GROUP 3

Axis Bank
3rd largest private sector bank n terms of asset size Balance sheet grown to Rs 3.4 tn (up 19.23%) PAT up 22.09% to 5179 cr Net NPA at 0.32% against 0.33%

Net Interest Income up 20.56%

Balance Sheet Performance

CASA up 23% YOY and stands at 44% Capital Adequacy Ratio (CAR) 17 % Tier I Capital (CAR) - 12.23% Raised Rs.5,537.47 crores by QIP and preferential allottment Tier 2 capital the Bank also raised capital of Rs.2,500 crores by way of sub-ordinated bonds

Fee & Other Income up 14.59%

Deposits up by 14.77 %

Advances grew 16 % YOY

Income Statement

Net Interest Margin - 3.53% Healthy margin amidst pressure Operating revenue to 16217cr PAT up 22.09% to 5179 cr

Operating efficiencies
Cost / Income =42.63%
Operating expenses increased by 15.10% Steady growth of low-cost CASA deposits contained cost

NPA
Gross NPAs to gross advances (%) =1.20 Net NPAs to net advances (%) 0.33 Gross NPA of nationalized banks was 3.89 per cent and State Bank group at 5.50 per cent.

Accounting Practice
T- Bills, Exchange Funded Bills, CPs and CDs being discounted instruments, are valued at carrying cost AFS and HFT Securities are marked to market

Country Risk countries are categorised into seven risk categories and provision is made on exposures exceeding 180 days on a graded scale ranging from 0.25% to 100%

Accounting Practice
Derivatives
premium on option contracts as per FEDAI guidelines Swaps, currency futures contracts are marked to market using daily settlement price Valuation of Exchange Traded Currency Options (ETCO) is carried out on the basis of the daily settlement price

Accounting Practice
Revenue Recognition
Interest income is recognised on an accrual basis except interest income on non-performing assets

Fees and commission income is recognised when due

Dividend is accounted on an accrual basis

Accounting Practice Fixed Asset and Depriciation

Fixed assets are carried at cost of acquisition less accumulated depreciation and impairment Depreciation is provided on the SLM All fixed assets individually costing less than Rs.5,000 are fully depreciated in the year of installation Profit on sale of premises is appropriated to Capital Reserve Account in accordance with RBI instructions.

Disclosures
Instituted an Employee Stock Option Scheme to enable its employees to participate in the future growth success. Axis Capital Ltd. was primarily in marketing of credit cards, retail asset products, retail broking services. Pursuant to receipt of regulatory approvals to the Revised Scheme of Arrangement, certain businesses of Enam Securities Private Ltd. were demerged into Axis Capital Ltd., wef 20th October 2012. Consequently, Axis Capital Ltd. now also provides services relating to investment banking, equity capital markets, institutional stock broking, mergers and acquisition, etc. Risk Mitigation , Securitization etc.

Management Decision & Analysis Not a very bright economic scenario growth - dropped
from 6.3 to 5% Capital Management
Bank has consistently provided superior returns to its shareholders
using capital efficiently

Capital management framework is driven by

ensuring an appropriate mix of business optimal allocation of capital.

Management Decision & Analysis RETAIL BANKING

Bank aims to increase its share in the financial services sector build a strong retail franchise. Retail continues to be one of the key drivers of the Banks growth strategy

CORPORATE CREDIT
capital expenditure by corporates remained lacklustre Loans for working capital and the drawdown on committed sanctions in existing projects under implementation contributed to the growth in corporate credit during the year.

Future prospects
Rapid growth in core activity=CAGR of 23.58% of last 5 yr Access to low-cost funds is a source of competitive advantage for a bank as it allows it to offer loans at competitive rates and yet maintain its net interest margin