Axis Bank Limited (ABL) was incorporated in December 1993. It was known as UTI Bank till 2007. Its major promoters are Life Insurance Corporation of India (LIC), Specified Undertaking of the Unit Trust of India (SUUTI), General Insurance Corporation of India, The New India Assurance Company Limited, National Insurance Company Limited, The Oriental Insurance Company Limited, and United India Insurance Company Limited.
It is the third-largest private bank in terms of deposit and advances. The bank has 4,594 domestic branches at end-FY21 which signifies its pan India presence.
Credit Rating-
Axis Bank Limited has been rated as AAA by CRISIL, ICRA, and India Rating while its BASEL III Tier I perpetual bonds have been rated as AA+.
| Parameters(billion) | FY20 | FY21 |
|---|---|---|
| Total assets | 9151.65 | 9961.18 |
| Total Income | 781.72 | 784.83 |
| Total equity | 849.00 | 1016.00 |
| NII | 252.06 | 262.39 |
| Net income | 16.30 | 65.88 |
| Return on assets (%) | 0.20 | 0.70 |
| Common equity tier 1 (%) | 13.34 | 15.40 |
| Capital adequacy ratio (%) | 17.53 | 19.12 |
| % of Gross NPAs | 4.86 | 3.70 |
| % of Net NPAs | 1.56 | 1.05 |
Financial performance during Q4FY21
- PAT grew 140% QOQ to Rs 2,6.77 billion
- NII grew 11% YOY to `75.55 billion while NIM stood at 3.56%
- Operating profit grew 17% YOY & 13% QOQ to Rs 68.65 billion
- Credit cost at 1.70% improving 106 bps YOY
Financial performance during Y21
- NII grew 16% YOY to Rs 292.39 billion while NIM stood at 3.53%
- Operating profit grew 10% YOY to Rs 257.02, cost to assets at 1.96%, improving 13 bps YOY
Increasing Proportion in loan disbursement-
During FY21, Axis Bank's loan book grew by 12% on yearly basis. Domestic retail loans grew 11% on yearly basis while corporate loans grew by 16% on yearly basis.
Growth in CASA ratio-
On a quarterly average balance basis, CASA rose by 18% in FY21 on y-o-y. During Q4FY21, CASA ratio stood at 42%, up by 320 bps on yearly basis and 39 bps on quarterly basis.
Adequate Capitalization-
Capitalisation for Axis is at a robust level having a common equity tier I capital of 15.54% and a total capital adequacy ratio of 19.12%. Total equity rose by 19.67% on a yearly basis to Rs 1016 billion as of 31st March 2021.
Improvement in Asset quality-
As of 31st March 2021, bank's GNPA declined to 3.7% from 4.86% as of 31st March 2020. Consequently, NNPA came down to 1.05% from 1.56% as of 31st March 2020.