About
Axis Bank Ltd
Axis Bank Limited is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporate, MSMEs, Agriculture and retail businesses. It provides a complete suite of banking and financial services including retail banking, wholesale banking and treasury operations. The Bank is primarily governed by the Banking Regulation Act, 1949. As on 31 March 2023, the Bank has overseas branches at Singapore, DIFC - Dubai and an Offshore Banking Unit at the International Financial Service Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India.
The Bank operates in four segments, namely treasury, retail banking, corporate/ wholesale banking and other banking business. The treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. Retail banking includes lending to individuals/small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and non resident Indian (NRI) services. The corporate/wholesale banking segment includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services.
The Bank had a network of 4586 branches at the end of December 2020 across the country.
With 4528 domestic branches (including extension counters) and 12044 ATMs and 5433 cash recyclers across the country as on 31 March 2020, the network of Axis Bank spreads across 2,033 cities and towns, enabling the bank to reach out to a large cross-section of customers with an array of products and services. The bank also has nine overseas offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai, Abu Dhabi and Dhaka and an overseas subsidiary at London, UK.
The Bank has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund Trustee Ltd.
Axis Bank was incorporated in the year 1993 with the name UTI Bank Ltd. Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.
In the year 2001, the bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's issues both the banks withdraw the merger proposal.
In the year 2003, the Bank was given the authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and railways. In December 20003, the Bank launched their merchant acquiring business.
In the year 2005, the Bank raised $239.3 million through Global Depositary Receipts. They won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions.
In December 2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset products. In October 2006, they set up Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and provide venture capital support to businesses.
In the year of 2007, the bank again raised $218.67 million through Global Depository Receipts. They opened 153 new branches during the year, which includes 43 extension counters that have been upgraded to branches and 8 Service branches/ CPCs. They also opened new overseas offices at Singapore, Dubai and Hong Kong and a representative office in Shanghai.
During the year 2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which included 33 extension counters that have been upgraded to branches. Also, they expanded overseas with the opening of a branch at the Dubai International Finance Centre. The Bank changed their name from UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other unrelated entities with similar name.
During the year 2008-09, the Bank opened 176 new branches that include 12 extension counters that have been upgraded to branches taking the total number of branches and ECs to 835. During the year, they opened 831 ATMs, thereby taking the ATM network of the Bank from 2,764 to 3,595. Also, they opened a Representative Office in Dubai.
In May 2008, the Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary company, which is engaged in trusteeship activities. In December 2008, they launched their new investment advisory service exclusively for High Net Worth clients.
In January 2009, the Bank set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also, they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund business.
During the year 2009-10, the Bank opened 200 branches taking the total number of branches Extension Counters (ECs) to 1,035. In March 209, 2010, they opened their 1000 branch at Bandra West, Mumbai. In September 2009, Axis Bank launched the private banking business in the domestic market, christened 'Privee' to cater to highly affluent individuals and families offering them unique investment opportunities
During the year, the Capital Markets SBU was restructured with the debt capital market business (hitherto a part of the capital markets) carved into a separate vertical. As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM) business, mergers and acquisitions and private equity syndication. In February 24, 2010, the Bank launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR.
During the year 2010-11, 407 new branches were added to the Bank's network taking the total number of branches and extension counters (ECs) to 1,390. Of these, 564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan and urban areas. The Bank is present in all states and Union Territories (except Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 to 6,270.
During the year, the Bank also opened a Representative Office in Abu Dhabi. This was in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International Financial Centre) and representative offices at Shanghai and Dubai.
In March 7, 2011, the Bank incorporated a new subsidiary namely Axis U.K. Ltd. as a private limited company registered in the United Kingdom (UK) with the main purpose of filing an application with Financial Services Authority (FSA), UK for a banking license in the UK and for the creation of necessary infrastructure for the subsidiary to commence banking business in the UK.
On 8 January 2014, Axis Bank announced the opening of its Shanghai Branch, thus becoming the first Indian private sector bank to set up a branch in China.
On 4 December 2014, Axis Bank announced that it had closed its Senior Unsecured Redeemable Non-Convertible Debenture issue of amount Rs 5705 crore and priced at 8.85% p.a. payable annually maturing on 5 December 2024.
On 9 December 2014, Axis Bank announced the launch of limited period offer of 20 year fixed rate home loan for affordable housing at 10.40%.
On 27 July 2015, Axis Bank announced that it had signed a $200 million 7 year bilateral loan deal with the Asian Development Bank (ADB) for extending affordable agriculture credit to farmers in India.
On 22 November 2015, Axis Bank announced the opening of its Representative Office in Dhaka, Bangladesh in a bid to strengthen its international presence.
On 9 March 2016, Axis Bank announced the launch of the world's first Forex prepaid card issued in conjunction with Diners Club International, a business unit of Discover Financial Services.
On 30 March 2017, Axis Bank announced a strategic partnership with Wells Fargo & Company to offer seamless remittance facility to their NRI customers from The United States of America (USA).
On 17 June 2017, Axis Bank in association with Kochi Metro Rail Corporation (KMRL) launched India's first single-wallet contactless, open loop metro card to allow cashless commuting for commuters in Kochi.
On 5 July 2017, Axis Bank announced its foray into the luxury bikes loans segment for 500cc & above bikes.
On 11 July 2017, Axis Bank announced its collaboration with Inter-American Investment Corporation (IIC) to facilitate trade with Latin America and the Caribbean.
Axis Bank on 27 July 2017 announced that it has entered into an agreement with Jasper Infotech Private Limited to acquire 100% stake in its subsidiaries viz. FreeCharge Payment Technologies Private Limited and Accelyst Solutions Private Limited, which together constitute the digital payments business under the 'FreeCharge' brand. The deal marked the first such acquisition of a digital payments company by a bank in India.
The bank had a network of 3703 branches and 13814 ATMs & cash deposit machines as at 31 March 2018 across the country.The bank has raised Rs 8680 crore of capital from a consortium of investors (Bain Capital,Life Insurance Corporation of India and other marquee investors).
As on 31 March 2019, Bank had a network of 4050 branches,11801 ATMs and 4917 cash deposit machines across the country.
During the year 2019-20, the Bank raised additional equity capital through issue and allotment of 19,87,28,139 equity shares of Rs. 2/- each of the Bank, pursuant to a Qualified Institutional Placement Issue.
As on 31 March, 2020, Bank had a network of over 4,500 branches and over 17,477 ATMs & cash deposit machines. It opened 478 branches to its network during fiscal 2020.
As on 31 March, 2021, Bank had a network of 4,594 branches and over 11,300 ATMs & cash deposit machines. It added 66 branches to its network during fiscal 2021.
During the year 2020-21, the Bank raised additional equity capital through issue and allotment of 23,80,38,560 equity shares of Rs. 2/- each of the Bank on 11 August, 2020, pursuant to a Qualified Institutional Placement Issue.
As on 31 March, 2021, the Bank has the following 9 unlisted subsidiary companies and 1 step down subsidiary.
On 27 March, 2018, the Board of Directors of ASPL and FCPTL had approved a Scheme for Amalgamation of ASPL into and with FCPTL. ASPL and FCPTL filed final petition for approval of said merger before the National Company Law Tribunal (NCLT). The appointed date for amalgamation is 7 October, 2017 and the effect of said merger was to be given on this date or any other date as may be prescribed by NCLT. Subsequent to final hearing in matter conducted during the year, FCPTL received copy of the Order approved by NCLT, Delhi and the same was filed with the Ministry of Company Affairs, in November 2019. However, in the case of ASPL, NCLT, Mumbai amended the appointed date of amalgamation from 7 October, 2017 to 1 April, 2018. The NCLT, Delhi had already approved scheme of said Merger on October 22, 2019, which will be effective from the date of filing of certified copy of the Order of NCLAT with Registrar of Companies.
During year 2020-21, Axis Private Equity Limited was merged with Axis Finance Limited. The Scheme of Merger with Axis Finance Limited got approved by NCLT, Mumbai on 23 July, 2020 and approval of the Ministry of Corporate Affairs (MCA) was received on 2 September, 2020. The Bank sold 100% stake in its subsidiary, Axis Bank UK Limited to OpenPayd Holdings Limited, United Kingdom by signing a Share Purchase Agreement on 31 March, 2021.
As on 31 March, 2022, the Bank has 9 unlisted subsidiary companies, 1 step down subsidiary and 1 associate company.
As on 31 March, 2022, Bank had a network of 4,758 branches and 10,990 ATMs & cash deposit machines. During the year 2022, Bank added 164 branches to its network.
As on 31 March, 2022, the Bank has overseas branches at Singapore, DIFC - Dubai and an Offshore Banking Unit at the International Financial Service Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India.
During fiscal 2022, five promoters of the Bank viz. The United India Insurance Company Limited, National Insurance Company Limited, The New India Assurance Company Limited, General Insurance Corporation of India and The Oriental Insurance Company Limited had been reclassified from 'Promoter' Category to 'Public' Category in terms of Regulation 31A SEBI Listing Regulations. Accordingly, as on date, the Bank has two promoters i.e. Administrator of the Specified Undertaking of Unit Trust of India and Life Insurance Corporation of India.
As on 31 March, 2023, Bank had a network of 4,903 branches and 15,953 ATMs & cash deposit machines. During the year 2022-23, Bank added 145 branches to its network.
During year 2022-23, Bank acquired on going concern basis, the business assets and business liabilities of Citibank's India Consumer Business from Citibank N. A.(CBNA) and the NBFC Consumer Business from Citicorp Finance (India) Limited (CFIL) collectively referred to as Citibank India Consumer Business, without assigning values to individual assets and liabilities effective from 01 March, 2023.
Axis Bank Ltd
Chairman Speech
Winning Together
Dear Shareholders,
With our ‘dii se open' approach to serving the needs and aspirations of our
customers, we at Axis Bank believe that we will win when our customers and stakeholders
win.
‘Open' has been the driving force behind our GPS journey. We have now created a
strong platform with multiplicative forces through our One Axis approach along with the
unification of digital platforms, partnerships and transformational projects to win across
businesses.
The fiscal 2023 has been a historic year in our GPS journey as we made remarkable
strides towards our ambition of attaining the leadership position in India's banking
space.
We delivered a solid performance as we lifted the growth momentum with meaningful
upward shift in profitability, led by market share gains and several other accomplishments
through the year.
We witnessed strong growth across our focus segments, completed successful acquisition
of Citibank India Consumer Business and retained our leadership position in specific
businesses like payments, wealth management and Digital.
Our steady progress towards delivering distinctiveness in our chosen areas namely
Customer Obsession, Bharat Banking, Digital Bank and ‘One Axis' has further provided
us agility, innovation and synergies to win across business segments.
Our consolidated ROE (excluding exceptional items) for the fiscal 2023 was 18.84% led
by all round outperformance across NIMs, fees, costs and asset quality metrics. We
delivered growth of 68% in Profit After Tax (excluding exceptional items) on the back of
30% growth in net interest income and 25% growth in fee income. Our NIMs for the entire
year improved by 55 bps y-o-y to 4.02%, while the credit costs declined by 32 bps y-o-y to
0.40%. Our organic businesses net accreted 69 bps of CET 1 (excluding exceptional items)
in fiscal 2023 as compared to net consumption of 176 bps in previous five years. These
metrics provide us confidence to carry this momentum ahead as we continue to focus on the
three core areas of execution:
• Deepening a performance- driven culture.
• Strengthened the balance sheet and organisational core significantly.
• Building for the future with relentless focus on driving distinctiveness.
Improved Growth Metrics Led by a Performance-driven Culture
We accelerated the growth momentum in fiscal 2023 led by continued executional
excellence and transformation across various businesses of the Bank while setting new
benchmarks in our focus areas to deliver improvement in key operating metrics.
During the fiscal, we witnessed strong growth in deposits and advances led by our focus
on improving quality and granularity across businesses. Our granular CASA deposits grew
21% y-o-y. On advances, we continued to grow faster than the industry with domestic loan
book growth of 23% y-o-y. Our focus segments comprising Mid Corporate, SME and Small
Business Banking (SBB), grew at a much higher pace of 32% y-o-y and now constitute 20% of
overall loan book.
Strong growth momentum in Retail across our businesses
The Retail franchise delivered strong growth led by improvement in the quality of our
deposits and higher market share across our key businesses. We delivered several all-time
yearly highs as we added 10.8 million new liability relationships and achieved record loan
disbursements across the retail and rural segments.
Our focus on building a quality and granular liability franchise continued to progress
well with 870 bps y-o-y increase in the share of premium segment in Retail SA deposits
portfolio and 550 bps y-o-y reduction in the overall deposits' outflow rates.
Our wealth management business ‘Burgundy' continues to be among the largest in
India with combined assets under management of H3.6 trillion and 30 of the top 100 richest
Indians as our Burgundy Private clients.
Our well-diversified retail advances book grew 22% with higher growth in focus segments
with SBB (50% y-o-y) and Rural (26% y-o-y), aided by several large transformation and
technology initiatives. We also strengthened our market share in retail cards and payments
businesses led by our innovative product propositions and partnerships led KTB (Known to
Bank) strategy. We witnessed strong growth momentum across key metrics with all time high
issuances of 4.2 million new credit cards, 63% y-o-y growth in card spends and 97% y-o-y
growth in card advances.
The acquisition of Citibank India Consumer Business to accelerate our journey of
creating a premier retail franchise
Our positioning in the credit cards business has strengthened with our card advances
market share improving by 450 bps to 16.3% led by the acquisition of a quality and
complementary credit card franchise. Our liability franchise received a boost with over
100 bps improvement in CASA ratio and access to over 1,600 Suvidha corporate
relationships.
In wealth management business, we gained highly affluent Wealth customer base that
would further accelerate our growth ambitions.
The integration of Citibank India Consumer Business remains well on track with ~3,200
Citi employees now integrated into the Axis organisation structure. Early traction from
the Citibank customer base has been quite positive. Our interactions with several
high-value customers suggest their acknowledgment of the seamless transition, continuation
of highest levels of service, access to Axis Bank's extensive network of branches, and
wide product portfolio under the One Axis umbrella. We have already started incremental
onboarding of erstwhile ‘Suvidha' salary accounts on Axis Bank platform for
additional locations across the country where Citi was hitherto not present.
While the acquired Citi business being entirely retail runs at a higher cost, it comes
with higher return ratios and is ROE accretive post integration. It does not impede our
ability to deliver our aspirational ROE. We have identified 60+ synergy initiatives across
the Bank as we look to drive revenue and cost benefits. We believe that this integration
between two highly complementary institutions will enable us to create the gold standard
in the retail space.
Reinforced our proposition as a relationship-led sustainable and profitable Wholesale
Bank
We have the best and most comprehensive Wholesale Banking franchise today. Our
strategic focus in this segment has been to deliver relationship RAROC focused growth
leveraging our ‘One Axis' and Digital capabilities to provide holistic banking
solutions to corporates. We stepped up growth across the coverage segments in fiscal 2023
with domestic corporate loan book up 24% y-o-y.
MSME segment continues to remain a key growth driver for the Bank.
The combined loan portfolio of Mid Corporate and SME has doubled in the last three
years, with 1,100 bps improvement in contribution to overall Wholesale book, thereby
bringing higher granularity and aiding the PSL agenda of the Bank.
We continued to engage with our corporate client across their capital structure to be
their ‘transaction Bank of choice'. We won significant mandates across the
transaction banking segments led by our technology-led solutions that resulted in the
transaction banking, forex and trade related fees contributing 78% to overall Wholesale
Banking fees. We strengthened our leadership positioning across products with market share
of ~31% in IMPS, 20% in Bharat Bill Payment ecosystem and 11% in foreign LC. We also
improved our positioning in NEFT from 4th to 2nd rank with market
share of 11% in fiscal 2023.
Our key group entities delivered significant value led by ‘One Axis' strategy
We have over the last four years scaled up the businesses across our subsidiaries
significantly led by our ‘One Axis' strategy. The domestic subsidiaries delivered yet
another year of good performance with total profits of Rs.1,304 crores and contributed 46
bps to the Bank's consolidated ROE (excluding exceptional items) of 18.84%.
Axis Finance, our full-service customer- focused NBFC franchise delivered 30% y-o-y
growth in net profit with ROE of 16.9%, healthy capital adequacy ratio of over 20% and
superior asset quality. Axis AMC delivered PAT growth of 16% y-o-y, while our retail
brokerage subsidiary delivered PAT of H203 crores in a volatile market environment.
Axis Capital continued to maintain its dominance in equity capital markets.
We continued to focus on offering holistic investment and financial solutions to our
customers as we added retirement solutions with the launch of Axis Pension Fund during the
year.
Freecharge remains among the major fintechs in India with strong growth in Payments and
Merchant Business and scale up in lending products segment. Our digital invoice
discounting platform ‘Invoicemart' continues to set new benchmark as it facilitated
financing of MSME invoices of more than H55,600 crores since its inception in 2017.
Max Life Insurance, India's fourth largest insurance company where we are a
co-promoter, also delivered strong performance with expansion in margins and 28% y-o-y
growth in Value of New Business (VNB). We remain committed to the long-term association
with Max Life as its promoter and bancassurance partner. With the far-reaching regulatory
changes in insurance sector of late and the significant long term growth aspects, we
believe that Max Life offers enhanced value creation opportunities for us.
The oversight on Bank's subsidiaries remains an essential element of our ‘One
Axis' strategy. We have taken several initiatives to strengthen our well-established and
integrated Subsidiaries Governance framework under the supervision of the Subsidiary
Management Committee (SMC). We also realigned and strengthened the leadership teams across
our capital markets facing subsidiaries during the year to drive our next phase of growth.
Fostering a winning mindset
Our wining mindset is reflected in multiple external recognitions that the Bank
received for its performance.
The Bank was adjudged #1 on the Quality Index for both Large Corporate and Middle
Market Banking in the Greenwich Banking Survey for the second year in a row. The Bank's
project NEO that signifies our aspiration to become the leading Digital Wholesale Bank in
India, received several accolades including the ‘Best BFSI Customer Experience award'
for NEO API Banking Suite, ‘Best BFSI MSME Support award' for NEO Connect at the
prestigious Dun & Bradstreet BFSI & Fintech Summit 2023 and the Asset Triple A
Digital Award.
The various awards won by the Bank during the year including ‘Data Engineering
Excellence award' at Cypher 2022 for our personalisation project, ‘The Retail
Banker's International Asia Trailblazer award' for trailblazing use of AI and Machine
Learning in Financial Services space and Economic Times DataCon award for ‘Modern and
Agile Data Architecture and Infrastructure' further validated our leadership position in
new- age technologies.
I am also pleased to share that we were ranked in the Top 10 of the Kincentric Best
Employers in India survey and we were certified a ‘Great Place to Work' for the
second consecutive year. These external recognitions reflect the positive culture change
in the Bank and the investments we have made in our people and technology.
Strengthened the Balance Sheet and Core Significantly Built a strong balance sheet with
self-sustaining capital structure
Our balance sheet remains resilient with healthy capital position and best- in-class
asset quality metrics. During the year, we increased our provision coverage ratio by 600
bps to 81% while maintaining significant additional non NPA provisioning buffers of over
H11,900 crores, that translated to standard asset coverage ratio of 1.42%, among the
highest in the industry. The Bank's asset quality too remains among the best-in-class with
net NPA declining further by 34 bps to 0.39%. The Bank has also maintained amongst the
lowest standard COVID-19 restructuring portfolios that stood at 0.22% of Bank's gross
customer assets.
The Bank's self-sustaining capital structure with overall capital adequacy ratio at
17.64% and CET 1 ratio of 14.02% ensures that we are well capitalised to drive our growth
ambitions.
Building next-generation technology architecture
In a rapidly evolving financial landscape, technology and product innovation with
‘openness and agility' to adapt to evolving customer needs remain critical to achieve
success.
In the last three years, our IT team strength has more than doubled with over 2.5x
increase in total technology spends, as we continue to focus on building critical
capabilities and best-inclass resilience across our business operations.
We have been a leader in cloud adoption with our multi cloud-first strategy and
cloud-native micro services-based architecture that has helped us to deploy over 75
initiatives on cloud. We have also accelerated the delivery across businesses by investing
in emerging technologies with creation of nearly 3,000 RPA bots and 1,480+ automated
processes.
Our investments in new-age data science and engineering platforms like Big Data Lake,
Micro Services-based Architecture, etc. continue to deliver value as we have now deployed
100+ diverse use cases in 10+ business domains to make data-driven business decisions. We
continue to leverage our strength in Data Analytics to further drive distinctiveness in
customer experience, as we took personalisation to next level with 10,000+ hyper-
personalised nudges across 2,500+ customer features. Our initiative on universal
underwriting where our goal is to provide credit access for every eligible Indian
leveraging alternate data, continues to scale up well. We also improved our BitSight
rating, a key risk indicator of overall cybersecurity to 800 from 770 last year,
highlighting our strong focus on risk and governance.
Organisation-wide transformation projects have accelerated our GPS journey
The multiple large-scale transformation projects that we have been running across the
Bank have started yielding positive outcomes across the key businesses.
Project 'Triumph' has been instrumental in improving the productivity of liability
sales channel and improving the quality of deposits with 870 bps increase in share of
premium segment in Retail SA balances. On the retail assets side, projects like 'Unnati'
and 'SBB Sankalp' have been instrumental in improving TAT and driving higher growth,
respectively. On the payments side, the projects 'Zenith' and 'Kanban' have helped to
improve our market positioning in cards and merchant acquiring businesses.
We have also made strong progress in Project NEO towards our ambition of building a
world class Digital Wholesale Bank. Our path-breaking digital banking platform NEO
witnessed strong adoption from corporates with 1,000+ client engagements since its launch.
Our marketleading transaction banking API suite and best-in-class corporate developer
portal offers a strong product market fit that resulted in 3x y-o-y growth in transaction
volumes.
Building a Future-ready Organisation
Digital continues to be an area of relentless focus for us
Our 'Axis Mobile' app today is the world's highest rated app at scale with 4.8 rating
on Google Play Store and nearly 2 million+ reviews. It also serves as the largest branch
for the Bank with over 20 million customer registrations, ~12 million monthly active
users, 250+ services and over 67% of the service requests serviced digitally.
Axis 2.0, our end-to-end digital business unit, is now operating at scale with over 20
products across liabilities, loans, investment products, insurance and forex accounting
for 15% to 85% of incremental sales for these products.
It also contributed to our customer obsession journey with Net Promoter Scores (NPS)
for Axis 2.0 products being 10-30 percentage points higher than their physical
equivalents.
Our API (Application Programming Interfaces) Developer Portal, that has been the 1st
in industry to facilitate simplified end-to-end digital developer onboarding journeys, now
boasts of strong and wide suite of over 400 open APIs for Retail, Wholesale and Connected
banking solutions. The Bank now has 95+ strategic partnerships in the digital space
offering true end-to-end digital experience to customers across the spectrum.
In the current integrated environment, Account Aggregator (AA) ecosystem and Open
Credit Enablement Network (OCEN) are likely to make significant impact in digital lending
to underpenetrated segments across Retail and MSME. We were the first Bank to launch
digital lending through AA framework in fiscal 2022 and have since scaled our AA-linked
business significantly.
Bank-wide programmes to build distinctiveness
We continue to invest in technologies to empower our employees to increase their
productivity and drive customer delight.
Our multiyear distinctiveness programme 'Sparsh' continues to progress in the right
direction as we strive to become India's most customer-obsessed Bank. Several initiatives
taken across the Bank through combined approach of embedding critical behaviours and
building institutional capabilities through Personalisation and Digital, have resulted in
upto 33% improvement in our Net Promoter Scores across the Retail and Wholesale Bank. This
is a multi-year journey and we will continue to invest with the aim to cover the entire
Bank in this Financial Year.
During the year, we went live with 'Siddhi' - a super app that's built on modern tech
stack with cloud native development integrates 35+ backend systems to empower our
colleagues to engage more meaningfully with customers and offer them instant solutions.
This is a multiyear journey, and our vision of Siddhi app is to actually personalise it
for every employee of the Bank.
Our distinctiveness initiative around Bharat Banking continues to make strong progress.
Multiple macro factors including improvement in physical and digital infrastructure,
evolution of the technology stack, efficient delivery of various government schemes in the
retail and MSME space, etc. have provided strong tailwinds to the Rural and Semi Urban
(RuSu) or 'Bharat' markets.
We scaled up the distribution footprint in this segment to 2,137 branches complemented
by a large CSC (Common Services Centres) network of 60,600+ VLEs (Village Level
Entrepreneurs) that grew 50% y-o-y. We also collaborated with marquee rural-focused
customer and fintech players, launched eKYC based CASA platform through partnership
ecosystem and went live with five partners on digital co-lending platforms to further
penetrate rural supply chains and access new customer segments.
As a result of our focused initiatives across products, processes and partnerships, we
achieved the highest ever yearly disbursements, 26% growth in rural advances and a 15%
y-o-y growth in deposits from 'Bharat' branches. The growth has been across all the major
product lines backed by improving margins, PSL asset accretion and lower credit cost. We
are confident of continuing the growth momentum and creating distinctiveness in Bharat
markets.
Our deep-rooted organisation culture and ESG-aligned commitments continue to get
external recognition
We also remain fully committed to strengthen and enhance the Risk and Compliance
culture of the Bank in order to build long-term sustainability and trust with our
customers and other stakeholders.
We have redefined conventional workplace practices with over 3,700 employees and
freelancers working from anywhere under GIG- A-Anywhere and majority of the employees in
our large offices being part of the hybrid working model. We also continued to invest in
building their skills and provided them avenues for progressing their careers through our
flagship talent management initiatives and internal job programmes.
The community continues to be a critical stakeholder for us. The Axis Bank Foundation,
under its Sustainable Livelihoods Program, crossed the significant milestone of supporting
1.3 million households as part of its mission to reach 2 million rural households by the
year 2026.
We made strong progress in our ESG-aligned commitments that we had published last year
by surpassing the targets we had set for ourselves for the fiscal across Retail and
Wholesale Banking to sectors with positive social and environmental outcomes. We also
surpassed the overall diversity ratio target for the year with women employees
representing 25.7% of the overall workforce.
The progress made in our ESG commitments continue to reflect in Bank's steady
performance at key ESG assessment and recognition platforms. The Bank featured on the
prestigious FTSE4Good Index for the sixth consecutive year in 2022 while improving its
ratings across platforms like S&P Dow Jones, MSCI and CDP.
Strong Progress Made across our Focus Segments Backed by Distinctiveness and Execution
Excellence, Giving us the Right to Win
We, at Axis Bank, remain confident on the growth opportunities in the Indian economy.
The banking industry is currently well placed with loan growth being strong across the key
segments, margins and asset quality being the best in recent years along with healthy
capital position. As India heads towards a $5trillion economy, the opportunity to leverage
some of the emerging trends like China plus 1, MSME and 'Bharat' acting as engines of
growth, rapid evolution of the next-gen public digital infrastructure like account
aggregator, OCEN and ONDC in financial services space is immense.
We believe that the large banks with stronger balance sheets, innovative and holistic
product propositions, robust technological infrastructure and digital capabilities to
deliver better customer experience would continue to gain higher market share.
We are well positioned to take advantage of these trends.
In the last four years, we have transformed the Bank to a stronger, more consistent and
sustainable franchise.
Our building blocks are firmly in place with robust growth in our focused businesses,
strong operational performance, healthy capital and balance sheet position to continue
delivering sustained profitable growth.
Given the powerful integrated platform we are building, we will continue to grow 400 to
600 bps faster than the industry, in the medium to long term. The significant strides we
made during the year on our customer obsession journey, digital capabilities, Bharat
Banking and successful acquisition of Citibank India Consumer Business further give us the
confidence in sustaining this performance.
I thank our internal and external stakeholders for their continued support and faith in
our strategy, the chosen areas of distinctiveness and our relentless approach to execution
excellence. We as a Bank remain committed to our 'Open to Win Together' tenet while
working hard towards building an all-weather institution that will stand the test of time.
Warm Regards,
Amitabh Chaudhry
MD & CEO.
  Â
Axis Bank Ltd
Company History
Axis Bank Limited is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporate, MSMEs, Agriculture and retail businesses. It provides a complete suite of banking and financial services including retail banking, wholesale banking and treasury operations. The Bank is primarily governed by the Banking Regulation Act, 1949. As on 31 March 2023, the Bank has overseas branches at Singapore, DIFC - Dubai and an Offshore Banking Unit at the International Financial Service Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India.
The Bank operates in four segments, namely treasury, retail banking, corporate/ wholesale banking and other banking business. The treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. Retail banking includes lending to individuals/small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and non resident Indian (NRI) services. The corporate/wholesale banking segment includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services.
The Bank had a network of 4586 branches at the end of December 2020 across the country.
With 4528 domestic branches (including extension counters) and 12044 ATMs and 5433 cash recyclers across the country as on 31 March 2020, the network of Axis Bank spreads across 2,033 cities and towns, enabling the bank to reach out to a large cross-section of customers with an array of products and services. The bank also has nine overseas offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai, Abu Dhabi and Dhaka and an overseas subsidiary at London, UK.
The Bank has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund Trustee Ltd.
Axis Bank was incorporated in the year 1993 with the name UTI Bank Ltd. Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.
In the year 2001, the bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's issues both the banks withdraw the merger proposal.
In the year 2003, the Bank was given the authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and railways. In December 20003, the Bank launched their merchant acquiring business.
In the year 2005, the Bank raised $239.3 million through Global Depositary Receipts. They won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions.
In December 2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset products. In October 2006, they set up Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and provide venture capital support to businesses.
In the year of 2007, the bank again raised $218.67 million through Global Depository Receipts. They opened 153 new branches during the year, which includes 43 extension counters that have been upgraded to branches and 8 Service branches/ CPCs. They also opened new overseas offices at Singapore, Dubai and Hong Kong and a representative office in Shanghai.
During the year 2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which included 33 extension counters that have been upgraded to branches. Also, they expanded overseas with the opening of a branch at the Dubai International Finance Centre. The Bank changed their name from UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other unrelated entities with similar name.
During the year 2008-09, the Bank opened 176 new branches that include 12 extension counters that have been upgraded to branches taking the total number of branches and ECs to 835. During the year, they opened 831 ATMs, thereby taking the ATM network of the Bank from 2,764 to 3,595. Also, they opened a Representative Office in Dubai.
In May 2008, the Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary company, which is engaged in trusteeship activities. In December 2008, they launched their new investment advisory service exclusively for High Net Worth clients.
In January 2009, the Bank set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also, they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund business.
During the year 2009-10, the Bank opened 200 branches taking the total number of branches Extension Counters (ECs) to 1,035. In March 209, 2010, they opened their 1000 branch at Bandra West, Mumbai. In September 2009, Axis Bank launched the private banking business in the domestic market, christened 'Privee' to cater to highly affluent individuals and families offering them unique investment opportunities
During the year, the Capital Markets SBU was restructured with the debt capital market business (hitherto a part of the capital markets) carved into a separate vertical. As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM) business, mergers and acquisitions and private equity syndication. In February 24, 2010, the Bank launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR.
During the year 2010-11, 407 new branches were added to the Bank's network taking the total number of branches and extension counters (ECs) to 1,390. Of these, 564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan and urban areas. The Bank is present in all states and Union Territories (except Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 to 6,270.
During the year, the Bank also opened a Representative Office in Abu Dhabi. This was in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International Financial Centre) and representative offices at Shanghai and Dubai.
In March 7, 2011, the Bank incorporated a new subsidiary namely Axis U.K. Ltd. as a private limited company registered in the United Kingdom (UK) with the main purpose of filing an application with Financial Services Authority (FSA), UK for a banking license in the UK and for the creation of necessary infrastructure for the subsidiary to commence banking business in the UK.
On 8 January 2014, Axis Bank announced the opening of its Shanghai Branch, thus becoming the first Indian private sector bank to set up a branch in China.
On 4 December 2014, Axis Bank announced that it had closed its Senior Unsecured Redeemable Non-Convertible Debenture issue of amount Rs 5705 crore and priced at 8.85% p.a. payable annually maturing on 5 December 2024.
On 9 December 2014, Axis Bank announced the launch of limited period offer of 20 year fixed rate home loan for affordable housing at 10.40%.
On 27 July 2015, Axis Bank announced that it had signed a $200 million 7 year bilateral loan deal with the Asian Development Bank (ADB) for extending affordable agriculture credit to farmers in India.
On 22 November 2015, Axis Bank announced the opening of its Representative Office in Dhaka, Bangladesh in a bid to strengthen its international presence.
On 9 March 2016, Axis Bank announced the launch of the world's first Forex prepaid card issued in conjunction with Diners Club International, a business unit of Discover Financial Services.
On 30 March 2017, Axis Bank announced a strategic partnership with Wells Fargo & Company to offer seamless remittance facility to their NRI customers from The United States of America (USA).
On 17 June 2017, Axis Bank in association with Kochi Metro Rail Corporation (KMRL) launched India's first single-wallet contactless, open loop metro card to allow cashless commuting for commuters in Kochi.
On 5 July 2017, Axis Bank announced its foray into the luxury bikes loans segment for 500cc & above bikes.
On 11 July 2017, Axis Bank announced its collaboration with Inter-American Investment Corporation (IIC) to facilitate trade with Latin America and the Caribbean.
Axis Bank on 27 July 2017 announced that it has entered into an agreement with Jasper Infotech Private Limited to acquire 100% stake in its subsidiaries viz. FreeCharge Payment Technologies Private Limited and Accelyst Solutions Private Limited, which together constitute the digital payments business under the 'FreeCharge' brand. The deal marked the first such acquisition of a digital payments company by a bank in India.
The bank had a network of 3703 branches and 13814 ATMs & cash deposit machines as at 31 March 2018 across the country.The bank has raised Rs 8680 crore of capital from a consortium of investors (Bain Capital,Life Insurance Corporation of India and other marquee investors).
As on 31 March 2019, Bank had a network of 4050 branches,11801 ATMs and 4917 cash deposit machines across the country.
During the year 2019-20, the Bank raised additional equity capital through issue and allotment of 19,87,28,139 equity shares of Rs. 2/- each of the Bank, pursuant to a Qualified Institutional Placement Issue.
As on 31 March, 2020, Bank had a network of over 4,500 branches and over 17,477 ATMs & cash deposit machines. It opened 478 branches to its network during fiscal 2020.
As on 31 March, 2021, Bank had a network of 4,594 branches and over 11,300 ATMs & cash deposit machines. It added 66 branches to its network during fiscal 2021.
During the year 2020-21, the Bank raised additional equity capital through issue and allotment of 23,80,38,560 equity shares of Rs. 2/- each of the Bank on 11 August, 2020, pursuant to a Qualified Institutional Placement Issue.
As on 31 March, 2021, the Bank has the following 9 unlisted subsidiary companies and 1 step down subsidiary.
On 27 March, 2018, the Board of Directors of ASPL and FCPTL had approved a Scheme for Amalgamation of ASPL into and with FCPTL. ASPL and FCPTL filed final petition for approval of said merger before the National Company Law Tribunal (NCLT). The appointed date for amalgamation is 7 October, 2017 and the effect of said merger was to be given on this date or any other date as may be prescribed by NCLT. Subsequent to final hearing in matter conducted during the year, FCPTL received copy of the Order approved by NCLT, Delhi and the same was filed with the Ministry of Company Affairs, in November 2019. However, in the case of ASPL, NCLT, Mumbai amended the appointed date of amalgamation from 7 October, 2017 to 1 April, 2018. The NCLT, Delhi had already approved scheme of said Merger on October 22, 2019, which will be effective from the date of filing of certified copy of the Order of NCLAT with Registrar of Companies.
During year 2020-21, Axis Private Equity Limited was merged with Axis Finance Limited. The Scheme of Merger with Axis Finance Limited got approved by NCLT, Mumbai on 23 July, 2020 and approval of the Ministry of Corporate Affairs (MCA) was received on 2 September, 2020. The Bank sold 100% stake in its subsidiary, Axis Bank UK Limited to OpenPayd Holdings Limited, United Kingdom by signing a Share Purchase Agreement on 31 March, 2021.
As on 31 March, 2022, the Bank has 9 unlisted subsidiary companies, 1 step down subsidiary and 1 associate company.
As on 31 March, 2022, Bank had a network of 4,758 branches and 10,990 ATMs & cash deposit machines. During the year 2022, Bank added 164 branches to its network.
As on 31 March, 2022, the Bank has overseas branches at Singapore, DIFC - Dubai and an Offshore Banking Unit at the International Financial Service Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India.
During fiscal 2022, five promoters of the Bank viz. The United India Insurance Company Limited, National Insurance Company Limited, The New India Assurance Company Limited, General Insurance Corporation of India and The Oriental Insurance Company Limited had been reclassified from 'Promoter' Category to 'Public' Category in terms of Regulation 31A SEBI Listing Regulations. Accordingly, as on date, the Bank has two promoters i.e. Administrator of the Specified Undertaking of Unit Trust of India and Life Insurance Corporation of India.
As on 31 March, 2023, Bank had a network of 4,903 branches and 15,953 ATMs & cash deposit machines. During the year 2022-23, Bank added 145 branches to its network.
During year 2022-23, Bank acquired on going concern basis, the business assets and business liabilities of Citibank's India Consumer Business from Citibank N. A.(CBNA) and the NBFC Consumer Business from Citicorp Finance (India) Limited (CFIL) collectively referred to as Citibank India Consumer Business, without assigning values to individual assets and liabilities effective from 01 March, 2023.
Axis Bank Ltd
Directors Reports
Dear Members,
Your Board of Directors (Board) are pleased to present the 29th Annual
Report of Axis Bank Limited (Bank) together with the audited financial statements for
fiscal 2023.
Financial performance and state of the Bank's affairs
The highlights of the standalone financial performance for the fiscal year under
review, are presented below:
|
|
|
(Rs. in crores) |
Particulars |
2022-23 |
2021-22 |
Growth |
Balance sheet: |
|
|
|
Deposits |
946,945 |
821,972 |
15% |
Savings bank deposits |
297,416 |
242,449 |
23% |
Current account deposits |
149,120 |
127,557 |
17% |
Term deposits |
500,409 |
451,966 |
11% |
Advances |
845,303 |
707,947 |
19% |
Retail advances |
487,571 |
400,142 |
22% |
Non-retail advances |
357,732 |
307,805 |
16% |
Total assets/liabilities |
1,317,326 |
1,175,429 |
12% |
Profit & loss account: |
|
|
|
Net interest income |
42,946 |
33,132 |
30% |
Other income |
16,501 |
15,221 |
8% |
Fee income |
16,216 |
13,001 |
25% |
Trading profit1 |
(242) |
1,627 |
- |
Miscellaneous income |
527 |
593 |
(11%) |
Operating expenses |
27,398 |
23,611 |
16% |
Operating profit |
32,049 |
24,742 |
30% |
Provisions and contingencies (other than tax) |
2,653 |
7,360 |
(64%) |
Profit before exceptional items and tax |
29,396 |
17,382 |
69% |
Exceptional items2 |
12,490 |
- |
- |
Profit after exceptions items, but before tax |
16,906 |
17,283 |
(3%) |
Provision for tax |
7,326 |
4,357 |
68% |
Net profit |
9,580 |
13,025 |
(26%) |
Balance in profit and loss account brought forward from previous
fiscal year |
38,100 |
29,985 |
- |
Amount available for appropriation |
47,680 |
43,010 |
- |
Appropriations |
|
|
|
Transfer to statutory reserve |
2,395 |
3,256 |
- |
Transfer to capital reserve |
68 |
441 |
- |
Transfer to/(from) investment reserve |
(149) |
149 |
- |
Transfer to special reserve |
841 |
609 |
- |
Transfer to investment fluctuation reserve |
73 |
455 |
- |
Dividend paid |
307 |
- |
- |
Surplus carried over to balance sheet |
44,145 |
38,100 |
- |
1
Excluding merchant exchange profit
2
Exceptional items comprise (i) full amortization of Intangibles and Goodwill
amounting to Rs.11,949 crores; (ii) impact of policy harmonisation of operating expenses
and provisions amounting to Rs.361 crores; and (iii) one-time acquisition related expenses
amounting to Rs.179 crores; on account of acquisition of Citibank India consumer business.
Bank has fully charged to the profit and loss account all the exceptional items in fiscal
2023. The cumulative impact of all the exceptional items on Bank's profit and loss account
(net of taxes) is Rs.12,353 crores (Refer note 18.1 of standalone and consolidated
financial statements)
Key performance indicators
Key performance indicators |
2022-23 |
2021-22 |
Interest income as a % of working funds1 |
7.09 |
6.26 |
Non-interest income as a % of working funds1 |
1.37 |
1.41 |
Net interest margin (%) |
4.02 |
3.47 |
Return on average net worth (%)2 |
18.38 |
12.91 |
Operating profit as a % of working funds12 |
2.67 |
2.30 |
Return on average assets (%)2 |
1.82 |
1.21 |
Profit per employee3 (Rs. in lacs) |
10.94 |
15.54 |
Business (Deposits less inter-bank deposits + advances) per employee3
(Rs. in crores) |
20.00 |
17.92 |
Net non-performing assets as a % of net customer assets4 |
0.39 |
0.73 |
1
Working funds represent average total assets
2
Excluding exceptional items
3
Productivity ratios are based on average number of employees for the fiscal
year
4
Customer assets include advances and credit substitutes.
Previous fiscal year's figures have been re-grouped wherever necessary.
Financial performance of the group
Subsidiaries of the Bank continued to deliver steady performance. The domestic
subsidiaries, collectively, reported a net profit of Rs.1,304 crores in fiscal 2023. This
translates into a return on investment of ~ 50%. Consolidated profit of the group
(excluding exceptional items) for fiscal 2023 stood at Rs.23,172 crores, growing 64%
year-on-year. Consolidated return on equity (excluding exceptional items) for fiscal 2023
stood at 18.84%, up 517 bps year-on-year, with subsidiaries contributing 46 bps.
Acquisition of Citibank's India consumer business
The Bank has acquired on a going concern basis, the business assets and business
liabilities of Citibank's India consumer business from Citibank N. A. (acting through its
branch in India) (CBNA) and the NBFC consumer business from Citicorp Finance (India)
Limited (CFIL) collectively referred to as Citibank India consumer business, effective
beginning of day 1 March, 2023 (referred to as legal day one) without values being
assigned to individual assets and liabilities.
The transaction comprises the sale of the consumer businesses of Citibank India, which
includes loans, credit cards, wealth management, commercial vehicle, construction
equipment loans and retail banking operations. The acquisition provides the Bank with
access to a premium customer segment, is a good strategic fit and is completely aligned
with Axis Bank's GPS (Growth, Profitability & Sustainability) strategy. The Bank has
gained access to the large, affluent and profitable customer franchise of Citibank, which
aligns well with its premiumisation strategy.
The Board extends a warm 'Dil Se' welcome to the employees and customers of Citibank
who have joined the Axis family and acknowledges their support during the transition
period.
Dividend
In accordance with Regulation 43A of the SEBI (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (SEBI Listing Regulations), the Bank has formulated and
adopted a dividend distribution policy, which was reviewed by the Board. The policy is
available on the website of the Bank at
https://www.axisbank.com/docs/default-source/quarterlv-reports/dividend-distribution-policy-of-the-bank.pdf
.
In view of the overall performance of the Bank and while retaining capital to support
future growth, the Board at its meeting held on 27 April, 2023, recommended a final
dividend of Rs.1/- per equity share of Rs.2/- each fully paid-up, subject to the approval
of members at the ensuing 29th Annual General Meeting (AGM). The record date
for payment of dividend is mentioned in the notice of the ensuing 29th AGM of
the Bank.
In terms of Accounting Standard (AS) - 4 'contingencies and events occurring after the
balance sheet date' as notified by the Ministry of Corporate Affairs (MCA) under Section
133 of the Companies Act, 2013 (Act) read together with the Companies (Accounts) Rules,
2014 and the Companies (Accounting Standards) Rules, 2021, such proposed dividend has not
been recognised as a liability as on 31 March, 2023. Further, shares issued on exercise of
stock options after 31 March, 2023 till record date will also be eligible for such
proposed dividend.
In terms of the Income Tax Act, 1961, the dividend income is taxable in the hands of
the members. Therefore, the dividend will be paid to the members after deduction of
applicable tax, if any.
Capital structure Share capital
During fiscal 2023, the Bank issued and allotted 7,104,176 equity shares of 21- each,
fully paid-up, pursuant to exercise of stock options by the whole-time directors/employees
of the Bank and of its subsidiary companies, under the Bank's employee stock option scheme
2000-01 (ESOS).
Consequent to the above, the total issued and paid-up equity share capital of the Bank
increased by Rs.1.42 crores to Rs.615.37 crores as on 31 March, 2023, as compared to
Rs.613.95 crores, as on 31 March, 2022. The equity shares issued under the ESOS rank
pari-passu with the existing equity shares of the Bank.
Apart from the above, the Bank did not raise any additional equity share capital during
the fiscal year.
Debt instruments
During fiscal 2023, in order to strengthen its capital adequacy and to enhance its
long-term resources, the Bank issued and allotted 12,000 unsecured, rated listed
subordinated taxable redeemable Basel Ill compliant tier II non-convertible debentures
(Series 30) of face value of Rs.1 crore each, aggregating to Rs.12,000 crores, on a
private placement basis. The Audit Committee of the Board (ACB) at its meeting held on 23
January, 2023, had reviewed and confirmed that the Bank had utilized the said funds for
the above-mentioned purposes only.
Capital adequacy ratio
The Bank's overall Capital Adequacy Ratio (CAR) under Basel Ill stood at 17.64% at the
end of fiscal 2023, well above the benchmark requirement of 11.50% stipulated by the RBl.
Of this, the common equity tier l (CET l) CAR was 14.02% (against minimum regulatory
requirement of 8.00%) and tier l CAR was 14.57% (against minimum regulatory requirement of
9.50%). As on 31 March, 2023, the Bank's tier ll CAR under Basel Ill stood at 3.07%.
Ratings of various debt instruments
The details of credit ratings obtained by the Bank along with any revisions thereto, if
any, during fiscal 2023, for all the debt instruments outstanding as on 31 March, 2023,
are provided in the report on corporate governance, forming part of this annual report.
Reclassification to "public" category from "promoter" category
The Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), one
of the promoters of the Bank, vide its letter dated 27 March, 2023 has withdrawn the
nomination of its nominee director from the Board of the Bank. SUUTI has also surrendered
its right to appoint one nominee director on the Board, requested the Bank (i) to make
appropriate amendments to the Articles of Association of the Bank (AOA) and (ii) to exit
SUUTI from "promoter" category and reclassify it to "public" category.
Accordingly, the Board on 27 March, 2023 noted the aforesaid letters and approved the
amendment to the Bank's AOA, limited to cancellation of nomination rights of SUUTI and
other consequential changes thereupon, subject to the approval of the members of the Bank
and Reserve Bank of India (RBl). The members of the Bank vide postal ballot on 28 April,
2023 have approved the amendment to the AOA of the Bank. The approval of RBl on amendment
to the AOA is awaited, as on the date of this report.
Further, the Board at its meeting held on 28 April, 2023 has approved the request of
SUUTI for reclassification, subject to approval of the stock exchanges. Since SUUTI does
not hold any equity shares in the Bank, the provisions of Regulation 31A(3)(a)(iii) of the
SEBI Listing Regulations with respect to approval of the members are not applicable. The
application to the stock exchanges will be made within the prescribed timelines.
Deposits
Being a banking company, the disclosures relating to deposits as required under Rule
8(5)(v) & (vi) of the Companies (Accounts) Rules, 2014, read with Sections 73 and 74
of the Act, are not applicable to the Bank.
Change in the nature of business
During fiscal 2023, there has been no change in the nature of business of the Bank.
Material changes and commitments affecting the financial position of the Bank
There were no material changes and commitments affecting the financial position of the
Bank, between the end of the fiscal year of the Bank to which the financial statements
relate and up to the date of this report.
Subsidiaries, joint ventures and associates
As on 31 March, 2023, the Bank has nine unlisted subsidiary companies, two step down
subsidiary companies and one associate company:
Sr. no. |
Name of the subsidiary/ associate company |
Subsidiary/ associate |
Business activity |
% of shares held by the group |
1. |
Axis Asset Management Company Limited |
Subsidiary |
Managing investment portfolios of the scheme(s) launched by Axis
Mutual Fund, Axis Alternative Investment Fund- category II & III and portfolios under
portfolio management services. |
75% |
2. |
Axis Mutual Fund Trustee Limited |
Subsidiary |
Trustee for the mutual fund business. |
75% |
3. |
Axis Capital Limited |
Subsidiary |
Business of intermediation such as investment banking, capital market
advisory, private equity advisory, M&A advisory and institutional equities. |
100% |
4. |
Axis Finance Limited |
Subsidiary |
Non-banking financial company (NBFC) offering loans to corporates,
MSME's and retail customers. |
100% |
5. |
Axis Securities Limited |
Subsidiary |
Retail broking services. |
100% |
6. |
A. Treds Limited |
Subsidiary |
Facilitating financing of trade receivables. |
67% |
7. |
Axis Trustee Services Limited |
Subsidiary |
Trusteeship activities and agency & administration services. |
100% |
8. |
Freecharge Payment Technologies Private Limited |
Subsidiary |
Merchant acquiring services, payment aggregation services, payment
support services, and business correspondent to a bank/financial institution, distribution
of mutual funds. |
100% |
9. |
Axis Bank UK Limited |
Subsidiary |
Banking activities in the United Kingdom. |
100% |
10. |
Axis Capital USA, LLC, |
Step down subsidiary |
Services relating to equity capital market, stock broking to
institutional investors in USA. |
100% (held by Axis Capital Limited) |
11. |
Axis Pension Fund Management Limited (Incorporated on 17 May, 2022) |
Step down subsidiary |
Pension fund management business under the national pension system. |
47.27% |
12. |
Max Life Insurance Company Limited |
Associate |
Life insurance and long-term saving and protection products. |
12.99% |
As on 31 March, 2023, the Bank did not have any joint venture company.
The financial position and performance of each of the Bank's subsidiary companies is
given in the management discussion & analysis report, which forms part of this annual
report.
Consolidated financial statements
In accordance with the provisions of Section 129(3) of the Act, read with Rule 8 of the
Companies (Accounts) Rules, 2014, as amended, the Bank has prepared consolidated financial
statements, which forms part of this annual report. The statement in form AOC-1 containing
the salient features of the financial statements of the subsidiary companies and associate
company of the Bank, also forms part of this annual report.
In accordance with the third proviso to Section 136(1) of the Act, the annual report of
the Bank, containing standalone financial statements and the consolidated financial
statements and all other documents required to be attached thereto are available on the
website of the Bank at
https://www.axisbank.com/shareholders-corner/shareholders-information/annual-reports.
Further, in accordance with the fourth proviso to the said section, the audited
financial statements of each of the said subsidiary companies of the Bank are available on
the website of the Bank at https://www.axisbank.com/shareholders-corner/shareholders-
information/annual-reports. The said financial statements will be available for
inspection by the members of the Bank and trustees of debenture holders at the registered
office of the Bank during business hours on all working days except Saturdays, Sundays,
bank holidays and national holidays. Any member interested in obtaining a physical copy of
the said financial statements can send an email to the company secretary of the Bank on shareholders@axisbank.com.
Particulars of loans, guarantees and investments
Pursuant to Section 186(11) of the Act, the provisions of Section 186 of the Act,
except sub-section (1), do not apply to a loan made, guarantee given or security provided
by a banking company in the ordinary course of its business.
The particulars of investments made by the Bank are disclosed in schedule 8 of the
financial statements as per the applicable provisions of the Banking Regulation Act, 1949.
Corporate governance
The Bank is committed to achieving and adhering to the highest standards of corporate
governance and it constantly benchmarks itself with global best practices, in this regard.
The corporate governance framework of the Bank incorporates all the mandatory
requirements as prescribed in the SEBI Listing Regulations. The Bank has also adopted the
non-mandatory requirements as recommended in the SEBI Listing Regulations, as detailed in
the report on corporate governance.
The report on corporate governance for fiscal 2023 along with general shareholder
information forms part of this annual report. M. P. Chitale & Co., Chartered
Accountants (ICAI firm registration no. 101851W), joint statutory auditor of the Bank has
issued a certificate confirming the compliance with the provisions of Corporate Governance
by the Bank for the year ended 31 March, 2023, as stipulated in Regulations 17 to 27 and
clauses (b) to (i) of Regulation 46 (2) and paragraphs C, D and E of Schedule V to the
SEBI Listing Regulations, and the same is attached along with the report on corporate
governance.
Management's discussion and analysis report
The management's discussion and analysis report as stipulated under Regulation 34(2)(e)
of the SEBI Listing Regulations, forms part of this annual report.
Board of directors
Appointment/re-appointment of directors
During fiscal 2023, pursuant to the recommendation of the Nomination and Remuneration
Committee of Directors (NRC), the Board appointed/re-appointed the following directors:
1. Manoj Kohli was appointed as an Independent Director of the Bank on 17 June, 2022,
for a period of four years with effect from 17 June, 2022 upto 16 June, 2026 (both days
inclusive). The said appointment was approved by the members of the Bank at the 28th
AGM held on 29 July, 2022.
2. P.N. Prasad was appointed as an Independent Director of the Bank on 20 October,
2022, for a period of four years with effect from 20 October, 2022 upto 19 October, 2026
(both days inclusive). The said appointment was approved by the members of the Bank vide
postal ballot on 16 January, 2023.
3. CH SS Mallikarjunarao was appointed as an Independent Director of the Bank on 24
January, 2023, for a period of four years with effect from 1 February, 2023 upto 31
January, 2027 (both days inclusive). The said appointment was approved by the members of
the Bank vide postal ballot on 28 April, 2023.
Manoj Kohli, P. N. Prasad and CH SS Mallikarjunarao are not liable to retire by
rotation.
The Board has formed an opinion that Manoj Kohli, P. N. Prasad and CH SS
Mallikarjunarao have the integrity, expertise and requisite experience, which is
beneficial to the business interest of the Bank. Further, they are in compliance with
provisions of the Companies (Appointment and Qualification of Directors) Rules, 2014, with
respect to enrolling their name in the online databank of independent directors and
qualifying the online proficiency self-assessment test for independent directors.
Ashish Kotecha, Non-Executive (Nominee Director) of the Bank, is liable to retire at
ensuing AGM, and being eligible seeks re-appointment. Based on performance evaluation and
recommendation of the NRC, the Board recommends his re-appointment to the members of the
Bank.
The Board at its meeting held on 28 April, 2023, has appointed Subrat Mohanty as an
Executive Director of the Bank with effect from (i) 1 May, 2023 or (ii) the date of
approval of his appointment by RBI, whichever is later. His appointment is for a period of
three years from the effective date of his appointment and is subject to approval of the
members of the Bank and RBI. Subrat Mohanty would be liable to retire by rotation.
Resolutions in respect of re-appointment of Ashish Kotecha and appointment of Subrat
Mohanty, have been included in the notice convening the 29th AGM of the Bank.
RBI vide its letter dated 24 June, 2022 has approved the re-appointment of Rajiv Anand
as the Deputy Managing Director of the Bank, for a further period of three years, with
effect from 4 August, 2022 up to 3 August, 2025 (both days inclusive). Further, RBI vide
its letter dated 12 July, 2022 has approved the re-appointment of Rakesh Makhija as
Non-Executive (Part-Time) Chairman of the Bank, with effect from 18 July, 2022 up to 26
October, 2023 (both days inclusive).
Resignation/retirement of directors
1. S. Vishvanathan ceased to be an Independent Director of the Bank, with effect from
the close of business hours on 10 February, 2023, upon completion of the maximum
permissible tenure of eight continuous years, in terms of the provisions of Section
10A(2A) of the Banking Regulation Act, 1949.
2. Vasantha Govindan, ceased to be Non-Executive (Nominee Director) of the Bank with
effect from 27 March, 2023, upon withdrawal of her nomination by SUUTI.
The Board acknowledges the invaluable contributions rendered by S. Vishvanathan and
Vasantha Govindan during their tenure as directors and places on record its deep
appreciation for their guidance as members of the Board.
Key managerial personnel
Amitabh Chaudhry, Managing Director & CEO, Rajiv Anand, Deputy Managing Director,
Puneet Sharma, Group Executive & Chief Financial Officer and Sandeep Poddar, Senior
Vice President II & Company Secretary are the key managerial personnel of the Bank, in
terms of Section 203(1) read with Section 2(51) of the Act and Rule 8 of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014.
There has been no change in the key managerial personnel of the Bank during the fiscal
year under review.
Selection and appointment of directors
The selection and appointment of directors of the Bank is done in accordance with the
applicable provisions of the Act, rules made thereunder, the Banking Regulation Act, 1949,
the guidelines issued by the RBI and the relevant provisions of the SEBI Listing
Regulations. The Bank has formulated and adopted various policies with respect to
selection and appointment of directors i.e. succession planning policy for the Board and
key officials of the Bank, policy on fit and proper criteria for directors of the Bank,
Board diversity policy and policy on training of directors, the details of which are
provided in report on corporate governance, which forms part of this annual report.
Declaration of independence
All the independent directors of the Bank have confirmed that they meet the criteria
prescribed for independence under the provisions of Section 149(6) of the Act and
Regulation 16(l)(b) of the SEBI Listing Regulations.
The Board has assessed the veracity of the confirmations submitted by the independent
directors and thereafter has taken the same on record.
In the opinion of the Board, all the independent directors are independent of the
management.
Board performance evaluation
The Act and the SEBI Listing Regulations relating to corporate governance provides for
evaluation of the performance of the Board, its committees, individual directors and the
chairperson of a company.
The Bank has institutionalised the board performance evaluation process. The NRC is the
nodal agency for conducting the said performance evaluation. The NRC annually reviews and
approves the criteria and the mechanism for carrying out the exercise effectively.
The methodology used for the annual board performance evaluation, the outcome, progress
made over last fiscal year and the proposed actions for implementation during fiscal 2024,
are provided in the report on corporate governance, which forms part of this annual
report.
Directors' responsibility statement
In terms of Section 134(3)(c) of the Act, the directors hereby state that:
a) the applicable accounting standards have been followed in the preparation of the
annual accounts for the fiscal 2023.
b) accounting policies have been selected and applied consistently, and judgments and
estimates made are reasonable and prudent so as to give a true and fair view of the state
of affairs of the Bank as at 31 March, 2023 and of the profit of the Bank for the fiscal
year ended on that date.
c) proper and sufficient care has been taken for maintenance of adequate accounting
records in accordance with the provisions of the Act for safeguarding the assets of the
Bank and for preventing and detecting fraud and other irregularities.
d) the annual accounts have been prepared on a going concern basis.
e) adequate internal financial controls for the Bank to follow, have been laid down and
these are operating effectively.
f) proper and adequate systems have been devised to ensure compliance with the
provisions of all applicable laws and these systems are operating effectively.
Meetings of the Board/committees
The schedule in respect of the meetings of the Board/committees, to be held during the
next fiscal year is circulated in advance to all the members of the Board.
During fiscal 2023, nine meetings of the Board were held. Details of board meetings is
provided in the report on corporate governance, which forms part of this annual report.
Audit Committee of Board
The composition, role and functions of ACB, is provided in the report on corporate
governance, which forms part of this annual report.
During fiscal 2023, the Board has accepted all the recommendations made by the ACB.
Related party transactions
During fiscal 2023, all the related party transactions were entered into in the
ordinary course of the business of the Bank and on an arm's length basis. Accordingly,
during the fiscal year, no transaction falling under the scope of Section 188(1) of the
Act was entered into. Hence, form AOC-2 is not applicable to the Bank.
The details of related party transactions are provided in the note number 4.5 of
schedule 18 to the standalone financial statements and in the note number 3.8 of schedule
18 to the consolidated financial statements.
Whistle blower policy and vigil mechanism
The Bank has formulated and adopted a whistle blower policy and vigil mechanism,
details of which have been provided in the report on corporate governance, which forms
part of this annual report.
Maintenance of cost records
Being a banking company, provisions of Section 148(1) of the Act, relating to
maintenance of cost records is not applicable to the Bank.
Adequacy of internal financial controls related to financial statements
The Bank has put in place adequate internal financial controls with reference to its
financial statements. These controls ensure the accuracy and completeness of the
accounting records and the preparation of reliable financial statements.
Plan and status of Ind AS implementation
The RBI had issued a circular in February 2016 requiring banks to implement Indian
accounting standards (Ind AS) and prepare standalone and consolidated Ind AS financial
statements with effect from 1 April, 2018. Banks were also required to report the
comparative financial statements for fiscal 2018, to be published along with the financial
statement for the fiscal year beginning 1 April, 2018. However, the RBI in its press
release issued on 5 April, 2018 deferred the applicability of Ind AS by one year (i.e. 1
April, 2019) for scheduled commercial banks. Further, RBI in a circular issued on 22
March, 2019 has deferred the implementation of Ind AS till further notice.
During fiscal 2017, the Bank had undertaken a preliminary diagnostic analysis of the
GAAP differences between Indian GAAP vis-a-vis Ind AS. The Bank has also identified and
evaluated data gaps, processes and system changes required to implement Ind AS. The Bank
is in the process of implementing necessary changes in its IT systems wherever required
and other processes in a phased manner. The Bank is also submitting proforma Ind AS
financial statements to RBI on a half-yearly basis.
In line with the RBI guidelines on Ind AS implementation, the Bank has constituted a
Steering Committee comprising members from the concerned functional areas, headed by the
Deputy Managing Director of the Bank. A progress report on the status of Ind AS
implementation in the Bank is presented to the ACB and the Board on a quarterly basis.
Remuneration policy
The Bank has formulated and adopted a remuneration policy for its non-executive
chairman and non-executive directors and a remuneration policy for its managing director
& CEO, whole-time directors, material risk takers, control function staff and other
employees (policies), in terms of the relevant provisions of Section 178 of the Act, the
relevant rules made thereunder, the SEBI Listing Regulations and guidelines/circulars
issued by the RBI.
The details of the said policies have been provided in the report on corporate
governance, which forms part of this annual report. The said policies are available on the
website of the Bank at https://www.axisbank.com/shareholders-corner/corporate-
governance in terms of the SEBI Listing Regulations.
Share based employee benefits
Axis Bank employee stock option scheme, 2000-01
The Bank has formulated and adopted Axis Bank employee stock option scheme, 2000-01
(ESOS) for the eligible employees of the Bank and that of its subsidiary companies, in
terms of the regulations/guidelines issued by the Securities and Exchange Board of India
(SEBI).
The members of the Bank vide postal ballot on 16 January, 2023 have approved certain
amendment to ESOS in order to extend the benefits of ESOS to all eligible employees of the
present/future associate companies. These amendments are not prejudicial to the interests
of the employees.
Axis Bank employees stock unit scheme, 2022
In order to act as a retention mechanism, usher in an 'owner-manager' culture, align
the interest of the key executives/employees with that of the members in driving long-term
value creation for the Bank, achieve greater synergy between the Bank and its subsidiary
and associate companies and enable employees to participate in the long-term growth and
the Bank's financial success, the Bank has formulated and adopted Axis Bank employees
stock unit scheme, 2022 (ESUS) for eligible employees of the Bank/its subsidiaries and
associates in terms of the regulations/guidelines issued by the SEBI, which was approved
by the members of the Bank vide postal ballot on 16 January, 2023.
The aforesaid ESOS and ESUS are in compliance with the SEBI (Share Based Employee
Benefits and Sweat Equity) Regulations, 2021 (SEBI (SBEB and SE) Regulations 2021). A
certificate from the secretarial auditor of the Bank that the ESOS and ESUS have been
implemented in accordance with the SEBI Regulations and in accordance with the resolutions
passed by the members of the Bank, will be placed at the 29th AGM of the Bank.
Disclosure as mandated under the provisions of Regulation 14 of the SEBI (SBEB and SE)
Regulations 2021, is available on the website of the Bank at
https://www.axisbank.com/shareholders-corner/corporate-governance/compliance-report .
Particulars of employees
The information required pursuant to Section 197 read with Rule 5(1) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, in respect
of directors/employees of the Bank, is attached as Annexure 1 to this report.
In terms of Section 197(12) of the Act, read with Rule 5(2) and 5(3) of the Companies
(Appointment and Remuneration of Managerial Personnel) Rules, 2014, a statement showing
the names and other particulars of the employees drawing remuneration in excess of limits
set out in said rules forms part of this annual report.
In accordance with the provisions of Section 136(1) of the Act, the annual report
excluding the aforesaid information, is being sent to the members of the Bank and others
entitled thereto. The said information is available for inspection by the members at the
registered office of the Bank during business hours of the Bank up to the date of the
ensuing AGM.
Any member interested in obtaining a copy thereof, may write to the company secretary
of the Bank at its registered office or at shareholders@axisbank.com.
Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition
and Redressal) Act, 2013
The Bank has formulated and adopted a policy on prevention of sexual harassment of
women at workplace. The Bank has complied with the provisions relating to the constitution
of internal committee under the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. The information relating to complaints received and
redressed during fiscal 2023 is provided in the report on corporate governance, which
forms part of this annual report.
Statutory auditors
M.R. Chitale & Co., Chartered Accountants (ICAI firm registration no. 101851W) and
CNK & Associates LLP, Chartered Accountants (ICAI firm registration no.
101961WI/W100036) were appointed as the joint statutory auditors of the Bank at the 27th
AGM, to hold office from the conclusion of the 27th AGM until the conclusion of
the 30th AGM, on such terms and conditions, including remuneration, as may be
approved by the ACB, subject to the approval of the RBI every fiscal year.
In accordance with the RBI guidelines, the Bank has framed a policy on appointment of
statutory auditors and has also identified internal set of evaluation criteria for
assessing the goodness of fit in terms of experience and eligibility for the audit firms
including auditor independence.
There are no qualifications, reservations, adverse remarks or disclaimer made by M.R.
Chitale & Co., Chartered Accountants, and CNK & Associates LLP, Chartered
Accountants, in the statutory auditors report.
Secretarial auditor
Pursuant to the provisions of Section 204 of the Act and the relevant provisions of the
Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Bank had
appointed Bhandari & Associates, company secretaries, as the secretarial auditor of
the Bank, for fiscal 2023.
The secretarial audit of the Bank was conducted in respect of the matters prescribed in
the said rules and set out in the secretarial audit report, for fiscal 2023, attached as Annexure
2 to this report. There are no qualifications, reservations, adverse remarks or
disclaimers made by the secretarial auditor of the Bank, in its report.
In terms of SEBI circular no CIRICFDICMDl/2712019 dated 8 February, 2019, relating to
annual secretarial compliance report, the Bank had appointed Bhandari & Associates,
company secretaries, for issuing the aforesaid report for fiscal 2023. The Bank will
submit the annual secretarial compliance report to the stock exchanges within the
prescribed time.
Certificate from a company secretary in practice
In terms of Regulation 34(3) read with Schedule V of the SEBI Listing Regulations, the
Bank has obtained a certificate from Bhandari & Associates, company secretaries,
confirming that none of the directors on the Board of the Bank have been debarred or
disqualified from being appointed or continuing as directors of the companies either by
the SEBI or the MCA or any other statutory/ regulatory authorities. The said certificate
is attached as Annexure 3 to this report.
Reporting of frauds by auditors
During fiscal 2023, pursuant to Section 143(12) of the Act, neither the statutory
auditors nor the secretarial auditor of the Bank have reported any instances of frauds
committed in the Bank by its officers or its employees.
Secretarial standards
The Bank is in compliance with the secretarial standards on meetings of the board of
directors (SS-1) and the secretarial standards on general meetings (SS-2) issued by the
Institute of Company Secretaries of India (ICSI). The Bank has also voluntarily adopted
the recommendatory secretarial standard on dividend (SS-3) and secretarial standard on
report of the board of directors (SS-4) issued by the ICSI.
Risk management
Pursuant to Regulation 21 of the SEBI Listing Regulations, the Bank has constituted a
Risk Management Committee. The details of the said committee and its terms of reference
are set out in the report on corporate governance, which forms part of this annual report.
The Bank has formulated and adopted a robust risk management framework. Whilst the
Board is responsible for framing, implementing and monitoring the risk management
framework, it has delegated its powers relating to monitoring and reviewing of risks
associated with the business of the Bank to the said committee. The details of the risk
management framework and issues related thereto have been disclosed in the management's
discussion and analysis report, which forms part of this annual report.
Corporate social responsibility
The Bank has been formally undertaking corporate social responsibility (CSR) activities
since 2006, through Axis Bank Foundation (ABF). With the introduction of Section 135 of
the Act making CSR mandatory, the Bank expanded its spectrum of activities to undertake
interventions across India in identified themes, directly, through ABF and through other
credible implementation partners.
Pursuant to the provisions of Section 135 of the Act, read with the Companies
(Corporate Social Responsibility Policy) Rules, 2014 (CSR Rules), as amended, the Bank has
constituted the CSR Committee of the Board.
The Bank has formulated and adopted a CSR policy which provides the focus areas (in
accordance with Schedule VII of the Act) under which various developmental initiatives are
undertaken.
The composition of the CSR Committee, CSR policy and projects/programs approved by the
Board are available on the website of the Bank at
https://www.axisbank.com/csr/social-responsibilitv .
The annual report on CSR activities and details of amount spent or unspent by the Bank
during fiscal 2023, in accordance with the CSR Rules, is attached as Annexure 4 to
this report.
Business responsibility and sustainability report
In terms of Regulation 34(2)(f) of the SEBI Listing Regulations, top 1,000 listed
entities based on their market capitalisation as on 31 March, every fiscal year, were
required to submit business responsibility report (BRR), as part of their annual report.
In November 2018, the MCA constituted a committee to revise the national voluntary
guidelines (NVG) on which the BRR was based. These guidelines were subsequently revised
and released as the national guidelines on responsible business conduct (NGRBC) in 2019.
Further, the BRR was aligned to the NGRBC and renamed and released as the business
responsibility and sustainability report (BRSR) in 2020.
In terms of Regulation 34(2)(f) of the SEBI Listing Regulations, SEBI, vide its
circular dated 10 May, 2021, made BRSR mandatory for the top 1,000 listed companies (by
market capitalization) from fiscal 2023, to be submitted as a part of their annual report.
The Bank's BRSR for fiscal 2023 forms part of this annual report.
Significant and material order passed by regulators or courts or tribunals impacting
the going concern status and future operations of the Bank
During fiscal 2023, no significant and/or material order was passed by any regulator,
court or tribunal against the Bank, which could impact its going concern status or future
operations.
Conservation of energy & technology absorption, foreign exchange earnings and outgo
The particulars as prescribed under Section 134(3)(m) of the Act, read with Rule 8(3)
of the Companies (Accounts) Rules, 2014 is attached as Annexure 5 to this report.
Annual return
The annual return in Form MGT-7, as mandated under the provisions of Section 92(3) read
with Section 134(3) of the Act, has been uploaded on the website of the Bank and is
available at https://www.axisbank.com/shareholders-corner/shareholders-
information/annual-return.
Acknowledgements and appreciations
The Board places on record its gratitude to the RBI, MCA, SEBI, other statutory and
regulatory authorities, financial institutions, stock exchanges, registrar and share
transfer agent, debenture trustees, depositories and correspondent banks for their
continued support and guidance.
The Board also places on record its appreciation to its valued customers for their
continued patronage and to the members of the Bank for their continued support.
The Board also expresses its heartfelt thanks and gratitude to each employee and their
families for their continued commitment towards the Bank and its customers, who by
demonstrating strong work ethics, professionalism, teamwork and initiatives helped the
Bank continue to serve its depositors and customers and reinforce its customer centric
image despite the challenging environment.
|
For and on behalf of the Board of Directors |
Place: Mumbai |
Rakesh Makhija |
Date: 28 April, 2023 |
Chairman |
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