FY 2011-12 Third Quarter Results

Investor Presentation

Performance Highlights
Q3FY12
Net Profit 24% YOY

9MFY12
25% YOY

Net Interest Income

Fee Income

23% YOY
26% YOY

21% YOY
33% YOY

Operating Revenue
Operating Profit

24% YOY
24% YOY

21% YOY
17% YOY

Net Interest Margin

Cost of Funds

3.75%
6.34%

3.61%
6.22%
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Shareholder Returns
FY07 FY10 FY08 FY11 FY09 9MFY12
1.68 1.61

536.50

1.67 21.84

462.77 395.99

19.93 19.89 20.13 20.04

1.24 16.09 1.10

1.44

284.50 245.14

120.50

Book Value per Share (`)

Return on Equity (%)

Return on Assets (%)

Interpretation of Q3FY12 Performance

Growth in the Banks core businesses Total Net Advances grew 20% YOY to `1,48,739 crores Total Investments grew 51% YOY to `90,263 crores Total Assets registered a 30% YOY growth, rising to `2,69,310 crores Fees grew by 26% YOY, rising to `1,223 crores Share of demand deposits in total deposits stood at 42%

Retail Advances grew by 32% YOY to ` 33,264 crores; constituted 22% of total advances, as compared to 20% at the end of Q3FY11.
Net NPAs at 0.39%, as compared to 0.29% at the end of Q3FY11. At the end of Dec11, book value per share was `536.50, as compared to `454.32 at the end of Dec10 Capital Adequacy stood at 11.78% with Tier-I capital at 8.25% (without reckoning 9MFY12 profit, as stipulated by Reserve Bank of India). Including 9MFY12 profits, capital adequacy ratio would be 13.11% & Tier-I capital would be 9.58%

Profitability
Sustained Growth: Robust Core Revenues
Q3FY11 Q3FY12 9MFY11 9MFY12
Amounts in `Crores 3,570 3,452 Amounts in `Crores

9,704 8,044

9,489

2,881 2,746

7,605

1,942 1,524 1,102 891 2,368 2,965

5,178
4,156

Net Profit

Core Operating Profit 27% YOY

Operating Revenue 24% YOY

Core Operating Revenue 26% YOY

Net Profit

Core Operating Profit 25% YOY

Operating Revenue 21% YOY

Core Operating Revenue 25% YOY

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24% YOY

25% YOY

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

Consistent Net Profit Growth

FY07 FY08 FY09 FY10 FY11 FY12
Amounts in ` Crores 1102 1020 942 920 891 765 656

742

735 582 532 403 501 361 307 228 185 212

562

330 175

121

142

Quarter 1

Quarter 2

Quarter 3

Quarter 4
5

Quarterly Net Profits

Net Interest Margin and Cost of Funds

Net Interest Margin
3.78% 3.81% 3.44% 3.75% 4.79% 3.28% 6.13% 5.56% 6.19% 6.34%

Cost of Funds

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

Q3FY11

Q4FY11

Q1FY12

Q2FY12

Q3FY12

NIMs for the last 5 years FY07 FY08 FY09 FY10 FY11 2.74% 3.47% 3.33% 3.75% 3.65%
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Growing Net Interest Income

Q3FY11 Q3FY12 9MFY11 9MFY12
Amounts in ` Crores Amounts in ` Crores

5,872

2,140
1,733

4,862

23% YOY

21% YOY NIIs for the last 5 years (` crore) FY07 FY08 FY09 1,468 2,585 3,686

FY10
FY11 CAGR

5,004
6,563 45%
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Growing Demand Deposits

YOY Growth in Daily Average Demand Deposits and Total Deposits Deposit Savings Q3FY12 19% 9MFY12 20%

Current
Total Demand Deposits Total Deposits
Amounts in ` Crores

4%
13% 25%

12%
17% 25%

86,756

(42%)
65,931

Demand Deposits

32% YOY 36% YOY

(42%)
1,21,937 89,880

Term Deposits

(58%)

(58%)

31st Dec'10

31st Dec'11
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Fees
Q3FY11 Q3FY12 9MFY11 9MFY12
Amounts in ` Crores Amounts in ` Crores

1,223

3,400 2,559

968

26% YOY

Fees for the last 5 years (` crore) FY07 890

33% YOY

FY08
FY09 FY10 FY11

1,495
2,447 2,925 3,790

CAGR

44%
9

Fee Income Composition

473 352

Q3FY11

Q3FY12

Amounts in ` Crores
328

232
186 58 66 95 109 15 13

261

Large & Mid Corporate Credit

Treasury & DCM

Agri & SME Banking

Business Banking

Capital Markets

Retail Business

34% YOY 1266 878

25% YOY

13% YOY

15% % YOY

12% YOY

26% YOY

9MFY11

9MFY12
895

Amounts in ` Crores 717 540 144 Large & Mid Corporate Credit 44% YOY Treasury & DCM 33% YOY 172 282 305 51 45 Retail Business 35% YOY
10

665

Agri & SME Banking 20% YOY

Business Banking Capital Markets 8% YOY 11% YOY

Note: Previous years figures have been restated pursuant to a realignment of the organization structure

Trading Profits
Trading Profits
Amounts in ` Crores

% of Operating Revenue

135 118

5% 3%

Q3FY11 Q3FY12 13% YOY

Q3FY11

Q3FY12

439 216

5% 2%

9MFY11 9MFY12 51 % YOY

9MFY11

9MFY12
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Stressed Assets and Net NPA (%)

Gross NPAs Net NPAs Net NPA (%)

Amount ` Crore 2,100 1,915 1,800 1,599 1,500 1,483 0.60% 1,200 0.39% 0.45% 900 0.29% 600 386 300 Q3FY11 Q4FY11 Q1FY12 Q2FY12 Q3FY12 410 0.15% 0.26% 462 0.31% 0.34% 683 549 0.30% 1,744 0.75% 0.90%

Net NPA as at year-end FY07 FY08 FY09 FY10 FY11 0.61% 0.36% 0.35% 0.36% 0.26%

1,573

Cumulative Restructured Assets: `2,701 crore (1.55% of gross customer assets) as on 31st December 2011 Of which, `1,876 crore restructured upto Q3FY11 Additions to Restructured Assets during

Q3FY12: `295 crore

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BUSINESS OVERVIEW

Network
Increasing Reach
1,390 983 792 544 644 1,493

921

971

643
515 405 332

Branches + Extension Counters*

Centres Covered
8,324

Branch Demographics (Domestic)

Metro Urban Semi-urban Rural Total Branches 417 464 480 123 1,484 Extn. Counters 6 3 9 March 2009
3,595 2,341 2,764 4,293

6,270

ATMs
March 2007 March 2008 March 2010 March 2011 December 2011
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*Excludes service branches and credit processing centres

Large and Mid Corporate Banking

Focus on quality of credit assets with stress on corporates having Global competitive advantage in their businesses Good corporate governance and management practices Business Segments Large Corporates Infrastructure

Mid Corporates
Rigorous and regular risk assessment of individual accounts Rating Tools and Monitoring Tools Offer broad suite of products with continued focus on customised offerings

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Distribution of Ratings
(Large and Mid Corporate) 70% of corporate advances have rating of at least A as at Dec 2011
8%
7% 8% 7% 6%

24%

25%

26%

24%

23%
AAA AA

41%

43%

41%

42%

41%

A BBB <BBB or unrated

25% 2% Dec-10

23% 2% Mar-11

23% 2% Jun-11

24%

27%

3% Sep-11

3% Dec-11
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SME and Agri Business

31st Dec'10
20,692

31st Dec'11

Amounts ` Crore

17,053
10,771 10,700

SME Advances

Agricultural & Microfinance Advances 1% YOY

21% YOY
SME Centres 26 32

Agri Clusters 69

85

Specialised SME Centres for SME appraisals, sanctions and postsanction monitoring
Product categories Schematic loans Non-schematic loans Channel finance

Specialised Clusters for Agricultural lending, coordinating appraisals, sanctions and postsanction monitoring
Segmented approach Retail Agri Corporate Agri Commodity Agri Microfinance

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Distribution of Ratings: SME

80% of SME advances have rating of at least SME3 as at Dec 2011
2% 5% 5% 5% 6%

17%

18%

20%

18%

18%

SME 1 SME 2

59%

59%

55%

56%

55%

SME 3 SME 4 SME 5-8

12% 10% Dec-10

11% 7% Mar-11

12% 8% Jun-11

13% 8% Sep-11

12% 9% Dec-11
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Industry-wise Distribution (Top 10)

Outstanding as on 31 December 2011 (%)&
Rank Sectors Total Fund-based 5.15 7.23 7.98 3.33 5.15 3.46 4.30 Non-fund based 19.39 12.79 10.59 11.69 6.93 5.21 2.30

1.
2. 3.

Power Generation Infrastructure Construction* Financial Companies** Engineering & Electronics Metal & Metal Products Trade Food Processing Chemicals Real estate

10.29 9.24 8.92 6.34 5.79 4.09 3.58

4. 5.
6. 7. 8. 9. 10.

2.82
2.54 2.40

1.63
3.78 2.70

4.94
0.34 1.85

Shipping & Logistics

& 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
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Business Banking
Cash Management Services & Government Business
31st Dec'10 31st Dec'11

10,347

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

7,789

CMS Accounts

33% YOY

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Business Banking
Current Accounts Growth
31-Dec-10 31-Dec-11 31-Dec-10 31-Dec-11
Amount ` Crore Amount ` Crore

39,459 26,799

25,167

26,158

Period End Balance

47% YOY

Daily Average Balance (Q3)

4% YOY

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 1.93 lac EDC machines

Current Account deposits (` Crore) for the last 5 years (as on 31st March) Mar07 Mar08 Mar09 Mar10 11,304 20,045 24,822 32,168

Mar11
CAGR

36,917
34%
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Treasury
Q3FY11
143,645 30.2 75,252

Amount ` Crore

Q3FY12

Q3FY11

Q3FY12
127.9

Q3FY11

18.9

Q3FY12
Forex Turnover 48% YOY
374,620

30.3

SLR & Money Market Trading 37% YOY

FX & Derivatives Trading 322% YOY

9MFY11
257,630 92.4

9MFY12

9MFY11

9MFY12
221.2

Amount ` Crore

9MFY11 9MFY12
86.3 10.5

Forex Turnover 31% YOY

SLR & Money Market Trading 89% YOY

FX & Derivatives Trading

156% YOY
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Debt Capital Markets

Q3FY11 Q3FY12 9MFY11 9MFY12
Amount ` Crore Amount ` Crore

30,297 20,846 69,458

81,106

45% YOY

Placement & Syndications (Debentures / Bonds)

17% YOY

A dominant player in placement and syndication of debt issues Ranked No.1 Debt Arranger by Bloomberg for calendar year ended December 2011 Ranked No. 2 Debt Arranger by Prime Database for the half year ended September 2011 Recent Awards: - Asset Triple A country awards 2011 : Best Domestic Bank & Best Domestic Bond House - Banker Magazine : Bank of the year India 2011 - NDTV Profit : Best Bank in the Private Sector

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Retail Deposits
Savings Deposits
Amount ` Crore

Savings & Retail Term Deposits

Amount ` Crore

47,297 39,132 37,732

91,883 45,046 69,311

31-Dec-10 31-Dec-10 31-Dec-11

31-Dec-11

Period End Balance 21% YOY

Daily average balance (Q3) 19% YOY

Period End Balance 33% YOY

Savings Bank deposits (` Crore) for the last 5 years (as on 31st March)

Mar07
Mar08 Mar09 Mar10 Mar11 CAGR

12,126
19,982 25,822 33,862 40,850 35%

Term deposit portfolio as on 31st December 2011 TD (upto `5 crore) Others : `44,586 : `77,351

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Third Party Products Business

Q3FY11 Q3FY12

9MFY11

9MFY12

Amount ` Crores

Amount ` Crores

234 98

Focus on cross-selling to existing customers to generate fee income Third-party products sold include mutual funds, insurance, on-line broking, portfolio management services (non-discretionary) and gold coins. Systematic segmenting of customers

65 119

51% YOY

Fee Income

97% YOY

25

Retail Assets
31st Dec'10 31st Dec'11 31st Dec'10 31st Dec'11
Amount ` Crores 33,264 1,443,079 1,560,053

Retail Assets constitute 22%

25,191

of the banks total advances, as compared to

20% as on 31st December

2010 Growth driven through 95

Asset Sales Centres (ASCs)

Portfolio Size

32% YOY

No. of Accounts 8% YOY

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Composition of Retail Assets

Product-wise composition of Retail Assets portfolio (31st Dec11)

Cards 1%

Non-Schematic 5%

Personal Loans 6%

Auto loans 13%

Housing Loans 75%

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Cards, Retail Forex & Remittances Business

Q3FY11 Q3FY11 9MFY11 9MFY12
Amounts in ` Crores

111 80

Amounts in ` Crores

301 201

39% YOY Issuance

Fee Income

50% YOY

Over 7.23 lac Credit Cards in force till end December 11 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

28

ATM Channel Migration

Dec'10
114 96

Dec'11
10,994 478

7,850
348

Intl. debit card base (lakhs)

Monthly Cash Withdrawals

`crore

No. of Monthly Transactions (lakhs)

19% YOY

40% YOY

37% YOY

Pioneer in ATM sharing arrangements Value added services such as bill payments, mutual fund investments, mobile top-ups and VISA money transfer services
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International Presence
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$ 5.42 billion as compared to US$ 4.99 billion as at end December 10, a growth of 9%YOY Corporate Banking, Trade Finance products, Debt Syndication and Liability businesses

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Shareholding
Shareholding pattern (Dec 11)

Share Capital - `412.57 crore Net Worth - `21,161.26 crore Book Value per share - `536.50 Market Price as on 19/01/12 - `955.05 Market Cap as on 19/01/12 - `39,403 crore (US $ 7.84 billion)

Others 35.25%

SUUTI 23.57%

LIC 9.80%

FIIs 31.38%

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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.

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Thank You

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