FY 2012-13

First Quarter Results

Investor Presentation

1

Safe Harbor

Except for the historical information contained herein, statements in this release which

contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”,

“expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”,

“future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue” and

similar expressions or variations of such expressions may constitute "forward-looking

statements". These forward-looking statements involve a number of risks, uncertainties and

other factors that could cause actual results to differ materially from those suggested by the

forward-looking statements. These risks and uncertainties include, but are not limited to our

ability to successfully implement our strategy, future levels of non-performing loans, our

growth and expansion, the adequacy of our allowance for credit losses, our provisioning

policies, technological changes, investment income, cash flow projections, our exposure to

market risks as well as other risks. Axis Bank Limited undertakes no obligation to update

forward-looking statements to reflect events or circumstances after the date thereof.

2

Q1FY13

Net Profit 22% YOY

Net Interest Income 26% YOY

Fee Income 9% YOY

Operating Revenue 22% YOY

Operating Profit 26% YOY

Net Interest Margin 3.37%

Cost of Funds 6.70%

Performance Highlights

3

16.09

19.93 19.89 20.13 21.22

20.58

Return on Equity (%)

FY08 FY09 FY10

FY11 FY12 Q1FY13

Shareholder Returns

245.14

284.50

395.99

462.77

552.00

585.41

Book Value per Share

1.24

1.44

1.67 1.68 1.68 1.62

Return on Assets (%)(`)

Q1FY12 : `485.98 Q1FY12 : 20.31% Q1FY12 : 1.61%

4

Interpretation of Q1FY13 Performance • Total Assets grew 24% YOY to `2,89,373 crores

• Aggregate Deposits grew 21% YOY to `2,22,631 crores

• Net Advances grew 30% YOY to `1,71,146 crores

• Large and Mid-Corporate segment loans grew 32% YOY to `92,887 crores

• Retail Advances grew 50% YOY to `40,591 crores and constitutes 24% of advances

• Savings Bank Deposits grew 23% YOY to 52,777 crores

• Share of demand deposits in total deposits stood at 39%

• Net NPAs at 0.31% similar to that of June 2011.

• At the end of June 2012, book value per share was `585.41, as compared to `485.98 at

the end of June 2011

• Capital Adequacy ratio (CAR) stood at 13.03% with Tier-I CAR at 9.02% (without

reckoning Q1FY13 profit, as stipulated by Reserve Bank of India). Including Q1FY13

profits, total CAR & Tier-I CAR would have been 13.51% & 9.49% respectively

5

942

1,488

2,892 2,822

1,154

1,813

3,515 3,365

Net Profit Core Oper. Profit Oper. Revenue Core Oper. Revenue

Q1FY12 Q1FY13

Note: Core Operating Revenue and Profit excludes trading gains / losses

Amount ` in Crore

22% YOY 22% YOY 22% YOY 19% YOY

Profitability: Sustained Growth

6

175 228

307 361

330

403

501

582 562 532

656

765 742 735

891

1,020

942 920

1102

1277

1154

Quarter 1 Quarter 2 Quarter 3 Quarter 4

FY08 FY09 FY10 FY11 FY12 FY13

Quarterly Net Profits

Consistent Net Profit Growth

Amounts in ` Crores

7

6.13% 6.19% 6.34% 6.45%

6.70%

3.28%

3.78% 3.75%

3.55% 3.37%

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13

Cost of Funds Net Interest Margin

Net Interest Margin and Cost of Funds

NIMs for the last 5 years

FY08 3.47%

FY09 3.33%

FY10 3.75%

FY11 3.65%

FY12 3.59%

8

Growing Net Interest Income

1,724

2,180

Net Interest Income

Q1FY12 Q1FY13

Amount ` in Crore

26% YOY

NII for the last 5 years (` crore)

FY08 2,585

FY09 3,686

FY10 5,004

FY11 6,563

FY12 8,018

CAGR 33%

9

YOY Growth in Daily Average Demand and Term Deposits

Deposit Q1FY13

Savings 22%

Current 7%

Total Demand Deposits 16%

Total Deposits 20%

Growing Demand Deposits

109,183 135,689

74,414

86,942

30th June 2011 30th June 2012

Demand Deposits

Term Deposits

(41%)

(59%) (61%)

17% YOY

24% YOY

Amount ` in Crore

(39%)

10

1,057

1,154

Fees

Q1FY12 Q1FY13

9% YOY

Fees

Amount ` in crore Fees for the last 5 years (` crore)

FY08 1,495

FY09 2,447

FY10 2,925

FY11 3,790

FY12 4,727

CAGR 33%

11

413

210

46

95

16

276

409

238

63

110

12

322

Large & MidCorporate

Credit

Treasury &DCM

Agri & SMEBanking

BusinessBanking

CapitalMarkets

RetailBanking

Q1FY12 Q1FY13

1% YOY 13% YOY 36% YOY 16% YOY 29% YOY 17% YOY

Fee Income Composition

Amount ` in Crore

Note: Previous year‟s figures have been restated pursuant to a realignment of the organisation structure

12

Trading Profits & Composition of Operating Revenue

Amount ` in crore

Trading Profit

70

150

Q1FY12 Q1FY13

114% YOY

Others 1%

Trading Profits

4%

Fee Income

33% Net Interest Income

62%

Operating Revenue Mix

Operating Revenue (Q1FY13) : `3515 crore

22% YOY

13

Stressed Assets and Net NPA (%)

Amount ` crore

1,573

1,744

1,915 1,806

2,092

462 549

683

473 605

0.31% 0.34%

0.39%

0.25%

0.31%

0.15%

0.30%

0.45%

0.60%

0.75%

0.90%

300

600

900

1,200

1,500

1,800

2,100

Q1FY12 Q2FY12 Q3FY12 Q4FY12 Q1FY13

Gross NPAs Net NPAs Net NPA (%)

Cumulative Restructured Assets: `3,827 crore (1.95% of gross

customer assets) as on 30th June 2012

• Assets amounting to `1,231 crore have a 2 years track-

record of repayment

• Adjusting for these assets, restructured assets would

make up 1.32% of gross customer assets

Additions to Restructured Assets during Q1FY13: `628 crore

Net NPAs as at year-end

FY08 0.36%

FY09 0.35%

FY10 0.36%

FY11 0.26%

FY12 0.25%

BUSINESS OVERVIEW

15

2,764 3,595

4,293

6,270

9,924 10,337

ATMs

March 2008 March 2009 March 2010 March 2011 March 2012 June 2012

Network Increasing Reach

405

515

643

921

1,050 1,080

Centres Covered

Branch Demographics (Domestic)

Branches Extn. Counters

Metro 466 6

Urban 500 3

Semi-urban 527 -

Rural 172 -

Total 1,665 9

644 792

983

1,390

1,622 1,674

Branches + Extension Counters*

*Excludes service branches and credit processing centres

16

Large and Mid Corporate Banking

• End to End Player offering bouquet of financial products & solutions ranging

from credit, syndication, cash management, etc. under one roof

• Business Segments

– Large Corporates

– Mid Corporates

– Infrastructure (Relationship led model underpinned by superior

syndication & underwriting skills)

• Focus on building out a superior quality of credit assets with emphasis on

corporates having

– Global competitive advantage in their businesses

– Good corporate governance and management practices

• Rigorous and regular risk assessment of individual accounts

– Rating Tools and Monitoring Tools

17

Distribution of Ratings (Large and Mid Corporate)

64% of corporate advances have rating of at least „A‟ as at June 2012

2% 3% 3% 3% 3%

23% 24% 27% 30% 33%

41% 42%

41% 40%

40%

26% 24% 23% 19% 18%

8% 7% 6% 8% 6%

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

AAA

AA

A

BBB

<BBB orunrated

18

SME and Agriculture Business

11% YOY

• Specialised SME Centres for SME

appraisals, sanctions and post-sanction

monitoring

• Product categories

– Schematic loans

– Non-schematic loans

– Channel finance

• Integrated network of branches, agriculture

business centres & specialised clusters

• Distinct demarcation of business sourcing, credit

appraisal, operations & collection

• Value chain approach offering end to end

solutions

– Retail Agriculture

– Corporate Agriculture

– Commodity Finance

SME Centres 32 Agri Clusters

Amounts ` in crore

19,834

14,721

21,985

15,683

SME Advances Agricultural Advances

30th June'11 30th June'12

7% YOY

85

19

Distribution of Ratings: SME 80% of SME advances have rating of at least „SME3‟ as at June 2012

8% 8% 9% 9% 8%

12% 13% 12% 12% 12%

55% 56% 55% 57% 57%

20% 18% 18% 18% 18%

5% 5% 6% 5% 5%

Jun-11 Sep-11 Dec-11 Mar-12 Jun-12

SME 1

SME 2

SME 3

SME 4

SME 5-8

20

Industry-wise Distribution (Top 10)

Rank Sectors

Outstanding as on 30 June 2012 (%)&

Total Fund-based Non-fund

based

1. Power Generation & Distribution 10.28 5.18 20.13

2. Infrastructure Construction* 9.11 7.86 11.53

3. Financial Companies** 7.41 7.02 8.14

4. Metals & Metal Products 6.54 5.57 8.41

5. Engineering & Electronics 6.12 3.59 10.99

6. Food Processing 4.05 5.12 1.99

7. Trade 3.28 2.95 3.93

8. Shipping, Transportation & Logistics 2.53 2.84 1.95

9. Chemicals & Chemical Products 2.32 1.86 3.22

10. Real Estate 2.12 2.99 0.45

& Percentages stated above are on the total fund and non-fund based outstanding across all loan segments

* Financing of projects (roads, ports, airports etc)

** Includes Housing Finance Companies and other NBFCs

21

Business Banking Cash Management Services & Government Business

8,755

12,366

CMS Accounts

30th Jun'11 30th Jun'12

41% YOY

• Collection of Central Government taxes on

behalf of CBDT and CBEC, including through

e-payments

• Collection of State Government taxes on

behalf of 8 State Governments and UTs

• Collections and payments for Central

Government ministries - Railways, Ministry of

Finance, Urban Development and Housing &

Urban Poverty Alleviation

• Collections under e-governance initiatives of

7 State Governments and UT

22

Business Banking Current Accounts Growth

31,515 34,165

Period End Balance

30-Jun-11 30-Jun-12

• Wide range of products

• Customised offerings for various business segments

• Growth aided by “Club 50” and “Channel One” – high-end

premium products

• Broad-based sales strategy

• Focused approach for Corporates, Institutions and Government

• Over 2.02 lac EDC machines

8% YOY

Amount ` crore

25,793 27,539

Daily Average Balance (Q1)

30-Jun-11 30-Jun-12

7% YOY

Amount ` crore

Current Account Deposits (` crore)

(as on 31st March)

FY08 20,045

FY09 24,822

FY10 32,168

FY11 36,917

FY12 39754

5 Year CAGR 29%

23

Debt Capital Markets

19,143

27,695

Q1FY12 Q1FY13

• A dominant player in placement and syndication of debt issues

• Ranked No.1 Debt Arranger by Bloomberg for six month period June 2012

• Ranked No.1 Debt Arranger by Prime Database for year period ended March 2012

45% YOY

Amount ` crore

Placement & Syndications

(Debentures / Bonds)

24

Retail Deposits

23% YOY 33% YOY

42,899 40,117

52,777

48,886

Period End Balance Daily average balance(Q1)

Savings Deposits

30-Jun-11

30-Jun-12

Amount ` crore

Term deposit portfolio as on 30th June 2012

• Retail TD : `53,452

• Others : `82,237

22% YOY

79,960

106,229

Period End Balance

Savings & Retail Term Deposits

30-Jun-11

30-Jun-12

Amount ` crore

Savings Deposits (` crore)

(as on 31st March)

FY08 19,982

FY09 25,822

FY10 33,862

FY11 40,850

FY12 51,668

5 Year CAGR 34%

25

Third Party Products Business

• Focus on cross-selling to existing

customers

• Third-party products sold include

mutual funds, insurance, on-line

broking, portfolio management

services (non-discretionary) and

gold coins

• Systematic customer

segmentation

54

60

Fee Income

Q1FY12 Q1FY13

12% YOY

Amount ` in crore

26

Retail Assets

27,022

40,591

Portfolio Size

30-Jun-11 30-Jun-12

• Retail Assets grew by 50% YOY

• Retail Assets constitute 24% of the bank‟s total advances, as compared to 20% as at

end June ‟11.

50% YOY

Amount ` in crore

Cards 2%

Non-Schematic

4% Personal

Loans 6%

Auto loans 13%

Housing Loans 75%

Portfolio Composition as

on 30th June 2012

27

Cards, Retail Forex & Remittances Business

• Issuance

– Over 8.24 lac Credit Cards in force

till end June „12

– Travel Currency Cards in 12

currencies -USD, Euro, GBP, AUD,

CAD, SGD, SEK, CHF, JPY, AED,

SAR & INR card (for foreign

nationals & NRIs)

– 1st Indian Bank to launch

Remittance Card and Meal Card

43% YOY

89

128

Fee Income

Q1FY12 Q1FY13

Amount ` in crore

28

• Branches at Singapore, Hong Kong, DIFC - Dubai and Colombo

• Representative offices at Shanghai, Dubai and Abu Dhabi

• Axis U.K. Ltd. incorporated as a subsidiary

• Total assets overseas amounted to US$ 6.15 billion as compared to

US$ 4.85 billion as at end June ‟11, a growth of 27%YOY. Overseas

assets constituted 12% of total assets as at end June 2012.

• Corporate Banking, Trade Finance products, Debt Syndication and

Liability businesses

International Presence

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Shareholding Pattern as on 30th June 2012

• Share Capital - `414.29 crore

• Net Worth - `23,181.36 crore

• Book Value per share - `585.41

• Market Price as on 16/07/12 - `1,046.30

• Market Cap as on 16/07/12 - `43,347 crore (US $7.84 billion)

SUUTI 23.47%

LIC 9.66%

FIIs 27.27%

Others 39.60%

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Thank You