Friday, 29 March 2024

Axis Bank announces financial results for the quarter and nine-months ended 31st December 2015

Results at a Glance

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and nine months ended 31st   December 2015  at its meeting held in Mumbai on Wednesday, 20th January 2016.  The results have been subjected ta Limited Review by the Bank’s Statutory Auditors.

Profit & Loss Account: Period  ended 31st  December 2015

•   Core Operating Profit and  Net Profit
Earnings  quality  remained  strong with  the Bank  showing  a healthy  financial  performance in  terms of growth in  core revenues for the quarter  and nine  months  ended 31st  December 2015.  The  Bank’s  Core Operating Profit for Q3FY16 grew by a robust 20% YOY t`3,571 crores, and for 9MFY16 grew by 24% YOY t`10,477 crores. The Net Profit for Q3FY16 and 9MFY16 grew by 15% YOY and 17% YOY t`2,175 crores and `6,069 crores respectively.

•   Net Interest Income and  Net Interest Margin
The Bank’s Net Interest Income (NII) grew by 16% YOY t`4,162 crores during Q3FY16 from `3,590 crores in Q3FY15.  Net interest  margin for Q3FY16  remained  healthy  and stood at 3.79%.  NII  for 9MFY16  als rose
18% YOY t`12,280 crores from  `10,425 crores during 9MFY15.

•  Other Income
Other income (comprising fee, trading profit and miscellaneous income) for  Q3FY16 grew 15% YOY and stood at `2,338  crores  as  against  `2,039  crores  during  the same period last  year.  During  9MFY16,  other income  grew 18% YOY  and stood at `6,677  crores.  During the quarter, fee  income  grew 12% YOY  treach `1,885 crores. The key  driver  tthe growth in fee income was Retail Banking, which grew by 14% YOY and constituted 40% of the Bank’s total fee income. Transaction Banking fees grew 9% YOY and constituted 20% of the total fee income. Treasury & DCM  fee performance was robust and grew 15% YOY tconstitute 10% of the total fee income of the Bank. During 9MFY16, fee income grew 13% YOY primarily driven by 17% YOY growth in retail fee and 37% YOY growth in Treasury & DCM.

Balance Sheet: As on 31st  December 2015
The  Bank’s  Balance  Sheet  grew 18% YOY and stood at `4,96,391  crores as  on 31st   December 2015.  The Bank’s Advances grew 21% YOY t`3,15,367 crores as on 31st  December 2015.  Retail Advances grew 27% YOY and stood at `1,25,796 crores and accounted for 40% of the Net Advances of the Bank. If we were tinclude SME loans that qualify as regulatory retail, the share of retail loans ttotal loans would be 45%. Corporate credit grew 21% YOY and stood at `1,48,385 crores; and accounted for 47% of Net Advances. SME Advances grew 7% YOY and stood at `41,186 crores.

The  book  value  of  the Bank’s  investments  portfoli as  on 31st   December 2015,  was  `1,15,445  crores,  of which  `83,711  crores  were in  government securities, while  `23,997  crores  were invested  in  corporate bonds and `7,737 crores in other securities such as equities, preference shares, mutual funds, etc.

CASA Deposits as  on 31st   December 2015  constituted  43% of  total  deposits.  Savings  Account  balances grew at a strong 16% YOY, up sharply  from  the 12% YOY growth we had last  quarter. CASA,  on a daily average basis, recorded a growth of 14%, in which Savings Bank Deposits recorded a growth of 13% YOY, while Current Account deposits grew by 15%. The proportion of CASA on a daily average basis remained at the same level as the previous quarter and constituted 40% of total deposits.

CASA and Retail Term Deposits constituted 79% of Total Deposits as on 31st  December 2015  compared to 78% as on 31st  December 2014.

Capital Adequacy and  Shareholders’ Funds
The shareholders’ funds of the Bank grew 17% YOY and stood at `51,047 crores as on 31st  December 2015. The Bank is well capitalised. Under Basel III, the Capital Adequacy Rati(CAR)  and Tier I  CAR as on 31st December 2015 (including the net profit for 9MFY16) was 15.47% and 12.35% respectively.

Asset  Quality
As  a  prudent measure, the Bank  has  fully  recognized  the necessary  impairment  and the resultant provisioning  impact  of  the asset  reclassification  as  per RBI’s  assessment  in  the current quarter itself. Consequently, as on 31st   December 2015,  the Bank’s GNPA  and Net NPA levels were 1.68%  and 0.75% respectively, as against 1.38% and 0.48% respectively as on 30th September 2015.
As  on 31st    December  2015,  the Bank’s  provision  coverage, as  a proportion  of  Gross  NPAs  including prudential write-offs, was 72%. The provision coverage before accumulated write-offs was 82%.

As  on 31st   December 2015,  the Bank’s  Gross   NPA  was  `5,724  crores against  `4,451  crores as  on 30th September 2015.  During the quarter, the Bank added `2,082 crores tGross  NPAs, and Recoveries and upgrades were `156 crores. There were nsales tARCs during the quarter. The cumulative value of net restructured advances  as  on 31st    December 2015   stood at  `7,745  crores,  constituting  2.31%  of  net customer  assets,  compared  t`8,426  crores,  constituting  2.65%  of  net  customer assets  as  on 30th September 2015.

Network
During Q3FY16, the Bank added 62 branches tits network across the country, pushing up the tally t216 new branches  in  9MFY16.    As  on 31st    December  2015,   the Bank  had a network  of  2,805   domestic branches and extension counters situated  in  1,796  centres compared t2,558  domestic  branches and extension counters situated  in  1,708  centres last  year.  As on 31st   December 2015,  the Bank  had 12,631
ATMs spread across the country.

International Business
The  Bank  has  nine  international  offices  with  branches at Singapore,  Hong  Kong, Dubai  (at the DIFC), Colomband Shanghai; representative offices at Dubai, Abu Dhabi, Dhaka and an overseas subsidiary at London,  UK.  The  international  offices  focus  on corporate lending,  trade finance,  syndication  and investment banking and liability businesses.

The total assets under overseas branches were USD 8.06 billion as on 31st  December 2015.

Appointment of Additional Independent Director
Ms. Ketaki Bhagwati has joined the Board of Directors as an Additional Independent Director with effect from  19th  January  2016.  Ms. Bhagwati  is  a former Chief  Investment  Officer  in  the Financial  Institutions Group at the International  Finance  Corporation  (IFC).  She  has  over twenty four  years  of  experience in private  equity,  M&A,  debt &  structured finance  and  distressed asset  workouts. Ms.  Bhagwati  has  a Bachelors  of  Arts  from   Wellesley  College  (USA)  and a Master  of  Public  Administration  from   Harvard University's John F. Kennedy School of Government.

She  is  currently  a member of  the Wellesley  College  Business  Leadership  Council  and Golden  Seeds,  an early stage investment firm with a focus on women leaders.

Appointment of Additional Non-Executive Director
Mr. B. Babu Rahas joined the Board of Directors as an Additional Non-Executive Director (Nominee of SUUTI) with effect from  19th  January 2016.  Mr. Ra has more than 26 years of experience in the area of Finance,  Capital  Markets  and Fund  Management  in  UTI  Mutual  Fund.  Mr. B. Babu  Ra is  an MBA from Indian Institute of Management, Ahmedabad.
Mr. Rais currently managing the activities of the Specified Undertaking of UTI (SUUTI) on deputation from  UTI Asset Management Company Ltd.

Re-disseminated by The Asian Banker

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