Lower provisions & Stable Asset Quality helps Axis Bank to deliver healthy Q3FY22 Numbers | Axis Bank Q3FY22 Conference Call Highlights

3 min read

Business Highlights:

Bank opened 21.5 lakhs new liabilities accounts in Q3 FY22.

Retail disbursements were up 37% on both YOY and 19% QoQ basis in December 2021 quarter.

Bank added 7.7 lakh credit cards in this quarter, the highest ever for any quarter.

Retail loans grew 18% YOY and 6% QOQ. Retail disbursements up 37% YOY and 19% QOQ.

SME loans grew 20% YOY and 9% QOQ.

Corporate loan book grew 13% YOY and 7% QOQ, Mid-corporate book grew 44% YOY & 17% QOQ

106 branches were opened in the quarter, taking the total number to 4,700 as at the end of Dec 2021 quarter.

Deposits Growth: Deposits on a QAB1 basis grew by 22% YOY & 3% QOQ,

CASA deposits grew 25% YOY & 7% QOQ; CASA ratio stood at 44%, up 189 bps YOY

Retail term deposits grew 12% YOY and 1% QOQ

Profitability Numbers:

Net profit after tax at 3,614 crores, up 223% YOY and 15% QOQ.

Operating profit at 6,612 crores up 18% YOY & 4% QOQ.

Net Interest Income grew 17% YOY & 10% QoQ and stands at 8,653 crores in December 2021 quarter.

Net Interest Margin improved 14 bps QOQ and 2 bps YOY to 3.53%.

Credit Cards:

7.7 Lakh credit cards have been issued in the Q3 FY22 quarter.

Credit card spends up 52% YOY & 22% QOQ.

2nd largest player in Merchant Acquiring with the market share of 16%, the incremental share of 42% in 8M FY22.

15% market share in UPI transactions and 20% in UPI P2M acquiring.

The Bank’s digital auto loans and personal loans went live on the account aggregator framework.

Net loan slippage ratio (annualized) at 0.06%, improved 380 bps YOY and 38 bps QoQ

 Annualized credit cost for Q3FY22 at 0.44%, declined by 258 bps YOY & 10 bps QOQ, PCR healthy at 72%.

GNPA at 3.17% declined by 138 bps YOY & 36 bps QOQ, NNPA at 0.91% declined 28 bps YOY & 17 bps QOQ,

Liquidity Coverage ratio at 130% improved 576 bps QOQ.

Bharat Bank progress:

Dedicated Asset Desk Managers for the fulfillment of all loan leads at select branches.

Select Platinum branches to cater to SBB customer base.

‘Bharat’ is the big opportunity of this decade as the farm sector reforms, infrastructure investments and digital inclusion story play out in rural India.

Axis Virtual Centre:

Connected with 51 lakh customers in Q3FY22 through this channel.

AVC manages relationships with our existing customers under affluent and other programs.

AVC expanded to three new centers across Mumbai, Ahmedabad, and Kolkata during FY21 and is now present across West, South, North and East with six centers.

Whole Sale Banking:

Mid corporate and commercial banking business grew 32% and 18% on a YOY basis. They were up 10% and 7% on QOQ basis respectively.

Current Account deposits from the commercial banking segment grew 10% YOY, with 50% growth in average balances per new to Bank (NTB) customer accounts, reflecting the quality of the strong relationship-led franchise we are building.

Digital Banking:

133%  YOY growth in total UPI transaction value in Q3FY22. Market share in UPI transactions at 15% as at the end of Dec 2021 quarter.

92% Share of digital transactions in the Bank’s total financial transactions by individual customers in Q3FY22

75% YOY growth in mobile banking transaction volumes in Q3FY22, with a market share of 15%

71% Savings Accounts opened through tab banking & 68% Retail term deposits (by volume) opened digitally in 9MFY22

Subsidiaries Performance:

Axis AMC: 9MFY22 PAT grew 54% YOY to 252 crores from 164 crores in 9M FY21.. AUM growth of 43% YOY. AUM at 2,53,450 crores.

Axis Finance: Asset quality remains stable, with near-zero restructuring. Capital Adequacy Ratio at 19.8%. Axis Finance Q3FY22 PAT was 113 crores, up 77% YOY. 9MFY22 PAT grew 81% YOY to 251 crores from 139 crores in 9MFY21.

Axis Capital: 9MFY22 PAT stood at 166 crores, up 88% YOY.

Axis Securities: Q3 FY22 PAT at 174 crores, was up 48% YOY. 9M FY22 PAT at 482 crores a growth of 65% YoY. 

Burgandy private: The Bank’s wealth management business has seen strong growth and is among the largest in India with assets under management (AUM) of over 2,66,675 crores as at end of 31st December 2021. Burgundy Private was launched in December 2019 for the wealth management of high and ultra-high net worth clients, has scaled up rapidly, and now covers over 3,209 families from 1,415 families in last year.

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