MIRA INFORM REPORT
|
Report No. : |
312917 |
|
Report Date : |
17.03.2015 |
IDENTIFICATION DETAILS
|
Name : |
AXIS BANK LIMITED |
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|
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|
Formerly Known
As : |
UTI BANK LIMITED |
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Registered
Office : |
Trishul 3rd Floor, Opposite, Samartheshwar Temple, Law
Garden, Ellisbridge, Ahmedabad – 380 006, Gujarat |
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Country : |
India |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
03.12.1993 |
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Com. Reg. No.: |
04-020769 |
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Capital
Investment / Paid-up Capital : |
Rs. 4698.446 Million |
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|
CIN No.: [Company Identification
No.] |
L65110GJ1993PLC020769 |
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|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AAACU2414K |
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PAN No.: [Permanent Account No.] |
Not Available |
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Legal Form : |
A Public Limited Liability Bank. The Bank’s shares are listed on the stock exchanges |
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Line of Business
: |
Subject is engaged in Banking Activities. |
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|
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No. of Employees
: |
42420 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Aa (76) |
|
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 |
|
Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is well-known third-largest private sector bank. It is well-established bank having excellent track record. Fundamentals are strong and healthy. The bank has been performing very well. Financial position appears to
be strong. Trade relations are fair. Business is active. Payments are reported to be regular and as per
commitment. The bank can be considered for business dealings at usual trade terms
and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Tier II Bonds (AAA) |
|
Rating Explanation |
Highest degree of safety and carry lowest credit risk |
|
Date |
February 2015 |
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
31-03-2014.
INFORMATION DENIED
Management non co-operative (91-79-26409322)
LOCATIONS
|
Registered Office : |
Trishul 3rd Floor, Opposite, Samartheshwar Temple, Law
Garden, Ellisbridge, Ahmedabad – 380 006 Gujarat, India |
|
Tel. No.: |
91-79-26409322 |
|
Fax No.: |
91-79-26409321 |
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E-Mail : |
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|
Website : |
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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 |
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Tel. No.: |
91-22-67074407 |
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Fax No.: |
91-22-22186944 / 1429 |
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|
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|
List Of Centers: |
Located At ·
Andhra
Pradesh ·
Bihar ·
Arunachal
Pradesh ·
Assam ·
Chattisgarh ·
Dadra
and Nagar UT ·
Daman
and 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 o: 31.03.2014
|
Name : |
Mr. Sanjiv Misra |
|
Designation : |
Chairman |
|
|
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|
Name : |
Mrs. Shikha Sharma |
|
Designation: |
Managing Director and Chief Executive Officer |
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|
Name : |
Mr. K. N. Prithviraj |
|
Designation : |
Director |
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|
Name : |
Mr. V. R. Kaundinya |
|
Designation : |
Director |
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|
Name : |
Mr. S. B. Mathur |
|
Designation : |
Director |
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|
Name : |
Mr. Prasad R. Menon |
|
Designation: |
Director |
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|
Name : |
Mr. R. N. Bhattacharyya |
|
Designation : |
Director |
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|
Name : |
Mr. Samir K. Barua |
|
Designation : |
Director |
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|
Name : |
Mr. Som Mittal |
|
Designation : |
Director |
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|
Name : |
Mrs. Ireena Vittal |
|
Designation : |
Director |
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|
Name : |
Mr. Rahit Bhagat |
|
Designation : |
Director |
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|
Name : |
Ms. Usha Sangwan |
|
Designation : |
Director |
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|
Name : |
Mr. Somnath Sengupta |
|
Designation : |
Executive Director & Head (Corporate Centre |
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|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Executive Director & Head (Corporate Banking) |
KEY EXECUTIVES
|
Name : |
Mr. Sanjeev Kapoor |
|
Designation : |
Company Secretary |
|
|
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|
Name : |
Mr. V. Srinivasan |
|
Designation : |
Executive Director and Head (Corporate Banking) |
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|
Name : |
Mr. Somnath Sengupta |
|
Designation : |
Executive Director and Head (Corporate Centre) |
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|
Name : |
Mr. R. K. Bammi |
|
Designation : |
Executive Director (Retail Banking) |
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|
Name : |
Mr. P. Mukherjee |
|
Designation : |
President – Large Corporate and International Banking |
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|
Name : |
Mr. S. S. Bajaj |
|
Designation : |
President & Chief Audit Executive |
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|
Name : |
Mr. Bapi Munshi |
|
Designation : |
President and Chief Risk Officer |
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|
Name : |
Mr. C. Babu Joseph |
|
Designation : |
Executive Trustee and Chief Executive Officer - Axis Bank Foundation |
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|
Name : |
Mr. Sanjeev K. Gupta |
|
Designation : |
President & Chief Financial Offi cer |
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|
Name : |
Mr. V. K. Bajaj |
|
Designation : |
President – Mid Corporates & SME |
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|
Name : |
Mr. Sidharth Rath |
|
Designation : |
President – Treasury & Business Banking |
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|
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|
Name : |
Mr. A. R. Gokulakrishnan |
|
Designation : |
President – Wholesale Banking Operations (Designate) |
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|
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|
Name : |
Mr. Rajendra D. Adsul |
|
Designation : |
President – SME |
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|
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|
Name : |
Mr. R. V. S. Sridhar |
|
Designation : |
President – IT & Retail Operations |
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|
Name : |
Mr. Lalit Chawla |
|
Designation : |
President - Corporate Credit |
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|
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|
Name : |
Mr. Rajesh Kumar Dahiya |
|
Designation : |
President - Human Resources |
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|
Name : |
Mr. Sharad Bhatia |
|
Designation : |
President - Stressed Assets |
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|
Name : |
Mr. Rajiv Anand |
|
Designation : |
President – Retail Banking |
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|
Name : |
Mr. Jairam Sridharan |
|
Designation : |
President – Consumer Lending |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2014
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter
and Promoter Group |
|
|
|
|
|
|
|
|
667388073 |
29.33 |
|
|
667388073 |
29.33 |
|
|
|
|
|
Total shareholding of Promoter
and Promoter Group (A) |
667388073 |
29.33 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
127535364 |
5.60 |
|
|
1291757 |
0.06 |
|
|
139203589 |
6.12 |
|
|
1146769344 |
50.39 |
|
|
1957475 |
0.09 |
|
|
1416757529 |
62.26 |
|
|
|
|
|
|
28571341 |
1.26 |
|
|
|
|
|
|
89406440 |
3.93 |
|
|
59617128 |
2.62 |
|
|
13881987 |
0.61 |
|
|
1713296 |
0.08 |
|
|
5012582 |
0.22 |
|
|
2210550 |
0.10 |
|
|
17195 |
0.00 |
|
|
434220 |
0.02 |
|
|
4493544 |
0.20 |
|
|
600 |
0.00 |
|
|
191476896 |
8.41 |
|
Total Public shareholding (B) |
1608234425 |
70.67 |
|
Total (A)+(B) |
2275622498 |
100.00 |
|
(C) Shares held by Custodians
and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
87646375 |
0.00 |
|
|
87646375 |
0.00 |
Shareholding of securities
(including shares, warrants, convertible securities) of persons belonging to
the category Promoter and Promoter Group:
|
Sl.No. |
Name of the
Shareholder |
Details of Shares
held |
|
|
No. of Shares held |
As a % of grand
total (A)+(B)+(C) |
||
|
1 |
Administratror of the specified undertaking of the Unit Trust of India - (SUUTI) |
27,48,40,905 |
11.63 |
|
2 |
Life Insurance Corporation of India |
29,98,66,117 |
12.69 |
|
3 |
General Insurance Corporation of India |
3,93,21,498 |
1.66 |
|
4 |
The New India Assurance Company Limited |
2,66,11,433 |
1.13 |
|
5 |
National Insurance Company Limited |
1,49,75,285 |
0.63 |
|
6 |
The Oriental Insurance Company Limited |
62,55,020 |
0.26 |
|
7 |
United India Insurance Company Limited |
55,17,815 |
0.23 |
|
|
Total |
66,73,88,073 |
28.24 |
Shareholding of
securities (including shares, warrants, convertible securities) of persons
belonging to the category Public and holding more than 1% of the total number
of shares:
|
Sl. No. |
Name of the
Shareholder |
No. of Shares held |
Shares as % of
Total No. of Shares |
|
|
1 |
Europacific Growth Fund |
111524315 |
4.72 |
|
|
2 |
ICICI Prudential Life Insurance Company Limited |
53304920 |
2.26 |
|
|
3 |
Genesis Indian Investment Company Limited - General Sub Fund |
25223650 |
1.07 |
|
|
4 |
Goldman Sachs (Singapore) Private |
41445119 |
1.75 |
|
|
5 |
Copthall Mauritius Investment Limited |
40722234 |
1.72 |
|
|
6 |
Lazard Asset Management LLC A/c Lazard Emerging Markets Portfolio |
33237161 |
1.41 |
|
|
7 |
Centaura Investments (Mauritius) Private. Limited |
26856320 |
1.14 |
|
|
8 |
Morgan Stanley Asia (Singapore) Private |
26949326 |
1.14 |
|
|
9 |
Government Pension Fund Global |
24910831 |
1.05 |
|
|
|
Total |
384173876 |
16.26 |
Details of Locked-in
Shares
|
Sl. No. |
Name of the
Shareholder |
No. of Shares |
Locked-in Shares as
% of |
|
1 |
Life Insurance Corporation of India |
42,40,450 |
0.18 |
|
2 |
General Insurance Corporation of India |
7,71,990 |
0.03 |
|
3 |
The New India Assurance Company Limited |
3,53,102 |
0.01 |
|
4 |
National Insurance Company Limited |
3,63,157 |
0.02 |
|
5 |
United India Insurance Company Limited |
1,09,246 |
0.00 |
|
|
Total |
58,37,945 |
0.25 |
Details of Depository
Receipts (DRs)
|
Sl. No. |
Type of Outstanding
DR (ADRs, GDRs, SDRs, etc.) |
No. of Outstanding
DRs |
No. of Shares
Underlying |
Shares Underlying
Outstanding DRs as % of Total No. of Shares |
|
1 |
GDRs |
8,76,46,375 |
8,76,46,375 |
3.71 |
|
|
Total |
8,76,46,375 |
8,76,46,375 |
3.71 |
BUSINESS DETAILS
|
Line of Business : |
Subject is engaged in Banking Activities |
|
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|
Products : |
-- |
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|
Brand Names : |
Not Available |
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Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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|
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Imports : |
Not Divulged |
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|
|
|
Terms : |
Not Divulged |
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
42420 (Approximately) |
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Bankers : |
Reserve Bank of India |
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Facilities : |
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Banking
Relations : |
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Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
|
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Memberships : |
Not Available |
|
|
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|
Collaborators : |
Not Available |
|
|
|
|
Subsidiary Companies: |
On 28 October, 2013, the Bank purchased 15.92% stake in Axis
Securities Limited from Axis Capital Limited at a consideration of Rs.
382.500 Million thus making it a wholly owned subsidiary of the Bank. |
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|
Step down Subsidiary Companies: |
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|
Associate: |
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|
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Promoters: |
|
CAPITAL STRUCTURE
AFTER 19.07.2013
Authorised Capital : Rs. 8500.000 Million
Issued, Subscribed & Paid-up Capital : Rs. 4732.715 Million
As on 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
850000000 |
Equity Shares |
Rs.10/- each |
Rs. 8500.000 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
469844553 |
Equity Shares |
Rs.10/- each |
Rs. 4698.446
Million |
|
|
|
|
|
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
Particulars |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
CAPITAL AND LIABILITIES |
|
|
|
|
Capital |
4698.446 |
4679.545 |
4132.039 |
|
Reserves and Surplus |
377506.419 |
326399.054 |
223953.384 |
|
Deposits |
2809445.649 |
2526135.881 |
2201043.033 |
|
Borrowings |
502909.425 |
439510.984 |
340716.721 |
|
Other Liabilities and
Provisions |
137888.943 |
108881.120 |
86432.757 |
|
TOTAL |
3832448.882 |
3405606.584 |
2856277.934 |
|
ASSETS |
|
|
|
|
Cash and Balances with
Reserve Bank of India |
170413.196 |
147920.883 |
107029.214 |
|
Balances with Banks and
Money at Call and Short Notice |
111973.750 |
56428.716 |
32309.943 |
|
Investments |
1135484.344 |
1137375.370 |
931920.859 |
|
Advances |
2300667.584 |
1969659.574 |
1697595.386 |
|
Fixed Assets |
24102.106 |
23556.420 |
22593.250 |
|
Other Assets |
89807.902 |
70665.621 |
64829.282 |
|
TOTAL |
3832448.882 |
3405606.584 |
2856277.934 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Interest Earned |
306411.554 |
271825.744 |
219946.474 |
|
|
|
Other Income |
74052.247 |
65511.063 |
54202.163 |
|
|
|
TOTAL |
380463.801 |
337336.807 |
274148.637 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Interest Expended |
186895.22 |
175163.111 |
139769.024 |
|
|
|
Operating Expenses |
79007.739 |
69142.375 |
60070.995 |
|
|
|
Provisions and contingencies |
52384.176 |
41236.992 |
31886.564 |
|
|
|
TOTAL |
318287.135 |
285542.478 |
231726.583 |
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
BEFORE TAX |
62176.666 |
51794.329 |
42422.054 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT / [LOSS]
AFTER TAX |
62176.666 |
51794.329 |
42422.054 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
100292.624 |
73294.476 |
49697.707 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to Statutory Reserve |
15544.167 |
12948.583 |
10605.513 |
|
|
|
Transfer to Investment Reserve |
500.289 |
534.571 |
0.000 |
|
|
|
Transfer to Capital Reserve |
388.664 |
1414.579 |
519.047 |
|
|
|
Transfer to Reserve Fund |
10.465 |
26.084 |
0.000 |
|
|
|
Proposed dividend (includes tax on dividend) |
11011.244 |
9872.364 |
7700.725 |
|
|
BALANCE CARRIED
TO THE B/S |
135014.461 |
100292.624 |
73294.476 |
|
|
|
|
|
|
|
|
|
|
Earnings/[Loss]
Per Share (Rs.) |
|
|
|
|
|
|
Basic |
132.56 |
119.67 |
102.94 |
|
|
|
Diluted |
132.23 |
118.85 |
102.20 |
|
QUARTERLY RESULTS
|
PARTICULARS |
1 Quarter 30.06.2014 |
1 Quarter 30.09.2014 |
1 Quarter 31.12.2014 |
|
Revenue |
88,897.400 |
86,023.600 |
82,894.200 |
|
Other Income |
20,390.700 |
19,476.100 |
16,910.500 |
|
Total Income |
1,09,288.100 |
1,05,499.700 |
99,804.700 |
|
Expenditure |
(23,140.300) |
(23,101.600) |
(21,058.800) |
|
Interest |
(53,001.800) |
(50,775.100) |
(49,789.300) |
|
PBDT |
33,146.000 |
31,623.000 |
28,956.600 |
|
Depreciation |
-- |
-- |
-- |
|
PBT |
33,146.000 |
31,623.000 |
28,956.600 |
|
Tax |
(9,076.900) |
(8,265.500) |
(8,423.000) |
|
Net Profit |
18,997.600 |
16,107.100 |
16,667.600 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT / Sales) |
(%) |
20.29
|
19.05 |
19.29 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
1.62
|
1.52 |
1.49 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16 |
0.16 |
0.19 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
1.32 |
1.33 |
1.49 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particular |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Share Capital |
4132.039 |
4679.545 |
4698.446 |
|
Reserves & Surplus |
223953.384 |
326399.054 |
377506.419 |
|
Net worth |
228085.423 |
331078.599 |
382204.865 |
|
|
|
|
|
|
long-term borrowings |
340716.721 |
439510.984 |
502909.425 |
|
Total borrowings |
340716.721 |
439510.984 |
502909.425 |
|
Debt/Equity ratio |
1.494 |
1.328 |
1.316 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Interest Earned |
219946.474 |
271825.744 |
306411.554 |
|
|
|
23.587 |
12.724 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(Rs. In Millions) |
(Rs. In Millions) |
(Rs. In Millions) |
|
Interest Earned |
219946.474 |
271825.744 |
306411.554 |
|
Profit |
42422.054 |
51794.329 |
62176.666 |
|
|
19.29% |
19.05% |
20.29% |
LOCAL AGENCY FURTHER INFORMATION
CURRENT MATURITIES
OF LONG-TERM DEBT DETAILS: NOT AVAILABLE
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
-- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if
applicable) |
No |
|
21] |
Market information |
-- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
-- |
|
26] |
Buyer visit details |
-- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director,
if available |
No |
|
32] |
PAN of
Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS:
HIGH COURT OF GUJARAT
CIVIL APPLICATION No. 599
of 2010
|
In SPECIAL CIVIL APPLICATION / 15599 / 2008 ( PENDING ) |
||
|
Status : PENDING |
( Converted from : CAST/962/2010 ) |
CCIN No : 001003201000599 |
|
|
|||||||||
|
|||||||||
|
|||||||||
|
S.NO. |
Name of the Petitioner |
Advocate On Record |
|||||||
|
1 |
BARODA RAYON EMPLOYEES EKTA UNION |
MR DIPAK R DAVE for: Petitioner(s) |
|||||||
|
S.NO. |
Name of the Respondent |
Advocate On Record |
|||||||
|
1 |
BARODA RAYON CORPORATION LIMITED COMMISSIONER OF LABOUR SECRETARY, LABOUR & EMPLOYMENT DEPARTMENT CLEARWATER CAPITAL PARTNERS INDIA PRIVATE
LIMITED. YES BANK LIMITED. AXIS BANK LIMITED., HALCYON ENTERPRISES PRIVATE LIMITED., |
M/S TRIVEDI & GUPTA for
:Respondent(s) |
|||||||
|
|
|||||||||
|
Presented On |
: 25/01/2010 |
Registered On |
: 25/01/2010 |
||||||
|
Bench Category |
: SINGLE BENCH |
District |
: SURAT |
||||||
|
Case Originated From |
: THROUGH HIS/HER/THEIR ADVOCATE |
Listed |
: 189 times |
||||||
|
Stage Name |
: FOR DICTATION OF JUDGEMENT/ORDER |
||||||||
|
Classification |
·
SJ - CIVIL APPLICATION
- CODE OF CIVIL PROCEDURE, 1908 - AMENDMENT |
|
Act |
·
CIVIL PROCEDURE CODE,
1908 |
INDEX
OF CHARGES: NO CHARGES EXIST FOR COMPANY
CONTINGENT
LIABILITIES:
(Rs. in millions)
|
PARTICULARS |
31.03.2014 |
|
Claims against the Bank not acknowledged as debts |
2370.182 |
|
Liability on account
of outstanding forward exchange and derivative contracts : |
-- |
|
Forward Contracts |
2312741.992 |
|
Interest Rate Swaps, Currency Swaps, Forward Rate Agreement & Interest Rate Futures |
2299486.452 |
|
Foreign Currency Options |
202687.973 |
|
|
|
|
Total |
4814916.417 |
FINANCIAL PERFORMANCE
The Bank continued to deliver a steady growth in both business and earnings, in the midst of a moderation in economic growth and intensifying competitive financial landscape. The Bank reported a net profit of Rs.62176.700 Million for the year ended 31st March 2014, registering a growth of 20.05% over the net profit of Rs.51794.300 Million last year. The healthy growth in earnings was a result of robust business growth across banking segments indicative of a clear strategic focus. During the year, the Basic Earnings Per Share (EPS) was Rs.1325.600 and a Return on Equity (ROE) was 18.23%.
During the year, the Bank’s total income increased by 12.78% to reach Rs.38,0463.800 Million as compared to Rs.33,7336.800 Million last year. Operating revenue over the same period increased by 19.36% to Rs.19,3568.600 Million while operating profit increased by 23.14% to Rs.11,4560.900 Million. The growth in earnings was mainly due to a strong growth in net interest income (NII). During the year, NII increased by 23.64% to Rs.11,9516.400 Million from Rs.9,6662.600 Million last year and constituting 61.74% of the operating revenue. Fee, trading and other income increased by 13.04% to Rs.7,4052.200 Million from Rs.6,5511.100 Million last year. The operating expenses grew at a slower pace by 14.27% to Rs.7,9007.700 Million from Rs.6,9142.400 Million last year.
During the year under review, the growth in NII was attributable to an expansion in the balance sheet size, healthy growth in low-cost Current Account and Savings Bank (CASA) deposits and continued focus on increasing retail term deposits. During 2013-14, the total earning assets on a daily average basis increased by 14.63% to Rs.3137750.000 Million, compared to Rs.2737380.000 Million last year. The cost of funds improved over the year to 6.24% from 6.55% last year due to a combination of various factors. The healthy growth in low-cost CASA deposits, which on a daily average basis, increased to Rs.935060.000 Million from Rs.809410.000 Million, and comprised 38.89% of total deposits compared to 36.28% in the previous year. Secondly, the increase in the share of retail term deposits at 54.53% of total term deposits, compared to 43.67% last year, enabled the Bank to contain its cost of funds apart from providing a stable funding base in the midst of significant volatility in interest rates witnessed mainly during the second quarter of the year. The raising of equity capital in the fourth quarter of the last financial year also contributed to the lowering of the cost of funds. During the year, the cost of deposits decreased to 6.43% from 6.73% last year primarily due to decrease in cost of term deposits by 27 basis points (from 9.10% to 8.83%). During the same period, the yield on earning assets decreased by 16 basis points to 9.59% from 9.75% last year.
Other income comprising fees, trading profit and miscellaneous income increased by 13.04% to Rs.74052.200 Million in 2013-14 from Rs.6,5511.100 Million last year and constituted 38.26% of the operating revenue of the Bank. Fee income increased by 8.41% to Rs.5,9854.500 Million from Rs.5,5209.300 Million last year and remains very well diversified with 32% from retail banking, 30% from corporate banking and balance contributed by treasury, business banking, SME and agriculture segments. The main sources of fee income are client-based merchant foreign exchange trade, service charges on liability accounts, 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) and fee income from the distribution of third-party investment products. Fee income though has moderated slightly but continues to remain a significant part of the earnings and constituted 30.92% of the operating revenue of the Bank. A key factor for the muted growth in fee income has been slowdown in corporate banking fees which has been impacted by the economic slowdown resulting in lower corporate credit demand and lack of fresh new investments and projects being undertaken. During the year, proprietary trading profits decreased by 7.77% to Rs.6959.900 Million from Rs.7546.000 Million last year. Miscellaneous income increased to Rs.7237.900 Million from Rs.2755.800 Million last year.
During the year, the operating revenue of the Bank increased by 19.36% to Rs.193568.600 Million from Rs.162173.700 Million last year. The core income streams (NII, fee and miscellaneous income) now constitute 96.40% of the operating revenue, reflecting the sustainability of the Bank’s earnings. The Bank continued to focus on business process re-engineering to reduce transaction costs besides ensuring smoothness in operations and increasing productivity. As a result, the operating expenses increased at a slower pace by 14.27% to Rs.79007.700 Million from Rs.69142.400 Million last year. The increase in operating expenses was largely due to 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 40.82% compared to 42.63% last year.
The operating profit of the Bank increased 23.14% to Rs.114560.900 Million during the year, compared to Rs.93031.300 Million last year. During this period, the Bank created total provisions (excluding provisions for tax) of Rs.21074.600 Million compared to Rs.17504.400 Million last year. The Bank provided Rs.12959.800 Million towards non-performing assets compared to Rs.11792.200 Million last year and Rs.2902.300 Million towards provision for standard assets compared to Rs.1966.800 Million last year. The Bank also provided Rs.1947.600 Million compared to Rs.1039.500 Million last year against restructured assets. The Bank has also created a contingent provision of Rs.405.00 Million against advances and other exposures as a prudent measure. As on 31st March 2014, the Bank had outstanding contingent provision of Rs.7800.000 Million. During 2013-14, the Bank restructured loans of Rs.34569.500 Million. The ratio of Gross NPAs to gross customer assets was 1.22% compared to 1.06% last year and Net NPA ratio (Net NPAs as percentage of net customer assets) was 0.40% compared to 0.32% last year. With higher levels of provisions built over and above regulatory norms during the year, the Bank’s provision coverage stood at 78.10% after considering prudential write offs. The various financial parameters and ratios continue to remain healthy. Basic Earnings Per Share (EPS) was Rs.1325.600 Million compared to Rs.1196.700 Million last year, while the Diluted Earnings Per Share was Rs.1322.300 Million compared to Rs.1188.500 Million last year. Return on Equity (RoE) was 18.23% compared to 20.51% last year and Book Value Per Share increased from Rs.7075.000 Million to Rs.8134.700. Return on Assets (RoA) was 1.78% compared to 1.70% last year. The Net Interest Margin (NIM) for the year was 3.81% compared to 3.53% last year.
The Bank has continued to focus on the quality of growth and displayed healthy growth in key balance sheet parameters for the year ended 31st March 2014. The total assets increased by 12.53% to Rs.3832450.000 Million on 31st March 2014 from Rs.340,5610.000 Million on 31st March 2013. The total deposits of the Bank increased by 11.22% to Rs.2809450.000 Million against Rs.2526140.000 Million last year. Savings Bank deposits increased by 21.95% to Rs.777760.000 Million, while Current Account deposits increased by 0.75% to Rs.486860.000 Million. Low-cost CASA deposits increased by 12.81% to Rs.1264620.000 Million as on 31st March 2014 compared to Rs.1121000.000 Million last year. As on 31st March 2014, CASA deposits constituted 45.01% of total deposits as compared to 44.38% last year. On a daily average basis, Savings Bank deposits increased by 19.11% to Rs.622250.000 Million, while Current Account deposits increased by 9.00% to Rs.312810.000 Million. The percentage share of CASA in total deposits, on a daily average basis, improved to 38.89% from 36.28% last year. The Bank’s endeavor over the last few years has been to diversify its term deposit mix in favors of retail deposits. As on 31st March 2014, the retail term deposits grew 37.29% and stood at Rs.842330.000 Million, constituting 54.53% of the total term deposits compared to 43.67% last year. As on 31st March 2014, domestic retail term deposits grew 36.46% YoY and stood at Rs.830100.000 Million, constituting 58.97% of the total domestic term deposits compared to 47.93% last year. However, excluding the FCNR (B) deposits raised to avail the concessional swap facility provided by RBI, domestic retail term deposits grew 20.87%, constituting 56.01% of domestic term deposits. During the year, the Bank mobilized foreign currency funds amounting to ~ USD 1.8 billion, including funds raised under the FCNR (B) deposit scheme, to avail the concessional swap facility provided by RBI. As on 31st March 2014, CASA and retail Term Deposits constituted 75% of total deposits. The domestic CASA and Retail Term Deposits constituted 78.36% of total domestic deposits.
The slowdown in economic growth was reflected in the slower loan growth of corporate loans. Total advances of the Bank as on 31st March 2014, increased by 16.81% to Rs.230,0670.000 Million from Rs.196,9660.000 Million as on 31st March 2013 primarily driven by retail and SME segments. Corporate advances (comprising large, infrastructure and mid-corporate accounts) increased by 4.07% to Rs.102,2380.000 Million, SME loans increased by 18.65% to Rs.35,5020.000 Million, retail loans increased by 38.05% to Rs.74,4910.000 Million and agricultural loans (including micro finance) increased by 20.14% to Rs.17,8360.000 Million. Excluding the effect of retail lending undertaken against FCNR(B) deposits raised under RBI’s special window, the growth in retail loans would have been 31.18% and comprised 31.27% of total loans compared to 27.40% last year. The retail loan portfolio continues to be focused on secured products, predominantly mortgages. However, the strategic intent as indicated in the previous year to further diversify into multi-product portfolio continued during the current financial year. Secured loans accounted for 87% of the total retail loans. The total investments of the Bank decreased by 0.17% to Rs.1135480.000 Million and investments in Government and approved securities, held mainly for SLR requirement, decreased by 4.02% to Rs.696000.000 Million. Other investments, including corporate debt securities, increased by 6.62% to Rs.439480.000 Million. As on 31st March 2014, the total assets of the Bank’s overseas branches stood at Rs.431300.000 Million, constituting 11.25% of the Bank’s total assets.
As one of the key drivers of business growth and customer-acquisition, the Bank continued to enlarge its distribution network. Widening geographical reach is seen to be critical for tapping growth opportunities in newer markets, especially low-cost CASA deposits, lending to retail, agriculture and SME segments and the distribution of third-party products. During the year under review, the Bank added 455 new branches, taking the total number of branches and extension counters (ECs) to 2,402, of which 1,254 branches/ECs are in semi-urban and rural areas and 1,148 branches in metropolitan and urban areas. As on 31st March 2014, the Bank has 438 branches in rural unbanked areas. The Bank also increased its ATM network to 12,922, as compared to 11,245 ATMs last year. The overseas operations of the Bank are spread over its seven international offices with branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre), Colombo and Shanghai and representative offices at Dubai and Abu Dhabi. During the year, the Bank has upgraded its representative office in Shanghai, China to a branch to become the first Indian private sector bank to set up a branch in China. During the year, the Bank’s overseas subsidiary namely Axis Bank UK Limited. commenced banking operations. The international operations of the Bank have generally catered to the needs of Indian corporates who have expanded their businesses overseas and have focused on corporate lending, trade finance, syndication, investment banking and liability businesses.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
MACRO-ECONOMIC
ENVIRONMENT
Fiscal 2014 saw a combination of various external and internal events that kept markets turbulent, interest rates high and investor confidence low, resulting in shrinking investment and GDP growth. Due to apprehensions of an impending ‘taper’ of the US Federal Reserve’s Quantitative Easing programmer, emerging markets, including India, experienced foreign investment outflows and currency volatility. India’s macroeconomic imbalances at the beginning of the year exposed it to this volatility as well, forcing stringent policy responses. However, improving fundamentals have gradually restored some stability in the markets. Indian economic growth had slowed rapidly from 8.9% in 2010-11 to an officially estimated 4.9% in fiscal 2014, caused in large part by structural factors impeding investment activity. Decline in financial savings, sluggish growth in fixed capital formation over successive quarters, persistence of high inflation and low business confidence contributed to the decline in potential growth, particularly in the absence of adequate structural policy measures. Inflation had emerged as the central concern during the year and in combination with the current account and fiscal deficits, had forced Reserve Bank of India (RBI) to raise its policy Repo rate by 75 basis points. While most of the slowdown was due to a steep drop in investment, a cut in the Government’s spending in order to contain the fiscal deficit at less than the budgeted 4.8% of GDP also contributed to a slowdown in consumption. For fiscal 2014, fiscal deficit has been revised down to 4.6% of GDP. The biggest turnaround was in the Current Account Deficit, which had shrunk from $88 billion in fiscal 2013 to $31 billion in the first 3 quarters of fiscal 2014. For fiscal 2014, the current account deficit is expected to be ~2% of GDP. With large capital inflows via Foreign Currency Non-Resident (FCNR-B) deposits and bank capital, the Rupee has stabilised at around 60-62/USD and has been one of the best performing emerging market currencies over the past few months. The Repo rate increases have pushed up the floor for rates and despite liquidity infusion by RBI, short term interest rates have remained high. One of the consequences of the slowdown and high inflation has been a contraction of financial savings of households, with a preference for investment in assets like gold and real estate. This has, in turn, affected deposit accretion with banks. The exceptional liquidity tightening measures of RBI leading to higher rates had resulted in a temporary pike in credit growth in favors of banks compared to credit substitutes in the money market, but this had gradually normalized. On the resources front, strong NRI inflows through the FCNR (B) deposits route have helped improve deposit growth. For the fiscal 2014, deposit growth in the system was 14.6%, while credit growth was 14.3%.
Prospects for Fiscal
2015:
While the medium term prospects point towards an improving growth scenario, given the improved macroeconomic fundamentals it is likely that there will only be a modest economic recovery in fiscal 2015. Globally, many emerging markets still look vulnerable and periodic flights to safe haven US Government securities could result in portfolio fund outflows. Although markets appear to have factored in a steady taper trajectory with relative stability, expectations of rising interest rates in the US in 2015 could result in a resumption of volatility. Inflation remained the key determinant for calibrating monetary and fiscal policies, including setting of policy interest rates. Headline CPI inflation is likely to meet the RBI glide path to 8% by January 2015. A consolidation of the fiscal environment might provide additional space for modest monetary policy stimulus. Interest rates across the yield curve are likely to move down from current levels. The extent of this drop will also be determined by the US Federal Reserve stance in increasing interest rates in 2015. Both the gradual expected downward shift in inflation and moderating fiscal stress might allow RBI to ease its tight monetary policy stance later in the year, although this is contingent upon future inflation expectations. Measures to remove bottlenecks by the Government will also bring capex on track. Expected global recovery will help exports, adding to the growth revival. In fiscal 2015, RBI expects GDP growth to pick up and be in the range of 5-6%. Financial savings are likely to improve with economic recovery and moderating inflation. This will push up bank deposits in fiscal 2015. We expect deposit growth in the range of 14-15% and credit growth between 15-16%.
OVERVIEW OF FINANCIAL
AND BUSINESS PERFORMANCE
During 2013-14, the operating environment for the banking system continued to be challenging with persistent high inflation, muted growth, slowdown in credit off-take, concerns regarding growing non-performing assets and a high incidence of assets being restructured. Despite these challenges, the Bank’s strategy to build its business upon strong customer franchises, while adopting a prudent approach, had resulted in delivering strong results. The underlying performance of the business remained strong with revenue growth remaining well ahead of cost growth. The Bank reported a net profit of Rs.62176.700 Million for the year ended 31st March 2014, registering a growth of 20.05% over the net profit of Rs.51794.300 Million last year. The healthy growth in earnings was driven by contribution from all segments. The Bank continued to focus on the quality of growth and displayed strong growth in key balance sheet parameters for the year ended 31st March 2014. The total assets increased by 12.53% to Rs.3832450.000 Million, total deposits increased by 11.22% to Rs.280,9450.000 Million while total advances increased by 16.81% to Rs.230,0670.000 Million.
During the year, the Bank continued to expand its network, with increased focus on the semi-urban and rural areas. Both the Retail and SME segments continued to benefit from this network expansion and have justifiably remained the key growth drivers for the Bank during the year. The Bank remains committed to a customer-centric approach in dealing with its clientele aided by dependable technology and simple processes. A well distributed branch banking channel complemented by a robust alternate distribution channel have helped the Bank to deliver a wide range of products and services to its customers across the country and overseas. The Bank continued to enhance shareholder value by delivering healthy financial return ratios in difficult economic conditions. Basic Earnings Per Share (EPS) was Rs.1325.600 Million compared to Rs.1196.700 Million last year, while the Diluted Earnings Per Share was Rs. 1322.300 Million compared to Rs. 1188.500 Million last year. Return on Equity (RoE) was 18.23% compared to 20.51% last year, impacted mainly due to the equity capital raising in the last quarter of 2012-13. However, Return on Assets (RoA) was 1.78% compared to 1.70% last year.
The Net Interest Margin (NIM) for the year was 3.81% compared to 3.53% last year. The asset quality remained stable with ratio of Gross NPAs to gross customer assets at 1.22% compared to 1.06% last year and Net NPA ratio (Net NPAs as percentage of net customer assets) was 0.40% compared to 0.32% last year.
BUSINESS OVERVIEW:
An overview of various business segments along-with their performance during financial 2013-14 and future strategies is presented below.
RETAIL BANKING:
The Retail Banking segment is one of the key drivers of the Bank’s growth strategy, encompassing a wide range of products delivered through multiple channels to its customers. The Bank today offers a complete suite of products across deposits, loans, investment solutions, payments and cards to its customers. The Bank is committed to developing long-term relationships with its customers by providing high-quality services and products through regular customer engagement in an easy and convenient manner. During the year, the Bank engaged in ‘Lakshya’, a retail banking transformation initiative, which is currently live in more than 1,100 branches, comprising around 80% of the Bank’s low-cost deposit business. Various initiatives under the Lakshya program have helped increase sales productivity and operational efficiency while at the same time focusing on increasing customer satisfaction and improving employee work life balance. The Bank has over the years built its retail deposit franchise by pursuing a very robust and effective customer segmentation strategy. During the year, the Bank continued to focus on increasing its retail deposits base, particularly demand deposits. Savings Bank deposits have grown at a Compounded Annual Growth Rate (CAGR) of 24.67% over the last five years. During the year, Savings Bank deposits grew by 21.95% to Rs.777760.000 Million from Rs.637780.000 Million last year. On a daily average basis, Savings Bank deposits grew by 19.11% to Rs.622250.000 Million. As on 31st March 2014, the Bank had 133 lac savings account customers. With an objective to widen the retail deposit base, the Bank also continued its focus on increasing share of retail term deposits. As on 31st March 2014, retail term deposits grew 37.29% YoY to Rs.842330.000 Million. However, excluding the FCNR (B) deposits raised to avail the concessional swap facility provided by RBI, domestic retail term deposits grew 20.87%, constituting 56.01% of domestic term deposits. As on 31st March 2014, CASA and retail term deposits constituted 75% of total deposits compared to 69% a year ago. The domestic CASA and retail term deposits constituted 78% of total domestic deposits. The Bank continued its focus on increasing share of retail loans to total advances. The retail assets portfolio of the Bank has increased to Rs.744910.000 Million as on 31st March 2014 from Rs.539600.000 Million last year, thereby registering a growth of 38.05%. As on 31st March 2014, retail loans constituted 32% of total advances as compared to 27% a year ago. Excluding loans against FCNR (B) deposits, the share of core retail loans was 31%. Secured loan products accounted for 86% of domestic retail loans, with home loans and loan against property accounting for 72% of the book, of which, home loan accounted for 63%. Auto loans accounted for 12%. Personal loans and credit cards were 10%, while non-schematic loans comprising loans against deposits, other securities etc. accounted for 4%. The Bank has further increased its geographical reach for sourcing retail loans. The Bank sources retail loans through 132 Asset Sales Centers. Retail loans are also originated from 1,716 branches. The Bank focused on increasing its retail loans by cross selling to internal customers. More than a third of the incremental retail loans are now sourced through branches and existing liability customers contribute almost two third of this incremental business. The credit quality of retail loans remained steady. The cards business is an integral part of the Bank’s retail strategy with ever-increasing number of transactions moving to the electronic mode. The Bank is one of the largest debit card issuers in the country, with a base of 133.2 lac. The Bank had 13.8 lac credit cards in force as of 31st March 2014 which made it the 5th largest credit card issuer in the country. The Bank is also one of the largest acquirers of point-of-sale terminals in the country with an installed base of 2.48 lac. The Bank offers a complete suite of banking and investment products under its NRI Services for Indians living and working overseas. As on 31st March 2014, the Bank’s aggregate NRI deposits (Savings + Term Deposits) stood at Rs.279590.000 Million registering a growth of 113%. One of the reasons for this sharp growth was mobilization of FCNR (B) Deposits in the light of various liberalized measures announced by RBI, which also included the concessional swap window for banks. The Bank has mobilized FCNR (B) Deposits amounting to USD 1.58 billion under this window. The Bank has 49 branches authorized to issue Portfolio Investment Scheme (PIS) permissions to NRI/PIO who want to trade in the Indian secondary markets through a registered stock broker on a recognized exchange. The Bank has a strong focus on customer service and provides a 24x7 integrated helpdesk for NRI customers with the facility of toll-free numbers from key geographies. The products offered in the area of retail forex and remittances include travel currency cards, inward and outward wire transfers, traveler’s Cheque, foreign currency notes and 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. Additionally, the Bank offers a Multicurrency Forex Card, aimed at frequent travelers to multiple countries. The aggregate load value on travel currency cards crossed USD 4 billion during the year. The volumes of retail remittances rose by 44% during the year and the Bank processed outward remittances of USD 1.02 billion and inward remittances of USD 5.63 billion. ‘Axis Bank Privée’, offers private banking solutions to meet the personalized investment needs of high net worth individuals as well as the corporate advisory needs of families in business. Axis Bank Privée brings solutions offered by various business groups (retail and corporate) within the Bank and various group entities under one integrated platform. The Bank also distributes third party products such as mutual funds, Banc assurance products (life and general insurance), online trading and gold coins through its branches. The Bank is one of the leading banking distributors of mutual funds in India and distributes mutual fund products of all major asset management companies. These products are sold through the Bank’s branch distribution network based on client requirements. The Bank distributes life insurance products of Max Life Insurance Company. During the year, more than 2.4 lac lives were insured, with a collection of Rs.10520.000 Million towards annual remiums. In general insurance, the Bank has a tie up with Tata AIG (American International Group) and during the year sold more than 3.2 lac policies and collected Rs.163 Million of premium. The Bank has consciously shifted its focus on health related products and has also created an additional avenue for selling general insurance products by launching outbound tele sales. The Bank offers online trading services to its customers in collaboration with Axis Securities Limited. (a 100% subsidiary of the Bank) under the name Axis Direct, an enhanced and simplified online trading platform, which is now also available to NRI customers. During the year, the Bank opened more than 1.2 lac online trading accounts. During the year, the Bank has introduced electronic know-your-customer (e-KYC) facility. Axis Bank has been the first Bank to introduce the e-KYC facility which facilitates Aadhaar-registered individuals to step into a branch and open an account, merely by providing his/her unique identification number and through biometric identification simplifying the KYC process and thereby providing a seamless customer experience. In April 2013, the Bank launched India’s first bank-wide customer loyalty program ‘eDGE Loyalty Rewards’. ‘eDGE Loyalty’ rewards is designed to reward customers for every relationship have with the Bank across savings accounts, cards and electronic channel transactions, providing multiple opportunities for the customer to earn rewards. The Bank’s organically built branch network over the last twenty years has helped it to strategically carve out one of the bestpan India branch distribution networks. In the last few years, a higher share of branches have been added to semi-urban and rural areas, which comprise 52% of total branches as of 31st March 2014. During the year, the Bank added 455 branches of which 298 were rural unbanked branches. The geographical reach of the Bank extended to 29 states and 5 Union Territories, covering 1,636 centres and 535 districts. The Bank also added 1,677 ATMs during the year to reach a network size of 12,922 as on 31st March 2014 compared to 11,245 ATMs last year. The Bank has deployed 615 Automated Deposit Machines (for cash deposits into customer accounts) and has extended this 24x7 facility in certain branches, which have integrated self-service lobbies. Besides the ATM network, internet banking, mobile banking and phone banking have developed as important alternate distribution channels for the Bank.
BUSINESS BANKING
Business Banking provides payments and transaction banking
solutions across corporates, SMEs, financial institutions, Government segments
and small business customers. The key products offered are current accounts,
collection and payment solutions, custodial and demat services. Current
accounts are a key focus area for the Bank, forming the bedrock of its
transaction banking and payments franchise. Current account products are
categorised into value-based products, segmented products for specific industry
sectors (e.g. financial services, pharmaceuticals etc.) and need-based products
(e.g. escrows, dividend payments etc.). The Bank leverages its distribution
network and technology platform to deliver a seamless banking experience to its
customers. The current accounts group is focused on augmenting its electronic
channels and has rolled out an award-winning mobile application for its current
account customers. The Business Banking team also works on various process
redesign initiatives to deliver a simple, easy and user-friendly customer
experience. The Bank had more than 16 lac live current account customers as on
31st March 2014, a YOY growth of 16%. As on 31st March 2014, Current account
deposits stood at Rs.486860.000 Million and constituted 17.33% of total
deposits. During the year, current account balances (on a daily average basis)
grew by 9% to Rs.312810.000 Million from Rs.286980.000 Million last year. The
Bank has adopted a two-pronged approach in the collection and payments business
- introducing new products, features and channels on the one hand and
developing sector-specific solutions on the other. The Bank has made a
significant technology investment in terms of an enterprise-wide payment hub,
which when fully implemented is expected to augment the Bank’s capabilities in
the transaction banking business, across domestic and foreign currency
transactions. The Bank offers advanced products such as Power Access®, which
enable corporates and institutions to ensure straight-through transaction
processing with multi-layered security protocols and customized MIS. The Bank
has also been in the forefront of the rollout of the newly introduced NACH
(National Automated Clearing House) mechanism and has taken the lead in terms
of processing transactions on the NACH platform. The Bank has identified select
industry sectors as focus areas and has rolled out customized solutions to
cater to the specific needs of clients in these sectors. Operational excellence
is a key success factor in the collection and payments business and the Bank
has embarked on a process improvement initiative to provide a solid platform
for service delivery. The Bank processed transactions to the tune of
Rs.20348660.000 Million during 2013-14, a growth of 28% over the previous year.
The Bank has one of the largest distribution channels to support the
collections and payments business, with 959 locations enabled for collections
and 421 branches enabled for remote printing of instruments. The Bank also acts
as a Sponsor of White Labelled ATM deplorers, being only the second Bank in the
country to do so. The Bank, in its capacity as an agency bank for various
Central Government ministries, departments, State Governments and Union
Territories, accepts income and other direct taxes. The Bank also handles the
disbursement of civil and defense pension through the Centralized Pension
Processing Centre (CPPC). In addition, the Bank provides collection and payment
services to four Central Government ministries/departments and 13 State
Governments and Union Territories. The Bank rolled out customized solutions
such as PFMS (Public Financial Management System), e-procurement and e-freight
to meet the unique needs of the Government segment. The Bank is the nodal bank
for collection of subscription to the National Pension Scheme. During the year,
the Bank also commenced opening of accounts under the Public Provident Fund
scheme. The total Government business throughput during the year was
Rs.1003180.000 Million. The Bank has been awarded the mandate for handling
‘Trustee Bank’ services under National Pension System. The Bank is a SEBI-registered
custodian and offers custodial services to both domestic and offshore
customers. As on 31st March 2014, the Bank held assets around Rs.110000.000
Million under its custody and had 3,459 demit accounts in the corporate and
institutional segment.
UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED AND NINE MONTHS
ON 31.12.2014
(Rs. In Million)
|
PARTICULARS |
3 Months Ended |
9 Months Ended |
|
|
|
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
|
|
|
|
|
|
1. Interest earned (a)+(b) + (c) + (d) |
88897.400 |
86023.600 |
257815.200 |
|
(a) Interest/discount on advances/bills |
65019.200 |
62559.400 |
188431.700 |
|
(b) Income on Investments |
22797.900 |
22048.200 |
65869.100 |
|
(c) Interest on balances with Reserve Bank of
India and other inter-bank funds |
539.000 |
544.500 |
1641.800 |
|
(d) Others |
541.300 |
871.500 |
1872.600 |
|
2. Other Income (Refer note 2 ) |
20390.700 |
19476.100 |
56777.300 |
|
3. TOTAL INCOME (1+2) |
109288.100 |
105499.700 |
314592.500 |
|
4. Interest Expended |
53001.800 |
50775.100 |
153566.200 |
|
5. Operating expenses |
23140.300 |
23101.600 |
67300.700 |
|
(i) Employees cost |
7784.800 |
7859.800 |
23162.100 |
|
(ii) Other operating expenses |
15355.500 |
15241.800 |
44138.600 |
|
6. TOTAL EXPENDITURE (4+5) (Excluding Provisions
and Contingencies) |
76142.100 |
73876.700 |
220866.900 |
|
7. OPERATING PROFIT (3-6) (Profit before
Provisions and Contingencies) |
33146.000 |
31623.000 |
93725.600 |
|
8. Provisions (other than tax) and
Contingencies (Net) |
5071.500 |
7250.400 |
16187.900 |
|
9. Exceptional Items |
- |
- |
- |
|
10. Profit/(Loss) from Ordinary Activities
before Tax (7-8-9) |
28074.500 |
24372.600 |
77537.700 |
|
11. Tax expense |
9076.900 |
8265.500 |
25765.400 |
|
12. Net Profit/(Loss) from Ordinary Activities
after Tax (10-11) |
18997.600 |
16107.100 |
51772.300 |
|
13. Extraordinary Items (net of tax expense) |
- |
- |
- |
|
14. Net Profit/(Loss) for the period (12-13) |
18997.600 |
16107.100 |
51772.300 |
|
15. Paid-up equity share capital (Face value
Rs.10/- per share) |
4726.500 |
4719.300 |
4726.500 |
|
16. Reserves excluding revaluation reserves |
- |
- |
- |
|
17. Analytical Ratios |
- |
- |
- |
|
(i) Percentage of Shares held by Government
of India |
nil |
nil |
nil |
|
(ii) Capital Adequacy Ratio |
14.06 |
14.84 |
14.06 |
|
(iii) Earnings per Share (EPS) for the period/year
(before and after extraordinary items) - Basic - Diluted |
8.05 7.98 |
6.83 6.78 |
6.84 6.83 |
|
(iv) NPA
Ratios |
|
|
|
|
(a) Amount
of Gross Non Performing Assets |
39015.900 |
36131.000 |
39015.900 |
|
(b) Amount
of Net Non Performing Assets |
12506.700 |
11798.000 |
10034.300 |
|
(c) % of
Gross NPAs |
1.34 |
1.34 |
1.34 |
|
(d) % of
Net NPAs |
0.44 |
0.44 |
0.44 |
|
(v) Return
on Assets (annualized) |
1.86 |
1.69 |
1.78 |
|
18. Public
Shareholding # - Number of shares |
1608234425 |
1590743163 |
1608234425 |
|
-
Percentage
of shareholding |
68.05 |
67.41 |
68.05 |
|
19.
Promoters and promoter group shareholding# |
|
|
|
|
Pledged/Encumbered |
|
|
|
|
- Number of shares |
- |
- |
- |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
|
|
|
|
- Percentage of shares (as a % of the
total share capital) |
|
|
|
|
Non
Encumbered |
|
|
|
|
- Number of shares |
6673880723 |
681356225 |
667388073 |
|
- Percentage of shares (as a % of the
total |
100.00 |
100.00 |
100.00 |
|
shareholding
of promoter and
promoter group) |
28.24 |
28.88 |
28.24 |
# excludes shares
held by custodian against which Global Depositary Receipts have been issued.
1. Statement of Assets
and Liabilities of the Bank as on 31st MARCH, 2014 is given below.
(Rs. In Million)
|
Particulars |
31.12.2014 |
|
|
|
|
CAPITAL
AND LIABILITIES |
|
|
Capital |
4726.500 |
|
Reserves
and Surplus |
433435.100 |
|
Deposits |
2911986.500 |
|
Borrowings |
729875.100 |
|
Other
Liabilities and Provisions |
131072.800 |
|
TOTAL |
4211096.000 |
|
ASSETS |
|
|
Cash and
Balances with Reserve Bank of India |
155044.000 |
|
Balances
with Banks and Money at Call and Short Notice |
103989.300 |
|
Investments |
1223738.000 |
|
Advances |
2605673.300 |
|
Fixed
Assets |
24720.800 |
|
Other
Assets |
97930.600 |
|
TOTAL |
4211096.000 |
1. ‘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, ATM sharing fees.
2. During the quarter ended 31st December, 2014, the Bank allotted 3,612,880
equity shares pursuant to the exercise of options under its Employee Stock
Option Scheme.
3. The shareholders of the Bank at the 20th Annual General Meeting held on 27th
June 2014, approved the sub-division (split) of one equity share of the Bank
from nominal value of Rs. 10/- each into five equity shares of nominal value of
Rs. 2/- each. The record date for the sub-division was 30th July, 2014. All
shares and per share information in the financial results reflect the effect of
sub-division (split) retrospectively for the earlier reporting periods.
4. In accordance with RBI circular dated 1st July, 2014, banks are required to
make Pillar 3 disclosures under Basel III capital requirements. The Bank has
made these disclosures which are available on its website at the following
link: http://www.axisbank.com/investor-corner/baselIII-disclosures.aspx. The
disclosures have not been subjected to audit or limited review by the statutory
auditors of the Bank.
5. The above results have been approved by the Board of Directors of the Bank
at its meeting held on January 16, 2015.
|
Complaints at the beginning of the quarter |
Received during the quarter |
Disposed off during the quarter |
Unresolved as on 31.03.2014 |
|
Nil |
121 |
121 |
NIL |
6. These results for the quarter and nine months ended 31st December, 2014 have
been subjected to a "Limited Review" by the statutory auditors of the
Bank.
7. Previous period figures have been regrouped and reclassified, where
necessary, to make them comparable with current period figures.
SEGMENTAL RESULTS
Rs. In Million)
|
PARTICULARS |
31.12.2014 [Unaudited] |
30.09.2014 [Unaudited] |
31.12.2014 [Unaudited] |
|
|
3 Months Ended |
9 Months Ended |
|
|
Segment
Revenue |
|
|
|
|
Treasury
|
128641.200 |
123938.700 |
373748.500 |
|
Corporate/Wholesale
Banking |
51965.600 |
50720.600 |
151963.500 |
|
Retail
Banking |
72309.400 |
69729.700 |
207904.900 |
|
Other
Banking Business |
2163.300 |
1934.700 |
5400.100 |
|
Total
|
255079.500 |
246323.700 |
739017.000 |
|
Less:
Inter segment revenue |
145791.400 |
140824.000 |
424424.500 |
|
Income
from Operations |
109288.100 |
105499.700 |
314592.500 |
|
Segment
Results After Provisions and Before Tax |
|
|
|
|
Treasury
|
8050.100 |
7089.300 |
21592.300 |
|
Corporate/Wholesale
Banking |
14508.900 |
13361.600 |
42788.200 |
|
Retail
Banking |
3471.600 |
2262.600 |
8439.900 |
|
Other
Banking Business |
20439.000 |
1659.100 |
4717.300 |
|
Total
Profit Before Tax |
28074.500 |
24372.600 |
77537.700 |
|
Capital
Employed |
|
|
|
|
Treasury
|
120518.600 |
248705.500 |
120518.600 |
|
Corporate/Wholesale
Banking |
874439.300 |
728951.900 |
874439.300 |
|
Retail
Banking |
(582659.800) |
(582036.400) |
(582659.800) |
|
Other
Banking Business |
4316.000 |
3495.100 |
4316.000 |
|
Unallocated
|
21547.500 |
18523.600 |
21547.500 |
|
Total
|
438161.600 |
417639.700 |
438161.600 |
Note: Previous
period figures have been regrouped and reclassified, where necessary, to make them
comparable with current period figures.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair and
reasonable and comparable to compensation paid to others for similar services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.82 |
|
|
1 |
Rs.92.83 |
|
Euro |
1 |
Rs.66.17 |
INFORMATION DETAILS
|
Information
Gathered by : |
PRT |
|
|
|
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
MTN |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILITY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
76 |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.