An expanding reach
Wide branch network including the third largest number of ATMs spanning the country with the convenience of 24 x 7 phone and internet banking facilities
Comprehensive range of offerings for the retail and corporate
sectors encompassing retail loans, corporate credit, forex services, investment banking, depository and investment advisory services
Broad spectrum of clients from individuals and corporates to the central and state governments
Consistently clocked profits and distributed dividends investments and advances
Steady augmentation of the asset base through increased
Growing international presence
Welcome to AXIS BANK.
1
The core of all your banking needs delivered
more than
700
11.36 million
*
*
almost retail customer accounts
THE AXIS NUMBERS
branches and extension counters
Rs. 59,661 crores in total advances in 2007-08
over 3,000 ATMs across 442 cities and towns
* As on September 30’ 2008
22
*
3
rd
largest debit card issuer
2
capital adequacy
12.20
nd
largest deployer of point of sale machines
*
per cent, against the minimum regulatory norm of 9 per cent
Net worth of
Rs. 9,082
Rs. 1,09,578
*
crores
crores in total assets in 2007-08
largest 3
issuer of travel card in multiple currencies
rd
largest private sector bank and one of the fastest growing commercial banks in India
Rs. 25,849 crores
*
(over USD 5.50 billion) market capitalisation
3
Measuring the quality of the Bank
TOTAL INCOME
(Rs. crores)
8800.80
CAGR - 36%
5471.77
3618.42 2138.69
2003-04
NET PROFIT (Rs. crores) CAGR - 41%
1071.03
659.03
485.08 334.58 278.31
2003-04
2004-05
2005-06
2006-07
2007-08
4
2339.98
2004-05
2005-06
2006-07
2007-08
TOTAL ASSETS
EARNING PER SHARE (Rs. crores)
(Rs.)
109577.85
32.15
SUSTAINED FINANCIAL GROWTH
CAGR - 41%
CAGR - 26% 23.50
73257.22
17.45 14.32
49731.12 24150.17
2003-04
12.06
37743.69
2004-05
2005-06
2006-07
2003-04
2007-08
2004-05
2005-06
2006-07
2007-08
NPA% TO CUSTOMER ASSETS
CAPITAL ADEQUACY 2.4
3.8% 4.8%
1.5
3.5% 1.0
5.2%
3.8%
1.3 1.1
6.4%
8.9%
7.3%
6.4%
2004-05
Tier 1
2005-06
2006-07
1.0 0.6
0.7 0.4
10.2% 2003-04
2003-04
0.8
2007-08
2004-05 Gross NPA%
Tier 2
5
2005-06
2006-07 Net NPA%
2007-08
Our AXIS Our range of services includes retail, corporate, international and business banking. Additionally, we operate in the capital markets and manage an integrated treasury.
6
AXIS OF STRENGTHS
Axis of Support
Axis of Services
Our present network comprises more than 700 branches and extension counters and 3000 ATMs across more than 442 cities and towns. During 2007-08, we added 110 branches and extension counters and 423 ATMs. Customers can also access their accounts via Tele-banking or Internet based access. We have the highest ATM - to - branch network ratio of over 4 ATMs per branch and have begun extending the reach to smaller towns and villages in recent years.
We offer a wide variety of services across many customer segments. In addition to the standard retail and corporate banking services we offer business banking, international banking and capital markets services while managing an integrated treasury. We have had substantial success in increasing our savings bank balances - over the past five years we have sustained growth at 70 per cent CAGR, when compared an industry average of 15 per cent. The Bloomberg 2008 Underwriter League Table for arrangers ranks us No. 1 for Indian domestic bonds. We were also ranked No. 1 arrangers for corporate bonds (private placement) by Prime Database for the year ended March 2008.
Axis of Performance
Axis of Growth
We registered steady growth over 2007-08. Our profits grew 62.52 per cent to Rs. 1071.03 crores, from Rs. 659.03 crores recorded in 2006-07. Moreover, the diluted EPS at Rs. 31.31, increased 37.38 per cent from the previous year. A capital adequacy ratio of 13.73 per cent and net NPA at 0.36 per cent of net customer assets reflect our strengthening fund utilization and asset quality. We have rewarded shareholders well and earlier this year declared a dividend of 60 per cent.
An aggressive line up of new initiatives expands our portfolio of services. We have teamed up with Metlife India as our bancassurance partner to provide life insurance products to our customers. In a bid to acquire low cost demand deposits, we launched the Merchant Acquiring business. We provided Electronic Data Capture (EDC) machines to merchant establishments, a service that is currently subscribed to by over 100,000 merchants across the country.
Retail advances registered a 52 per cent growth, moving from Rs. 8,928 to Rs. 13,592 crores, accounting for 23 per cent of the total advances. In tandem with this growth, our lending through Retail Asset Centers expanded to 70 cities and towns in 2007-08 from 67 cities and towns in 2006-07.
We offer a complete range of Retail and Corporate Credit Cards catering to the individual requirements across different customer segments. We are also the first bank to offer the Visa EMV Platinum Chip Card which provides the highest security and a number of valueadded benefits to its premium customers. Our Debit Card issuance rose to around 87 lakh cards as at the end March 2008.
7
Changing the lens
8
Our customer-centric 360 0 vision has been the key driver underpinning our profitability. This vision is manifested in the strategic interplay of product differentiation and innovation on the one hand, and customer segmentation on the other. iConnect™, our internet banking service saw an increase in its user base. Mobile Banking, which has the potential to be the most important transaction delivery channel across a large base of customers, has already seen impressive registration volumes.
BUSINESS OVERVIEW
Retail Banking
A continually expanding branch network and a growing sales force with customer relationship skills leads our thrust in retail banking. This has enabled the distribution of a wide range of products to a fast expanding customer base.
NETWORK EXPANSION 2004-05
2003-04
2005-06
2007-08
2006-07
3000
2764 2500
2341 2000
1891 1500
1599
1000
1244
500
258 117190 0
332
405 252
561 450 339
671
Centres covered Branches & Extn. Counters
ATMs
99
We consistently try to innovate to address the unique needs of our customer segments. For example, we offer our senior citizen customers monthly statements in a larger font size to make it easily readable. Our endeavours have helped us realize a substantial growth in the retail banking business during 2007-08. Our savings bank deposits grew by 65 per cent from Rs. 12,126 crores in 2006-07 to Rs. 19,982 crores in 2007-08. Retail assets grew by 52 per cent from Rs. 8,928 crores to Rs. 13,592 crores in 2007-08.
Aiding enterprise
10
Corporate Banking
BUSINESS OVERVIEW
We offer various loan and fee-based products and services to corporates. Our focus is on servicing, retaining and growing high quality credit assets. We have successfully focussed on corporates with a global edge and good management practices. 81 per cent of corporate advances had rating of at least ‘A’ as at March 2008. Continually diversifying our customer base, we focus on deeper penetration in higher yielding segments, channel finance, and structured products.
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During the year ended March 2008, corporate advances grew by 65 per cent to Rs. 46,069 crores from Rs. 27,949 crores in the previous year. A significant improvement in the quality of the credit portfolio accompanied the strong growth in corporate advances. This was reflected in an improvement in net NPAs to 0.36 per cent of net customer assets in 2007-08 as compared to 0.61 per cent in 2006-07.
Recognising potential
12
BUSINESS OVERVIEW
High Growth Category Banking
SME & AGRI BUSINESS To advance our micro, small and medium enterprises and agri-business activities, we set up Advances Cells and adopted a cluster-centric approach for agricultural lending in areas with rich potential. We seek to create backward and forward linkages for all players in the agriculture business chain in order to provide composite financing. Additionally, we focus on the SME segment by developing various schematic and non-schematic credit products that suit the credit needs of disparate business customers. We further extended credit limits to 80 microfinance institutions for onward lending to microfinance clients, reaching out to around 15 lakh clients through our microfinance programme, across 18 states.
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13
Transforming dreams into reality
14
Business Banking
BUSINESS OVERVIEW
We have been acting as an agency bank conducting government business for the last 6 years, offering services to various central government ministries and departments, state governments and union territories. Presently, we are authorised to handle businesses for four central government ministries and departments, including collection of direct and indirect taxes and disbursement of civil and defense pensions. Additionally, we also handle the businesses for seven state governments and union territories, including the collection of state commercial taxes.
Our business banking services target corporates, institutions, central and state government departments and undertakings as well as small business customers. These encompass a range of current account products and cash management solutions across all business segments. The growing base of business relationships is a testimonial to the cost-effective and customised range of products that we offer, coupled with the best in technology for seamless banking transactions. We cross-sell transactional banking products to develop account relationships, and sustain these through product innovation and a customer-centric approach. We constantly seek and acquire high value accounts and these have contributed to growing current account balances and increasing realisations of transaction banking fees.
We participate in various e-governance initiatives of state governments aimed at providing better services by setting up integrated citizen facilitation centres. This includes the Bangalore One initiative in Karnataka, the CHOiCE initiative in Chhattisgarh, the e-Suvidha initiative in Uttar Pradesh, the eSeva initiative in Andhra Pradesh and the Sampark initiative in Chandigarh. Additionally, we also provide e-Payment facilities for the payment of direct taxes, central excise and service taxes via the internet, as part of the e-Governance initiative of Central Board of Direct Taxes and Central Board of Excise and Customs, respectively.
Our Cash Management Services (CMS) offer collection and payment solutions with an ideal blend of structured web-based MIS and funds movement so that clients are able to enhance their fund management capabilities. The CMS initiatives leverage our growing branch network and robust technology platform to provide a wide range of customised solutions that suit the client requirements. During the year, the throughput grew by 97 per cent reaching a level of Rs. 7,46,286 crores compared to Rs. 3,79,067 crores the previous year. During the same period, the number of CMS clients grew to 3193 compared to 2164 clients in the previous year.
CMS PERFORMANCE
7462.86
3790.67 3193 2109.77
1320.28
2164
1432
948
881.45 675
2003-04
2004-05
2005-06
Throughput (Rs. in â&#x20AC;&#x2122;00 Crs.)
1515
2006-07 No. of Clients
2007-08
Beyond barriers. Beyond boundaries
16
International Banking
BUSINESS OVERVIEW
The objective of our international banking services is twofold: offering services to clientele abroad and increasing our global presence. Providing an integrated approach to financial services, we combine a host of superior products along with our expertise in understanding the specific requirements of our customers based abroad. The Bank has embarked on creating a footprint in Asia and today has a presence in the major financial cities of Singapore, Hongkong, Dubai and Shanghai. The services provided in these overseas branches span corporate banking, trade finance products, syndication, investment banking and wealth management for overseas Indians. The total assets under overseas operations were USD 1.66 billion as at end March 2008.
1717
Capital Ideas
18
Capital Markets
BUSINESS OVERVIEW
Our capital markets business encompasses a wide range of services. These include equity and debt capital market services. Under equity capital markets, the Bank as a SEBI registered category â&#x20AC;&#x201C; I Merchant Banker, acts as a Book Running Lead Manager for the management of IPOs, Follow-On Offerings, Managers/ Advisors to Rights Issues and Buyback Offers. Further, the Bank acts as Financial Advisor and Placements Agent for Private Equity raising by its clients and offer Advisory services for M&A transactions. The Bank also acts as Indian Financial Advisors for Foreign Currency Convertible Bonds (FCCB) and Global Depository Receipts (GDRs) raised by its corporate clients. Under the debt capital market services, the Bank acts as Financial Advisor and Arranger for raising of Bonds and Debentures, Rupee Term Debts and External Commercial Borrowings for its corporate clients. We also provide other fee-based services such as Trusteeship Services, Appraisals and Project Advisory Services, Depository related services, Portfolio Management Services and other Capital Market related services. We also maintain an investment and proprietary trading portfolio in corporate bonds and equities. As a consistent leader in domestic debt placements and syndication, we have acted as an arranger of Bond/ Debenture and Rupee Loan Syndication of Rs.44,843 crores in 2007-08.
1919
Sustaining growth
20
KEY TREASURY RESULTS
24%
1,59,165
Y-O-Y
(Rs. crores) 2006-07 2007-08
BUSINESS OVERVIEW
Treasury
1,27,970
67%
205
Y-O-Y
123
Customer Forex Turnover
Covering both domestic and global markets, our integrated treasury operations are geared to efficiently manage liquidity and maximise income by trading in the financial markets. Apart from the proprietary business, the treasury enhances returns from existing customer relationships. In addition to rapidly increasing income from foreign exchange transactions and hedging their foreign currency positions, the treasury also provides structured solutions to corporates seeking protection from market related risks.
2121
Forex Profit
We assess market risks using advanced statistical measurement techniques supplemented by periodic stress tests. Risk taking activities are aligned to the Bankâ&#x20AC;&#x2122;s risk taking appetite through a series of risk limits. The Bank also manages liquidity effectively to meet both known and unanticipated funding needs through continuous monitoring of cash flow positions and periodic stress tests.
We encourage a high-performance culture amongst our employees through a competitive compensation structure, a merit based career progression plan, performance-linked financial rewards and other staff welfare and motivational measures. Our comprehensive training plan ensures that employees are empowered quickly to deliver value to customers. The Bank has a young workforce with an average age of 30 years and a trim organisational structure that ensures expeditious decision-making.
A sound and well-controlled operational environment is provided throughout the organisation to control operational risks. We further mitigate operational risk by maintaining a comprehensive system of internal controls, key back-up processes and undertaking regular contingency planning.
RISK MANAGEMENT
HUMAN RESOURCES
Acquring and retaining talent
Over the years, we have developed skills to manage risks such as credit, market and operational risks. Our risk management processes are further guided by well-defined policies approved by the Board and appropriate for the various risk categories. We have instituted independent risk oversight and periodic monitoring to ensure financial stability. Credit risk, both on and off the balance sheet, is actively managed and monitored by an internal rating based decision support processes and also by widely dispersing assets through various industry segments. We use sophisticated modelling techniques to contain credit risk at the portfolio level.
Mitigating credit, market and operational risks 22
Recent Awards won by Axis Bank Asian Banker 300 - A Survey of Asia Pacificâ&#x20AC;&#x2122;s Strongest Banks (2008-09) The strongest Indian Bank and 5th in Asia-Pacific Business World - Pricewaterhouse Coopers Banking Survey for 2007-08 Best new Private Sector Bank in India
NDTV Profit Business Leadership Awards 2008 Best Bank in Private Sector category in India
FE Best Banks Award 2007 Best Private Sector Bank in India Business India Awards 2007 Best Bank in India
23
P. J. Nayak N. C. Singhal A. T. Pannir Selvam J. R. Varma R. H. Patil R. B. L. Vaish Ramesh Ramanathan M. V. Subbiah Rama Bijapurkar K. N. Prithviraj
Chairman & CEO Director Director Director Director Director Director Director Director Director
Core Management Team
Board of Directors
V. K. Ramani M. M. Agrawal S. K. Chakrabarti Hemant Kaul Snehomoy Bhattacharya Rajagopal Srivatsa P. Mukherjee Vinod George S. S. Bajaj Somnath Sengupta Bapi Munshi Manju Srivatsa Babu Joseph B. Gopalakrishnan S. Supekar Sonu Bhasin S. K. Nandi S. K. Mitra R. K. Bammi C. P. Rangarajan
24
Executive Director - Technology & Business Processes Executive Director - Corporate Banking Executive Director - Mid Corporate Banking Executive Director - Retail Banking President - Human Resources President - Business Banking President - Credit President - International Banking President & Chief Compliance Officer President - Finance & Accounts President - Treasury President - Retail Banking President - Advances President - Law President - Inspection and Audit President - Retail Financial Services President - West Zone President - East Zone President - North Zone President - South Zone
designed and produced at
(info@aicl.in)