Axis AMC and Inversion announce partnership to raise 3500 cr buyout fund

Axis AMC and Inversion announce partnership to raise 3500 cr buyout fund

to invest in underperforming companies

 

Highlights: ·         The partnership is first of its kind between the leading equity fund manager in the country and the operational and turnaround expertise of Inversion (promoted by Mr. Akhil Gupta) ·         An application has been filed with SEBI seeking registration for the proposed Fund. ·         Fund seeks to invest/ acquire controlling stakes in pre-stressed, stressed, distressed and other underperforming assets. ·         Strong operational and turnaround expertise to be used for on-ground interventions and monitoring. ·         Fund will be sector agnostic. ·         Target Size: INR 3,000 crore + INR 500 crore (Green Shoe)

 

Axis Asset Management Company Limited (“Axis AMC”), promoted by Axis Bank (one of India’s fastest growing asset management company) and Inversion Advisory Services (“Inversion”), promoted by telecommunications veteran Mr. Akhil Gupta, have announced that they have entered into a partnership to invest in underperforming companies. They plan to raise upto INR 3,500 crore for the proposed new fund under its Alternative Investment Fund registration. They aim to acquire controlling stake primarily in pre-stressed, stressed, distressed and other underperforming assets.

 

They also seek to take advantage of the strong fund management expertise of Axis AMC and operational and turnaround expertise of Inversion to offer a unique platform for investors. It will be a unique first of its kind offering that will look to take controlling equity stakes in underperforming companies before working with them to turn them around. It will thus help such quality companies with strong performance and operational capabilities which may be facing temporary headwinds owing to special circumstances including unsustainable debt, temporary disruptions, etc. to get on a credible turnaround path.

 

The partnership seeks to help fill the gaping shortage of high quality equity capital in the country’s stressed company ecosystem, which has seen a number of debt offerings but lacks strong equity investors with operational skill set.

 

Axis AMC (which will be the Investment Manager of the fund), with its end-to-end investment and fund management credentials, and Inversion with Mr. Akhil Gupta’s demonstrated operational and turnaround experience, are uniquely suited to launch a special opportunities fund. The Investment Manager will employ a team to evaluate potential opportunities. Inversion would provide management support to acquired companies with its team of functional & industry experts.

 

On the initiative, Mr. Chandresh Nigam, MD & CEO, Axis AMC said, “Axis AMC has always been at the forefront of product innovation and seeking to offer quality long term solutions to our investors. With our entry into the exciting space of turnaround investing, we believe we have created a unique proposition for investors looking to participate and benefit from the India growth story. We are also extremely excited to partner with Inversion and Akhil on this journey – their expertise will be invaluable in making this a success”.

 

While Mr. Akhil Gupta, Chairman, Inversion Advisory Services commenting on the partnership with Axis AMC said, “Inversion is delighted to partner Axis AMC on this exciting journey to turnaround underperforming assets. The combination is ideal to not just exploit large untapped potential in this space but also serve an important social purpose in saving large number of jobs and capital already invested by shareholders, lenders and vendors in such companies”.

 

 Mr. Amitabh Chaudhry, MD & CEO, Axis Bank said on the entry into turnaround space, “it gives me great pleasure to see Axis AMC tying up with Inversion group to tap into the unique opportunity of turnaround investing and I strongly believe that together we can create an offering that can help investors participate profitably in this asset class. The addition of this new capability will also take us forward on our path of creating a market leading alternatives platform within the AMC

Axis Bank launches a wide range of

Axis Bank launches a wide range of API Banking solutions

The banking API solutions will help in the digital banking integration of business transactions with ease

·         Facilitates end- to end simplified digital customer journey

·         Boosts productivity of businesses by faster integrations

·         200+ Retail APIs across Cards, Deposits, Accounts, Loans

·         51 Corporate APIs across payments, trade, collections, bill payments, as well as cross-cutting APIs

·         The Bank’s offerings can be explored at https://apiportal.axisbank.com

 

Axis Bank, India’s third largest private sector bank, in line with its OPEN Banking philosophy, announced the launch of a wide range of open APIs (Application Programming Interface), facilitating its retail and corporate customers/partners to use banking services integrated across partner platforms. Axis Bank’s API Banking portal has a suite of API products covering 200+ Retail APIs across Cards, Deposits, Accounts, Loans; 51 Corporate APIs across payments, trade, collections, bill payments as well as cross-cutting APIs. This reimagined customer proposition facilitates end - to end simplified digital customer journey with faster integrations.

The Corporate API product suite includes 14 Payments, 2 Collections and 11 Trade APIs, offering a digitized corporate onboarding journey, with quicker self-registration, digitized UAT access requests and other features. Also customized APIs for new ideas/use case suggestions, which helps build a stronger business relationship.

 

Example: It allows companies across e-commerce, food delivery, payment solutions and other businesses to offer financial settlements and other secure financial transactions from their own ERP platforms. The latest range of APIs cover all necessary banking transactions corporates do with their partners and customers on a daily basis pertaining to payments, refunds, payout reconciliation & account management and trade finance, besides other transactions. The APIs will allow Axis Bank’s banking solutions to easily get embedded via direct integration with the customers’ digital systems, without the need for a net banking interface.

On the occasion, Sameer Shetty, President and Head – Digital Business & Transformation, Axis Bank said: “With Axis Bank’s focus on ‘OPEN’ Banking initiatives as part of our digital strategy, we are committed to simplifying customer journeys and bringing greater convenience through constant innovation in our offerings. 

With these latest API Banking offerings, we look forward to collaborate and co-create with partners, to offer an enhanced user experience and simplify their day-to-day operations.”

 

Key features of the simplified corporate digital onboarding journey:

 

·         Self-Registration

Register to use from a wide variety of Featured and API products, by self-registering on Axis Bank’s API Developer portal ( https://apiportal.axisbank.com ) and test our APIs seamlessly

·         Digitally request for UAT access of APIs / Digitally accept IPs and Certificate Signing Request

One no longer has to use the offline methods of raising UAT access request by communicating with a relationship manager. It’s now a digitized way of keying in UAT IP and UAT Certificate Signing Request on API Developer portal, with real time validation, to validate if developers have keyed in the right public IP of the source systems and have uploaded standard format of Certificate Signing Request

·         Suggest your use case

Have a new idea that can become a strong business proposition? Suggest your use case and we offer you customized APIs, for a stronger business relationship

·         Developer Community Forum

A constructive and inclusive social network for developers to raise technical questions. Learn from other developers and help each other build great applications.

·         Website notifications

Now subscribe for API Developer portal notifications, to receive intimations on new API releases or new additions/updates onto the API Developer portal.

BharatPe partners with Axis Bank for

BharatPe partners with Axis Bank for its POS business

 ·         Strategic alliance aimed at ensuring better experience for BharatPe’s POS merchants

BharatPe, India’s leading fintech company for merchants, today announced a strategic alliance with Axis Bank, the third largest private sector bank in India. As a part of the association, Axis Bank will be the acquiring bank for BharatPe’s POS business (BharatSwipe) and will empower acceptance of credit and debit card payments for BharatPe’s merchants using BharatSwipe.

This association will help BharatPe enhance the merchant experience by leveraging best-in-class technology platform offered by Axis Bank. The merchants can enjoy faster payment processing, a more secured and simplified platform, along with a host of other features.

Axis Bank today is the third largest POS acquiring bank in the payments acceptance business in India. With an Installed Base of over 6,52,026 POS terminals spread across India in metro, urban, rural and even deep geo cities such as Barmer, Ratlam, Korba etc, serving both big and small merchants, the Bank currently processes around   Rs.19,000 Cr of volumes per month. With superior technological capabilities for faster and secure payment processing, Axis Bank is in a position to serve all partners and customers to leverage the same for accepting payments through multiple payment modes.  

BharatPe launched its POS machine, BharatSwipe, last year as India’s first zero rental and zero MDR POS machine. It received an overwhelming response from small merchants and kirana store owners. The BharatSwipe business has scaled up rapidly, and now contributes 20% to the overall payments Transaction Processed Value (TPV) of the company. BharatPe has an installed base of over 1 lac POS machines across 16 cities in the country and facilitates transactions of over Rs. 1400 crores every month. BharatPe clocked annualized transaction value of US$2bn on the POS terminals at the end of FY21 and has set a target of US$6 bn in annualized TPV by the end of FY22.

Commenting on the partnership, Sanjeev Moghe, EVP & Head- Cards & Payments, Axis Bank said, “We have been continuously working on partnership led models & digital solutions to expand our offerings to the merchant community. In this endeavour, we are delighted to partner with BharatPe, one of the fastest growing fintech brands in the country. This partnership aids our commitment to drive digital adoption across the ecosystem and achieve the goal of financial inclusion by bringing technological access for digital payments to all segments of the society. Further, we look forward to partnering with other fintechs and e-commerce players to help them ensure merchant stickiness on their QR code installations by providing co-branded POS plus QR and several other value added services”

Speaking on the association, Suhail Sameer, Chief Executive Officer, BharatPe said, “We have witnessed phenomenal growth in our POS business since its launch. We have set aggressive plans for the vertical and aim to enable 5 crore transactions and scale the POS business by 3x in the next 12 months. We are targeting tripling our POS deployment to 3 lac machines by the end of current fiscal. We are also looking at expanding our reach by 5x to 80 cities in the country.  We are also working towards rolling out customer credit offerings as well as add loyalty and rewards features to our POS devices in the coming months. In order to achieve these, we will be exploring partnerships with banking and financial institutions that can empower our offering. We believe that Axis Bank is amongst the ‘digitally- ahead’ banks in the country and we are confident that this partnership will be not only help us deliver a seamless offering to our merchants, but also be instrumental in our journey to achieve the next level of growth. We look forward to a more holistic association with them in the times to come.”

BharatSwipe also allows merchants to accept QR payments, via dynamic QR generated on the Swipe machine. Also, its feature of generating physical receipts for QR payments is one of the most sought after feature. The company has also recently launched ‘holiday settlements’ feature for its merchant partners. This feature allows merchants to accept settlements even on a bank holiday, thereby ensuring liquidity at all times.

BharatPe is India’s largest fintech company that offers a range of financial technology products for SMEs, small merchants and kirana store owners. It has been committed to drive financial inclusion in the country with India’s first UPI QR payment acceptance product with zero transaction fees, a range of loans for the underserved and the unexplored merchants as well as SMEs, and zero rental card acceptance machines. It will continue to scale its lending and payments business as well as expand its presence to newer markets in FY22. The company aspires to become a Digital Bank for all SMEs in the country.  It has set a target of reaching US$30 billion TPV annually on payments (both QR and Swipe) and building a loan book of $700 million with small merchants by March 2023.

 

Axis Bank crosses a milestone of 1 million customers on

                                    Axis Bank crosses a milestone of 1 million customers on
                            ‘WhatsApp Banking’ Bank Anywhere, Anytime using WhatsApp 

 Achieved more than 1 million registrations on Axis’ WhatsApp Banking
channel within 6 months of launch 

• High request count of 6 million on the channel till now 
• Send a ‘Hi’ to 7036165000 on WhatsApp and sign up for Axis Bank WhatsApp Banking 

  

Axis Bank, India’s third largest private sector bank announced the milestone of 1 million+ customers on its WhatsApp Banking channel with a staggering request count of 6 million till now. Axis Bank had launched banking services on WhatsApp in January 2021 and has since witnessed robust organic growth in its customer base for WhatsApp Banking. 

 With WhatsApp Banking, customers can initiate a simple chat with Axis Bank’s registered WhatsApp number 7036165000 and get banking services and FAQ’s handled instantly. This simple and convenient form of banking has seen a great adoption amongst customers with an average Daily Active User count of more than 13,000, while the average Monthly Active User count goes up to 0.2 million.  

 Speaking on this achievement, Sameer Shetty, President and Head – Digital Business & Transformation, Axis Bank said, “With Axis Bank’s ‘Dil Se Open’ philosophy, we are committed to building sharper customer focus and greater convenience through constant innovation in our offerings. We are thrilled to have achieved the milestone of 1 million+ customers in a such a short span of time on our WhatsApp Banking channel, with enhanced customer engagement and minimised turn-around time providing a personalized experience, while ensuring complete data security and privacy. The adoption that we are seeing here shows that the Indian customer is always evolving and our objective is to re-define the role we can play in their lives, by elevating and simplifying digital banking to new domains of customer engagement.”    

 Customers can sign-up for WhatsApp Banking by sending a simple ‘Hi’ to 7036165000 on WhatsApp. Post signing up, customers can inquire and get details of products across Savings Account, Credit/Debit Cards, Deposits and Personal Loans. Non-financial service requests can also be initiated, like locating ATMs or getting updates on third-party deals available on Credit /Debit Cards. Customers can check for any information on WhatsApp, as the Bank has enabled a full-scale integration with Axis Aha, its chat bot. The platform is completely safe and secure, as it works on end-to-end encryption basis. Customers can access non-financial services and FAQ’s even without signing up. For more details regarding Axis Bank’s WhatsApp Banking services, please visit 
https://www.axisbank.com/bank-smart/axis-whatsapp-banking 

 

Axis Bank WhatsApp Banking is available 24x7 (even on holidays) and will be available for both customers and non-customers of the bank. 

For signing-up on WhatsApp Banking, please click https://axisbank.com/whatsapp 

Watch the video here: https://youtu.be/GHplud-tdWM

Axis Bank MOU with Indian Army

Axis Bank MOU with Indian Army

Axis Bank, India’s third largest private sector bank, reinforced its commitement to the Defence sector  by signing an MOU with the Indian Army, offering a defence service salary package with best-in-class benefits and  features  under its ‘’Power Salute’’ initiative.

The signing ceremony was held at Army Headquaters, with the Indian Army  represented by Lt Gen R P Kalita, UYSM, AVSM, SM, VSM, DG (MP&Ps) and Axis Bank  represented by Mr. Reynold D’ Souza, Executive Vice President and  Lt Col M.K Sharma National Accounts Head, Axis Bank.  

 

Through this exclusive Defence service salary package, Axis Bank will offer numerous benefits to all ranks of army officers -

·         Personal Accidental cover of upto Rs.56 lakhs to all army personnel

·         Additional Upto 08 Lakhs Education Grant

·         Total Permanent Disability Cover benefit up to  46 Lakhs

·         Permanent Partial disability cover of up to Rs.46 lakhs

·         Air Accident cover of Rs. 1 Crore

·         Free Additional Debit Card for a family member.

·         Universal account number across India. All Axis Bank branches will serve us “Home branch’’

The MOU is a reflection of Axis Bank’s constant endevour to serve the Defence Forces, and help them meet their financial requirements, aspirations and milestones. Axis Bank’s digital initiatives have enabled soldiers at borders and other remote areas to stay connected and access a bouquet of banking solutions  .

MAX FINANCIAL SERVICES CONSOLIDATED PAT RISES

MAX FINANCIAL SERVICES CONSOLIDATED PAT RISES 105%; MAX LIFE INDIVIDUAL APE GROWS 19%, VALUE OF NEW BUSINESS AT RS 1,249 CR, GREW 39% TAKING THE EMBEDDED VALUE TO RS 11,834 CR

 Max Financial Services has issued its Q4 results which includes Max Life Insurance’s
robust performance for FY21

 Max Life Results Highlights (FY21):

•                     Individual APE: Rs 4,907 Cr, Up 19%

•                     Gross Written Premium: Rs 19,018 Cr, Grew 18%

•                     Embedded Value at Rs 11,834 Cr; Operating RoEV at 18.59%, including non-operating variances RoEV at 22.4%, impacted by Covid-19 provisions.

•                     Value of New Business at Rs 1,249 Cr, grew 39%, almost doubled in 3 years.

•                     Total Assets Under Management (AUM): Rs 90,407 Cr, Grew 32%

Below is a quote by Prashant Tripathy, Managing Director & Chief Executive Officer, Max Life Insurance:

 “Our stellar performance in FY’21 is a milestone for the company. In a tough year, we outpaced the private life insurance industry on the back of exceptional digital agility, distribution excellence, and product innovation strength. A balanced product mix of traditional savings cum protection plans, unit-linked plans, and pure protection products has delivered robust sales growth and margin expansion, in turn enabling highest-ever overall sales and VNB. We are also proud of our relationship with Axis Bank reaching newer heights with the joint venture partnership and look forward to elevating and redefining the experience for our customers through seamless processes, differentiated products, and wider reach.

Our distribution network including e-commerce, bancassurance partners, and agency channels worked seamlessly during the pandemic to help customers realize their financial protection needs. We have been able to achieve the highest ever individual new business sum assured in FY’21 and a decade-high private market share of 10.8% in terms of Individual adjusted FYP. And while we remain committed to maintaining positive business momentum, our efforts are currently focused on providing support against Covid-19 to all our employees and advisors.”

Axis Bank becomes a co-promoter of

Axis Bank becomes a co-promoter of Max Life

•            Axis Entities will own 12.99% stake in Max Life

•            Max Life’s Board to be recast with three Axis nominees

•            Axis Entities have right to acquire another 7% in Max Life

Axis Bank Limited (“Axis Bank”), India’s third largest private sector bank, together with its subsidiaries Axis Capital Limited and Axis Securities Limited (collectively referred to as “Axis Entities”) have become the co-promoters of Max Life Insurance Company Limited (“Max Life”), after completion of the acquisition of 12.99 % stake collectively by the Axis Entities in India’s fourth largest private life insurance firm - Max Life.  The Board of Max Life recorded the closure of the deal today.

 The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year. Max Life’s holding company Max Financial Services Limited (“MFSL”) and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020.

Transaction

Axis Bank and its two subsidiaries—Axis Capital Limited and Axis Securities Limited collectively own 12.99% stake in Max Life after the consummation of the deal. The Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals.

With the conclusion of this transaction, Max Life’s Board will be strengthened further, with co-option of three nominee directors of Axis Entities on its Board. 

Amitabh Chaudhry, Managing Director & CEO, Axis Bank said: “We are delighted to see the strategic partnership come through. Axis Bank has been a long-term partner to Max Life and together we have contributed to deepening insurance penetration in India over the last decade. We have the opportunity now to shape the future of the industry through continued leadership in products, technology, and customer centricity. We are confident this venture will enhance the value for all the stakeholders of Axis Bank and Max Life.”

Welcoming this long-awaited strategic development, Analjit Singh, Chairman of Max Group and Max Financial Services, said, “The conclusion of this transaction is truly a monumental milestone, which will bring added strength to Max Life and help it chart a new growth trajectory by combining the forces of the third largest private bank in India with the fourth largest private life insurer in the country.

We are again privileged to welcome another sterling name to Max’s history of storied partners. Throughout our decade-long business association, Axis Bank has exhibited value across customer insights, distribution expertise and a myriad of functional benefits which will be of great benefit to our business.”

Subrat Mohanty, Group Executive, Banking Operations & Transformation, Axis Bank, said, “We have a long-term commitment to build a strong insurance distribution platform for our customers. This deal is an affirmation of that commitment. Max Life is a well-managed professional organization with a stellar track record. We are excited to enter into this new phase in our partnership with them.”

Mohit Talwar, Managing Director, Max Financial Services, said, “With the conclusion of this deal between Max Life and Axis Bank, we are ready and equipped to integrate the synergies of the two players and commence a relationship that will cement Max Life’s position as a top quartile life insurer delivering sustainable and profitable growth.”

Prashant Tripathy, Managing Director & CEO, Max Life Insurance, added, “This closure marks a new phase of growth and stability for Max Life. The JV enhances our brand in the eyes of our customers, business partners and investors by integrating the resources and benefits that the two players bring. This development is also a reflection of the relentless efforts put in over the years by the Max Life team. We are looking forward to entering this promising era for Max Life with utmost fervor and dedication.”

Axis Bank has shared a successful business relationship with Max Life for over a decade, providing long-term saving and protection products to nearly 20 lakh customers. The total premium generated through this alliance has aggregated to over Rs. 40,000 crores. Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity.

Max Life has been consistently outperforming the private industry. Its asset under management (AUM) grew by 23% YoY and reached Rs 84,724 crore as on 31st December 2020, which has more than doubled in less than 4 years. In the last four years (FY 16 –20), its Individual Adjusted New Sales registered a compounded annual growth rate (CAGR) of 18%. In the first 11 months of last fiscal FY 21, Max Life has outperformed the top three private players with YoY Individual Adjusted New Sales growth of 14%.

Axis Bank announces financial results for

             AXIS BANK ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER                                     AND YEARENDED 31stMARCH 2021

Axis Bank reportsFY21PATof `6,588crores, up 305% YOYBalanced growth, improving profitability, resilient balance sheetoQ4FY21 PAT at `2,677crores,up 140% QOQ, Operating Profit up 17% YOYand 13% QOQ oQ4FY21Net Interest Income up 11%YOY, Fees up 15% YOYand16% QOQoCASA (on QAB basis) up 18% YOYand 7% QOQ, CASA ratio at 42%, improved 320 bps YOY and39bps QOQoLoan book (including TLTRO) grew12% YOYand 8% QOQ^,Retail disbursementsin Q4FY21at all-time highsoMarket share in UPI and Mobile banking for FY21 stood at 17% and 16%, respectivelyoImproving asset quality, GNPA% at 3.70% declined by 116bps YOY and 85bpsQoQ oBalance sheet strengthened, PCR improved to 72% from 69%YOY, Total CRARat 19.12%with CET1of 15.40% oOne Axis: Domestic subsidiaries gained market share,delivered strong PAT of `833crores, YOY growthof 75%  

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and yearended 31stMarch 2021at its meetingheld in Mumbai on Tuesday, 27thApril2021. Axis Bank has been at the forefront of customer centric innovations and announced a series of cutting-edge solutions last quarter. In a first for Indian banks, Axis Bank launched its range of wearable contactless payment devices ‘Wear N Pay’ that are secure and budget-friendly, available in the form of bands, key-chains and watch loops. 

The Bank launched ‘Aura’ -a credit card for the health conscious, curated with several health and wellness benefits, like free doctor consultations, fitness sessions, health check-ups etc. Axis Bank also announced its strategic partnership with Hyundai Motor India to offer smart auto retail financing solutions to urban and rural customers, enabling quick and hassle-free online car financing. The bank launched and scaled anarray of new digital products. The digital savings and current account products already operate at scale and have delivered superlative customer experience as well as financial benefits.  

Launched in October, Grabdeals -a platform for everyday discounts, has received great response from customers and will be scaled up further this year. Along with Freecharge, a new product ‘Buy Now Paylater’was introduced. Axis Bank also launched digital outward remittance and digital forex card issuance, enabling customers to access forex easily via the Bank’s digital channels. Further, Whatsapp Banking with a full scale integration of products across Savings Accounts, Credit Cards, Deposits and Loans, has made Banking as easy as sending a message. The efforts received both customer validation and recognition. 

The Bank was awarded ‘Best Digital Bank in India’ by Asiamoney and Financial Express for the second and third consecutive year respectively and ‘Best Bank –Innovation’ by Business Today, amongst a host of other prestigious accolades. Amitabh Chaudhry, MD&CEO, Axis Bank said, “As an organization, we have traversed a phenomenal distance last year. We have transformed ourselves in line with the evolving business scenario to become more agile, more relevant and totally dedicated to the needs of millions of customers. From strengthening our digital capabilities, providing flexible employment opportunities to playing our part in the community during these difficult times, Axis has come a long way and we hope to continue with the good work.” 

Results at a Glance

Strong operating performance, net profit for FY21 at `6,588 crores, up 305% YOY  

Q4FY21  

PAT grew 140% QOQ to `2,677 croresoNII grew 11% YOY to `7,555crores; NIM*stood at 3.56% improving by 1 bps YOY oFee income grew 15% YOY & 16% QOQ. Retail fee grew 17% QOQ& contributed 64% to total feeoOperating profit grew 17% YOY &13% QOQ to `6,865 croresoCredit cost at 1.70% improving 106bps YO Y

FY21 

NII grew 16% YOY to `29,239 crores; NIM stood at 3.53%, improving by 2 bps YOYoOperating profit grew 10% YOY to `25,702 crores, cost to assets at 1.96%, improving 13 bps YOY

Loan growth driven by all three business segments

Loan book (including TLTRO1investments) grew 12%YOY and 8% QOQ^oDomestic retail loans grew 11% YOY and 7% QOQ^; 81% of the Retail book is securedoRetail disbursements for the quarter were at new all-time highs. Disbursements in Consumer segment were up 45% YOY & 44% QOQ, Rural disbursements grew 47% YOY & 47% QOQoCorporate loans (including TLTRO investments) grew 16% YOY and 9% QOQ
SME loan book grew 13% YOY and 10% QOQ

Steady growth in stable and granular retail deposits 

On QAB2basis, CASA grew 18%YOY and 7%QOQ, RTD deposits grew 14%YOY and 4%QOQ. oOn QAB basis, SA grew 17%YOY &6%QOQ, Retail SA grew 20% YOY, CA grew 18% YOY &10%QOQoOn QAB basis, CASA ratio stood at 42%, up 320 bpsYOY and 39 bps QOQ

Well capitalized with adequate liquidity buffers 

Overall capital adequacyratio (CAR)including profit for FY21 stood at 19.12% with CET 1 ratio of 15.40%oCOVID provisions of `5,012 Crores, not inCAR calculation providesadditional cushion of 69 bps oAverage LCR3during Q4FY21 was 115% with exit LCR of ~105%, excess SLR#of `57,915crores 

Balance sheet buffers strengthened with high PCR and additional provisions metricsoNNPA at 1.05% decreased by 51bps YOY and 14bps QOQoCumulative provisions (standard + additional other than NPA) translate to 1.95% of our standard loans oOn an aggregated basis (specific+ standard+ additional + Covid), our coverage ratio stands at 120% of GNPA at 31stMarch, 2021 

Bank’s domestic subsidiaries delivered strong performance, Max Life stake acquisition completed

Cumulative FY21 PAT$at `833 crores, up 75% YOYoAxis AMC’s FY21 PATdoubled YOY to `242 crores, AAUM growth of 42% YOYoAxis Finance FY21 PAT was `211crores; asset quality remains stable, with nil restructuring oAxis Capital FY21 PAT stood at `166crores, up 66% YOY.oAxis Securities FY21 PAT at `166 crores, was over 10x of its FY20 PAT 

 Profit & Loss Account: Period ended 31stMarch 2021 

Operating Profit and Net ProfitThe Bank’s operating profit for the quartergrew 17% YOY and 13% QOQ to `6,865crores.Net profitforQ4FY21stood at `2,677crores, as compared to loss of `1,388crores in Q4FY20.

Net Interest Income and Net Interest Margin The Bank’s Net Interest Income (NII) grew 11%YOY to `7,555crores inQ4FY21from `6,808crores in Q4FY20.Net interest margin(NIM)for Q4FY21was 3.56%,as against 3.55% for Q4FY20.Other IncomeFee income for Q4FY21stoodat `3,376crores, up15% YOYand 16% QOQ. Retail fees grew 16% YOY and 17% QOQ;and constituted 64% of the Bank’s total fee income.The corporate & commercial banking fee grew 14% YOYand 15% QOQ.The trading profits and miscellaneous income for the quarter stood at `789crores and `503croresrespectively.

Overall, non-interest income (comprising of fee, trading profit and miscellaneous income) for Q4FY21 grew 17% YOY to `4,668crores, from`3,985croresin Q4FY20.Provisions and contingenciesSpecific loan loss provisions for Q4FY21were `7,038crores(including reclassification of NPA provision of Rs 4,266 crores on account of Supreme Court judgment shown as other provision in prior quarter), compared to `4,204croresin Q4FY20. During the quarter, the Bank has made additional provision aggregating Rs. 803 crores on account change in NPA provision rates on loans to Commercial Banking segment. Net of the above 2 adjustments, specific loan loss provision for Q4 FY21 would have been Rs.1,969 crores.The Bank holdscumulative provisions(standard+ additional other than NPA) of`12,010crores at the end of Q4FY21. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. 

Thesecumulative provisions translate to a standard asset coverage of 1.95% as on31st March, 2021.On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 120% of GNPA as on31st March, 2021.Creditcost for the quarter ended March 31, 2021 (net of CBG provisioning policy change) stands at 1.21% as compared to 2.77% at Q4FY20.FY21 Financial Performance:Net interest incomefor FY21 grew16%YOY to`29,239croresfrom `25,206croresin FY20. The operating expenses grew by 6% YOY andthe cost to assets ratio stood at 1.96%. Operating profit grew by 10%YOYto`25,702croresfrom `23,438crores in FY20. Total provisions for FY21 stood at `16,896crores,down9% over the same period last fiscal. Net profit for FY21 grew 305% to`6,588crores from `1,627 crores in FY20.

Provisions and contingencies Specific loan loss provisions for Q4FY21were `7,038crores(including reclassification of NPA provision of Rs 4,266 crores on account of Supreme Court judgment shown as other provision in prior quarter), compared to `4,204croresin Q4FY20. During the quarter, the Bank has made additional provision aggregating Rs. 803 crores on account change in NPA provision rates on loans to Commercial Banking segment. Net of the above 2 adjustments, specific loan loss provision for Q4 FY21 would have been Rs.1,969 crores.The Bank holdscumulative provisions(standard+ additional other than NPA) of`12,010crores at the end of Q4FY21. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. Thesecumulative provisions translate to a standard asset coverage of 1.95% as on31st March, 2021. 

On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 120% of GNPA as on31st March, 2021.Creditcost for the quarter ended March 31, 2021 (net of CBG provisioning policy change) stands at 1.21% as compared to 2.77% at Q4FY20.FY21 Financial Performance:Net interest incomefor FY21 grew16%YOY to`29,239croresfrom `25,206croresin FY20. The operating expenses grew by 6% YOY andthe cost to assets ratio stood at 1.96%. Operating profit grew by 10%YOYto`25,702croresfrom `23,438crores in FY20. Total provisions for FY21 stood at `16,896crores,down9% over the same period last fiscal. Net profit for FY21 grew 305% to`6,588crores from `1,627 crores in FY20 

Balance Sheet: As on 31stMarch2021 

The Bank’s balance sheet grew 9% YOY and stood at `9,96,118crores as on 31stMarch2021. The total deposits grew by 10% on period end basis and by 9% YOY on quarterly average balance (QAB) basis.On QAB basis, Savings account deposits grew 17% YOY and 6% QOQ, Retail savings deposits grew 20% YOY, current account deposits grew 18% YOYand 10% QOQ; and retail term deposits(RTD)grew 14% YOYand 4% QOQ. On QAB basis, CASA and RTD deposits puttogether grew16% YOYand 6% QOQ. The share of CASA plusRTD deposits in total depositson QAB basis was up 535bps YOY to 86% as of 31stMarch 2021. The Bank’s advances including TLTRO investments grew 12% YOY to `6,41,794crores as on 31stMarch2021. 

 The Bank’s loan to deposit ratio stood at 88%, improving by 109bps YOY. Retail loans grew 10%YOY and 7% QOQ^ to `3,34,514crores and accounted for 54%of the net advances of the Bank. Domestic retail loans grew 11% YOY and 7% QOQ^. The share of secured loans was 81%with home loans comprising 36% of theretail book. Retail disbursements touched new all-timehighs led by higher contribution from secured loan segments. Disbursements in Consumer segment were up 45% YOY & 44% QOQ, with secured segments like home loansup 73% YOYand 45% QOQ, and LAP up 53% YOY and 51% QOQ. SBB disbursements grew 71%YOYand 42% QOQ. SME loan book grew 13% YOY and 10% QOQ^to`69,850crores. 89%of the SME book is secured with predominantly working capital financing, and is well diversified across geographies and sectors. Corporate loan book including TLTRO investments grew by 16%YOYand 9% QOQ^.85% of corporate book is now rated A-and above with 94%of incremental sanctions in FY21being to corporates rated A-and above.  

The book value of the Bank’s Investments portfolio as on 31stMarch 2021, was `2,26,120crores, of which `1,84,190crores were in government securities, while `34,904crores were invested in corporate bonds and `7,026croresin other securities such as equities, mutual funds, etc.Out of these, 74%are in held till maturity (HTM) category, while23%of investments are available for sale (AFS) and 3%arein held for trading (HFT) category. 

Digital Axis Bank continues to remain among the top players in the Digital banking space. •169% -YOY growth in mobile banking transaction volumes in Q4FY21, with FY21 market share of 16% •158% -YOY growth in total UPI transaction value in Q4FY21. FY21 market share in UPI transactions at17% •88% -Share of digital transactions in the Bank’s overall transaction mix during Q4FY21•74% -Bank’sactive customers that were digitally active in Q4FY21•74% -Credit cards sourced through digital channels in Q4FY21•71% -Fixed deposits (by volume) opened digitally during FY21 •71% -SA accounts opened digitally through tab banking in FY21•57% -Personal loan disbursements through digital channels in FY21 •57% -New mutual fund SIPs sourced through digital channels in Q4FY21 

The Bank has invested heavily in building digital capabilities and has over 800people dedicated to the digital agenda. The Bank’s focus remains on reimagining end-end journeys, transforming the core and becoming a partner of choice for ecosystems.

Wealth Management Business –Burgundy 

The Bank’s wealth management business has seen strong growth and is among the largest in India with assets under management of over `2,13,085crores as at end of 31stMarch2021. BurgundyPrivate that was launched in December 2019 for the high and ultra-high net worth clients, has scaled up rapidly to cover over 1,666families from 853 families last year. The combined assetsfor Burgundy Private increased by 183% YOY to `50,028crores as at 31stMarch2021. 

Capital Adequacy and Shareholders’ Funds 

The shareholders’ funds of the Bank grew 20% YOY and stood at `1,01,603crores as on 31stMarch 2021. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on 31stMarch 2021including FY21 profitswere 19.12% and 15.40% respectively.Additionally, the Bank held `5,012 crores of COVID provisions, not considered for CAR calculation providingcushion of 69bps over the reported CAR.The Book value per equity share increased from `301as of 31stMarch, 2020 to `332as of 31stMarch 2021. 

The Board of Directors of the Bank at their meeting held today have considered it prudent to not propose any dividend for the year ended 31stMarch, 2021, in light of the situation developing around Covid-19 in the country and related uncertainty that it creates.Asset QualityAs on 31stMarch 2021, the Bank’s reported Gross NPA and Net NPA levels were 3.70% and 1.05% respectively as against 4.55% and 1.19% as on 31stDecember 2020.This reflects decline of 116bps and 51bps respectively on a YOY basis andadecrease of85bps and 14bps on GNPA and NNPA respectively on a sequential basis.Gross slippages during the quarter were `5,285crores, compared to `7,993croresduring Q3FY21 and `3,920 crores in Q4FY20. Slippages from the loan book were at `5,038crores and that from investment exposures stood at `247crores. Recoveries and upgrades from NPAs during the quarter were `3,462crores while write-offs were `5,553crores. Consequently, there werenet slippagesin NPAs (before write-offs) for the quarter of `1,822crores as compared to`5,831 crores in Q3FY21and net slippagesof `1,431crores in Q4FY20. As on 31stMarch2021, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 72%, as compared to 69% as at 31stMarch 2020 and 75% as at 31stDecember 2020. 

The standard restructured loans under resolution framework for COVID-19 related stress as at March 31, 2021stood at `1,848crores that translates to 0.3% of the gross customer assets.The Bank carries a provision of 26% on restructured loans, which is in excess of regulatory limits. 

NetworkAs on 31stMarch2021, the Bank had a network of 4,594domestic branches and extension counters situated in 2,596centres compared to 4,528domestic branches and extension counters situated in 2,559centres as at end of 31stMarch2020. As on 31stMarch2021, the Bank had 11,333ATMs and 5,710cash recyclers spread across the country.The Bank’s Axis Virtual Centre channel expanded during the year from three centres to six centres and hadover1500 Virtual Relationship Managers as on 31stMarch 2021. 

Network As on 31stMarch2021, the Bank had a network of 4,594domestic branches and extension counters situated in 2,596centres compared to 4,528domestic branches and extension counters situated in 2,559centres as at end of 31stMarch2020. As on 31stMarch2021, the Bank had 11,333ATMs and 5,710cash recyclers spread across the country.The Bank’s Axis Virtual Centre channel expanded during the year from three centres to six centres and hadover1500 Virtual Relationship Managers as on 31stMarch 2021. Stake acquisition in Max Life Insurance Axis Bank completed the stake acquisition in Max Life Insurance Company Limited (Max Life) earlier thismonth and now together with itssubsidiaries, Axis Capital and Axis Securities, owns12.99% stake in the Company and isa co-promoter of the Company. The Bank has3 nominee directors on the Board of Max Life. Axis Bank has shared a strong business relationship with Max Life for over a decade now distributing the long-term saving and protection products to nearly 20 lakh customers, generating aggregated total premium of over `40,000 crores through this partnership. Both companies have invested extensively in product and need-based sales training, thereby leading to a consistent increase in productivity. 

The Bank believesthat this strategic partnership would further strengthen and deepen its relationship leading to better integration and alignment of the teams. To enhance customer trust further and highlight the strength of the partnership, Max Life’s tag line will now include the Axis Bank name.Key Subsidiaries’ PerformanceThe Bank’s domestic subsidiaries delivered strong performance with reported total PAT of `833crores, up 75% YOYover the FY20 total profit of `477crores.•Axis AMC: Over the last two years, Axis AMC has strengthened its positioning driven by strong leadership team and innovative product launches on the equity savings side including global and sustainability strategies.Axis AMC’s average AUM for the quarter grew by 42% YOY to `1,66,148crores and its FY21 PAT grew 100% YOY to `242crores from `121 crores in FY20.•Axis Finance: Over last 2 years Axis Finance has been investing on building a strong customer focused franchise. In FY21, disbursement grew 50% YOY.Retail book constituted 17% of total loanswhile the wholesale business delivered ROE of 19%+with focus on well rated companies and cash flow backed transactions. Axis Finance remains well capitalized with Capital Adequacy Ratio of 20.4%. 

The asset quality metrics remain stable with net NPA at 2%. Axis FinanceFY21 PAT was `211crores, up 9% YOY.•Axis Capital: It continued to maintain its leadership position in ECM,and was at the forefront of revival in capital market activity during the year. Axis Capital completed 60 investment banking transactions in FY21 that included highly successful QIPs in financial services and REITs space.Its FY21 PAT stood at `166 crores, up 66% YOY. 

Key Subsidiaries’ Performance 

The Bank’s domestic subsidiaries delivered strong performance with reported total PAT of `833crores, up 75% YOYover the FY20 total profit of `477crores.•Axis AMC: Over the last two years,  

Axis AMC has strengthened its positioning driven by strong leadership team and innovative product launches on the equity savings side including global and sustainability strategies.Axis AMC’s average AUM for the quarter grew by 42% YOY to `1,66,148crores and its FY21 PAT grew 100% YOY to `242crores from `121 crores in FY20.•Axis Finance: Over last 2 years 

Axis Finance has been investing on building a strong customer focused franchise. In FY21, disbursement grew 50% YOY.Retail book constituted 17% of total loanswhile the wholesale business delivered ROE of 19%+with focus on well rated companies and cash flow backed transactions. Axis Finance remains well capitalized with Capital Adequacy Ratio of 20.4%. The asset quality metrics remain stable with net NPA at 2%. Axis FinanceFY21 PAT was `211crores, up 9% YOY.•

Axis Capital: It continued to maintain its leadership position in ECM,and was at the forefront of revival in capital market activity during the year. Axis Capital completed 60 investment banking transactions in FY21 that included highly successful QIPs in financial services and REITs space.Its FY21 PAT stood at `166 crores, up 66% YOY 

Axis Securities: During the quarter, Axis Securities acquired customer trading accounts of Karvy Stock Brokingto become the 3rdlargest brokerage with total cumulative base of over3.6 million customers.Axis Securities’broking revenues for FY21 grew122% YOY to `425crores, net profit for FY21 at `166 crores grew to 10x of its FY20 PAT