Axis Bank Limited — Regulatory Filings 2021

Jun 2, 2021

AXIS/CO/CS/110/2021-22

2nd June 2021

Chief Manager, Listing & Compliance Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor Plot No. C/1, "G" Block Bandra-Kurla Complex Bandra (E), Mumbai – 400 051

NSE Symbol: AXISBANK

The Deputy General Manager, Listing Department BSE Limited 1st Floor, New Trading Ring, Rotunda Building P. J. Towers, 'Dalal Street Fort, Mumbai – 400 001

BSE Scrip Code : 532215

Dear Sir(s),

SUB.: DISCLOSURE UNDER REGULATION 30 READ WITH PARA A OF SCHEDULE III OF THE SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015.

Enclosed, please find the schedule of Analyst / Investor meeting / interactions held at Mumbai on 2nd June, 2021, in terms of the captioned subject. Further, we also enclose herewith the presentation made at the said meeting.

The same is being uploaded on the website of the Bank www.axisbank.com

You are requested to take note of above and arrange to bring it to the notice of all concerned.

Thanking You.

Yours Sincerely, For Axis Bank Limited Girish V. Koliyote Company Secretary GIRISH VASUDEVA N KOLIYOTE Digitally signed by GIRISH VASUDEVAN KOLIYOTE Date: 2021.06.02 22:11:50 +05'30'

Encl: as above

	Place: Mumbai
	Interactions held on 2nd June 2021
Sr. No.	Institution Name
1	AIA Company Limited Hong Kong
2	Barings LLC
3	Davidson Kempner Capital Management
4	Dymon Asia Capital (Singapore)
5	Lexdale International Limited
6	Mackenzie Financial Corp
7	Makrana CM Pte Ltd
8	Max Life Insurance Co Ltd
9	Millennium Management LLC
10	Millennium Partners
11	Nippon India Asset Management Ltd
12	Optimas Capital Limited
13	Pureheart Asset Management
14	UBP Asset Mgmt Lux
15	Value Partners

Investor Presentation

Annual Results FY20-21

NSE: AXISBANK BSE: 532215 LSE (GDR): AXB

Axis Bank		rd 3 largest Private Bank in India		4,594 Branches*	78,300+ Employees		th 4 straight year Constituent of FTSE 4Good EI ^
			Traditional Banking Segment		Digital Banking Segment
Market Share		5.1% Assets	4.6% Deposits #	5.6% Advances #	17% UPI **		16% 11% ^^ Mobile** CIF
Profitability		3.53% Net Interest Margin1		1.96% Cost to Assets1		2.74% Operating Profit Margin1
Balance Sheet		19.12% 15.40% *** CAR	CET 1	120 Bn `	1.95% Cumulative provisions (standard + additional non-NPA)		72% 1.05% PCR Net NPA
Key Subsidiaries		st 1 Axis Capital's position in ECM\$		10x Growth in Axis Securities PAT (FY21)	100% Growth in Axis AMC's PAT (FY21)		14.6% Axis Finance's ROE with Nil Restructuring

#Based on Mar'20 data \$ As per Prime Database rankings for Equity Capital Markets over the last decade ^^CIF – Credit Cards in force as of Feb'21 ¹ For FY21

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Building a more sustainable organization

Strengthen the organizational core and quality of our balance sheet significantly

Invest in technology capabilities to deliver on our Transformation plans

Act with relentless focus on making Axis digital

Build granularity across all our business segments to drive sustainable growth

Deliver strong operating performance with improvement in return metrics

Create significant value among our key subsidiaries

1 Strengthen the organizational core and quality of our balance sheet significantly

• Augmented the leadership team, large scale transformational projects in flight across the organization, driving executional excellence by embedding rigour and rhythm in our organizational culture
• Embedded conservatism and prudence in the Bank's underwriting, accounting and provisioning policies, enhanced capital levels thereby significantly strengthening the Bank's balance sheet

* as percentage of gross customer assets

(1) Excluding additional provision on CBG loans - 1.75%

Invest in technology capabilities to deliver on our Transformation plans

• Opex and capex spends ramped up to modernize the core systems, scale up Cloud portfolio, deliver engineering excellence and digital risk-proofing
• Transformation delivered by a resilient, predictable and continuously improving operations culture in the Bank, reflecting in external recognition

The Bank is investing in technological capabilities..

2

Technology spends

• 79% increase in opex and capex spends in last 2 yrs

Modernizing the Core: Cloud first approach

• Increased standardization and virtualization of infra, moving to Cloud
• ~50 apps on Cloud environment

Talent, training & capability building

• Employees trained in Agile and next gen tech skills
• Business Solutions Group set up to act as an effective interface between business & IT, with rigorous governance on quality and schedule of delivery

Risk and Governance

• Mitigation of risks through continuous detection and prediction
• Focus on cyber security

# 1 bank and the only domestic bank in the "Large Corporate (Institutional and Coverage Quality)

Best digital bank awards by Asia money and FE in India

..and is focused on building a culture in the Bank which is

Resilient

• One of the largest WFH enablement in BFSI with 75K staff on productivity and collaboration apps
• Continuous monitoring of resilience metrics (e.g. Process Health, Effectiveness of critical controls)

Predictable

• Intelligent automation interventions to build predictability
• Leveraging data analytics to improve operational efficiency.
• Ensuring data quality with a framework on data architecture and governance

Continuously Improving

• Providing uniform & seamless journeys to customers, leveraging Big Data insights
• Building a quality culture and competency through assurance & control, and capability building
• Internal Cx scores have improved in line with our goals set at the beginning of the year

External recognition on the Bank's initiatives

3 Act with relentless focus on making Axis digital

Significant progress under our silent revolution ... … reimagined customer journeys and

delivered market leading products …

Buy now Pay Later (Freecharge)	Digital Forex card

Digital Forex

partners #

# In CUG

Digital corporate banking solutions

2

1

3

4

Small ticket lending and credit card lifecycle digital experience

… rich pipeline for continued new product introduction and scale up…

APIs: Ecosystem solutions

Merchant lifecycle solutions

Hyper-personalized channels

6

Personal finance management

^^Based on all financial transactions by individual customers in Q4FY21 *Digital tablet based account opening process for FY21 ^RBI data for eight months of FY21 ** digitally in FY21

4 Build granularity across our business segments to drive sustainable growth

Granular* Deposit growth has improved Wealth management proposition Burgundy has grown from strength to strength

Higher engagement levels across the Bank

• 6.7 mn new liability relationships opened in a year
• 544 new branches opened in last 2 years
• 1500 VRMs across Axis Virtual Centre (AVC) channel
• 3 mn + customer connects every month by AVC
• 2x increase in number of new CBG relationships in FY21
• 789 new corporate relationships added in FY21

Retail book growth driven by secured segments SME growth has recovered, Wholesale Banking growth driven by focus segments

Leadership position in Payments

• 4 th largest Credit Card issuer in the country
• 17% market share* in UPI transactions
• 16% market share* in Mobile Banking
• 1 st position in BBPS (new biller additions)
• 9% market share^ in GST payments
• 11% market share^ in foreign LC business

* For FY21, ^for Q4FY21

5 Deliver strong operating performance with improvement in return metrics

• NIM continues to remain steady despite large interest reversals during the year
• We have built granularity across various fee generating businesses with Retail and Transaction Banking fee together contributing 83%

…share of granular operating fee increasing … … aiding strong operating profit growth

Retail & Transaction Banking as % of Total Fee

Major segments driving fee growth (YOY)

… with improving profits and return ratio

* The figures represented above are for the subsidiaries mentioned in the slide and are as per Indian GAAP, as used for consolidated financial statements of the Group # Domestic subsidiaries (including Axis Trustee) reported a total PAT of `833 crores in FY21

^ CAGR for Mar-19 to Mar-21 period

Major highlights of Q4FY21

Balanced growth, improving profitability, resilient balance sheet

• NII up 11% YOY, NIM stood at 3.56% for Q4FY21, improving 1 bps YOY • Fee income grew 15% YOY and 16% QOQ. Retail fee grew 17% QOQ and contributed 64% of overall fees Steady operating performance • Operating profit grew 17% YOY and 13% QOQ to 6,865 crores<br>•<br>PAT stands at 2,677 crores for Q4FY21, up 140% QoQ. • Overall capital adequacy ratio (CAR) stood at 19.12% with CET 1 ratio of 15.40% as at the end of Mar'21 Well capitalized with adequate liquidity • Rs 5,012 crores of COVID provisions, not considered for CAR calculation provide cushion of 69 bps over the reported CAR • buffers Average Liquidity Coverage Ratio (LCR) during Q4FY21 was 115% • Excess SLR during Q4FY21 was `57,915 crores • Domestic Retail loans grew 11% YOY and 7% QOQ, 81% of the book is secured. Disbursements in Q4FY21 touched new record highs Loan growth driven by all three business • Disbursements in Consumer segment were up 45% YOY & 44% QOQ, Rural up 47% YOY & 47% QOQ; Secured up 70% YOY & 48% QOQ, • segments SME loans grew 13% YOY & 10% QOQ led by tech driven transformation initiatives and better co-ordination with branch banking team • Corporate loans (incl. TLTRO investments) grew 16% YOY and 9% QOQ*, 94% of incremental sanctions in Corporate were A- & above • The Bank maintained its leadership position in Digital with 17% market share in UPI transactions & 16% in Mobile Banking for FY21 Leadership position in Digital with • 71% of SA accounts and 57% of personal loans in FY21 were sourced digitally, up from 62% and 44% respectively increased sourcing & innovative launches
• Bank continues to launch innovative products like Pay Later, Digital Forex Card, Digital Gold and Whatsapp Banking
• GNPA at 3.7% YoY declining 116 bps YoY and 85 bps QoQ • Balance sheet buffers strengthened with PCR at 72.4%, improved 340 bps YOY, • SACR improved from 1.38% to 1.95% YOY and Coverage ratio improved from 95% to 120% YOY high PCR and additional provisions • Limited Covid-19 restructured loans at 0.3% of GCA, overall provision coverage of 26%, unsecured retail provided at 100%
• Domestic subsidiaries reported a total PAT of Rs 833 crores in FY21, up 75% YOY Key subsidiaries delivered strong • Return on investments in subsidiaries at 39% • performance , Max Life stake acquisition Axis AMC's PAT for FY21 grew 2x, Axis Securities PAT for FY21 grew 10x • Axis Finance ROE stood at 14.6%, asset quality metrics remain stable with net NPA of 2%, nil restructuring complete • Axis Capital completed 60 Investment banking deals in FY21, with FY21 PAT up 66% YOY QAB: Quarterly Average Balance

Standard Assets Coverage Ratio (SACR) = Standard asset provisions plus additional provisions plus Covid provision / Standard loans

* Adjusted for provisions on proforma NPA in previous quarter Q3FY21 (1) Sequential and YoY RTD growth lower by 3%, due to decision on FCNR (B) deposits

Key metrics for Q4FY21

Snapshot (As on 31st March 2021)

		Absolute	(Rs. Cr)	YOY Growth
		Q4FY21	FY21	Q4FY21	FY21
& s	Net Interest Income	7,555	29,239	11%	16%
ofit s o L	Fee Income	3,376	10,686	15%	(3%)
Pr	Operating Expenses	5,359	18,375	8%	6%
	Operating Profit	6,865	25,702	17%	10%
	Net Profit	2,677	6,588	-	305%
			FY21	YOY Growth
e et c	Total Assets		9,96,118	9%
n e a h al	Net Advances	6,23,720		9%
S B	Total Deposits ^	7,07,306		10%
	Shareholders' Funds		101,603	20%
			FY21	FY20
	Diluted EPS (Annualised in `) (Q4/FY)		35.37 / 22.09	(19.79)	/ 5.97
s o	Book Value per share (in `)		332	301
ati R	ROA (Annualised) (Q4/12M)		1.11 / 0.70	(0.62)	/ 0.20
y e	ROE (Annualised) (Q4/12M)		11.72 / 7.55	(7.08)	/ 2.34
K	Gross NPA Ratio		3.70%	4.86%
	Net NPA Ratio		1.05%	1.56%
	Basel III Tier I CAR		16.47%	14.49%
	Basel III Total CAR		19.12%	17.53%

^ period end balances

* Including TLTRO

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Steady growth in granular deposits continue to drive loan growth

Progress on building a granular, stable low cost deposit franchise remains on track

Savings account balances^

Figures in brackets refer to proportion of overall Term Deposits

\$ Computed on QAB

* Retail Term Deposits ^ Quarterly Average Balance

Annual Results FY 20-21

Operating performance has been robust

Net interest margin

We continue to focus on building granularity in fees

Retail fee mix

• Third Party products (TPP) distribution fees in Q4FY21 grew 43%YOY and 41% QOQ; of which insurance distribution fees grew 49% YOY to clock new highs

• Retail Card fees grew 10% QOQ reflecting sequential pick up in card spends

Corporate & commercial banking fee growth

Corporate & commercial banking fee mix

• Current Account and Cash management services fee within transaction banking grew 20% YOY
• Credit linked fees rebounded 40% QOQ

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Strong capital position with adequate liquidity

The Bank holds excess SLR of `57,915 crores

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Retail Banking
~25 Mn SA customers	th 4 Largest issuer of Credit Cards	`2.13 Tn AUM in wealth management
86% CASA + RTD ratio (QAB)	73% Sourcing* from ETB customers	54% Share of Advances~
17% Growth in SA QAB deposits	10% Growth in advances	64% Share in total fee^
	*for Retail Assets in Q4FY21 from Existing to Bank (ETB) customers

~ share in Bank's total advances, ^ share in Bank's total fee for Q4FY21

Healthy growth in retail savings account led by deepening and premiumisation strategy

• Created liability sales vertical in FY20 to have greater outreach and sharper focus on quality of NTB* acquisitions; Branch channel continued • its focus on deepening ETB* relationships

• Premiumisation strategy focuses on improving account quality of overall balances while increasing contribution from premium* segments

We have launched several new and innovative products in last 18 months:

• Prestige segment launched in Q2FY20, has filled the segmentation gap between Prime and Priority, and has been doing exceedingly well.
• Launched in Dec'19, Burgundy Private proposition offers customised solutions to ultra-high net worth individuals. Its QAB balances grew 79% YOY
• Launched in Aug'20, Liberty Savings Account, a variant of Prime SA offers enhanced customer value proposition. Over 2 lakh new accounts opened till Mar'21

ETB balances relative to Mar closing of previous fiscal

We have started seeing improvement in the quality of NTB acquisitions

Growth in average balances for NTB

* Premium includes Burgundy Private, Burgundy, Priority and Prestige. NRI and Salary part of respective segments

^Retail non institutional savings

^ Not to scale, Area doesn't represent the actual proportion of deposits

* ETB – Existing to Bank; NTB – New to Bank

Deep Geo strategy has been scaling up well

Key objectives

Drive higher business growth and increase market share in Rural and Semi Urban markets through asset led liability strategy

• Lending opportunities in RuSu markets to complement the Bank's overall PSL strategy meaningfully

Rs 3 trillion Retail loan book is well diversified and 81% secured with significantly high proportion of ETB and salaried customers

100% of PL and 63% of Credit Cards portfolio is to salaried segment

Average LTVs: 52% in overall home loan portfolio 35% in LAP portfolio

Branches contributed 59% to overall Retail book sourcing in Q4FY21

HL – Home loans, PL – Personal Loan, SBB – Small Business Banking, LAP – Loan against Property, CC – Credit Cards

We are the 4th largest issuer of Credit Cards in the country

Featured Cards

Credit Cards in force (mn)

Key insights

• Continued focus to increase sourcing and deepen spends from the affluent segment. The affluent portfolio penetration has improved from 11.51% in FY'20 to 11.85% in FY'21
• Migration to digital based sourcing through straight through applications – 74% in Q4FY21 as compared to 78% in Q3FY21 and 50% in Q4FY20

During the year, the Bank's Partnership with Flipkart, Google Pay and Freecharge resulted in sourcing of over 2 lakh credit cards that contributed to 21% of overall credit card sourcing in FY21

Axis Bank Aura Credit Card

• Launched 'AURA' credit card with focus on Health & Wellness need of the customers;
• Industry first affordable offering of various benefits which give cardholders access to 48 free video doctor consultations across 21 medical specialties powered by Practo, free access to 48 interactive video sessions and 192 recorded sessions across multiple fitness categories every year

Flipkart Axis Bank Credit Card

• Co-branded card partnership in collaboration with Flipkart and Mastercard; it has best in class spends and engagement metrics
• One of the fastest growing co-brand portfolio with 1 million cards in force within 20 months of launch

Source: RBI Data Reports

• Note: Figures in boxes represent market share for the period, For Q4FY21, market share is for month of Jan'21 & Feb'21

Trend in Card spends

Credit Card market share and spends Debit Card spends

• Retail Credit Card spends picked up MoM with highest spends recorded in Mar'21 of `5231 cr

• Since Q2FY20, we have rationalised non profitable and high risk segment of Commercial card business impacting the overall market share; Contribution of high risk category in the overall Commercial Spends has reduced from 69% to 13% in last one year

12,056 7,492 11,071 13,931 13,334 Q4FY20 Q1FY21 Q2FY21 Q3FY21 Q4FY21 11 % YoY

• Debit Card spends in Q4FY21 grew by 11% YOY

• Online spends share in Mar'21 has moderated to pre-covid levels at 39%

• 'GRAB DEALS' an online shopping platform that provides customers with an aggregation of offers and cash back deals on usage of Axis Bank Debit and Credit Cards. The platform houses over 35 major brands including big names like Amazon, Flipkart, Samsung, AJIO and Forest Essentials to name a few.
• The platform has over 50,000 daily visitors (as of March 2021) and since its launch in mid Oct'20, more than 2.64 lac unique users have visited Grab deals platform via our website and Mobile Banking app.

We continue to grow Acquiring through innovations and integrated approach

Key insights

• Both Throughput and installations continue to grow QoQ.
• Focused approach on providing newer services to the merchants, understanding their experiences & improving on them, rebuilding on merchant relationships

• Acquiring strategy is aligned to CA growth with very good success observed in our CA balance growth

• Android PoS: State-of-the-Art terminal loaded with VAS such as Khaata & BQR contributing to 40% of the Sourcing. The early indicators are encouraging with 30% higher activity and Ticket Size of transactions than other terminals

• Buy Now Pay Later: Valued added service that offers cardless EMI facitlity allowing faster processing of high value transactions
• CX Index: Captures merchants' experience around On-boarding, Usage & Service. Helps provide direction for future course of actions to bring further stability to the business

Expansion strategy

• Accelerated Sourcing: Strategized focus on installations to gain market share. Sourced 1Lakh+ terminals in Q4FY21
• Leveraging "Partnership Ecosystems" to get more merchants into the Digital Payments foray
• Investment in Digital Infrastructure to "take the Bank to the Merchant". Offering a bouquet of Banking products along with a payment solution.

The Bank is a leading player in India's Wealth Management space

* CAGR growth for Mar-17 to Mar-21 period

~ includes RMs, Wealth Specialist team, Managing partners and Investment Advisors

Burgundy AUM has grown steadily

We have grown our Virtual Center capacities faster than branches this year

• Calibrated approach towards new branch additions across focused segments and regions

• Aligned to our Deep Geo strategy, specific RuSu branches follow an asset-led liability model
• Dedicated Asset Desk Managers for fulfilment of all loan leads at select branches
• Select Platinum branches to cater to SBB customer base

• Manages relationship with our existing customers under affluent and other programs
• AVC expanded to three new centres across Mumbai, Ahmedabad and Kolkata during this year and is now present across West, South, North and East with six centres
• We are connecting with more than 3 million customers every month through this channel.

^ Customers contacted every month

Corporate & Commercial Banking

1 st Rank in DCM^~ for rupee bonds 13% YoY growth in CBG* advances 9.2% Market share in GST payments (Q4FY21) 94% Incremental sanctions to A-and above** 38% Share of short term loans to overall corporate loans 18% YOY growth in CA (QAB) deposits 16% YOY growth in corporate advances^ 85% Share of corporate advances to clients rated A-and above 31% YoY growth in Mid Corporate book

Strong relationship led franchise driving synergies across One Axis entities

We have re-oriented the organisation structure in Corporate & Commercial Banking for delivering execution excellence

• Segregated the responsibilities of coverage and product groups to ensure sharper focus
• Corporate & Commercial Bank coverage reorganized into 8 coverage groups, each with a stated objective
• Strengthened the leadership team across Mid Corporate, MNC, Government Coverage, Transaction Banking and Forex Sales

We continue to have penetration of 9 or more products and services across our top corporate relationships including at least two services offered by our subsidiaries

…with better rated originations and focussed on short term loans

1,55,421 1,75,087 1,87,148 27,980 29,015 1,83,402 32,208 2,04,103 2,19,356 Mar-19 Mar-20 Mar-21 Corporate Loans Overseas Domestic 7% 11% 7% YOY QOQ* 9% 5% 10%

Incremental sanctions to corporates rated A- & above

85% of the book is rated A- or better

* Provisions on proforma NPA in Q3FY21, netted from advances for comparability Short term refers to loans of less than 1 yr tenure; Long term refers to loans of greater than 1 yr tenure

Overseas corporate loan book is 95% India linked

• The Bank's International strategy is to focus on Indian corporates that have global operations
• We have consolidated our overseas business through branches in Dubai, Singapore and Gift City, India

...and strengthened proposition as a Transaction Bank

Source: GST Payment – Ministry of Finance Foreign LC – SWIFT Watch

Forex Turnover – RBI Report (Not updated post Feb'21) BBPS – NPCI Report Mar'21 Rights Issue - SEBI Report Mar'21

We remain well placed to benefit from a vibrant Corporate Bond market

Ranked No. 1 arranger for rupee denominated bonds as per Bloomberg league table for CY20

Ranked No. 1 arranger for rupee denominated bonds as per Bloomberg for 14 consecutive calendar years since 2007

Bank has been awarded as the Best DCM House at the Finance Asia Country Awards, 2020

Movement in corporate bonds

• Leveraging our leadership position in Debt capital markets, we had mobilized ~ `18,074 crores through active participation in the TLTRO auctions
• We have invested funds in marquee names (non FI, non PSU) thereby helping to build some new client relationships in wholesale segment .
• We have limited our investments under this book to AAA/AA rated corporate issuers

Industry-wise Distribution (Top 10)

All figures in ` Crores

Rank	Outstanding1 as on 31st Mar'21			Non-fund	Total
	Sectors	Advances	Investments	based	Value	(in % terms)
1.	Financial Companies2	54,677	20,490	18,116	93,283	11.92%
2.	Engineering & Electronics	12,166	1,980	27,775	41,920	5.36%
3.	Petroleum & Petroleum Products	14,757	4,265	18,156	37,178	4.75%
4.	Infrastructure Construction3	18,104	2,187	10,286	30,577	3.91%
5.	Power Generation & Distribution	22,076	2,098	3,200	27,374	3.50%
6.	Trade	18,208	-	2,596	20,804	2.66%
7.	Telecommunication Services	12,530	1,104	6,078	19,711	2.52%
8.	Iron & Steel	12,520	1,001	4,869	18,390	2.35%
9.	Real Estate4	16,739	163	750	17,652	2.26%
10.	Food Processing	13,695	359	2,751	16,805	2.15%

¹ Figures stated represent only standard outstanding (advances, investments and non fund based) across all segments

2 Includes Banks (25%), Non Banking Financial Companies (36%), Housing Finance Companies (20%), MFIs (5%) and others (14%)

³ Financing of projects (roads, ports, airports, etc.)

⁴ Lease Rental Discounting (LRD) outstanding stood at `10,187 crores

Business Performance

Commercial Banking

Commercial Banking business benefitting from technology led transformation

• Created integrated Commercial Banking Group (CBG) in FY20 to have greater focus on needs of the SME customers, one of the most profitable segments of the Bank with high PSL coverage

• Integrated strategy focuses on Tech-driven transformation (project Sankalp) delivering - data driven credit decisions, minimal documentation,

simplified products, digitized operations and unlocking value using data for effective customer interactions

SME lending book is well diversified, 89% of SME book is secured and predominantly working capital financing

SME book mix (by tenure)

Digital Banking – Axis Bank's "silent revolution"

*Digital tablet based account opening process for FY21 ^RBI data for 11 of FY21

** digitally in FY21

OPEN approach across the Bank for our bouquet of digital products

Servicing the Forex needs of our retail customers, through 'frictionless-digitized' transactions

1 Launched Outward Remittance on Mobile App

• A simple 2 step intuitive customer journey
• 24/7 enablement for anytime anywhere payment processing
• An omni-channel experience with syncing of beneficiaries and transaction history seamlessly between Internet Banking & Mobile Banking
• Preferential pricing for customers on Digital

2 Launched Forex Card Digital Issuance Platform

• Omni-channel platform available across Web, Mobile & Branch
• Simple 3 step process to avail Forex Card
• Pre-filled information and minimized data ask, making it a quick and easy process
• Preferential pricing for customers on Digital

We are investing heavily in building capabilities

We continue to have strong market share in Mobile Banking

Axis Mobile is amongst the highest ranked Banking app on Apple Store & Google Play Store with rating of 4.6 and offers 250+ DIY services

51% of Mobile Banking customers bank only on Mobile App with Mobile Banking logins at 15x of Internet banking logins Axis Aha! answered 4.3 million messages in Q4FY21

Axis Bank – Pioneer in the UPI Ecosystem

UPI has scaled up tremendously to become a key channel for customer transactions

as Payer PSP led by its robust IT capabilities and strong partnerships

We have developed best-in-class UPI stack that enables us to offer cutting edge customized solutions across SDK, Intent, Collect and Pay offerings apart from new use cases like UPI AutoPay

Dedicated IT cloud infrastructure to exclusively handle high volume UPI transactions has resulted in Axis Bank achieving the lowest decline rates as a remitter when compared to peer banks

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Asset Quality metrics have remained stable

GNPA 3.70% & NNPA 1.05%

(1) 1.21% excluding CBG provision change

* as per IRAC norms

BB & Below Corporate Book, Restructuring and NPAs

i.e. fund based, non fund based and investments

BB & Below Outstanding	Q3FY21	Q4FY21
Fund based	8,722	7,443
Non fund based	4,796	4,574
Investments	620	666

The outstanding amount in 'BB and Below' portfolio incorporates cumulative impact of rating Upgrades / Downgrades and Slippages from the pool

Key comments on BB and Below book

• Not upgraded Rs. 419 crs (fund based) of accounts downgraded in Q2 based on probable restructuring, but not restructured
• 100% of restructured corporate book classified as BB & below
• Net NPA + BB & below (fund based), net of provisions held is 2.07% of net customer assets
• Top 4 sectors comprising Power Generation & Distribution, Infra Construction, Hotels & Trade account for 70% of fund based BB and Below book

Q1FY21 Q2FY21 Q3FY21^ Q4FY21	Restructured Book	Estimated in Q2FY21	Invoked at end of Q4FY21\$	Implemented at end of Q4FY21\$
PCR without technical write-offs	% of GCA	1.7%	0.3%	0.1%
Decline in BB & below pool across all three categories	Rs Cr	11,000	1,848	623

Judicious approach to restructuring under Covid-19 framework

• 74% of 0.3% invoked restructured book as a % of GCA overlaps with BB and below, Linked but not restructured non fund based facilities Rs 923 crs
• Restructuring as a % to respective loan books Corporate 0.6%, Retail 0.1%, SME 0.02%
• Provision coverage on overall restructured book 26%, 100% provision made on unsecured retail restructured book, though classified as standard

^ as per IRAC norms \$ accounts that are standard as at 31.3.2021

*As % of customer assets, as applicable

Bank's Net NPA* and Fund based BB and Below* portfolio

PCR (excluding technical write offs) has improved from 69% to 72% YoY;

Detailed walk of NPAs over recent quarters

All figures in ₹ Crores

		Q4FY20	Q1FY21	Q2FY21^	Q3FY21^	Q4FY21
Gross NPAs - Opening balance	A	30,073	30,234	29,560	27,472	29,046
Fresh slippages	B	3,920	2,218	1,751	7,993	5,285
Upgradations & Recoveries	C	2,489	608	2,026	2,162	3,462
Write offs	D	1,270	2,284	1,812	4,257	5,553
Gross NPAs - closing balance	E = A+B-C-D	30,234	29,560	27,472	29,046	25,315
Provisions incl. interest capitalisation	F	20,874	22,112	21,108	21,695	18,321
Net NPA	G = E-F	9,360	7,448	6,364	7,351	6,994
Provision Coverage Ratio (PCR)		69%	75%	77%	75%	72%
Accumulated Prudential write offs	H	23,844	25,707	25,850	28,599	31,856
PCR (with technical write-off)	(F+H)/(E+H)	83%	87%	88%	87%	88%

Provisions & Contingencies charged to Profit & Loss Account

	Q4FY20	Q1FY21	Q2FY21^	Q3FY21^	Q4FY21
Loan Loss Provisions	4,204	3,512	973	4,952	(1) 2,754
Other Provisions	3,526	904	3,608	(348)	541
For Standard assets*	1,338\$	737\$	1,453\$	490	(6)
For Investment depreciation	72	134	29	399	767
Others	2,116#	33	2,126**	(1,237)**	(220)**
Total Provisions & Contingencies (other than tax)	7,730	4,416	4,581	4,604	3,295

* including provision for unhedged foreign currency exposures \$ includes 10% provision on loans under moratorium # includes additional provision for Covid-19 ** includes provision for restructuring pool

^ as per IRAC norms

(1) Including Rs. 803 crores for CBG provisioning policy change and Rs. 425 crores on reclassification due to write-off of investments

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

GIG-A-Opportunities

Hiring program in alternate formats: skilled freelancers and virtual full time employment

Access to new Talent Pools

• 83 candidates hired in the pilot against a target of 50
• 40% Women, 73% Outside Mumbai, 44% Non-Metro
• Quicker on-boarding, Day 1 productive talent contributing to significant projects across the Bank

GIG-A-Anywhere

Program for existing employees to move to a 100% virtual formats

Transforming Operating Models

• ~1200 employees across 18 central departments moved to a 100% virtual format in the first phase
• Talent value segmentation used to identify roles where virtual working would continue to be productive
• Employees now have ability to move across formats through internal career mobility

Hybrid Model

Established for all roles that are not customer-facing / regulatory mandated to work from premises

Flexibility and Agility

• Allowed for a rapid scale up / scale down of in-office presence in Q4 in response to changing environment
• Coverage of ~15,000 employees across the Bank

Axis Bank's Sustainability imperative

"Striving to create positive, financial as well as non-financial impact among our diverse stakeholder spectrum across rural and urban India"

• ESG strategy and pathway now part of Board level discussion
• ESG Steering Committee formed at the Management level, comprising key Department Heads to drive the ESG agenda
• Greening of business operations and physical infrastructure
• Launched Diversity, Equity and Inclusion framework
• Integrating ESG into risk frameworks and practices
• Improved performance across key external ESG assessment platforms in FY 2021 *as on 31 Mar 2021

• Constituent of FTSE4Good Index series for the fourth consecutive year in 2020

• Among top 10 constituents in MSCI India ESG Leaders Index*.
• MSCI ESG Rating upgraded from BBB to A in 2020

• Axis Bank's CDP score improved two spots from C to B in 2020

• Among top 10 constituents of Nifty 100 ESG Sector Leaders Index*

• Winner of the CII ITC Sustainability Award for CSR in 2015, 2016, 2018

Positive outcomes across stakeholders and sectors

Green Banking st 1 certified Green Bond by an Asian Bank, launched in 2016 for US\$ 500 mn Close to 5 mn sheets of paper saved under Project Saksham for	Banking for Emerging India • 1.5 mn women borrowers 24 states & UTs under Axis Microfinance as on Mar'21 • Over 0.8 mn
Integrating environmental and social risk assessment into lending decisions through Sustainable Lending Policy & Procedures (SLPP)	• 0.3 mn dairy platform as of Mar'21
Digital Leadership	Operational Excellence
88% of all financial transactions in FY21 were digital 186 million VPAs registered with the Bank on UPI as of Mar'21 57% of personal loans sourced digitally in FY21	• 7.05 MW of solar installations across 248 locations, over 1 green power purchase agreements, as of Mar'21 • ~1,500 branches with Centralized Energy Management delivering annualized electricity savings of over 6.5 million • ~1,100 branches covered under EESL LED program ~55,000 light fittings	MW in System, units nearly
0.92 mn households supported till Mar-'21 under Axis Bank Foundation's (ABF), Mission to reach 2 million by 2025 Active COVID-19 CSR support to frontline responders and communities pan-India 0.7 mn rural women participants in financial literacy and health awareness programs in 14 states, as on Mar'21	• 78,000+ of them being women • 31.4 years - Average age of the workforce
	Branch Banking in FY21 CSR Impact	accounts under India's MUDRA Scheme as on Mar'21 dairy farmers associated with Bank's integrated digital with Human Capital full time employees as of Mar'21, with nearly one fourth

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

Axis Capital : Go to Banker for India Inc

All figures in ₹ Crores

FY21 Ranking* (includes IPO, FPO, QIP, REIT, OFS & Rights)

Rank	Banker	No of Deals*
1	Axis Capital	41
2	Peer 2	39
3	Peer 2	28
4	Peer 3	24
5	Peer 4	21

Major Highlights

• Axis Capital completed 60 IB transactions in FY21 that include 14 IPOs, 15 QIPs, 8 Rights issue, 5 OFS, 6 Buybacks, among others
• Re-emphasized its ECM leadership as it participated as lead banker in 18 of 24 largest ECM deals in India that collectively over US\$ 20 Bn
• Established its leadership in REITs as it led 4 th consecutive REITs transaction in India
• Axis Capital's Institutional Equity business trading volumes in cash segment grew 20% and that for F&O grew 5x in Q4FY21
• FY21 PAT grew 66% YOY, RoE improved from 16.4% to 36.3% in last 2 years

Trend in Income & PAT

Includes all Equity IPOs, REIT, FPO, QIPs, OFS, Rights Transactions;

Axis Securities : Strong performance in FY21 with 10x growth in PAT

* CAGR for period FY18 to FY21

Axis AMC : Strong performance, Equity AUM growth of 85% YoY, PAT up 100% YoY

Average AUM has shown strong growth

All figures in ₹ Crores

* 5 yr CAGR (FY16 to FY21) 59 ^Disclosure: Scheme AUM/AAUM (Amt in cr) Rs.191919.66 / Rs. 166068.96 Asset Classwise AUM / AAUM: Liquid/Money Market: 29244.91/33940.41, Gilt: 162.39/ 150.18 Income/Debt: 50769.68 / 44136.12 Equity including ELSS: 100105.80 /77901.00 Hybrid: 7784.74/7245.28 Solution: 1502.62/1320.17 Index: 399.91/352.07 ETF: 522.34/347.42 FOF: 1427.27/676.31 . AUM by geography (%) [Cities]: Top 5: 60.15% Next 10: 18.78% Next 20: 8.13% Next 75: 8.11% Others: 4.82% AUM by geography for Equities including ELSS (%) [Cities]: Top 5: 51.35% Next 10: 19.03% Next 20: 10.72% Next 75: 11.66% Others: 7.24%

Annual Results FY 20-21

Axis Finance : Poised for growth, investing for growing the retail book

A.TReDS: The Invoicemart product continues to be a market leader

• A.TREDS 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
• The TReDS platform connects MSME sellers and their corporate buyers to multiple financiers. It enables discounting of invoices of the MSME sellers raised on large buyers, through a transparent bidding mechanism that ensures financing of receivables at competitive market rates.
• Our digital invoice discounting platform 'Invoicemart' became the 1 st TReDS platform to reach `10,000 crore worth of MSME Invoice discounting and has a market share of 36%.
• Invoicemart has helped in price discovery for MSMEs across 486 cities and towns in India who are now able to get their bills discounted from 42 financiers (banks and NBFC factors)

Freecharge continues to make progress in its payments led financials services journey with the launch of a "Buy now Pay later" product

Executive Summary

Financial Highlights

Capital and Liquidity Position

Business Segment performance

Asset Quality

Future of Work and Sustainability

Subsidiaries' Performance

Other important information

We have created a differentiated identity and are amongst the most valuable Brands in India

Featured amongst Top 20 most valuable brands in India

Major awards won by the Bank and its subsidiaries

Financial Performance

Financial Performance (₹ crores)		Q4FY21	Q4FY20	% Growth	FY21	FY20	% Growth
Interest Income	A	15,545	16,234	(4%)	63,645	62,635	2%
Other Income	B = C+D+E	4,668	3,985	17%	14,838	15,537	(4%)
- Fee Income	C	3,376	2,931	15%	10,686	11,019	(3%)
- Trading Income	D	789	264	198%	2,547	2,420	5%
- Miscellaneous Income	E	503	790	(36%)	1,605	2,098	(23%)
- Recoveries in written-off a/c's		360	654	(45%)	1,246	1,553	(20%)
Total Income	F = A+B	20,213	20,219	-	78,483	78,172	-
Interest Expended	G	7,990	9,426	(15%)	34,406	37,429	(8%)
Net Interest Income	H = A-G	7,555	6,808	11%	29,239	25,206	16%
Operating Revenue	I = B+H	12,223	10,793	13%	44,077	40,743	8%
Core Operating Revenue*	J	11,439	10,529	9%	41,524	38,323	8%
Operating Expenses	K	5,359	4,942	8%	18,375	17,305	6%
-Staff Expense	L	1,668	1,374	21%	6,164	5,321	16%
-Non Staff Expense	M	3,691	3,568	3%	12,211	11,984	2%
Operating Profit	N = I-K	6,865	5,851	17%	25,702	23,438	10%
Core Operating Profit*	O	6,080	5,587	9%	23,149	21,018	10%
Provisions other than taxes	P	3,295	7,730	(57%)	16,896	18,534	(9%)
Profit Before Tax	Q = N-P	3,570	(1,879)	-	8,806	4,904	80%
Tax Expenses	R	893	(491)	2,217 -		3,277	(32%)
Net Profit	S = Q-R	2,677	(1,388)	-	6,588	1,627	305%
EPS Diluted (in `) (annualized)		35.37	(19.79)		22.09	5.97
Return on Average Assets (annualized)		1.11%	(0.62%)		0.70%	0.20%
Return on Equity (annualized)		11.72%	(7.08%)		7.55%	2.34%
Capital Adequacy Ratio (Basel III)		19.12%	17.53%		19.12%	17.53%

* excluding trading profit and exchange gain/loss on capital repatriated from overseas branch

Financial Performance

Financial Performance (\$ mn)		Q4FY21	Q4FY20	% Growth	FY21	FY20	% Growth
Interest Income	A	2,126	2,220	(4%)	8,705	8,567	2%
Other Income	B = C+D+E	639	545	17%	2,030	2,125	(4%)
- Fee Income	C	462	401	15%	1,462	1,507	(3%)
- Trading Income	D	108	36	198%	348	331	5%
- Miscellaneous Income	E	69	108	(36%)	220	287	(23%)
- Recoveries in written-off a/c's		49	89	(45%)	170	212	(20%)
Total Income	F = A+B	2,765	2,766	-	10,735	10,692	-
Interest Expended	G	1,093	1,289	(15%)	4,706	5,120	(8%)
Net Interest Income	H = A-G	1,033	931	11%	3,999	3,448	16%
Operating Revenue	I = B+H	1,672	1,476	13%	6,029	5,573	8%
Core Operating Revenue*	J	1,565	1,440	9%	5,680	5,242	8%
Operating Expenses	K	733	676	8%	2,513	2,367	6%
-Staff Expense	L	228	188	21%	843	728	16%
-Non Staff Expense	M	505	488	3%	1,670	1,639	2%
Operating Profit	N = I-K	939	800	17%	3,516	3,206	10%
Core Operating Profit*	O	832	764	9%	3,167	2,875	10%
Provisions other than taxes	P	451	1,057	(57%)	2,312	2,535	(9%)
Profit Before Tax	Q = N-P	488	(257)	-	1,204	671	80%
Tax Expenses	R	122	(67)	-	303	448	(32%)
Net Profit	S = Q-R	366	(190)	-	901	223	305%
EPS Diluted (in `) (annualized)		35.37	(19.79)		22.09	5.97
Return on Average Assets (annualized)		1.11%	(0.62%)		0.70%	0.20%
Return on Equity (annualized)		11.72%	(7.08%)		7.55%	2.34%
Capital Adequacy Ratio (Basel III)		19.12%	17.53%		19.12%	17.53%

\$ figures converted using exchange rate of 1\$ = `73.11

* excluding trading profit and exchange gain/loss on capital repatriated from overseas branch 67

Balance Sheet

Balance Sheet	As on 31st Mar'21	As on 31st Mar'20	As on 31st Mar'21	As on 31st Mar'20	% Growth
CAPITAL AND LIABILITIES	In <br>Crores | In Crores	in \$ Mn	in \$ Mn
Capital	613	564	84	77	9%
Reserves & Surplus	100,990	84,384	13,813	11,542	20%
Deposits	7,07,306	6,40,105	96,745	87,554	10%
Borrowings	1,42,873	1,47,954	19,542	20,237	-3%
Other Liabilities and Provisions	44,336	42,158	6,065	5,766	5%
Total	9,96,118	9,15,165	1,36,249	1,25,176	9%
ASSETS
Cash and Balances with RBI / Banks and Call money	61,730	97,268	8,443	13,304	-37%
Investments	2,26,120	1,56,734	30,929	21,438	44%
Advances	6,23,720	5,71,424	85,313	78,159	9%
Fixed Assets	4,245	4,313	581	590	-2%
Other Assets	80,303	85,426	10,983	11,685	-6%
Total	9,96,118	9,15,165	1,36,249	1,25,176	9%

\$ figures converted using exchange rate of 1\$ = `73.11

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 nonperforming 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.

Thank You