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Axis Bank Ltd

BSE Code : 532215 | NSE Symbol : AXISBANK | ISIN:INE238A01034| SECTOR: - |

NSE BSE
 
SMC up arrow

415.05

12.60 (3.13%) Volume 280564

25-Sep-2020 EOD

Prev. Close

402.45

Open Price

407.50

Bid Price (QTY)

0.00(0)

Offer Price (QTY)

415.05(2459)

 

Today’s High/Low 416.70 - 400.15

52 wk High/Low 765.85 - 286.00

Key Stats

MARKET CAP (RS CR) 126980.38
P/E 92.83
BOOK VALUE (RS) 313.943363
DIV (%) 0
MARKET LOT 1
EPS (TTM) 4.47
PRICE/BOOK 1.32173522011994
DIV YIELD.(%) 0
FACE VALUE (RS) 2
DELIVERABLES (%) 26.57
4

News & Announcements

22-Sep-2020

Axis Bank allots 1200 equity shares under ESOP

22-Sep-2020

Axis Bank Ltd - Axis Bank Limited - ESOP/ESOS/ESPS

21-Sep-2020

Axis Bank Ltd - Axis Bank Limited - Analysts/Institutional Investor Meet/Con. Call Updates

20-Sep-2020

Axis Bank Ltd - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Outcome

22-Sep-2020

Axis Bank allots 1200 equity shares under ESOP

15-Sep-2020

Axis Bank allots 13,500 equity shares under ESOP

14-Sep-2020

Axis Bank announces cessation of director

08-Sep-2020

Axis Bank allots 8,900 equity shares under ESOP

Corporate Actions

Bonus
Splits
Dividends
Rights
Capital Structure
Book Closure
Board Meeting
AGM
EGM
 

Financials

Income Statement

Standalone
Consolidated
 

Peers Comparsion

Select Company Name BSE Code NSE Symbol
AU Small Finance Bank Ltd 540611 AUBANK
Bandhan Bank Ltd 541153 BANDHANBNK
Bank of Madura Ltd (Merged) 531966 BANKMADURA
Bank of Punjab Ltd(merged) 500070 BANKPUNJAB
Bank of Rajasthan Ltd(merged) 500019 BANKRAJAS
Centurion Bank of Punjab Ltd(merged) 532273 CENTBOP
City Union Bank Ltd 532210 CUB
CSB Bank Ltd 542867 CSBBANK
DCB Bank Ltd 532772 DCBBANK
Dhanlaxmi Bank Ltd 532180 DHANBANK
Federal Bank Ltd 500469 FEDERALBNK
Global Trust Bank Ltd (Merged) 500161 GLOBLTRUST
HDFC Bank Ltd 500180 HDFCBANK
ICICI Bank Ltd 532174 ICICIBANK
IDBI Bank Ltd(merged) 532235 IDBIBANK
IDBI Bank Ltd 500116 IDBI
IDFC First Bank Ltd 539437 IDFCFIRSTB
IndusInd Bank Ltd 532187 INDUSINDBK
ING Vysya Bank Ltd(Merged) 531807 INGVYSYABK
Jammu and Kashmir Bank Ltd 532209 J&KBANK
Karnataka Bank Ltd 532652 KTKBANK
Karur Vysya Bank Ltd 590003 KARURVYSYA
Kotak Mahindra Bank Ltd 500247 KOTAKBANK
Lakshmi Vilas Bank Ltd 534690 LAKSHVILAS
Nedungadi Bank Ltd (Merged) 511264 NEDUNGBANK
RBL Bank Ltd 540065 RBLBANK
South Indian Bank Ltd 532218 SOUTHBANK
Standard Chartered PLC 580001 STAN
Times Bank Ltd (merged) 532252 TIMESBANK
Ujjivan Small Finance Bank Ltd 542904 UJJIVANSFB
United Western Bank Ltd(merged) 500430 UNIWESTBNK
Yes Bank Ltd 532648 YESBANK

Share Holding

Category No. of shares Percentage
Total Foreign 1654094664 54.06
Total Institutions 718504454 23.48
Total Govt Holding 0 0.00
Total Non Promoter Corporate Holding 34240304 1.12
Total Promoters 442776936 14.47
Total Public & others 210449676 6.88
Total 3060066034 100
  • Total Foreign
  • Total Institutions
  • Total Govt Holding
  • Total Non Promoter Corporate Holding
  • Total Promoters
  • Total Public & others

About Axis Bank Ltd

Axis Bank is the third largest private sector bank in 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's registered office is located at Ahmedabad and their Central Office is located at Mumbai. With 3,485 domestic branches (including extension counters) and 14,332 ATMs across the country as on 30 September 2017, 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.

Axis Bank Ltd Chairman Speech

TOUCHING AND TRANSFORMING LIVES

Dear Shareholders,

As we complete our 25th year of operations, I feel honoured and proud to lead the Bank - a neighbourhood bank striving to serve a billion lives everyday in a meaningful and humane manner. Trust and customer centricity have always been the hallmark of the Bank's association with its customers.

The Bank has over these years stood by customers as a reliable friend in need - by not only being approachable and available at all times, but also helping them to meet their needs and life aspirations. I would like to thank all my predecessors over the years - Ms. Shikha Sharma, Dr. P. J. Nayak and Mr. Supriya Gupta, for their vision and contribution towards building this great institution.

It is the same feeling of warmth and friendliness that is reflected in the Bank's culture; and was one of the first things that struck me when I joined the Bank six months ago. I believe that our culture is one of the biggest unsung strengths of Axis Bank. This has been one of the key driving forces for us to build a great institution and ensure that we survive tough times.

Over the last decade, the Bank has gone from strength to strength, and in addition built a lot of hidden gems among its businesses. Let me spell out some of them. The Bank has an extremely Strong Current Account and savings account (CASA) deposits franchise and has grown its loan book over five times in the last ten years to '494,798 crores. Amongst the private sector banks, we currently have the third largest branch network and the highest number of ATM machines in the country.

In the credit cards business, where we were not present some ten years back, we are now a strong number four player and have been growing at a much faster pace than the industry leaders in the last five years. We have the country's third largest merchant acquiring business. In mobile banking, we feature amongst the top players in terms of innovation. We are the largest issuer of foreign exchange cards in the country and are a number three player on the UPI side of the business.

On the Wholesale Banking side, we have built deep relationships across the spectrum with corporates, Small and Medium Enterprises (SMEs) and government clients. Our SME business has been built into an enviable franchise with extremely healthy metrics. We have one of the largest franchises amongst the private banks in dealing with the government and its various arms. The Bank continues to remain at the top of the leader board in the Debt Capital Market segment for the last thirteen years.

Similar achievements can also be witnessed for the Bank's subsidiaries, even though we started our innings later than many of our peers. As a group, we are engaged in businesses that are contiguous to banking, such as nonbanking finance, retail broking, asset management, and institutional equities and investment banking. Axis Asset Management Company set up in 2009 is now among the top ten mutual fund houses in India. Our broking business,

Axis Direct, established in 2011, currently ranks amongst the top three players in terms of active client base. Axis Capital continues to remain one of the best equity capital market franchises in the country. Axis Finance is one of the fastest growing Non-Banking Financial Companies (NBFCs) with some of the best returns in the industry. Axis is the only Bank with two Fintech companies as subsidiaries, one in the payments space and the other in the digital invoice discounting space. All these businesses complement the parent Bank's strategy and allow us to offer our customers a comprehensive offering under the umbrella of 'One Axis'.

However, I must also acknowledge that in the recent years, the Bank has faced some headwinds, especially on the asset quality front due to corporate slippages.

The Bank's strategic bet on project lending to infrastructure sectors like steel and power in the 2010-12 period turned out to be its Achilles' heel. There was also an increase in operational risks in recent years. Though we have done exceedingly well in some segments, we have not executed well on all fronts consistently. We are not yet out of the woods, but we are cautiously optimistic about the future. We need to learn from the mistakes of the past and ensure that they are never repeated again. We realise changing ourselves will be arduous and time consuming but we also strongly believe we are ready for the battle ahead and have the team in place to overcome any odds.

Over the last six months, I have spent time extensively with the various business units across the Bank. I have also met many of our large corporate customers. Based on these interactions, I do believe there is lot of potential for us to grow and be among the top few players in each of our business segments and aspire for larger market share.

I am pleased to state that we have taken some strong and positive strides towards defining our priorities, the goals that we want to accomplish and how we will get there. We intend to get our winning mind-set back, re-claim our growth momentum and get our fair share of business from our customers. We also want to strengthen our core technology platform and improve our execution.

To achieve these, we came out with an Execution Strategy 2022 for the Bank earlier this calendar year. The strategy pivots around delivery of three important vectors - Growth, Profitability and Sustainability.

At the same time, we have embarked and made rapid progress on the 'One Axis' ideology for the Bank and its subsidiaries which, focusses on projecting the Bank's various businesses and subsidiaries together as 'One' that can offer a comprehensive suite of products, services and solutions to the customer. The focus for our subsidiaries would be to attain size and scale, for which we would continue to invest in them over the next few years.

As we embark on achieving the goals set in our 2022 vision, the strategic direction of 'One Axis' will serve as a bedrock to drive brand synergies across the Bank and all its subsidiaries. We will start by delivering a consistent brand identity across our branches, subsidiaries and all our digital touchpoints. Over the next few months, the messaging across our products and our verticals will also align with the above strategic direction so that we create a force multiplier effect for the brand. More importantly, we are an industry built on the foundation of trust and one of the best ways to improve trust is to come across as consistent and unified in our language and approach to our customers.

We now have the entire senior management team in place to execute the strategy and convert our aspirations into reality over the next three years. We have reoriented the organisational structure that would enable us to streamline and simplify our functioning and bring in greater accountability, productivity and efficiencies. We have also made considerable progress in building cost consciousness across the Bank, and expect to improve our cost efficiency over the next few years.

We have incorporated the learnings from the last credit cycle to improve our policies and processes. We have raised the bar further for the credit filters applicable to new credit proposals and strengthened our early warning systems. As a Bank, we are looking to move towards a more conservative view on provisioning, compliance and risk. In retail, our provisioning norms are more conservative than the RBI prescribed norms. On the wholesale side, we are increasing the level of provisions we hold against some weak, yet standard stressed assets.

Moving on to financial performance, the profitability and the asset quality metrics for the Bank in fiscal year 2019 improved materially after having witnessed two consecutive challenging years. The Axis franchise delivered healthy operating performance with core operating revenue growth of 21% and moderation in operating expenses growth. The Bank continues to have a strong balance sheet with one of the best provision coverage and capital adequacy ratios of 77% and 15.84%, respectively. Our subsidiaries had another good year as they continued to gain scale and market share in their respective segments.

On the wholesale side of our business, we have been focussing on portfolio diversification, reduction in concentration to select sectors and project loans and have further increased our focus on transaction banking and working capital business. The performance of the corporate segment in fiscal 2019 improved as compared to the past few years with steady decline in the low rated 'BB & below' outstanding pool, significant decline in corporate slippages and stabilisation of corporate credit linked fees.

We have reoriented the wholesale segment. The credit underwriting function has been taken out from the businesses and has been made an independent function. Product specialists and business relationship responsibilities have also been segregated to ensure sharper focus on client coverage and product groups. We follow a risk adjusted return philosophy in the wholesale bank and would focus on growing our midcorporate and commercial banking book. In the commercial banking segment, we are focussing on building a relationship based model with SME and current account business customers to drive growth across both assets and liabilities.

The Bank's retail franchise continues to remain robust with a healthy growth in loans, fees and retail deposits. Axis continues to remain a strong customer centric bank and has shifted its deposit strategy to focus on getting higher CASA plus retail term deposits from earlier focus on CASA. During the year, we added 347 branches to take our domestic branch distribution network to 4,050 branches. For us, branch banking continues to be an integral part of our growth strategy. The role of branches in deposit mobilisation from new customers drives the Bank's acquisition strategy across products and provides customer service and builds trust. However, the branch formats continue to get smaller with enhanced productivity led by automation and digitisation of service operations.

Our wealth management business, Burgundy with assets under management of over '132,702 crores, has done exceedingly well over the last few years and now features amongst the top wealth management businesses in the country.

We intend to expand the franchise and build a leadership position in the space.

The Bank's ability to innovate and offer right product proposition to its customers has helped the retail loan book to grow over five times in the last ten years to reach '245,812 crores, with a 50% share in total advances. We have achieved significant diversification within our retail portfolio mix with a strong risk management architecture that has ensured that our asset quality in retail has been much better than peer average. The Bank has always been ahead of the curve in terms of building its digital capabilities and has made significant investments in technology and digital analytics to underwrite, manage risk outcomes and optimise costs. During the year, the Bank increasingly started offering pre-approved loans and stepped up the pace of digital lending. The contribution of digital lending in personal loans increased to 43% from 22% in the last one year.

Axis Bank continues to remain committed towards promoting a less-cash, digital economy and enjoys strong market position across most digital payments spaces in India. The Bank continues to engage in partnership driven innovations to provide its customers with a differentiated payments experience and drive the Digital India mission. During the year, the Bank's Kochi1 Card became the country's first inter-modal transit card while the Raipur Smart Card project was also initiated to offer digital payment solutions to the citizens of Raipur. The Bank also launched 'Axis Tap & Pay', a mobile application for making contactless payment at merchant terminals, as well as India's first of its kind in-home 'Smart bill pay' initiative that allows users to pay their utility bills by scanning a QR code.

The Bank has traditionally used Savings Accounts as a product to start its relationship with customers and then build on it by cross-selling other products and services. Though that has not changed substantially over the last ten years, we are increasingly looking beyond deposit base for customers. We are now looking to leverage other platform businesses of the Group for cross-sell opportunities.

We plan to invest significantly in setting up a Digital Bank. Our idea here is to have a full team with all the requisite banking as well as digital expertise and skill sets required to rethink traditional banking processes. It will start afresh, end-to-end customer journeys, which will be completely digital. This will, however, take time to fructify and we will share our progress over the coming years.

The Bank continues to invest in enhancing employee capabilities and provides career development opportunities to its employees. We have made sure that the communication on GPS strategy and vision of creating 'One Axis' is consistent within the internal organisation as well, and that everybody in the Bank knows what they have to do. The organisation structure and the KPIs have been re-aligned to ensure direct accountability, greater differentiation and focus on developing relationship-based long-term business model instead of focussing on shorter term targets.

During the year, the Bank revamped its internal job posting process to allow internal talent to take on leadership positions based on their merit irrespective of age and tenure. The Bank also launched an internal portal to allow employees to seek careers across departments and subsidiaries within the Axis Group.

Axis Bank has always believed that its long-term success depends on the progress of communities and the people we serve. The Bank continues to play an active part in extending credit to the economically active but under-banked rural population, particularly women, through its retail microfinance initiative 'Axis Sahyog'. Axis Bank Foundation, in its 13th year of operations, continues to work towards providing sustainable livelihoods and creating value for the target communities through its various integrated rural skill development and educational programmes.

During the year, 'Axis Dil Se' - the Bank's CSR initiative in partnership with 17000 ft Foundation, 108 schools in Leh and Kargil districts of Ladakh were adopted by 20 senior Axis Bank leaders for a period of three years - completed its second phase. Under this initiative, the Bank installed 'Digi Labs' in schools, which enabled access to the digitised curriculum both for the students and the teachers. Also during the year, the Bank played an active role in providing disaster relief to over 400 flood affected families in four regions in Kerala.

The Bank won the 'Excellence' certificate in Corporate Social Responsibility category at the prestigious CII ITC Sustainability Awards 2018 and was included in the prestigious FTSE4Good Emerging Index for the second consecutive year in 2018 in recognition of its Environmental, Social and Governance (ESG) practices.

In recent years, driven in part by some unexpected negative surprises at the Bank, we have dented the trust of investors. We need to win it back. The only way to win

it back is to have a business model, which sustains and generates credible financial outcomes quarter after quarter over a long period of time. Our aspiration is to deliver around 18% Return On Equity (ROE) on a sustainable basis. The reduction in credit cost to below our long-term averages, portfolio choices driven by a risk-adjusted returns framework and improvement in operational efficiency would be the key drivers for RoE improvement over the next three years. Though it seems a tall order, the Bank has delivered ROEs in excess of 18% few years back and hence we aspire to do it again - on a sustainable and consistent basis.

India continues to be a fast-growing economy with significant opportunities and possibilities. From the perspective of the financial industry as a whole, the liquidity issues faced by some of the nonbanking financial companies and housing finance companies over the last year can create some friction going ahead, but it presents opportunities for banks. The banking industry has seen return of credit growth and pricing power on account of shift in credit demand from NBFCs and bond markets back to banks. Banks with a healthy capital position, NBFCs with a robust parentage and financial intermediaries with significant market share are well placed to grow profitably, at a faster pace than their peers in their respective industries. In this context, 'One Axis' franchise with its presence across business segments is uniquely positioned to leverage this opportunity and grow at a faster pace. Great product mix, vast physical footprint, cutting-edge digital capabilities, robust corporate governance practices and one of the most valuable brands in India - all these combined open many possibilities for the Axis franchise in the near future.

I believe that Axis Bank is a great franchise with great culture and great set of people.

If we execute well, we have the potential to improve our market share rankings without sacrificing anything whatsoever on our credit and risk management practices. While delivery of growth and profitability is important, sustainability forms the foundation of the Bank's strategy. We want to build sustainability in our business performance and operations with disciplined execution and conservatism at the core. However, one thing that still concerns me is the level of control and confidence we have on operational risk parameters. Any large bank will have a vast number of systems and processes and to reach the level of efficiency, control and monitoring that we have in mind will take time, but we are at it relentlessly everyday, improving bit by bit. We also need to ensure that the quality of our wholesale book improves materially over the next few years. We cannot afford to repeat what we went through in the last few years. That would also require a change in how we think about risk and how we proactively manage it. Another area of work would be the tone from top on compliance. We cannot compromise on doing things right and doing them right all the time, even at the cost of losing business. We need to do a better job of saying no to businesses and deals.

I would like to take this opportunity to thank my colleagues for believing in Axis and the vision of the Bank. I am also deeply grateful to all the customers and shareholders for standing by us and showing their faith in us all these years.

Warm Regards,

Amitabh Chaudhry

MD & CEO

   

Axis Bank Ltd Company History

Axis Bank is the third largest private sector bank in 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's registered office is located at Ahmedabad and their Central Office is located at Mumbai. With 3,485 domestic branches (including extension counters) and 14,332 ATMs across the country as on 30 September 2017, 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.

Axis Bank Ltd Directors Reports

The Board of Directors of the Bank (the Board) have the pleasure of presenting the 26th Annual Report of the Bank together with the Audited Statement of Accounts, Auditors' Report and the Report on the business +

`and operations of the Bank, for the financial year ended 31st March 2020.

Financial Performance and the State of the Bank'sAffairs:

The financial highlights for the year under review, are presented below:

Particulars

2019-20

2018-19 Growth
Deposits 640,105 548,471 17%
Savings Bank Deposits 173,592 154,129 13%
Current Account Deposits 90,114 89,265 1%
Advances 571,424 494,798 15%
Retail Advances 305,400 245,812 24%
Non-retail Advances 266,024 248,986 7%
Total Assets/Liabilities 915,165 800,997 14%
Net Interest Income 25,206 21,708 16%
Other Income 15,537 13,130 18%
Fee Income 11,019 10,127 9%
Trading Profit111 2,420 971 149%
Misc. Income 2,098 2,032 3%
Operating Expenses 17,305 15,833 9%
Operating Profit 23,438 19,005 23%
Provision for Tax 3,277 2,297 43%
Other Provisions and Write offs 18,534 12,031 54%
Net Profit 1,627 4,677 (65%)
Balance in Profit and Loss account brought forward from previous year 24,323 23,043
AmountAvailable ForAppropriation 25,950 27,720
Appropriations
Transfer to Statutory Reserve 407 1,169
Transfer (from)/to Investment Reserve - (103)
Transfer to Capital Reserve 341 125
Transfer to Reserve Fund 1 1
Dividend paid (includes tax on dividend) 289 -
Transfer to Investment Fluctuation Reserve 328 600
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(1) Excluding Merchant Exchange Profit

Key Performance Indicators

Key Performance Indicators

2019-20

2018-19
Interest Income as a percentage of working funds* 7.56% 7.38%
Non-interest Income as a percentage of working funds* 1.87% 1.76%
Net Interest Margin 3.51% 3.43%
Return on Average Net Worth 2.34% 8.09%
Operating Profit as a percentage of working funds* 2.83% 2.55%
Return on Average Assets 0.20% 0.63%
Profit per Employee** ' 2.40 lakhs ' 7.61 lakhs
Business (Deposits less inter-bank deposits + Advances) per employee** ' 17.27 crores ' 16.53 crores
Net non-performing assets as a percentage of net customer assets*** 1.56% 2.06%

* Working funds represent average total assets.

** Productivity ratios are based on average number of employees for the year. *** Customer assets include advances and credit substitutes.

Previous year figures have been re-grouped wherever necessary

Covid-19 Pandemic

The Bank has undertaken proactive steps right from the inception of the COVID - 19 Pandemic crisis. The framework of proactive action has been focused on reducing the heightened risks arising out of the COVID - 19 Pandemic, across all facets of risks impacting the business, safety of staff and business continuity from operational risk, likely impact on asset quality from credit risk, trading risk due to sharp change in underlying risk factors in the investment book, liquidity pressure owing to change in the perception of borrower on cash flows as well as deposit withdrawals, owing to disruptions under civic lockdown etc.

The actions have been taken on the following five fronts:

i. Protecting people - issuing and implementing advisories around staff health, hygiene in office premises, quarantine and social distancing etc.

ii. Ensuring continuity - testing and deploying business continuity plans, including driving and scaling up work-from- home initiative.

iii. Protecting operations - puffing in place additional controls and monitoring around key operational risk parameters that could see an increase in a lockdown and work-from-home environment.

iv. Maintaining liquidity - enhanced monitoring of liquidity position and deposit withdrawals to take pre-emptive action.

v. Conserving capital - credit advisories around originating and disbursal of new exposures with enhanced monitoring of existing vulnerable credit exposure.

The governance around the above has been put in place under the aegis of a Central Emergency Response Team (CERT) headed by the Executive Director (Corporate Centre) of the Bank, reporting directly to the Management Committee of the Bank. This team has been meeting daily to review the situation in each of the said fronts, on which risk profile would be heightened and take appropriate mitigation measures in response to the situation at the ground level.

CSR Initiatives towards COVID-19 Pandemic

The Bank continues to stand together with the country in its collective battle against COVID-19 Pandemic, and is committed to a multi-pronged response supporting the Bank's customers, employees, business partners, government agencies and the community at large. The Bank is directly supporting government entities towards meeting their urgent equipment and sanitation requirements and under Axis Cares it is supporting nearly 35,000 individuals towards meeting their food requirements for a month.

Towards augmenting the country's collective efforts in fighting the COVID-19 Pandemic, Axis Group has committed to contribute to the PM CARES Fund and to Givelndia's India COVID Response Fund. In addition, Axis Bank Foundation, the CSR arm of the Bank, is working closely with its implementation partners across India towards augmenting on-ground activities to address the COVID-19 Pandemic related challenges.

Change in the Nature of Business

During the year under review, there has been no change in the nature of business of the Bank.

Capital Structure Share Capital

During the financial year 2017-18, the Bank had issued 4,53,57,385 convertible warrants convertible into 4,53,57,385 equity shares at a price of ' 565.00 per warrant, on a preferential basis. The allottees of the said convertible warrants were entitled to exercise the option of converting one convertible warrant into one equity share of ' 2/- each of the Bank, within a period of 18 months from the date of its allotment, i.e. on or before 17th June 2019.

During the year, the Bank allotted 4,53,57,385 equity shares pursuant to exercise of convertible warrants by the allottees of the said convertible warrants. As a consequence, the paid-up share capital of the Bank increased by ' 9.07 crores and the reserves of the Bank increased by ' 2,551.03 crores after charging off issue related expenses.

During the year, the Bank also raised additional equity capital through allotment of 19,87,28,139 equity shares of ' 2/- each of the Bank, pursuant to a Qualified Institutional Placement Issue. Consequently, the total issued and paid-up equity share capital of the Bank increased by ' 39.75 crores and the Reserves of the Bank increased by ' 12,392.50 crores after charging of issue related expenses. The said funds were raised to enhance the capital adequacy, in accordance with regulatory requirements, to finance the growth strategy and for general corporate purposes, in accordance with applicable law. The Audit Committee of Board of the Bank (Audit Committee) at its meeting held on 22nd January 2020, has reviewed and confirmed that the Bank has utilized the said funds for the above-mentioned purposes and there was no deviation in utilization of the said funds.

During the year, the Bank allotted 59,47,539 equity shares of ' 2/- each of the Bank, pursuant to exercise of options by some of its Whole Time Directors/Employees and that of the subsidiary companies of the Bank, under the various Employee Stock Option Scheme(s).

Pursuant to the above allotments, the total issued and paid-up equity share capital of the Bank, as on 31st March 2020 increased by ' 50.01 crores to ' 564.34 crores, as compared to ' 514.33 crores, as on 31st March 2019.

The category wise Shareholding Pattern of the Bank, as on 31st March 2020, was as under:

Sr. No. Category / Shareholder

No. of Shares held

%of total issued & paid-up Capital
Promoters
1 Administrator of theSpecified Undertakingof theUnitTrustof India (SUUTI) 12,96,52,427 4.59
2 Life Insurance Corporation of India 25,43,77,246 9.02
3 General Insurance Corporation of India 3,17,15,229 1.12
4 The New India Assurance Company Limited 2,05,91,585 0.73
5 National Insurance Company Limited 5,49,681 0.02
6 The Oriental Insurance Company Limited 49,77,520 0.18
7 United India Insurance Company Limited 9,13,248 0.03
Foreign Investors
8 Overseas Investors (including Flls/OCBs/NRIs) 1,44,95,54,331 51.37
9 Foreign Direct Investment (GDR) 5,48,68,145 1.94
Domestic Financial Institutions
10 Financial Institutions / Mutual Funds / Banks / NBFC / INC /AIF 64,31,64,609 22.79
11 Others 23,13,13,913 8.21
Total 2,82,16,77,934 100.00

Debt Capital

During the year, the Bank issued and allotted 41,750 Senior Unsecured Redeemable Non-Convertible Debentures of face value of ' 10 lakh each, aggregating to ' 4,175 crores, on a private placement basis. The said Debentures were issued for enhancing long term resources for funding infrastructure projects and affordable housing. The Audit Committee at its meeting held on 28th April 2020, has reviewed and confirmed that the Bank has utilized the said funds for the above-mentioned purposes and there is no deviation in utilization of the said funds.

The Equity Shares of the Bank and the Unsecured Redeemable Non-Convertible Subordinated Perpetual Debentures issued by the Bank, on a private placement basis, are listed on National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE). The Bonds issued by the Bank under the MTN programme are listed on Singapore Stock Exchange and the Green Bonds issued by the Bank are listed on London Stock Exchange.

Depository Receipts

The Global Depository Receipts (GDR) issued by the Bank are listed on London Stock Exchange.

The Bank has paid the listing fees to the said Stock Exchanges, in respect of the above securities, for the financial year 2019-20.

Dividend

In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 ("Listing Regulations"), the Bank has formulated and adopted a Dividend Distribution

Policy with the objective of providing clarity to its stakeholders on the profit distribution strategies of the Bank. During the year, the said Policy was reviewed by the Board and the same has been hosted on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate-governance/Compliance-Report .

The Diluted Earnings Per Share (EPS) of the Bank for the financial year 2019-20 stood at '5.97 per equity share of ' 2/- each as compared to ' 18.09 per equity share of ' 2/- each in the previous financial year.

The Reserve Bank of India, vide its circular dated 17th April 2020, has advised that banks shall not make any further dividend pay-outs from profits pertaining to the financial year ended 31st March 2020 until further instructions, with a view that banks must conserve capital in an environment of heightened uncertainty caused by COVID-19 Pandemic. Accordingly, the Board of Directors of the Bank has not proposed any dividend for the year ended 31st March 2020.

Deposits

Being a banking company, the disclosures relating to deposits as required under Rule 8(5)(v) and (vi) of the Companies (Accounts) Rules, 2014, read with Sections 73 and 74 of the Companies Act, 2013, are not applicable to the Bank.

Ratings ofVarious Debt Instruments

The Senior Unsecured Redeemable Non-Convertible Debentures (Series 5) issued and allotted by the Bank, on a private placement basis, during the financial year 2019-20, were rated "CRISILAAA" by CRISIL Ltd. and "ICRA AAA" by ICRA Ltd.

The Bonds issued and alloted by the Bank under the MTN programme, on a private placement basis, during the financial year 2019-20, were rated "BBB-" by Standard & Poor's.

The details of all credit ratings obtained by the Bank along with any revisions thereto, during the financial year 2019-20, for all the debt instruments outstanding as on 31st March 2020, is disclosed in the Corporate Governance Report, forming part of this report.

Board of Directors

During the year, the following changes took place in the composition of the Board:

• Dr. Sanjiv Misra ceased to be the Non-Executive (Part-Time) Chairman of the Bank, pursuant to completion of his tenure, with effect from the close of business hours on 17th July 2019. In light of the above, Dr. Sanjiv Misra decided not to continue as an Independent Director of the Bank for the remainder of his tenure and accordingly resigned as the Independent Director of the Bank, with effect from the close of business hours on 17th July 2019. In accordance with Clause 7B of Schedule III, Part A of the Listing Regulations, Dr. Sanjiv Misra confirmed that there was no other material reason for his resignation, other than the above. The Board acknowledges the invaluable contributions rendered by Dr. Sanjiv Misra during his tenure as an Independent Director of the Bank and places on record its deep appreciation for the insightful perspectives and suggestions provided by him at the meetings of the Board/ Committee of the Bank and for his leadership, as the Non-Executive (PartTime) Chairman of the Bank.

• Shri Rakesh Makhija, Independent Director of the Bank, was appointed as the Non-Executive (Part-Time) Chairman of the Bank, for a period of 3 (three) years, with effect from 18th July 2019 upto 17th July 2022 (both days inclusive), in terms of the approval granted by the Reserve Bank of India (RBI) and by the Shareholders of the Bank at the 25th Annual General Meeting held on 20th July 2019.

• Prof. Samir Barua ceased to be an Independent Director of the Bank, with effect from the close of business hours on 21st July 2019, upon completion of the maximum permissible tenure of 8 (eight) continuous years, in terms of the provisions of Section 10A (2A) of the Banking Regulation Act, 1949. The Board acknowledges the invaluable contributions rendered by Prof. Samir Barua during his tenure as an Independent Director of the Bank and places on record its deep appreciation for the insightful perspectives and suggestions provided by him at the meetings of the Board/ Committees of the Bank.

• Shri Pralay Mondal was appointed as the Executive Director (Retail Banking) of the Bank, for a period of 3 (three) years, with effect from 1st August 2019 upto 31st July 2022 (both days inclusive), in terms of the approval granted by the RBI and the Shareholders of the Bank at the 25th Annual General Meeting held on 20th July 2019.

• Shri Rajiv Anand, Executive Director (Wholesale Banking) and Shri Rajesh Dahiya, Executive Director (Corporate Centre) of the Bank, were re-appointed as the Executive Director (Wholesale Banking) and Executive Director (Corporate Centre) of the Bank, respectively, for a further period of 3 (three) years, with effect from 4th August 2019 upto 3rd August 2022 (both days inclusive), in terms of the approval granted by the RBI and the Shareholders of the Bank at the 25th Annual General Meeting held on 20th July 2019.

• Shri Som Mittal ceased to be an Independent Director of the Bank, with effect from the close of business hours on 21st October 2019, upon completion of the maximum permissible tenure of 8 (eight) continuous years, in terms of the provisions of Section 10A (2A) of the Banking Regulation Act, 1949. The Board acknowledges the invaluable contributions rendered by Shri Som Mittal during his tenure as an Independent Director of the Bank and places on record its deep appreciation for the insightful perspectives and suggestions provided by him at the meetings of the Board/ Committees of the Bank.

• Smt. Usha Sangwan, Nominee Director of Life Insurance Corporation of India (LIC), Promoter of the Bank, on the Board of the Bank, tendered her resignation as the Non-Executive (Nominee) Director of the Bank, with effect from 12th December 2019. The Board acknowledges the invaluable contributions rendered by Smt. Usha Sangwan during her tenure as the NonExecutive (Nominee) Director of the Bank and places on record its deep appreciation for the insightful perspectives and suggestions provided by her at the meetings of the Board/ Committees of the Bank.

• The Board of Directors of the Bank on 9th December 2019, re-appointed Shri S. Vishvanathan, as the Independent Director of the Bank, for his second term from 11th February 2020 up to 10th February 2023 (both days inclusive) i.e. up to the expiry of his tenure of 8 (eight) continues years, in terms of the provisions of Section 10A (2A) of the Banking Regulation Act, 1949, taking into account the outcome of his performance evaluation and pursuant to the recommendation of the Nomination and Remuneration Committee of Directors of the Bank (Nomination and Remuneration Committee). The said re-appointment was approved by the Shareholders of the Bank, by means of a Special Resolution, passed through Postal Ballot on 9th January 2020. During the said period, Shri S. Vishvanathan shall not be liable to retire by rotation, in terms of the provisions of Section 149(13) of the Companies Act, 2013.

The Board at its meeting held on 29th April 2020, approved the proposals relating to re-appointment of Directors of the Bank:

• Re-appointment of Shri B. Baburao, as the Non-Executive (Nominee) Director of the Bank, who is liable to retire by rotation at the ensuing Annual General Meeting, and being eligible has offered himself for re-appointment, in terms of Section 152 of the Companies Act, 2013.

• Re-appointment of Shri Rakesh Makhija, as an Independent Director of the Bank, for his second term as such, from 27th October 2020 up to 26th October 2023 (both days inclusive) i.e. up to the expiry of his tenure of 8 (eight) continuous years in terms of the provisions of Section 10A (2A) of the Banking Regulation Act, 1949, Section 149 of the Companies Act, 2013 and the Listing Regulations, subject to the approval of the Shareholders of the Bank, at the ensuing Annual General Meeting by means of a Special Resolution.

The ordinary/special resolution(s) in respect of re-appointment of the Directors, as aforesaid, have been included in the Notice convening the 26th Annual General Meeting of the Bank. Brief profiles of the said Directors have been annexed to the said Notice.

The composition of the Board, is in compliance with the applicable norms.

Selection and Appointment of Directors

The selection and appointment of Directors of the Bank is done in accordance with the relevant provisions of the Companies Act, 2013, the relevant Rules made thereunder, the Banking Regulation Act, 1949, the Guidelines issued by the RBI and the relevant provisions of the Listing Regulations relating to Corporate Governance, as amended, from time to time.

The Bank has formulated and adopted the Succession Planning Policy for the Board of Directors and Key Officials of the Bank (the Policy). The objective of the Policy is to inter alia assess, identify and nominate suitable candidates to fill vacancies that may arise for positions of the Non-Executive (Part time) Chairman, Independent Directors, Managing Director & CEO (MD & CEO), Whole Time Directors (WTD), Group Executives, Key Managerial Personnel and other Key officials of the Bank, from time to time, to plan for succession of the said roles and any vacancies that may arise out of impending move or retirement or resignation or sudden exit or for any reason whatsoever in such roles, incumbent or named successors, significant changes in role accountabilities, substantive changes in the business parameters and changes to the role holder or successor's aspiration.

The Policy also seeks to identify the competency requirements for the said positions, the process to identify potential candidates and develop required competencies through planned training, development and learning initiatives and to ensure systematic and long-term development of personnel for taking higher roles and responsibilities at the senior management levels at the Bank or that of its subsidiary companies, which may arise due to impending move or retirement or resignation or sudden exit or for any reason whatsoever, of the role, incumbent or named successors.

The Nomination and Remuneration Committee is responsible to the Board for leading the succession planning process in respect of appointments/re-appointments in respect of Directors, employees in the grade of Senior Management and Key Managerial Personnel ofthe Bank.

In terms of the Policy, which has been reviewed by the Nomination and Remuneration Committee and by the Board, the succession planning process for the post of the Non-Executive (Part-Time) Chairman/ Independent Director is required to be initiated at-least 9 (nine) months prior to the expiry of their current term or in case of unforeseen circumstances, with immediate effect.

Further, the succession planning process for the post of the MD & CEO/WTD of the Bank is required to be initiated at-least 9 (nine) months prior to the expiry of the current term or the date of retirement or as soon as the Bank is informed of the decision of the MD & CEO/WTD to resign from the services of the Bank or to opt for Early Retirement, as the case may be or in case of unforeseen circumstances, with immediate effect.

The Policy also provides for the course of action to be initiated in case of delay or non-receipt of regulatory/statutory approvals, relating to the appointment/re-appointment of the MD & CEO/WTD ofthe Bank or in case of a sudden vacancy in the position of MD & CEO/WTD of the Bank, caused due to death or permanent incapacitation or for any other reason whatsoever.

The RBI has vide its circular no. RBI/2019-20/204 DoR.Appt.No.58/29.67.001/2019-20 dated 31st March 2020 on "Appointment of Managing Director and Chief Executive Officer (MD & CEO) / CEO / Part-Time Chairperson (PTC) in Banks - 'Declaration and Undertaking1 and allied matters, prescribed new format for declarations/ undertakings to be submitted by the Directors of a Bank. The Bank has accordingly, obtained the prescribed declarations / undertakings from all its Directors, in the revised format.

The Bank adheres to the process and methodology prescribed by the RBI in respect of the 'Fit & Proper1 criteria as applicable to Private Sector Banks, signing of deed of covenants which binds the Directors to discharge their responsibilities to the best of their abilities, individually and collectively in order to be eligible for being appointed/re-appointed as a Director of the Bank. The prescribed declarations / undertakings given by the Directors other than that of the Members of the Nomination and Remuneration Committee are placed before the Nomination and Remuneration Committee and the declarations / undertakings given by the Members of the Nomination and Remuneration Committee are placed before the Board, for its review and noting. The said declarations / undertakings are obtained from all the Directors on an annual basis and also at the time of their appointment / re-appointment, in compliance with the said laws. An assessment on whether the Directors fulfil the prescribed criteria is carried out by the Nomination and Remuneration Committee and the Board, on an annual basis and also at the time of their appointment / re-appointment.

The Nomination and Remuneration Committee also reviews the structure, size, composition of the Board, the regional and industry experience, track record, expertise and other relevant information and documents of all the Directors before making appropriate recommendations to the Board with regard to their appointment / re-appointment, terms and conditions relating to such appointment / re-appointment, including remuneration, designed to enhance the Board's effectiveness and in compliance with the applicable norms. Wherever necessary, the Nomination and Remuneration Committee is authorized to engage the services of an External Consultant(s) / expert in the field of succession planning, to identify and assess the suitability of candidates for the post of a Director of the Bank.

The Nomination and Remuneration Committee takes into account the profile, skill sets, experience, expertise, functional capabilities etc., and identifies potential candidates from diverse backgrounds including but not limited to accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law, small-scale industry, information technology, core industries, infrastructure sector, payment and settlement systems, human resource, risk management and business

management, thus providing the Board with Members who have diverse knowledge, practical experience and skills, to serve the business interests of the Bank.

Declaration of Independence

All the Independent Directors of the Bank have submitted the requisite declarations stating that they meet the criteria prescribed for independence under Section 149 of the Companies Act, 2013 and Regulation 16 of the Listing Regulations, which were placed before the Board for their review. The Board has confirmed and taken on record the said declaration of Independence provided by the Independent Directors, after undertaking due assessment of the veracity of the same. In the opinion of the Board, the Independent Directors fulfill the criteria prescribed for independence and are independent of the Management.

Certificate from a Company Secretary in Practice

In terms of Regulation 34(3) read with Schedule V of the Listing Regulations, the Bank has obtained a Certificate from BNP & Associates, Practising 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 Securities and Exchange Board of India or the Ministry of Corporate Affairs or any other Statutory Authorities. The said certificate is annexed as part of this report.

Key Managerial Personnel

Shri Jairam Sridharan, resigned as the Group Executive & Chief Financial Officer (CFO) and Key Managerial Personnel of the Bank, with effect from the close of business hours on 5th March 2020. The Board places on record its appreciation for the invaluable contributions rendered by Shri Jairam Sridharan during his tenure as the Group Executive & CFO of the Bank.

Pursuant to the vacancy caused by the resignation of Shri Jairam Sridharan, as aforesaid, and pursuant to the recommendations of the Nomination and Remuneration Committee and the Audit Committee of the Bank, the Board at its meeting held on 27th February 2020, approved the appointment of Shri Puneet Sharma, as the Chief Financial Officer (CFO) and Key Managerial Personnel of the Bank, with effect from 6th March 2020.

The Board at its meeting held on 29th April 2020, appointed Shri Rajiv Anand, Executive Director (Wholesale Banking), Shri Rajesh Dahiya, Executive Director (Corporate Centre) and Shri Pralay Mondal, Executive Director (Retail Banking) as the Key Managerial Personnel of the Bank, with effect from 29th April 2020, in terms of Section 203(1) read with Section 2(51) of the Companies Act, 2013.

Shri Amitabh Chaudhry, Managing Director & CEO, Shri Rajiv Anand, Executive Director (Wholesale Banking), Shri Rajesh Dahiya, Executive Director (Corporate Centre), Shri Pralay Mondal, Executive Director (Retail Banking), Shri Puneet Sharma, CFO and Shri Girish V. Koliyote, Company Secretary are the Key Managerial Personnel of the Bank, in terms of Section 203(1) read with Section 2(51) of the Companies Act, 2013, and the relevant Rules made thereunder.

Board Performance Evaluation

The Companies Act, 2013 and the Listing Regulations relating to Corporate Governance provides for evaluation of the performance of the Board, its Committees, Individual Directors and the Chairman of a company.

The Nomination and Remuneration Committee is the nodal agency for conducting the said performance evaluation. The Nomination and Remuneration Committee has reviewed and approved the manner for effective evaluation of the performance of the Board, its Committees, its individual Directors and its Chairman and determined the criteria for conduct of such performance evaluation. The manner in which the evaluation has been conducted and the details of the outcome of the board performance evaluation for the financial year under reference, along with the proposed action for implementation by the Bank during the FY 2020-21, is provided in the Report on Corporate Governance, which forms part of this report.

Meetings of the Board/Committees of the Board

The schedule in respect of the meetings of the Board / Committees thereof to be held during the next financial year and for the ensuing Annual General Meeting is circulated in advance to all the Members of the Board. During the year, 10 meetings of the Board were held and the gap between the said meetings did not exceed the limit of 120 days, as prescribed under the

relevant provisions of the Companies Act, 2013, the relevant Rules made thereunder and the Listing Regulations relating to Corporate Governance.

Audit Committee

The composition, role and functions of the Audit Committee of the Bank, is disclosed in the Report on Corporate Governance, which forms part of this report.

Remuneration Policy

The Bank has formulated and adopted a Comprehensive Remuneration Policy for its Directors, Material Risk Takers, Key Managerial Personnel and other Employees (the Policy), in terms of the relevant provisions of Section 178 of the Companies Act, 2013, the relevant Rules made thereunder, the Listing Regulations relating to Corporate Governance and the Guidelines issued bythe RBI, in this regard.

The said Policy was reviewed and approved by the Nomination and Remuneration Committee and by the Board, pursuant to the revised Guidelines dated 4th November 2019 issued by the RBI on Compensation of Whole Time Directors/ Chief Executive Officers/ Material Risk Takers and Control Function staff.

The Nomination and Remuneration Committee reviewed the impact of the revised Guidelines to the said Policy and on the various aspects of the compensation structure such as Fixed Pay, Variable Pay, Stock Options etc. and also inter alia took into account, effective alignment of compensation with prudent risk taking, international scenarios, external benchmarks on remuneration trends in the Banking/ NBFC sector in India, implications under tax laws, macro trends relating to employment / remuneration etc. and recommended the same for the approval of the Board.

In terms of the revised Guidelines, which is effective from 1st April 2020, the Bank formulated and adopted Remuneration Policy for Non-Executive Chairman and Non-Executive Directors of the Board and Remuneration Policy for MD & CEO, Whole-time Directors, Material Risk Takers, Control Function Staff and other employees of the Bank.

The details of the said Policy have been disclosed in the Report on Corporate Governance, which forms part of this report. The said Policy has been hosted on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate- governance/Compliance-Report , in terms of the Listing Regulations.

Whistle Blower Policy and Vigil Mechanism

The details of the Whistle Blower Policy and Vigil Mechanism have been disclosed in the Report on Corporate Governance, which forms part of this report.

Subsidiaries, JointVentures and Associates

As on 31st March 2020, the Bank has the following eleven unlisted subsidiary companies and one step down subsidiary;

i) Axis Asset Management Company Ltd. undertakes the activities of managing the mutual fund business.

ii) Axis Mutual Fund Trustee Ltd. acts as the trustee for the mutual fund business.

iii) Axis Capital Ltd. provides services relating to investment banking, equity capital markets, institutional stock broking, mergers and acquisition advisory etc.

iv) Axis Finance Ltd. is an NBFC and carries on the activities of corporate and structural lending, loan against property etc.

v) Axis Securities Ltd. is in the business of retail broking services.

vi) A.TREDS Ltd. is engaged in the business of facilitating financing of trade receivables.

vii) Axis Trustee Services Ltd. is engaged in trusteeship activities, acting as debenture trustee and as trustee to various securitisation trusts.

viii) Freecharge Payment Technologies Private Ltd is in the business of providing Merchant acquiring services, payment aggregation services, payment support services, and business correspondent to a Bank/Financial Institution, distribution of Mutual Funds.

ix) Accelyst Solutions Private Ltd. is in the business of providing Online marketing and sales promotion solutions, providing facilities to recharge online prepaid, postpaid mobile phones connections, DTH connections and data cards etc., distribution of mutual fund & insurance services.

x) Axis Bank UK Ltd. is the banking subsidiary of the Bank in the United Kingdom and undertakes the activities of banking.

xi) Axis Private Equity Ltd. primarily carries on the activities of managing equity investments and provides venture capital support to businesses.

xii) Axis Capital USA, LLC. is a wholly owned subsidiary of Axis Capital Limited incorporated in USA and provides financial services relating to equity capital market, institutional stock broking to institutional investors in USA.

Merger of Freecharge Payment Technologies Pvt. Ltd. (FCPTL) and Accelyst Solutions Pvt. Ltd (ASPL)

On 27th March 2018, the Board of Directors of ASPL and FCPTL had approved a Scheme for Amalgamation of ASPL into and with FCPTL. ASPLand FCPTL filed the final petition for approval of the said merger before the National Company LawTribunal('NCLT'). The appointed date for amalgamation is 7th October 2017 and the effect of the said merger will be given on this date or any other date as may be prescribed by the NCLT. Subsequent to the final hearing in the matter conducted during the year, FCPTL received the 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 7th October 2017 to 1st April 2018. Since the Scheme of Amalgamation filed by the FCPTL was already approved by NCLT, Delhi with the appointed date of 7th October 2017, the order of NCLT, Mumbai sanctioning the Scheme of Amalgamation could not be implemented due to discrepancy in the appointed date, as aforesaid. Therefore, ASPL is in the process of filing a modification application before NCLT, Mumbai to amend the appointed date from 1st April 2018 to 7th October 2017 as originally and mutually decided by FCPTL and ASPLand as mentioned in the said Scheme of Amalgamation. Accordingly, no accounting impact of the Scheme has been taken in the consolidated financial statements, as at 31st March 2020.

Merger ofAxis Finance Ltd. and Axis Private Equity Ltd.

Axis Private Equity Ltd., is in the process of amalgamating with Axis Finance Ltd. and has submitted an application for amalgamation before the NCLT on 13th October 2017. At the last hearing held in February 2020, the NCLT has fixed the matter as "reserved for order" and the order is awaited, as at the Balance Sheet date.

The Bank does not have any associate company. During the year, the Bank has not entered into anyjoint venture.

In accordance with the provisions of Section 129(3) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules, 2014, as amended, the Bank has prepared its consolidated financial statements including that of all its subsidiary companies, which forms part of this report. The financial position and performance of each of the said subsidiary companies are given in the Management Discussion & Analysis Report and the statement containing the salient features of the financial statements of the said subsidiary companies of the Bank, which is annexed to this report.

In accordance with the third proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of the Bank, containing therein its standalone financial statements and the consolidated financial statements and all other documents required to be attached thereto have also been hosted on the website of the Bank https://www.axisbank.com/shareholders-corner/ shareholders-information/annual-reports.

Further, in accordance with the fourth proviso to the said section, the audited annual accounts of each of the said subsidiary companies of the Bank have been hosted on the website of the Bank https://www.axisbank.com/shareholders-corner/ shareholders-information/annual-reports.

Any shareholder interested in obtaining a physical copy of the said financial statements may write to the Company Secretary at the Registered Office of the Bank. Further, please note that the said financial statements will also be available for inspection by the shareholders of the Bank and Trustees of Debenture holders at the Registered Office of the Bank during business hours from 11.00 a.m. to 1.00 p.m. on all working days except Saturdays, Sundays, Bank Holidays and National Holidays.

Related Party Transactions

Du ring the year, the Bank has not entered into any materially significant transactions with its Promoters, Directors, Management, Subsidiaries or Relatives of the Directors/Management, which could lead to potential conflict of interest between the Bank and these parties, other than transactions entered into in the ordinary course of its business.

Transactions entered into by the Bank with related parties in the normal course of its business were placed before the Audit Committee. There were no transactions entered with related parties, which were not in the normal course of the business of the Bank, nor were there any transactions with related parties or others, which were not on an arm's length basis. Accordingly, Form AOC-2 is not applicable to the Bank. A statement giving details of all related party transactions, entered pursuant to the omnibus approval so granted, is placed before the Audit Committee for their review. The Bank has developed a Standard Operating Procedure for the purpose of identifying and monitoring such transactions.

During the year, the Policy on Related Party Transactions has been reviewed by the Audit Committee and the Board and the same has been hosted on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate-governance/ Compliance-Report, in terms of the Listing Regulations, relating to Corporate Governance.

Employee Stock Option Plan (ESOP)

Since the financial year 2000-01, the Bank has formulated and adopted Employee Stock Option Schemes (ESOS) for the benefit of the eligible Employees/Managing Director & CEO and Whole Time Directors of the Bank and that of its subsidiary companies ("eligible Employees/Directors"), in terms of the Securities and Exchange Board of India (Employee Stock Option Scheme and Employee Stock Purchase Scheme) Guidelines, 1999 / Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014, as amended. The objective of the said ESOS is to enhance employee motivation, enable employees to participate, directly or indirectly, in the long-term growth and financial success of the Bank, to act as a retention mechanism by enabling employee participation in the business of the Bank as its active stakeholder and to usher an 'owner- manager' culture.

In terms of the said ESOS, as on date, up to 26,50,87,000 stock options are available for grant by the Bank to the eligible Employees/Directors of the Bank and that of its subsidiary companies. The eligibility and number of stock options to be granted to such eligible Employees/Directors is determined on the basis of the outcome of their performance evaluation and such other criteria as may be approved by the Nomination and Remuneration Committee / Board, from time to time.

During the period from February 2001 to January 2019, the Shareholders of the Bank had approved the grant of stock options, as aforesaid, on seven occasions. Under the first two ESOS of the Bank and in respect of the grant of stock options made by the Bank upto 29th April 2004, the option conversion price was set at the average of the daily high-low price of the Bank's equity shares traded during the 52 weeks preceding the date of approval of grant by the Nomination and Remuneration Committee/ Board, prevailing on the Stock Exchange which had the maximum trading volume of the Bank's equity share during the said period. Thereafter, under the third and subsequent ESOS of the Bank and with effect from the said grants made by the Bank on or after 10th June 2005, the stock option conversion price was changed to the latest available closing price of the equity shares of the Bank, prevailing on the Stock Exchange which recorded higher trading volume, on the day prior to the date of approval of grant by the Nomination and Remuneration Committee.

Pursuant to the sub-division of the equity shares of the Bank, the Shareholders of the Bank at the 20th Annual General Meeting held on 27th June 2014, also approved the consequent adjustments to the stock options granted to the eligible Employees/ Directors, under the various ESOS of the Bank, such that all stock options available for grant (including lapsed and forfeited options available for reissue) and those already granted but not vested and those vested but not exercised, as on the record date fixed for the purpose of sub-division, were proportionately converted into options bearing equity shares of the face value of ?2/- each of the Bankand the grant price of all the outstanding stock options (unvested, vested and unexercised) as on the

said record date for the purpose of sub-division were proportionately adjusted by dividing the existing grant price by 5. The record date for the said sub-division was 30th July 2014.

Since 24th February 2001 up to 31st March 2020, the Nomination and Remuneration Committee / Board had out of the said 26,50,87,000 stock options, approved the grant of 28,16,13,850 stock options (including 2,80,03,497 stock options which had lapsed and were forfeited) to the eligible Employees/Directors, in terms of the various ESOS of the Bank. The said stock options are non-transferable and vest at rates of 30%, 30% and 40% on each of three successive anniversaries following the date of respective grant, subject to standard vesting and other conditions as set out in the respective ESOS of the Bank. The said stock options are required to be exercised by the concerned eligible Employees/Directors, within a period of three / five years, from the date of its respective vesting, in terms of the respective ESOS of the Bank.

As of 31st March 2020, out of the said 28,16,13,850 stock options so granted 22,88,18,308 stock options have been vested, out of which 20,84,44,468 stock options have been exercised and the balance 2,03,73,840 stock options remain unexercised. Further, 2,47,92,045 stock options remained unvested and 2,80,03,497 stock options had been treated as lapsed and forfeited.

There were no material changes in the Employee Stock Option Scheme(s) of the Bank during the financial year 2019-20 and the same is in compliance with the relevant provisions of the SEBI (Share Based Employee Benefits) Regulations, 2014, as amended.

Statutory disclosures as mandated under Regulation 14 of the SEBI (Share Based Employee Benefits) Regulations, 2014, as amended, have been hosted on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate- governance/compliance-report .

Corporate Governance

The Bank is committed to achieving and adhering to the highest standards of Corporate Governance and it constantly benchmarks itself with best practices, in this regard.

The Quarterly Report on Corporate Governance has been submitted by the Bank to the Stock Exchanges, in terms of Regulation 27(2) of the Listing Regulations, relating to Corporate Governance. The said reports have been uploaded on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate-governance/compliance-report .

The Report on Corporate Governance for the financial year 2019-20 along with the Certificate issued by the Statutory Auditors of the Bank confirming compliance with the mandatory requirements relating to Corporate Governance as stipulated under Chapter IV of the Listing Regulations, relating to Corporate Governance, forms part of this report.

The Corporate Governance framework of the Bank incorporates all the mandatory requirements as prescribed in the Listing Regulations. The Bank has also adopted the non-mandatory requirements as recommended in the Listing Regulations, as detailed in the Report on Corporate Governance, which forms part of this report.

Information under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

The Bank has complied with the provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The information relating to complaints received and redressed during the financial year 2019-20 is disclosed in the Report on Corporate Governance, which forms part of this report.

Directors' Responsibility Statement

The Board of Directors of the Bank hereby declares and confirms the following statements, in terms of Section 134(3)(c) of the Companies Act, 2013:

a) That in the preparation of the annual accounts for the financial year ended 31st March 2020, the applicable accounting standards had been followed along with proper explanation relating to material departures.

b) That such accounting policies have been selected and applied consistently and judgments and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Bank as at 31st March 2020 and of the profit of the Bank for the year ended on that date.

c) That proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 2013 for safeguarding the assets of the Bank and for preventing and detecting fraud and other irregularities.

d) That the annual accounts have been prepared on a going concern basis.

e) That internal financial controls to be followed by the Bank, were in place and that the same were adequate and were operating effectively.

f) That proper system to ensure compliance with the provisions of all applicable laws was in place and the same were adequate and operating effectively.

Annual Return

In accordance with the Companies (Amendment) Act, 2017, read with Section 134(3) of the Companies Act, 2013, the Annual Return, under Section 92 (3) of the Companies Act, 2013, can be accessed on the website of the Bank at https://www.axisbank.com/shareholders-corner/shareholders-information and the extract of the Annual Return in Form MGT 9, is provided as an annexure to this 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 provided as an annexure to this report.

As on 31st March 2020, the Bank had 88 employees who were employed throughout the year and were in receipt of remuneration of more than ?1.02 crores per annum and 16 employees of the Bank who were employed for part of the year and were in receipt of remuneration of more than '8.50 lakhs per month.

In terms of Section 136 of the Companies Act, 2013, the copy of the financial statements of the Bank, including the consolidated financial statements, the auditor's report and relevant annexures to the said financial statements and reports are being sent to the Members and other persons entitled thereto, excluding the information in respect of the said 104 employees of the Bank containing the particulars as specified in Rule 5 (2) of the said Rules, which 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 Annual General Meeting. 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 .

Conservation of Energy & Technology Absorption:

Conservation of Energy

Energy and natural resource conservation have been focus areas for the Bank and conscious efforts are being made towards improving energy performance, year on year. For Sustainable Development, Energy efficiency initiatives have been implemented across several branches and offices through energy and resource conservation projects.

The Bank ensures strict compliance with all statutory requirements and voluntarily undertakes several sustainable steps in order to contribute towards a better environment.

i) The steps taken by the Bank, for utilizing alternate sources of Energy:

(a) Implementation of Solar energy projects across select Branches / Offices, aggregating ~ 7.05 MW. (Internet of Things) IOT based monitoring of power generated through solar plants across rooftop over 245 branch locations.

(b) Centralised Energy Management System (CEMS) augmented to 1,493 branches from earlier 893 branches to monitor and control energy consumption.

(c) Agreement to Procure Solar power ~1MW (3.50 lakh units p.a.) under Power Purchase Agreement Model for Banks Business Continuity Centre (Data Centre), Bangalore.

(d) Replacement of conventional lighting to LED lights in 1,100 existing branches (reducing estimated annual power consumption by 1.5 MW) over and above 250 plus branches already completed in previous fiscal. All new branches/ offices are provided with LED light fittings as a standard feature.

(e) Implementation of On Grid Inverter Solution to reduce diesel consumption in rural branches augmented to 260 branches from earlier 100 branches. Estimated savings in Diesel consumption works out to ~2.22 lac litres per annum.

(f) Conversion of Food/ Wet waste at Axis House, Mumbai, into manure through compost machine for use in landscaping/gardening.

(g) Maintenance of unity power factor through APFC panels in auto mode for optimum use of power at Axis House, Mumbai and Noida.

(h) Installation of Motion sensors for workstations and common area lighting at Axis House, Mumbai.

(i) Re-cycling of Dry waste at Axis House, Mumbai, into stationery items like notepads.

(j) Daily re-cycling of 150 KL of water through Sewage Treatment Plant at Axis House, Mumbai.

(k) Reduction of water consumption at Axis House, Mumbai through use of aerators.

(l) Rain Water Harvesting of ~2000 KL of water yearly at Axis House, Mumbai.

(m) Savings of water consumption by use of Bio-blocks in urinals at Select Large Offices.

(n) Installation of sensors in washbasins to optimise flow of water at Select Large Offices.

ii) Capital Investment made on Energy Conservation Equipment:

(a) Capital Investment incurred of 79 Lacs towards implementation of On Grid Inverter across rural Branches.

(b) LED light replacement project has been undertaken under amortization model over period of 5 years.

(c) CEMS project is on saving and sharing Model basis.

(d) Capital investment incurred of~ ' 71.63 Lacs towards implementation of Internet of Thing (loT) based remote solar monitoringacross245 Branches.

Technology Absorption

i) The efforts made towards technology absorption:

With the objective of making banking simple and hassle-free for customers, the Bank has undertaken various technology driven business initiatives to deliver value through continuous technology adoption and innovation. During the year, large scale IT transformation was undertaken augmenting the Bank's infrastructure to further build capabilities. The Bank continues to upgrade its core systems for better scalability, stability and enhanced security.

(a) The Bank's Digital Lending platform has been at the forefront of the digital innovation initiatives enabling quicker adoption of capabilities needed to develop any lending product. The Bank aims to leverage the platform and extend its capabilities across other products like Cards, SME etc.

(b) By leveraging technology and digitisation to build a "full-stack" digital foundation, the Bank is providing customers with a seamless payment and banking experience. The Bank's Award winning Mobile application is one of the highest rated banking application on Appstore. The Mobile application has been continuously evolving to provide consistent, seamless, intuitive and contextual digital banking offerings.

(c) Pre-approved customers can nowavail ICC, a virtual credit card, which is issued instantaneously. The Bank has partnered with Flipkart and Freecharge to offer instant credit card solution. Additionally, the Bank provides a frictionless and time-saving experience to customers by issuing credit cards through self-service kiosk at select branch locations.

(d) The Bank continues to re-invent and re-invest in technologies including mobility, cognitive intelligence, application programming interface (API) banking, RPA and AI/ML to develop winning propositions for its customers. In order to drive seamless integration with partners, Bank's Open API platform has been further enhanced to onboard merchants thereby generating more business and driving volumes. The Bank has future scaled the adoption of robotics process automation and Artificial Intelligence/Machine Learning augmenting operational efficiency, higher accuracy and reduction in processing time while serving customers. To leverage customer's historical behavior and sharpen their product offerings, Bank is upgrading its Big Data Lake platform to provide enhanced analytics and data processing capabilities.

(e) The Bank has also embarked on its journey of re-architecting its technology infrastructure to be Cloud native providing the necessary agility, speed and elasticity for scale. To improve Branch network and address infrastructure limitations in remote geographies, the Bank has empanelled multiple national level large reach providers and local broadband providers. The Bank has also invested in software defined data centers and network which will enhance Branch bandwidth exponentially.

(f) The Bank pursues a holistic cyber security program with a comprehensive Cyber Security Policy and Standards based on industry best practices in compliance with regulatory guidelines. The Bank has deployed its cyber security structure and framework based on National Institute of Standards and Technology (NIST) Standard. The Bank's cyber security framework is built and operated around five fundamental areas including Identify, Protect, Detect, Respond and Recover. The Bank is compliant with IS027001 and PCIDSS standards. The Bank has a 24x7 Security Operations Centre and Cyber Security Operations System.

(g) Following the present COVID-19 Pandemic situation, the Bank has been committed to provide uninterrupted services to its customers. The Bank has actively encouraged large scale Work-From-Home mandate and has provided all enablement necessary to support its employees to efficiently perform their duties. The Bank has allocated laptops, activated VPN/VDI connections along with application access and triggered enterprise mobility and collaborative tools to all critical employees to enhance productivity and ensure seamless collaboration. The Bank also swiftly made changes necessary for RBI moratorium across all applicable systems.

(h) Additionally, the Bank mobilized its service architecture and taskforce to provide necessary support to customers and employees whilst continuing to focus on development efforts of strategic initiatives.

ii) The benefits derived like product improvement, cost reduction, product development or import substitution:

As organization transitions to a dual-speed structure, the focus is on balancing development of new age products with strengthening of the core applications. The dual-speed structure will address front-end and back-end needs to improve end user experience at the same time improve time-to-market by agile, DevOps methodologies adoption.

In addition to investing in new age products and initiatives as stated above, the Bank has also undertaken several key initiatives to upgrade its core applications like Finacle, FinnOne, Prime among others to help scale up to the requirements. The core infrastructure is also being upgraded to deliver a 24 x 7 availability of services to end users. The Bank is looking at monitoring the performance of all key parameters across applications to ensure a consistent and delightful customer experience. The monitoring also provides insights into improvement areas that will continuously be worked on over a period of time. The Bank is also actively looking at using open technology platforms which provide reliability and agility, which will help reduce the overall cost of licensing and AMS. With Intelligent Automation the Bank has created Bot store and Al model store while automating 300+ processes and 1700+jobs; thereby benefiting in FTE cost savings, TAT & error reduction and auto scale up/down to manage volume fluctuation.

iii) In case of imported technology (imported during the last three years reckoned from the beginning of the financial yea

(a) The details of technology imported

1. No hardware procurements have been made in foreign currency.

2. Software licenses and upgrades have been procured over the past 3 financial years, detailed as under.

(b) The year of import:

The details for the Financial Years 2017-18, 2018-19 and 2019-20, are provided below:

PO IssueYear Currency Paid Amount
FY17-18 USD 7,34,180
FY18-19 USD 17,63,702
FY 19-20 USD 3,75,000
Total 28,72,882

(c) Whether the technology been fully absorbed:

All licenses procured have been put to use.

(d) If not fully absorbed, areas where absorption has not taken place, and the reasons thereof: NA.

iv) The expenditure incurred on Research and Development: Nil

Foreign Exchange Earning and Outgo:

The provisions relating to Section 134(3)(m) of the Companies Act, 2013 on particulars relating to Foreign Exchange Earning and Outgo are not applicable to a Banking Company, as such no disclosure is being made in this regard

.    

Axis Bank Ltd Company Background

Rakesh MakhijaAmitabh Chaudhry
Incorporation Year1993
Registered OfficeTrishul 3rd Floor Law Garden,Ellis Bridge
Ahmedabad,Gujarat-380006
Telephone91-79-66306161,Managing Director
Fax91-79-26409321
Company SecretaryGirish V Koliyote
AuditorHaribhakti & Co LLP
Face Value2
Market Lot1
ListingBSE,London,MSEI ,NSE,
RegistrarKFin Techologies Pvt Ltd
Karvy Selenium Tow-B,31&32 Financial Dist,Nanakramguda ,Hyderabad-500032

Axis Bank Ltd Company Management

Director NameDirector DesignationYear
Rohit Bhagat Independent Director 2020
Srinivasan Vishvanathan Independent Director 2020
Girish V Koliyote Company Secretary 2020
Rakesh Makhija Chairman 2020
Ketaki Bhagwati Independent Director 2020
B Babu Rao Nominee 2020
Rajiv Anand Executive Director 2020
Rajesh Dahiya Executive Director 2020
Stephen Pagliuca Nominee 2020
Girish Paranjpe Independent Director 2020
Amitabh Chaudhry Managing Director & CEO 2020
Pralay Mandal Executive Director 2020
T C Suseel Kumar Nominee 2020
Meena Ganesh Independent Director 2020

Axis Bank Ltd Listing Information

Listing Information
BSE_SENSEX
NIFTY
BSE_500
BSE_100
BSE_200
BSEDOLLEX
CNX500
BSEBANKEX
BANKNIFTY
CNX100
CNXSERVICE
CNX200
CNXFINANCE
BSECARBONE
NFT100LQ15
NFT100EQWT
BSEALLCAP
BSELARGECA
BSEFINANCE
NFTPVTBANK
SENSEX50
BSEBHARA22
ESG100
LMI250
NFT50EQWT

Axis Bank Ltd Finished Product

Product NameUnit Installed
Capacity
Production
Quantity
Sales
Quantity
Sales
Value
Interest/disc on advance/billsRs.00048302.9726
Income on investments Rs.00011246.0254
Others Rs.0001990.896
Interest on balance with RBI Rs.0001095.2634

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