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The Board of Directors of Axis Bank Limited approved the financial results for the quarter and half year ended 30
th September
2021 at its meeting held in Mumbai on Tuesday, 26
th October 2021.
In the second quarter of FY22, Axis Bank announced multiple targets aligned to positive climate action and the Sustainable
Development Goals (SDGs). The Bank has set an incremental lending target of Rs. 30,000 crore over the next 5 years to
pertinent sectors, while also scaling down exposure to carbon-intensive sectors, deploying ESG risk assessment toolkit and
targeting 5% of its retail two-wheeler loan portfolio to be Electric by FY 2024. It’s the first financial institution in India to have
set up a standalone Environmental Social and Governance (ESG) Committee at the Board level. The Bank was the sole
Indian ESG leader to win the ‘Leadership in Social Impact’ and the ‘Leadership in Transparency’ awards at the ESG India
Leadership Award 2021.
The last quarter also witnessed many firsts for the Bank. With the #ComeAsYouAre initiative, Axis Bank became one of the
first companies in the country to announce a wide variety of inclusive steps for the LGBTQIA+ community. It was the first
bank to issue Sustainable USD AT1 bonds from its IBU branch at GIFT City. It also became the first Indian private sector
bank to arrange a Term SOFR linked trade financing deal.
On the digital front, Axis Bank crossed 1.9 million customers on WhatsApp Banking within 9 months of launch. The Bank has
partnered with BharatPe to expand its merchant acquiring business and launched a wide range of open API (Application
Programming Interface) Banking solutions, covering 200+ Retail APIs and 51 Corporate APIs. After the success of its Deep
Geo initiative, the Bank has created a distinctive growth-focused ‘Bharat Bank’ unit that will offer tailored rural products with
increased physical and digital reach across branches over the next 3 years.
Axis Bank garnered a multitude of accolades including ‘Best in Future Operations’ at the IDC Future Enterprise Awards, 2021
– India and the ‘Financial Inclusion Initiative of the Year – India’ at the prestigious ABF Retail Banking Awards 2021. The
MD&CEO was also recognised as one of India’s Best Leaders in Times of Crisis 2021 by Great Place to Work® India.
Axis Bank MD & CEO, Amitabh Chaudhry said, “As a responsible financial institution and a large Bank, we have been
persistently working towards an all-encompassing strategy, governance, and performance framework around ESG. On the
business front we are seeing solid progress. We continue our focus on SMEs and mid-corporate segments, and on the retail
side we see better disbursements and growth driven by secured products. We really hope to make the upcoming festivities
special for our customers, with our ‘Dil Se Open Celebrations’ providing exciting deals and discounts across e-commerce
platforms and local retailers.”
*compared to Sep-20 figures as per IRAC norms ^ Standard Asset Coverage Ratio

Performance at a Glance
• Strong growth in stable and granular CASA deposits
o New liability relationships added in Q2FY22 stood at 2.3 million, highest ever in a quarter
o Deposits on QAB1 basis grew by 18% YOY & 4% QOQ, CASA ratio stood at 42%, up 201 bps YOY
o On QAB basis, Retail term deposits grew 11% YOY and 3% QOQ
• Loan book growth of 10% YOY driven by focused business segments
o Retail loans grew 16% YOY and 4% QOQ, ~ 80% of the book is secured
o SME loans grew 18% YOY and 7% QOQ, Mid-corporate loan book grew 32% YOY and 10% QOQ
o 93% of incremental sanctions in corporate were to those rated A- and above
• Net profit at 3,133 crores, up 86% YOY, Fee grew 17% YOY, o NII grew 8% YOY, NIM* stood at 3.39% o Fee income grew 17% YOY and 21% QOQ, granular fee constituted 90% of overall fees o Retail fee grew 19% YOY and 23% QOQ; and constituted 63% of the overall fees • Retain strong position in Digital Banking and Payments o More than half a million credit cards acquired in Q2FY22, highest in last 10 quarters. o Customers acquired on Freecharge platform for Buy Now Pay later product were up 14x QOQ o On WhatsApp banking, the Bank has on boarded over 1.9 million customers within nine months of launch • Well capitalized with adequate liquidity buffers o Overall capital adequacy ratio (CAR) including profit for H1FY22 stood at 20.04% with CET 1 ratio of 15.81% o COVID provisions of 5,012 crore, not in CAR calculation provides additional cushion of 67 bps
o Average LCR2 during Q2FY22 around 120%, excess SLR3 of 85,580 crores • Limited restructuring, dominantly secured, high provision buffers o Provision on restructured book of1,533 crores, coverage improved from 23% at Q1 FY22 to 24%
o Net slippages ratio at 0.46%, 707 crores down by 82% as compared to Q1 FY 22 o NNPA at 1.08% decreased by 12 bps QOQ and increased by 5 bps YOY5 o On an aggregated basis (specific+ standard+ additional + Covid), our coverage ratio stands at 124% • Bank’s domestic subsidiaries deliver strong performance, annualized profit closer to ~1,025 crore
o Cumulative H1FY22 PAT4 at 513 crores, up 61% YOY o Axis AMC’s H1FY22 PAT grew 60% YOY to147 crores, AAUM growth of 52% YOY
o Axis Finance H1FY22 PAT grew 84% to 138 crores; asset quality remains stable, with near zero restructuring o Axis Capital H1FY22 PAT stood at98 crores, up 72% YOY.
o Axis Securities H1FY22 PAT at `117 crores, was up 59% YOY
*Net Interest Margin
1 QAB – Quarterly Average Balance, 2 LCR – Liquidity Coverage Ratio, 3 Statutory Liquidity ratio
4 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group
5 compared to Sep-20 figures as per IRAC norms

Profit & Loss Account: Period ended 30
th September 2021
Operating Profit and Net Profit
The Bank’s operating profit for the quarter was 5,928 crores while the core operating profit was5,456 crores. Net profit
grew 86% from 1,683 crores in Q2FY21 to3,133 crores in Q2FY22.
Net Interest Income and Net Interest Margin
The Bank’s Net Interest Income (NII) grew 8% YOY to 7,900 crores from7,326 crores in Q2FY21. Net interest margin
(NIM) for Q2FY22 stood at 3.39%.
Other Income
Fee income for Q2FY22 grew 17% YOY and 21% QOQ to 3,231 crores. Retail fees grew 19% YOY and 23% QOQ; and constituted 63% of the Bank’s total fee income. The corporate & commercial banking fee grew 15% YOY and 18% QOQ. The trading profits and miscellaneous income for the quarter stood at473 crores and 95 crores respectively. Overall, noninterest income (comprising of fee, trading profit and miscellaneous income) for Q2FY22 stood at3,798 crores, up 6%
YOY and 13% QOQ.
Provisions and contingencies
Specific loan loss provisions for Q2FY22 were 927 crores compared to2,865 crores in Q1FY22.
The Bank has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions (standard + additional
other than NPA) of `12,951 crores at the end of Q2FY22. It is pertinent to note that this is over and above the NPA
provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 2.11%
as on 30
thSeptember, 2021. On an aggregated basis, our provision coverage ratio (including specific + standard + additional

  • Covid provisions) stands at 124% of GNPA as on 30th September, 2021.
    Credit cost for the quarter ended 30th September 2021 was 0.54% as compared to 1.70% in Q1FY22.
    H1FY22 Financial Performance:
    Net Interest Income for H1FY22 grew 9% YoY to 15,661 crores from14,311 crores. Fee income grew 34% YOY to 5,899 crores. Core operating profit grew by 2% to11,064 crores from 10,877 crores in H1FY21. Total provisions for H1FY21 stood at5,037 crores, down 40% over the same period last fiscal. Net Profit for H1FY22 grew 89% to 5,293 crores from 2,795 crores in H1FY21.

Balance Sheet: As on 30
th September 2021
The Bank’s balance sheet grew 17% YOY and stood at 10,50,738 crores as on 30 th September 2021. The total deposits grew by 18% YOY, both on period end basis and quarterly average balance (QAB) basis. On QAB basis, Savings account deposits grew 23% YOY and 5% QOQ, current account deposits grew 18% YOY and 3% QOQ; and retail term deposits (RTD) grew 11% YOY and 3% QOQ. On QAB basis, CASA and RTD deposits put together grew 16% YOY and 4% QOQ. On QAB basis, the share of CASA plus RTD deposits in total deposits stood at 83% as of 30th September 2021. The Bank’s advances grew 10% YOY to6,21,719 crores as on 30th September 2021. The Bank’s loan to deposit ratio
stood at 84%. Retail loans grew 16% YOY and 4% QOQ to 3,45,603 crores and accounted for 56% of the net advances of the Bank. The share of secured retail loans was ~ 80%, with home loans comprising 37% of the retail book. Disbursements in Retail segment were up 54% both YOY and QOQ. SME loan book grew 18% YOY and 7% QOQ to62,471 crores. 96%
of the SME book is secured with predominantly working capital financing, and is well diversified across geographies and
sectors. Corporate loan book stood at to 2,13,645 crores. 86% of corporate book is now rated A- and above with 93% of incremental sanctions in Q2FY22 being to corporates rated A- and above. The book value of the Bank’s Investments portfolio as on 30th September 2021, was2,49,816 crores, of which 2,04,931 crores were in government securities, while38,642 crores were invested in corporate bonds and `6,243 crores in other
securities such as equities, mutual funds, etc. Out of these, 73% are in held till maturity (HTM) category, while 24% of
investments are available for sale (AFS) and 3% are in held for trading (HFT) category.
Axis Bank continues to remain among the top players in the Retail Digital banking space.
• 147% – YOY growth in total UPI transaction value in Q2FY22. Market share in UPI transactions at 15%
• 91% – Share of digital transactions in the Bank’s total financial transactions by individual customers in Q2FY22
• 71% – SA accounts opened through tab banking
• 69% – YOY growth in mobile banking transaction volumes in Q2FY22, with market share of 14%
• 67% – Retail term deposits (by volume) opened digitally in H1FY22
• 48% – New mutual fund SIPs sourced through digital channels in H1FY22
The Bank’s focus remains on reimagining end-end journeys, transforming the core and becoming a partner of choice for
ecosystems. The Bank has taken a cloud-first approach for its digital banking platform having deployed all new customer
facing applications on cloud platform since last year. Along with Freecharge, the Bank scaled up engagements for its ‘Buy
Now Pay Later’ product with 14x QOQ growth in number of customers acquired during the quarter. On WhatsApp banking,
the Bank now has over 1.9 million customers on board within nine months of launch.

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 2,58,382 crores as at end of 30th September 2021. Burgundy Private that was launched in December 2019 for the high and ultra-high net worth clients, has scaled up rapidly to cover over 2,790 families from 1,225 families in last one year. The combined assets for Burgundy Private increased over 2x times YOY to75,954 crores as at 30th
September 2021.
Capital Adequacy and Shareholders’ Funds
The shareholders’ funds of the Bank grew 3% QOQ and stood at 1,07,083 crores as on 30th September 2021. During the quarter, the Bank successfully raised USD 600 mn in India’s first ESG compliant Sustainable AT1 Bond in the overseas market. Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on 30th September 2021 including H1FY22 profits were 20.04% and 15.81% respectively. Additionally, the Bank held5,012 crores of COVID provisions, not
considered for CAR calculation providing cushion of 67 bps over the reported CAR. The Book value per equity share
increased from 319 as of 30 th September, 2020 to349 as of 30th September, 2021.
Asset Quality
As on 30th September 2021, the Bank’s reported Gross NPA and Net NPA levels were 3.53% and 1.08% respectively as
against 3.85% and 1.20% as on 30th June 2021.
Gross slippages during the quarter were 5,464 crores, compared to6,518 crores during Q1FY22 and 1,751 crores in Q2FY21 (as per IRAC norms). Slippages in Q2FY21 were moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were4,757 crores while write-offs were 2,508 crores. Consequently, there were net slippages in NPAs (before write-offs) for the quarter of707 crores as compared to
3,976 crores in Q1FY22 and net decline in NPA’s (before write-offs) of276 crores in Q2FY21. Net slippages in NPAs
(before write-offs) for Retail loans stood at 697 crores and for SME, there was a16 crores decrease in NPAs (before
As on 30th September 2021, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 70%, as compared to
77% as at 30th September 2020 and 70% as at 30th June 2021. Provisions prior to technical write-offs remained stable at
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related
stress (Covid 1.0 and Covid 2.0) as at 30th September 2021 stood at `4,342 crores that translates to 0.64% of the gross
customer assets. The Bank carries a provision of ~ 24% on restructured loans, which is in excess of regulatory limits.
As on 30th September 2021, the Bank had a network of 4,679 domestic branches and extension counters situated in 2,658
centres compared to 4,568 domestic branches and extension counters situated in 2,582 centres as at end of 30th September

  1. As on 30th September 2021, the Bank had 10,970 ATMs and 5,893 cash recyclers spread across the country. The

Bank’s Axis Virtual Centre channel had six centres with over 1,500 Virtual Relationship Managers as on 30th September
Key Subsidiaries’ Performance
The Bank’s domestic subsidiaries delivered strong performance with reported total PAT of 267 crores, up 38% YOY over the Q2FY21 total profit of194 crores.
• Axis AMC: Axis AMC continued to strengthen 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 52% YOY to 2,38,177 crores and its Q2 PAT grew 38% YOY to74 crores. H1FY22 PAT
grew 60% YOY to 147 crores from92 crores in H1FY22.
• Axis Finance: Axis Finance has been investing in building a strong customer focused franchise. Retail book
constituted 23% of total loans while the focus in wholesale business continues to be on well rated companies and
cash flow backed transactions. Axis Finance remains well capitalized with Capital Adequacy Ratio of 20%. The
asset quality metrics remain stable with net NPA at 1.3% with near zero restructuring. Axis Finance Q2FY22 PAT
was 78 crores, up 82% YOY. H1FY22 PAT grew 84% YOY to138 crores from 75 crores in H1FY22. • Axis Capital: Continued to maintain its leadership position in ECM. Axis Capital completed 12 and 31 investment banking transactions in Q2FY22 and H1FY22 respectively. Its PAT for Q2FY22 and H1FY22 grew by 4% YOY and 72% YOY respectively. • Axis Securities: Axis Securities’ broking revenues for Q2FY22 & H1FY22 grew 51% and 68% YOY to160 crores
307 crores respectively, net profit for Q2FY22 & H1FY22 grew by 57% and 59% YOY to61 crores and `117
crores respectively.

` crore

  • excluding trading profit and gain/loss on capital repatriated from overseas branch/subsidiary
    ` crore
    Balance Sheet
    As on As on
    30th September ’21 30th September ’20
    Capital 613 612
    Reserves & Surplus 1,06,470 97,052
    Employee Stock Option Outstanding (net) 82 –
    Deposits 7,36,286 6,23,667
    Borrowings 1,58,709 1,31,207
    Other Liabilities and Provisions 48,578 45,137
    Total 10,50,738 8,97,675
    Cash and Balances with RBI and Banks and
    Money at Call and Short Notice 96,969 47,788
    Investments 2,49,816 2,00,290
    Advances 6,21,719 5,64,585
    Fixed Assets 4,280 4,360
    Other Assets 77,954 80,652
    Total 10,50,738 8,97,675
    Note – Prior period numbers have been regrouped as applicable for comparison.
    Financial Performance Q2 FY22 Q2 FY21 % Growth
    Net Interest Income 7,900 7,326 8%
    Other Income 3,798 3,569 6%
  • Fee Income 3,231 2,752 17%
  • Trading Income 473 740 (36%)
  • Miscellaneous Income 94 77 24%
    Operating Revenue 11,699 10,895 7%
    Core Operating Revenue* 11,226 10,118 11%
    Operating Expenses 5,771 4,236 36%
    Operating Profit 5,928 6,660 (11%)
    Core Operating Profit* 5,456 5,883 (7%)
    Net Profit 3,133 1,683 86%
    EPS Diluted (`) (annualized) 40.42 22.59
    Return on Average Assets (annualized) 1.19% 0.73%
    Return on Equity (annualized) 12.72% 7.95%

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