The bank maintains a healthy asset quality with 81 per cent of its corporate advances having arating of at least `A' as at the end of March 2008. The bank pruned its net stressed assetsconsistently from 1.92 per cent in 2002--03 to 0.36 per cent by end of 2007--08.
Axis Bank Ltd.
Axis Private Equity Ltd.Axis Sales Ltd.
Axis Trustee Services Ltd.
: The bank’s net profit has grown by over 30% YoY in 36 out of the last 38quarters. Also the two quarters in which the profit did not grow was on account of write-off of extraordinary items (G-Sec valued on mark to market basis). The net profit has grown by over 60% YoY in each of the last eight quarters. The important performance indicators such as ROA,CAR, NPA and NIM have remained strong over the last five years. Axis Bank comes very near to HDFC Bank in terms of important efficiency parameters. As can be from the table above, theshare of current account saving account deposits in the total deposits (CASA) is higher in case of HDFC Bank. Also HDFC Bank scores higher in terms of margins (NIM). However, looking atthe returns generated on networth (ROE) and the growth in advances and deposits, Axis Bank appears to be gearing up well to reduce the gap existing in the margins as well as the total balance sheet size.
Expanding footprint, expanding balance sheet
: The bank has continued to expand itsgeographical coverage across the country. Over the last five years, the total number of branchesincluding extension centers of the bank has increased from 339 in FY05 to 835 in FY09 whereasATMs have increased from 1,599 to 3,595. Also during Q1FY10, the bank added 26 new branches including extension centers and 128 ATMs. This has helped the bank particularly in theacquisition of low cost retail deposits, retail assets, lending to agriculture, SME and mid-corporates as also the sale of third-party products. The bank’s balance sheet has increased at aCAGR of 43.65% over the last five years
Market leadership position in the travel card segment
Market leader in the prepaid cards segment
Second largest merchant acquirer in the country
Leadership position in private placement of bonds and debentures till 31st December 2008
High quality of its assets
The Bank’s Non-Performing Assets (NPAs) are among the lowest in the industry.Post its rebranding exercise in 2007 the bank has continued to do well and the change in namehas not affected the bank’s business. In fact in FY2008 it saw its customer acquisition grow at arobust rate of 67% over the last year to over 9.9 million customer accounts3