#NSE0055–Personal Banking | Internet Banking | Corporate, NRI Banking Services Online – Axis Bank
Incorporated in December 1993, Axis Bank Limited is a significant player in the private banking sector. It holds the distinction of having the third-largest network of branches among private sector banks in India. Beyond its extensive domestic presence, Axis Bank also has an international footprint. This includes branches in the Dubai International Financial Centre (DIFC) and Singapore, as well as representative offices in Abu Dhabi, Sharjah, Dhaka, and Dubai. Additionally, the bank operates an offshore banking unit in Gujarat International Finance Tec-City (GIFT City).
Axis Bank Limited is the third-largest private sector bank in India. It serves approximately 48 million customers and employs over 104,000 individuals. The bank operates through more than 5,377 branches across the country.
Axis Bank Limited has a market capitalization of ₹3,53,000 crore. The stock currently has a Price-to-Earnings (P/E) ratio of 13.4. This indicates the bank’s market value relative to its earnings and provides a measure of how investors value its earnings growth prospects.
The ownership structure of Axis Bank Limited is as follows:
- Promoters: 8.22%
- Foreign Institutional Investors (FIIs): 53.84%
- Domestic Institutional Investors (DIIs): 30.12%
- Public and Others: 7.81%
As of March 2024, Axis Bank operates over 2,480 Bharat Banking branches. These branches are specifically focused on serving rural and semi-urban areas to cater to the financial needs of these communities. Additionally, Axis Bank has a network of more than 64,550 Common Service Centre Village Level Entrepreneurs (CSCs VLEs).
Axis Bank is the fourth-largest issuer of credit cards in India. Axis Bank provides 100% of its personal loans to the salaried segment.
Axis Bank’s business loan portfolio is detailed as follows:
- The overall loan book stands at ₹57,219 crores.
- The business loan book specifically accounts for ₹14,724 crores.
Key highlights of the business loan portfolio include:
- Approximately 73% of the value comes from secured products such as working capital loans, overdrafts, and term loans.
- The average ticket size for secured working capital loans is over ₹1.25 lakh.
- Over 90% of the Small Business Banking (SBB) working capital portfolio is compliant with Priority Sector Lending (PSL) norms.
- Early Warning System (EWS) portfolio monitoring indicates that risks are well managed.
- Branches contribute 86% to the total business, reflecting the significant role of the branch network in Axis Bank’s operations.
Axis Bank’s Corporate and Commercial Banking segment shows robust growth and strong performance across several key metrics:
- 6% Year-over-Year (YOY) growth in domestic corporate loans.
- 17% YOY growth in the Small and Medium Enterprises (SME) loan book.
- 22% YOY growth in the Mid Corporate book.
- 13% YOY growth in Transaction Banking fees.
- 89% of corporate advances are to clients rated A- and above.
- 88% of incremental sanctions are to clients rated A- and above.
- 18% Quarter-over-Quarter (QOQ) growth in Current Account (CA) deposits on a Monthly Average Balance (MEB) basis.
- 8% Real-Time Gross Settlement (RTGS) market share in FY24 by value.
- 30% National Electronic Funds Transfer (NEFT) market share in FY24 by volume.
In Fiscal Year 2024 (FY24), Axis Bank demonstrated remarkable financial performance and growth across various key indicators:
- Profit After Tax (PAT) reached ₹24,861 crores, marking a substantial 160% Year-over-Year (YOY) increase.
- Net Interest Margin (NIM) stood at 4.07%, up by 5 basis points (bps) YOY.
- Consolidated Return on Assets (ROA) was 1.84%, showing an increase of 99 bps YOY.
- Consolidated Return on Equity (ROE) was 19.29%, up by 1,003 bps YOY.
- Balanced deposit and loan growth of 13% and 14%, respectively, contributed to the bank’s performance.
Key highlights from the fourth quarter of Q4FY24 include:
- Net Interest Income (NII) grew 11% YOY and 4% Quarter-over-Quarter (QOQ).
- Net Interest Margin (NIM) in Q4FY24 was 4.06%, up by 5 bps QOQ.
- Fee income increased by 23% YOY and 9% QOQ, with retail fee growing 33% YOY and 12% QOQ.
- Operating profit grew 15% YOY and QOQ, while PAT reached ₹7,130 crores, up 17% QOQ.
- Consolidated ROA and ROE on an annualized basis in Q4FY24 were 2.07% and 20.87%, respectively, up by 23 bps and 226 bps QOQ.
Other notable achievements include growth in total business, retail term deposits, Current Account Savings Account (CASA), and various loan segments. The bank maintained a healthy Capital Adequacy Ratio (CAR) and witnessed a decline in Gross Non-Performing Assets (GNPA%) and Net Non-Performing Assets (NNPA%).
In terms of credit cards, Axis Bank issued 1.24 million credit cards in Q4, with a market share of 14% in the Customer Information File (CIF) market. Additionally, the bank is the largest player in Merchant Acquiring with a market share of 19.8%, showing an incremental share of 28% in the last year.
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