Axis Bankincorporated in December 1993, is a private sector bank.It has the third-largest network of branches among private sector banks and an international presence through branches in DIFC (Dubai) and Singapore along with representative offices in Abu Dhabi, Sharjah, Dhaka and Dubai and an offshore banking unit in GIFT City.

It is 3rd largest private sector bank in India with 58mn Customers.It is 4th largest issuer of credit cardswith 14% in credit cards circulation in Indiaand have 19.8% market share as of FY24. It has 5.5% market share in assets, 5% in deposits & 5.9% in advances,5.2% market share in personal loan,8.4% RTGS, 30% NEFT, 38.9% IMPS Market share,20% Market share in BBPS. 11.4% Foreign LC Market Share and8.4% market share of MSME credit.

Company has well distributed branch network of 5706 branches along with 130 new branched added in recent quarter and have 16,026 ATMs and Cash recyclersmachines.

On Digital banking front, 96% of Digital transactions, 87% of Credit cards issued, 70% of new savings accounts, 74% of New MF SIP Volume, 53% of Personal loan disbursed were sourced digitally in FY24.

Company’s subsidiaries include:

1. Axis Capital Ltd – It Provide focused and customized solutions in Investment Banking and Institutional Equities. 90 IB deals closed in FY24 that include 52 ECM and 7 M&A deals and it ranks 2nd in ECM deals.
2. A.Treds Ltd (67% shareholding) - It is engaged in the business of facilitating financing of trade receivables. It is one of the three entities allowed by RBI to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs. Its digital invoice discounting platform ‘Invoicemart’ has set a new benchmark by facilitating financing of MSME invoices of ~Rs. 1,04,000 Crs.
3. Axis Asset Management Co. Ltd (75% shareholding) - PMS,AIF & Mutual Funds. 5% AUM market share. AUM:~Rs.2,74,265 Cr.
4. Axis Trustee Services Ltd - It is registered with the SEBI and has been successfully executing various trusteeship activities including debenture trustee, security trustee, security agent, lenders’ agent, trustee for securitisation and escrow agent, among others. Assets under Trust: Rs. 39,04,153 Cr. with 24% (AUM) market share in Debenture Trustee segment and holds 2nd Rank across industry.
5. Axis Securities Ltd -  It is 3rd largest bank led retail brokerage in terms of customer base with customer base of 5.45 Mn.
6.  Freecharge - It is in the business of providing merchant acquiring services, payment aggregation services, payment support services, and business correspondent to a Bank / Financial Institution, distribution of Mutual Funds.
7. Axis Mutual Fund Trustee Ltd (75% shareholding) - It acts as the trustee for the mutual fund business.
8. Axis Bank UK Ltd - It is the banking subsidiary of the Bank in the UK and undertakes the activities of banking.

Loan Book

Company’s Retail loans account for 60% of bank's loan book, 29% corporate loans & SME loans 11%. On Retail front Home loans account for 28% of retail book, followed by rural loans at 16%,LAP at 11%, Auto loans at 10%, personal loans at 12%, small business banking at 10%, credit cards at 7%, Comm Equipment at 2% & others at 4%.

Fundamentals:

Financial Results:

Company’s PAT reached 19256 in 9mFy25 period marking 9% growth on YoY basis along with 14% and 5% growth on YoY and QoQ basis in Core operating profit in the same period.

Its Net Interest Income grew 9% YOY and 1% QOQ, Net Interest Margin at 3.93% and Domestic NIM stable at 4.06%. Company’s Fee income grew 6% YOY, granular fee constituted 94% of overall fees and Retail fee grew by 5% YOY.

Bank’s Q3FY25 Consolidated ROA was 1.71% and ROE was 15.8% on annualized basis. On QAB basis, total deposits grew by 13% and 3% on Qoq and YoY basis and its term deposits grew at 19%  and 5% on YOY  and QOQ basis, respectively. CASA ratio on QAB basis stood at 39%, which continues to be amongst the best across large peer banks. Advances grew by 9% on YOY and 1% on QOQ basis. Bank’s focus segments also grew by 16% YOY and 3% QOQ basis. Retail loans grew by 11% YOY and 1% QOQ out of which Rural loans grew by 17% YOY & 4% QOQ, SBBbook grew by 20% YOY and 4% QOQ basis.

Company’s PCR healthy at 76%, Coverageratio at 151%, Gross slippage ratio (annualized) at 2.13% , Net slippage ratio (annualized) at 1.40%. Its Annualized net credit cost at 0.80%, Provisions to average assets 0.56% declining 3 bps QOQ.

Axis reported Total 9MFY25 PAT of domestic subsidiaries at 1,401 crores, up by 26% YOY and Return on investments of 49% in domestic subsidiaries. Axis Finance 9MFY25 PAT at `509 crores up by 20% YOY, ROE at 14.98% for Q3FY25, stable asset quality metrics with net NPA at 0.25%. Company’s Axis AMC’s 9MFY25 PAT at `378 crores up 27% by YOY, Axis Securities’ 9MFY25 PAT at `368 crores up 86% by YOY. Its Axis Capital’s 9MFY25 PAT at `148 crores up 36% YOY and executed 43 ECM deals in 9MFY25.

Key Highlights:

1. Axis Bank in partnership with GuarantCo, part of the Private Infrastructure Development Group (PIDG), has extended an INR 1 billion (c. USD 12 million equivalent) guarantee to Muthoot Capital, one of India's fastestgrowing NBFCs in India. This will empower the NBFC to lend to on-lend customers in rural and non-metro regions in India, for purchasing electric two wheelers. GuarantCo has provided a 65 percent on-demand credit guarantee to Axis Bank for this transaction, which is part of a broader USD 200 million (INR equivalent) electric vehicle (EV) framework agreement signed by GuarantCo and Axis Bank.
2. Axis Bank has entered into partnership with Marg ERP, a prominent player in integrated business applications, to provide simplified business banking solutions to small and medium enterprise (SME) customers. This collaboration empowers Axis Bank current account holders to connect their Business accounts directly with Marg ERP software, creating a unified platform for managing all banking transactions such as NEFT, RTGS, IMPS, and more. Axis Bank current account holders can simply log in to Marg ERP, select the necessary bills, and process payments through their connected Axis Bank account.
3. Axis Bank recently unveiled ‘ARISE Women’s Savings Account’, a comprehensive solution designed exclusive to cater to the financial needs of women, while providing them with essential healthcare benefits. newly launched savings account will offer a bouquet of services tailored to meet the unique needs of women which includes - dedicated women financial experts, customized basket of stocks and suite of benefits designed to support their health, lifestyle and family. In addition to these features, the Bank will also offer host of benefits such as – Family Banking Program, Locker Benefits, ARISE Debit Card and Complimentary NEO Credit Card.
4. Axis Bank has also unveiled its new spacious and state-of-the-art IFSC Banking Unit (IBU) premises at GIFT City, Gandhinagar, a strategic move to strengthen its international presence and tap global clients. With an aim to provide best-in-class products and services to resident and nonresident clients, the new premise spans ~8,000 sq. ft. which is substantially bigger than the previous 2,700 sq. ft. facility. The newly expanded unit offers a comprehensive suite of services designed for global customers, including digital FD proposition for NRIs, online banking solutions for nonresidential retail as well as corporate clients and dedicated relationship managers to provide personalized support. Backed by Axis Bank’s focus on digitization, these services ensure seamless and efficient cross-border banking for NRI clients.
5. Axis Bank has entered into a strategic partnership with Adda247 to develop a talent pipeline through skill-building initiatives. Through this partnership, Axis Bank and Adda247 will introduce multiple initiatives to recruit, nurture, and build the next generation of skilled bankers. These initiatives will provide a co-curated and purpose-built learning experience focusing on domain knowledge and skillsets essential for young professionals to build successful careers at Axis Bank.
6. Axis Bank has also entered into partnership with Alliance Network India, a subsidiary of OMA Emirates Group - a leader in the UAE payment solutions, for POS aggregation to revolutionize India’s digital payment landscape. The collaboration brings together Axis Bank’s extensive reach along with its expertise in supporting easy transactions, and Alliance Network’s innovative technologies, to provide enhanced and customised solutions driving business growth for merchants.
7. The International Finance Corporation (IFC), a member of the World Bank Group and the largest global development institution has partnered with with Axis Bankto provide a $500 million loan to help develop a blue finance market and scale up financing of green projects in India.  This is IFC’s first blue investment in India and the first blue transaction by a financial institution in the country. Blue loans are financing instruments that raise and earmark funds for investments such as water and wastewater management, reduction of marine plastic pollution, restoration of marine ecosystems, sustainable shipping, eco-friendly tourism, and offshore renewable energy.
8. The bank has introduced two innovative, industry-first digital solutions at the recently held GFF event. The Bank launched ‘UPIATM’, an integrated Android Cash Recycler with Unified Payments Interface (UPI) technology for cardless cash withdrawal and deposits. It also launched ‘Bharat Connect (erstwhile BBPS) for Business’, in partnership with NPCI’s Bharat BillPay Limited (NBBL). This will provide businesses a comprehensive solution to efficiently manage their working capital needs at various stages of the supply chain and streamline account receivables and payables.
9. The company has announced the expansion of its wealth management services to 15 new cities, increasing its presence to 42 locations across India. With this strategic move, Burgundy Private will now offer its bespoke wealth management services tailored to the unique needs of discerning clients in India's rapidly evolving Tier 2 markets.
10. Axis Bank recently signed a Memorandum of Understanding (MoU) with Next Bharat Ventures IFSC Private Limited, a subsidiary of Suzuki Motor Corporation in Japan, to provide tailored Working Capital Financing Solutions to impact-driven startups and Micro and Small Enterprises (MSME). This collaboration will enable MSMEs to secure credit without the traditional collateral, thereby reducing financial hindrances and simplifying access to capital needed for business growth.
11. Axis Bank recently launched neo for merchants in partnership with VISA and Mintoak. It marks a significant milestone in Axis Bank's commitment to empower businesses with cutting-edge banking solutions. With its user-friendly interface, versatile payment acceptance options, and valuable business insights, the neo for merchants app is set to redefine the payment landscape for merchants across India.
12. Axis Bankhas partnered with Visa, the global leader in digital payments, to launch ‘Primus’ – an ultra-premium credit card designed to redefine luxury. The new super-premium card, Primus, will be offered by invitation only, to select, ultra-high net worth, Axis Bank customers. For the first time in India, customers will have access to globally acclaimed, bespoke privileges & benefits curated under the Visa Infinite Privilege offering.

Axis Bank has established itself as one of India’s leading private sector banks, demonstrating strong financial performance, innovation, and customer-centric services. Through its strategic initiatives in digital banking, risk management, and sustainable growth, the bank has continued to expand its market presence. Despite facing challenges such as regulatory changes and economic fluctuations, Axis Bank has shown resilience by adapting to industry trends and leveraging technology to enhance customer experience. Going forward, its focus on digital transformation, financial inclusion, and sustainable banking practices will play a crucial role in maintaining its competitive edge in the evolving financial landscape.

HET ZAVERI

info@smartinvestment.in

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