolio is rated on the basis of a Credit Rating Tool, which facilitates appropriate credit selection.

The Bank’s infrastructure business includes project and bid advisory services, project lending, debt syndication, project structuring and due diligence, securitisation and structured finance. The Bank focused on leveraging its strength in infrastructure linked financial services. The Bank successfully completed transactions across various sectors such as telecom, power generation, transmission and distribution, roads, ports, airports, urban transport and railways, education and healthcare etc. As on 31^st March 2012, the Bank’s advances to infrastructure stood at Rs.193210.000 Millions against Rs.157230.000 Millions last year, thereby increasing 23%. This includes advances from the Bank’s overseas branches of Rs.47690.000 Millions (equivalent to USD 937 million). As one of the leading players in infrastructure lending, the Bank launched its first ever ‘D and B-Axis Bank Infra Awards 2011’ in association with Dun and Bradstreet. The award felicitates leading infrastructure projects and infrastructure companies. As part of promotional activities, the Bank also organised a quarterly Breakfast Series, involving various industry leaders.

In October 2010, the Bank has launched the Axis Infra Index (AII) with the primary objective of conveying a sense of investment conditions in the infrastructure sector. The Index, as a composite measure of investor confidence, comprises four components: flow of equity and debt funds into infrastructure sectors, project completion and commencement of operations, output related to infrastructure segments and regulatory and policy developments relevant for the sector. It is designed to capture the evolving fundamentals of the sector and is updated and disseminated on a quarterly basis.

The mid-corporate group continues to be an important business segment of the Bank with total advances of Rs.173650.000 Millions as on 31st March 2012, registering a growth of 10% over last year. The focus continues to be on targeting opportunities in industries with lower coverage but having positive outlook across geographies without compromising on quality. The Bank caters to the ever increasing financial requirements of this segment by offering both off-the-shelf and complex, transactional solutions. Existing client relationships are maintained through active cross-selling of products and services in corporate and retail banking space.

TREASURY

The Bank has an integrated Treasury, covering both domestic and global markets, which manages the Bank’s funds across geographies. The Bank’s treasury business has grown substantially over the years, gaining market share and continuing to be among the top five banks in terms of forex revenues. The Treasury plays an important role in the sovereign debt markets and participates in the primary auctions held by RBI. It also actively participates in the secondary government securities and corporate debt market. The foreign exchange and money markets desk is an active participant in the inter-bank/FI space. The Bank has been exploring various cross-border markets to augment resources and support customer cross-border trade.

The Bank has emerged as one of the leading providers of foreign exchange and trade finance services. It provides a gamut of products for exports and imports as well as retail services. Its cutting edge technology provides comprehensive and timely customer services.

The Bank is a dominant player in placement and syndication of debt issues. During the year, the Bank arranged debt aggregating Rs.405000.000 Millions and received several awards in recognition of its position in this business. While the volume of syndication vis-à-vis the past year has declined in line with the prevalent market trend in the economy, the Bank continued to maintain the leadership position in the market. For the calendar year 2011, it was identified as the no.1 Debt Arranger by Bloomberg, the Best Domestic Debt House in India by Asia Money, Best Bond House in India by Finance Asia, Best Debt House in India by Euromoney, Best Domestic Bond House in India by the Asset Triple A Country Awards by Asset Magazine and as no.1 Debt Arranger for Private Placements by Prime Database for the nine months ended December 2011.

BUSINESS BANKING

Business Banking leveraged the Bank’s strengths – its well distributed network of branches and a strong technology platform to offer the best in transaction banking services. The Bank has consistently targeted the procurement of low-cost funds by offering a range of current account products and cash management solutions across all business segments covering corporates, institutions, central and state government ministries and undertakings as well as small and retail customers. The cross-selling of transactional banking products have also succeeded in enlarging the customer base and growing current account balances. Due to change in business approach from a product-centric to a customer-centric model, the Bank has formed the Corporate Accounts Group within the Business Banking to meet the product specific, transactional banking and service requirements of large and mid-corporates and financial institutions. The sourcing of the current accounts is one of the key enablers for the growth of the balance sheet. As on 31st March 2012, current account balances stood at Rs.39,754 Millions against Rs.369170.000 Millions last year, increasing 8% yoy. On a daily average basis, current accounts balances grew by 17% to Rs.274030.000 Millions compared to Rs.234790.000 Millions last year.

In order to provide solutions to business to effectively manage their funds flow, new products have been introduced. A liquidity management solution was launched to facilitate corporate customers with better funds management. Similarly, a single window for all payment requirements was launched with several advanced features such as setting a daily transaction limit for corporate users, setting transaction limits for individual beneficiaries, prioritising payment methods, online stop payment and cancellation facilities.

Cash Management Service (CMS) continued to constitute an important source of fee income and contributed significantly to generate low cost funds. The Bank is one of the top CMS providers in the country and the number of CMS clients has grown to 11,548 from 8,465 last year. During the year, the number of locations covered under CMS increased from 692 last year to 801. During the year, the Bank handled 105 IPOs and 444 dividend mandates against 101 IPOs and 434 dividends mandates last year. The Bank acts as an agency bank for transacting government business offering services to various central government ministries/ departments and other state governments and union territories.

The Bank accepts income and other direct taxes through its 214 authorised branches at 137 locations and central excise and service taxes though its 56 authorised branches at 14 locations including e-Payments. It also handles the disbursement of civil pension through all its branches and defence pension through 151 authorised branches. In addition, the Bank provides collection and payment services to 4 central government ministries/departments and 8 state governments and union territories. The Bank is associated with 9 state governments towards undertaking Electronic Benefit Transfer (EBT) projects for disbursement of government benefits (wages under MGNREGS and Social Security Pension (SSP)) through direct credit to beneficiary bank accounts under smart card based IT enabled financial inclusion model. The total government business throughput during the year was Rs.943140.000 Millions against Rs.854230.000 Millions last year.

The Bank is a SEBI registered custodian and offers custodial services to both domestic and offshore customers. As on 31st March 2012, the Bank held assets worth approximately Rs.118400.000 Millions under its custody, registering a growth of 331% over last year. The Bank launched its merchant acquiring business in December 2003, and in the last eight years has emerged as one of the largest acquirers in the country with an installed base of 0.202 lac point-of-sale terminals. The Bank has been in the forefront in terms of technological advancements and is the market leader in providing dual APN solutions for transaction acceptance on GPRS platform. It is also the first bank in India to launch cards acceptance services in the radio taxi segment, and to acquire cards in metro railways through PCPOS for the Delhi Airport Metro Express.

INVESTMENT BANKING

The Bank’s Investment Banking business comprises activities relating to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The Bank is a SEBI-registered Category I Merchant Banker and has been fairly active in advising Indian companies in raising equity through IPOs, QIPs, Rights issues etc. The Bank has built strong relationships with Indian companies thereby becoming an effective bridge between such corporates and FIIs, DIIs and domestic retail investors.

During the financial year ended 31st March 2012, the Bank undertook 9 transactions including 5 IPOs and 2 Open Offers aggregating approximately Rs.87500.000 Millions. M and A advisory services focus on domestic and cross-border buy and sell mandates for Indian clients. In the financial year 2011-12, the Bank successfully closed a sell-side mandate with a valuation of Rs.550.000 Millions. The private equity business works with the Bank’s mid-corporate and SME clients and advises them in raising capital from private equity investors.

LENDING TO SMALL AND MEDIUM ENTERPRISES

The Small and Medium Enterprises (SME) segment has been identified as a thrust area of the Bank. The business approach towards this segment, which is expected to contribute significantly to economic growth in future, is to build relationships and nurture the entrepreneurial talent available. The relationship based approach enables the Bank to deliver value through the entire life cycle of SMEs, creating enormous goodwill and stickiness. The Bank has segmented its SME business in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small Business Group, a sub-group for financing micro enterprises is also set up. This will help the Bank to optimally utilise available resources, build capacities and bring in required levels of skill sets for processing and monitoring SME exposures. The Bank extends working capital, project finance as well as trade finance facilities to SMEs. It also helps the Bank to fulfil its priority sector obligations and provides cross-selling opportunities. During the year, advances to SME increased by 11% and stood at Rs.237950.000 Millions as on 31st March 2012 as compared to Rs.214060.000 Millions last year.

During the year, the Bank has set up 6 SME centres and SME cells each across the country, taking the total number to 32 SME Centres. The Bank has organised ‘Business Gaurav SME Awards’ in association with Dun and Bradstreet to recognise and award achievements in the SME space. It also organised several road shows and knowledge series meetings at 28 SME centres.

AGRICULTURE

The Bank continued to drive and expand the flow of credit to the agricultural sector. The Bank also made its presence in the hinterland by offering banking products to the rural population. 401 branches of the Bank had dedicated officers for providing farm loans. Products and solutions were created specifically with simple features and offered at affordable rates to attract more customers. The Bank has also adopted a value-chain approach, wherein end-to-end solutions are being provided for various stakeholders. It also offers various customised solutions to meet the regional requirements. The business was driven through 85 strategically located clusters, and dedicated teams for sales and services were created to complement with specialised credit and operations support.

During this fiscal, agriculture advances grew by 0.11% to Rs.173400.000 Millions, constituting 12% of the Bank’s domestic advances. As on the last Friday of March 2012, the direct agriculture lending was 9.76% of the adjusted net bank credit of the Bank.

FINANCIAL INCLUSION

The Bank perceives financial inclusion (FI) not as a corporate social responsibility or a regulator driven initiative but as a large business opportunity that lies untapped in the rural and unexplored section of the urban market. Till March 2012, the Bank has opened over 4.4 million No-Frills accounts in over 7,607 villages through a network of 15 Business Correspondents and nearly 6,000 customer service points. The Bank has a strong presence in the Electronic Benefit Transfer (EBT) space and has covered around 6,800 villages across 19 districts and 9 states till date with over 3.7 million beneficiaries. In the rural financial inclusion domain, the Bank has successfully executed its SLBC mandates for the financial 2011-12 and has opened over 45,000accounts. In the urban space, the Bank has launched financial inclusion initiatives in Bangalore, Chennai and Delhi targeting migrant labourers, slum dwellers and other under-banked sector of the urban population and has opened over 0.350 lac nofrill accounts. The Bank’s financial inclusion efforts are not merely restricted to launching of financial inclusion initiatives and sourcing basic No Frill accounts, but to also promote the savings habits and enable the customers to obtain customised solutions for their financial needs. The Bank till date has sourced over 0.040 lac Micro insurance products (in both life and non-life space) and has provided small value overdraft facility to nearly 5,000 customers on their No Frill accounts. The Bank also has a range of other customised products for this customer segment like different variants of Axis Uday no frills savings accounts, Chhota RD, Chhota FD, and Chhota SIP. The Bank has been one of the first few banks to have tied-up with telecom companies to offer remittance led financial inclusion services on the mobile platform.

INTERNATIONAL BANKING

The international operations of the Bank form a key enabler in its strategy to partner with the overseas growth potential of its domestic clientele, who are venturing abroad or require non-rupee funds for domestic projects. During the year, the Bank has extended its overseas network by opening a branch in Colombo, Sri Lanka. The Bank now has a foreign network of four branches (Singapore, Hong Kong, DIFC (Dubai) and Colombo (Sri Lanka))and three representative offices (Shanghai, Dubai and Abu Dhabi) with presence in six countries.

While corporate banking, trade finance, treasury and risk management solutions are the primary offerings through the branches at Singapore, Hong Kong, DIFC (Dubai) and Colombo, the Bank also offers retail liability products from its branches at Hong Kong and Colombo. Further, the Bank’s Gulf Co-operation Council (GCC) initiatives in the form of representative offices in Dubai and Abu Dhabi, and alliances with banks and exchange houses in the Middle East provide the support for leveraging the business opportunities emanating from the large NRI diaspora present in these countries.

With management of liquidity being a major challenge in the present global markets, the Bank consciously restrained its asset growth at the overseas centers. As on 31st March 2012, the total assets at overseas branches stood at USD 6.35 billion compared to USD 5.30 billion last year.

Axis U.K. Limited, the UK subsidiary of the Bank, continued its interactions with the Financial Services Authority (FSA), UK and other relevant authorities for regulatory approvals to enable setting up of the banking subsidiary of the Bank in UK.

OPERATIONS

The business model of the Bank has separated production and distribution functions within the Bank, with transaction processing and customer databases (production technology) becoming increasingly centralised and product sales and customer handling (the distribution technology) being the primary function at the branches. The separation of functions has helped reduce transaction costs besides ensuring smoothness in operations and increasing productivity. Operational processes were constantly refined during the year from the perspective of implementation of best practices, risk identification and containment. Operational instructions were revisited on a continual basis and efforts were made to minimise risks at branches.

Retail Banking Operations

Retail Banking Operations (RBO) provides seamless service to retail customers while ensuring secure and compliant systems for risk containment and regulatory compliance. The Bank continued to strengthen the oversight function through centralized monitoring of the working of the branches in respect of KYC, AML and other regulatory compliances, cash management, clearing operations and internal housekeeping with the objective of ensuring compliance with risk guidelines and delivering operational efficiency and customer service. To ensure enhanced customer service and better handling of cash, the Bank has installed note sorting machines at cash intensive branches. The Bank has implemented the Clean Note Policy of RBI across all branches of the Bank. The Bank has been appointed as the Primary Clearing House at certain places. A currency chest was operationalised at Guwahati, making the first private sector bank, to have a currency chest in the North East.

WHOLESALE BANKING OPERATIONS

The Wholesale Banking Operations (WBO) is responsible for providing best in class services to non-retail customers of the Bank through four verticals: Corporate Banking Operations, Treasury Operations, Trade and Forex Operations, and Centralised Collection and Payment Hub.

The Corporate Banking Operations (CBO) involves delivery, control, monitoring and administration of credit facilities of large and mid-corporates, SME, corporate agriculture, channel finance and micro finance transactions. CBO operates through a network comprising of Corporate Banking Branches (CBBs)/Credit Management Centres (CMCs) at 8 major cities, 52 Mini- Credit Management Centres (MCMCs) at Tier II cities, and Corporate Credit Operations Hub (CCOH) at Hyderabad. Treasury Operations provides operational support to the Bank’s Treasury and operates the centralised electronic payment hubs for RTGS and NEFT. Trade and Forex Operations (TFO) supervise and control the entire cross border trade and foreign exchange operations of the Bank. TFO provides trade finance and retail forex services to corporates, full-fledged money changers (FFMCs) and individuals through 197 B-category branches and state-of-the-art centralised knowledge processing centres viz.

‘Trade Finance Centres’ located at Mumbai and Hyderabad. TFO is also responsible for ensuring compliance of regulatory and internal guidelines in respect of foreign exchange transactions of the Bank.

The Bank’s payment service is one of the key differentiating services for all customer segments. In order to enhance speed, scalability and straight through processing by technological advancement, the Bank has launched a plan of introducing an Enterprise Payment Hub to handle all types of payment services through a centralised and channel agnostic processing engine.

UNAUDITED FINANCIAL RESULTS FOR THE NINE MONTHS ENDED 30.06.2012

[Rs. in millions]

PARTICULARS	FOR THE QUARTER ENDED 30.06.2012
	(Reviewed)
1. Interest earned (a)+(b)+(c)+(d)	64828.600
(a) Interest/discount on advances/bills	46245.400
(b) Income on Investments	18063.200
(c) Interest on balances with Reserve Bank of India and other inter-bank funds	229.200
(d) Others	290.800
2. Other Income (Refer note 3)	13355.100
3. TOTAL INCOME (1+2)	7,818,37
4. Interest Expended	43030.000
5. Operating expenses	15517.100
(i) Employees cost	5826.100
(ii) Other operating expenses	9691.000
6. TOTAL EXPENDITURE (4)+(5) (Excluding Provisions and Contingencies)	58547.100
7. OPERATING PROFIT (3-6) (Profit before Provisions and Contingencies)	19636.600
8. Provisions (other than tax) and Contingencies (Net)	2588.400
9. Exceptional Items	-
10. Profit/(Loss) from Ordinary Activities before Tax (7-8-9)	17048.200
11. Tax expense	5513.000
12. Net Profit/(Loss) from Ordinary Activities after Tax (10-11)	11535.200
13. Extraordinary Items (net of tax expense)	-
14. Net Profit/(Loss) for the period (12-13)	11535.200
15. Paid-up equity share capital (Face value Rs.10/- per share)	4142.900
16. Reserves excluding revaluation reserves
17. Analytical Ratios
(i) Percentage of Shares held by Government of India	NIL
(ii) Capital Adequacy Ratio	13.03%
(iii) Earnings per Share (EPS) for the period/year (before and after extraordinary items) - Basic - Diluted	27.88 27.73
(iv) NPA Ratios
(a) Amount of Gross Non Performing Assets	20917.200
(b) Amount of Net Non Performing Assets	604,90
(c) % of Gross NPAs	1.06
(d) % of Net NPAs	0.31
(v) Return on Assets (annualized)	1.62
18. Public Shareholding # - Number of shares - Percentage of shareholding	224,696,272 54.24%
19. Promoters and promoter group shareholding#
Pledged/Encumbered
- Number of shares	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	154525970
- Percentage of shares (as a % of the total	100.00
shareholding of promoter and promoter	37.30
group)

# excludes shares held by custodian against which Global Depositary Receipts have been issued.

Notes:

1. Statement of Assets and Liabilities of the Bank as on 30^th June, 2012 is given below.

Rs. in Millions

Particulars	As on 30.06.2012
	(Reviewed)
CAPITAL AND LIABILITIES
Capital	4142.900
Reserves and Surplus	238388.300
Deposits	2226309.900
Borrowings	340678.900
Other Liabilities and Provisions	84208.200
TOTAL	2893728.200
ASSETS
Cash and Balances with Reserve Bank of India	157087.400
Balances with Banks and Money at Call and Short Notice	50666.000
Investments	879856.600
Advances	1711458.800
Fixed Assets	22759.500
Other Assets	71899.900
TOTAL	2893728.200

· The figures for the quarter ended 31^st March 2012, are the balancing figures between the audited figures in respect of the full financial year 2011-12 and the published year to date figures up to the end of the third quarter of the financial year 2011-12.

· '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.

· During the current quarter, pursuant to the order passed by the High Court of Gujarat at Ahmedabad, the equity shareholders and unsecured creditors of the Bank have at their meetings held on 23^rd June 2012, approved the Scheme of Arrangement in respect of the demerger of the financial services businesses from Enam Securities Private Limited to the Bank and a simultaneous sale of such businesses to Axis Securities and Sales Limited, a wholly owned subsidiary of the Bank, with effect from 1^st April, 2010. The Bank is now awaiting the necessary approvals under applicable law from various regulatory authorities to the Scheme of Arrangement and consequently, no effect of the acquisition has been given in the above results.

· During the quarter ended 30^th June 2012, the Bank allotted 10,86,994 equity shares pursuant to the exercise of options under its Employee Stock Option Scheme.

· Disclosure about investor complaints:

Statement of Assets and Liabilities as on 31st December, 2011 is given below.

Complaints at the beginning of the quarter	Received during the quarter	Disposed off during the quarter	Unresolved as on 30.06.2012
NIL	248	248	NIL

· These results for the periods ended 31st December, 2011 have been subjected to a “Limited Review” by the statutory auditors of the Bank.

· Previous period figures have been regrouped and reclassified, where necessary, to make them comparable with current period figures

Axis Bank Segmental Results

		For the quarter ended 30.06.2012
		(Reviewed)
1	Segment Revenue
A	Treasury	99480.500
B	Corporate/Wholesale Banking	46455.200
C	Retail Banking	41104.600
D	Other Banking Business	697.200
	Total	187737.500
	Less Inter segment revenue	109553.800
	Income from Operations	78183.700
2	Segment Results After Provisions & Before Tax
A	Treasury	601.500
B	Corporate/Wholesale Banking	15522.100
C	Retail Banking	457.400
D	Other Banking Business	467.200
	Total Profit Before Tax	17048.200
3	Capital Employed
A	Treasury	(74304.500)
B	Corporate/Wholesale Banking	703275.900
C	Retail Banking	(396446.500)
D	Other Banking Business	1177.700
E	Unallocated	8828.600
	Total	242531.200

CONTINGENT LIABILITIES

(Rs. in millions)

Particulars	31.03.2012	31.03.2011
Claims against the bank not acknowledged as debts	2602.138	2344.295
Liability for partly paid investments	0.000	0.000
Liability on account of outstanding forward exchange and derivative contracts :
a) Forward Contracts	2009254.981	1940496939
b) Interest Rate Swaps, Currency Swaps, Forward Rate Agreement and Interest Rate Futures	1752490.787	1647016628
c) Foreign Currency Options	130543.459	141258629
Total	3892289.227	3728772196
Guarantees given on behalf of constituents :
- In India	467505.902	464332544
- Outside India	98612.604	76278216
Acceptances, endorsements and other obligations	302612.607	249276960
Other items for which the bank is contingently liable	38751.269	18969073
Grand Total	4802373.747	4539973284

PRESS RELEASE -17^th July 2012

AXIS BANK ANNOUNCES Q1FY13 NET PROFIT OF ?1,153.52 CRORES, UP BY 22% YOY

The Board of Directors of Axis Bank Limited approved the financial results for the quarter ended 30^th June 2012 at its meeting held in Mumbai on Tuesday, 17^th July 2012. The accounts have been subjected to a limited review by the Bank's statutory auditors.

Results at a Glance

· Net Profit during Q1FY13 rose to Rs. 1,1540 Millions from Rs. 9420 Millions in Q1FY12, registering a growth of 22% YOY.

· Demand Deposits grew 17% YOY from Rs. 74,4140 Millions as on 30^th June 2011 to Rs. 86,9420 Millions as on 30th June 2012. Savings Bank deposits in the same period grew 23% YOY. Current and Savings

· Bank deposits were 39% of aggregate deposits at the end of June 2012.

· Net Interest Income and Other Income for Q1FY13 registered a growth of 26% and 14% respectively. Net Interest Margin for Q1FY13 was 3.37% compared to 3.28% in Q1FY12. Operating

· profit for Q1FY13 grew 26% YOY.

· Asset quality was healthy with Net NPA at 0.31%.

· The Bank is well-capitalised with a Capital Adequacy Ratio of 13.51% (including net profit for Ql) as at the end of Q1FY13 compared to 13.01% (including net profit) as at the end of Q1FY12. Tier-I capital was 9.49% (including net profit for Q1) of risk weighted assets at the end of Q1FY13, compared to 9.84% (including net profit) as at the end of Q1FY12.

Financial Highlights

Profit & Loss Account: Quarter ended 30^th June, 2012

• Operating Profit & Net Profit

The Bank's operating profit rose 26% YOY to Rs. 1,9640 Millions during Q1FY13 from Rs. 1,5580 Millions during Q1FY12. The net profit during Q1FY13 rose to Rs. 1,1540 Millions from Rs. 9420 Millions in Q1FY12 registering a growth of 22% YOY.

Net Interest Income and Net Interest Margin

The Bank's Net Interest Income rose 26% YOY to Rs. 2,1800 Millions during Q1FY13 from Rs. 1,7240 Millions during Q1FY12. The net interest margin was 3.37% in Q1FY13, compared to 3.28% during Q1FY12.

Fee Income

Fee income during Q1FY13 stood at Rs. 1,1540 Millions up 9% YOY. During Q1FY13, Retail Banking and Business Banking segments were the key drivers for fee income growth. Retail Banking registered a growth of 17% YOY, rising to Rs. 3220 Millions. Business Banking fees grew 16% YOY and stood at Rs. 1100 Millions. Treasury and DCM segment fees grew 13% YOY and stood at Rs. 2380 Millions. Fee income from Agriculture & SME Banking grew 36% YOY to reach Rs. 630 Millions. Large and Mid-Corporate Credit (including Infrastructure) fees contracted marginally by 1% YOY and stood at Rs. 4090 Millions. Fee income from Equity Capital Markets (including Trusteeship Services) too saw a contraction by 29% YOY and stood at Rs. 120 Millions.

Trading Profits

The Bank generated Rs. 1500 Millions of trading profits during Q1 FY13, compared to Rs. 700 Millions during Q1FY12, a growth of 114% YOY. The share of trading profits to operating revenue was 4% in Q1FY13, compared to 2% in Q1FY12.

Balance Sheet: As on 30^th June 2012

• Capital and Shareholders' Funds

The shareholders' funds of the Bank were Rs. 242530 Millions as on 30^th June 2012 growing 21% YOY from Rs. 20,0170 Millions as on 30^th June 2011. The Capital Adequacy Ratio (CAR) for the Bank was 13.03% (excluding net profit for Q1FY13), as on 30^th June 2012, compared to 12.53% (excluding net profit for Q1FY12) as on 30^th June The Tier-I capital adequacy ratio was 9.02% (excluding net profit for Q1FY13) as on 30^th June 2012, compared to 9.36% (excluding net profit for Q1FY12) as on 30^th June 2011. The profit of Q1 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. 1,1540 Millions for Q1 this year is included, the total CAR and Tier-I CAR as on 30^th June 2012 would be 13.51% and 9.49% respectively

Key Business Variables

Demand deposits grew 17% YOY from Rs. 74,4140 Millions as on 30^th June 2011 to Rs. 86,9420 Millions as on 30^th June On a daily average basis, demand deposits constituted 36% of total deposits during Q1FY13, as against 37% in Q1FY12. The daily average balances in CASA deposits during the quarter grew 16% YOY, buoyed up by Savings Bank deposits which grew 22% over the year. At the end of the quarter, Current Account and Savings Bank deposits together accounted for 39% of the total deposits of the Bank.

The Bank's advances grew 30% YOY from Rs. 1,31,9000 Millions as on 30^th June 2011 to Rs.1,71,1460 Millions as on 30^th June 2012. However, normalised YOY growth in advances would be 21% adjusting for currency depreciation of ~25% during the year and a relatively lower base caused by run-offs in short-term loans in the previous period ended 30^th June 2012. Investments rose to Rs. 87,9860 Millions from Rs. 75,3070 Millions over the same period, registering a growth of 17% YOY.

• Investment Portfolio

Of the Investment book, share of government securities was 65%. Investments in other securities such as corporate bonds, equities, preference shares, mutual funds etc accounted for the balance. 78% of the government securities have been classified in the HTM category while 97% of the Bonds & Debentures portfolios 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 30^th June 2012 in each category was as follows:

Category	Percentage	Duration*
HFT	1.72%	2.52 years
AFS	41.64%	2.13 years
HTM	56.64%	5.37 years

· Excluding mutual funds and equity investment

NPAs and Restructured Assets

Gross NPAs as proportion of gross customer assets and Net NPAs as a proportion of net customer assets were unchanged vis-d-vis previous year and stood at 1.06% and 0.31% respectively for the period ended 30^th June 2012. The Bank held a provision coverage of 79% as on 30^th June 2012 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage (as a proportion of Gross NPAs) before accumulated write-offs was 90%.

During the quarter, the Bank added Rs. 4560 Millions to Gross NPAs. Recoveries and upgrades of Rs. 620 Millions and write-offs of Rs. 1080 Millions during the quarter resulted in a closing position of Rs. 2,0920 Millions of Gross NPAs as on 30^th June 2012, as against Rs. 1,5730 Millions as on 30^th June 2011.

The Bank restructured assets aggregating Rs. 6280 Millions during Q1FY13. The cumulative value of assets restructured till 30^th June 2012, rose to Rs. 3,8270 Millions (1.95% of gross customer assets). Of the outstanding pool, assets amounting to Rs. 1,2310 Millions have displayed a satisfactory repayment track-record of two years. Adjusting for these assets, restructured assets would constitute 1.32% of gross customer assets.

The segment-wise break-up of restructured assets as on 30^th June 2012 is as follows:

Large and Mid-Corporate Credit	80%
SME	6%
Agri. including Micro finance	7%
Capital Markets	7%

The sector-wise breakup of restructured assets as on 30^th June 2012 was as follows.

Textiles	14%
Petroleum	12%
Edible Oils	12%
Shipping	11%
Infrastructure	9%
Others	42%

Business Overview • Network

The Bank continued to extend its presence across the country and at the end of Q1FY13, had a network of 1,674 domestic branches and extension counters and 10,337 ATMs situated in 1,080 cities and towns. During the quarter, the Bank added 52 branches and 413 ATMs.

Retail Business

The number of Savings Bank accounts grew 26% from 9.902 Millions as on 30^th June 2011 to 12.445 Millions as on 30^th June 2012. Retail advances grew from Rs. 27,0220 Millions as on 30^th June 2011 to Rs. 40,5910 Millions as on 30^th June 2012, a growth of 50% YOY. Retail Advances accounted for 24% of the total advances of the Bank as on 30^th June 2012. The Bank's International Debit Card issuance has risen to 131 lac debit cards as on 30^th June 2012, as compared to 105 lac debit cards in force as on 30^th June 2011. The Bank had over 8.24 lac credit cards in force as on 30^th June 2012.

Placement / Syndication

The Bank arranged debt aggregating Rs. 27,6950 Millions during Q1FY13 rising 45% over Q1FY12. The Bank was assessed as the No.1 Debt Arranger Rupee denominated bonds for six month period ended June 2012 by Bloomberg. The Bank was assessed No.1 debt arranger for the year ended March 2012 by Prime Database.

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 6.15 billion as on 30^th June 2012, as compared to USD 4.85 billion as on30^th June 2011, a growth of 27%.

• Enam Update

During the current quarter, pursuant to the order passed by the High Court of Gujarat at Ahmedabad, the equity shareholders and unsecured creditors of the Bank have at their meetings held on 23^rd June 2012, approved the Scheme of Arrangement in respect of the demerger of the financial services business from Enam Securities Private Limited to the Bank and a simultaneous sale of such businesses to Axis Sales & Securities Limited, a wholly owned subsidiary of the Bank, with effect from 1^st April, 2010. The Bank is now awaiting the necessary approvals under applicable law from various regulatory authorities to the Scheme of Arrangement and consequently, no effect of the acquisition has been given in the results for the current quarter.

Rs in Millions

Financial Performance	Q1FY13	Q1FY12	%Growth
Net Profit	1,1535.200	9423.500	22
EPS Diluted (Rs. )	277.300	226.700	22
Net Interest Income	2,1798.600	1,7241.000	26
Other Income	1,3355.100	1,1678.700	14
- Fee Income	1,1543.500	1,0569.500	9
- Trading Income	1502.300	702.300	114
- Miscellaneous Income	309.300	406.900	(24)
Operating Revenue	3,5153.700	2,8919.700	22
Core Operating Revenue*	3,3651.400	2,8217.400	19
Operating Expenses (incl. depreciation)	1,5517.100	1,3334.900	16
Operating Profit	1,9636.600	1,5584.800	26
Core Operating Profit**	1,8134.300	1,4882.500	22

*Core Operating Revenue = Operating Revenue - Trading Income

** Core Operating Profit = Operating Profit - Trading Income

RS in Millions

Condensed Unconsolidated Balance Sheet	As on 30^th June '12	As on 30^th June '11
CAPITAL AND LIABILITIES
Capital	4142.900	4118.800
Reserves & Surplus	23,8388.300	19,6046.500
Deposits	222,6309.900	183,5968.300
Borrowings	34,0678.900	22,3205.100
Other Liabilities and Provisions	8,4208.200	7,2071.900
Total	289,3728.200	233,1410.600
ASSETS
Cash and Balances with Reserve Bank of India and Balances with Banks and Money at Call and Short Notice	20,7753.400	18,8631.300
Investments	87,9856.600	75,3073.900
Advances	171,1458.800	131,8996.600
Fixed Assets	2,2759.500	2,2613.200
Other Assets	7,1899.900	4,8095.600
Total	289,3728.200	233,1410.600

Rs. In Million

Business Performance	As on 30^th June '12	As on 30^th June '11	% Growth
Total Deposits	222,6310	183,5970	21
Demand Deposits	86,9420	74,4140	17
- Savings Bank Deposits	52,7770	42,8990	23
- Current Account Deposits	34,1650	31,5150	8
Demand Deposits as % of Total Deposits	39%	41%
Term Deposits	135,6890	109,1830	24
Demand Deposits on a Cumulative Daily Average Basis for the quarter	76,4250	65,9110	16
Demand Deposits as % Total Deposits (CDAB basis) for the quarter	36%	37%
Net Advances	171,1460	131,9000	30
- Large & Mid-Corporate	92,8870	70,3240	32
- SME	21,9850	19,8340	11
- Agriculture	15,6830	14,7200	7
- Retail Advances*	40,5910	27,0220	50
Investments	87,9860	75,3070	17
Balance Sheet Size	289,3730	233,1410	24
Net NPA as % of Net Customer Assets	0.31	0.31
Gross NPA as % of Gross Customer Assets	1.06	1.06
Equity Capital	414	412	1
Shareholders' Funds	24,253	20,017	21
Capital Adequacy Ratio^&	13.03	12.53
- Tier I&	9.02	9.36
- Tier II	4.01	3.17

* Retail Advances are defined as loans to individuals other than Agricultural Credit.

& Total CAR and Tier-I CAR would be 13.51% & 9.49% on inclusion of Q1FY13 net profit of Rs. 1,1540 Millions.

Axis Bank named Bank of the Year - India by The Banker

Mumbai, Maharshtra, December 5, 2011 /India PRwire/ -- Axis Bank, India's third largest private Bank, was given the 'Bank of the Year - India' Award by the UK based magazine 'The Banker' at The Banker Awards-2011 Ceremony held on November 30,2011. The prestigious Awards are regarded as a industry standard for banking excellence and are judged on an institution's ability to deliver shareholder returns. The Awards are contested by the world's leading financial institutions

The 'Bank of the Year - India' Award was received by Mr.V.Srinivasan, Executive Director, Corporate Banking, Axis Bank at the ceremony held in London. The Banker Awards-2011 function was attended by senior bankers from over 130 countries.

Speaking on the occasion Mr.V.Srinivasan, Executive Director, Corporate Banking, Axis Bank said, "Axis Bank is delighted to receive the 'Bank of the Year - India' Award for 2011. The award is in recognition of the efforts put in by our entire team and will motivate us to remain committed to our customers and provide seamless banking services."

Notes to Editor

About Axis Bank

Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture and Retail Businesses.

With its 1446 branches (including extension counters) and 7,594 ATMs across the country, as on 30th September 2011, the network of Axis Bank spreads across 953 cities and towns, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Bank also has overseas offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.

The Bank's website www.axisbank.com offers comprehensive details about its products and services

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

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] 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.53.12
UK Pound	1	Rs.85.15
Euro	1	Rs.68.60

INFORMATION DETAILS

Report Prepared by :

BYI

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	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.