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Retail Banking Presentation

June 2017

1
Safe Harbor

Except for the historical information contained herein, statements in this release which
contain words or phrases such as “will”, “aim”, “will likely result”, “would”, “believe”, “may”,
“expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”, “contemplate”, “seek to”,
“future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue” and
similar expressions or variations of such expressions may constitute "forward-looking
statements". These forward-looking statements involve a number of risks, uncertainties and
other factors that could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not limited to
our ability to successfully implement our strategy, future levels of non-performing loans,
our growth and expansion, the adequacy of our allowance for credit losses, our provisioning
policies, technological changes, investment income, cash flow projections, our exposure to
market risks as well as other risks. Axis Bank Limited undertakes no obligation to update
forward-looking statements to reflect events or circumstances after the date thereof.

2
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


The opportunities in retail banking are immense given the low
penetration across key products
Low Housing Loan penetration Household debt at very low level
Housing loan penetration (%) Total credit to Household and NPISH (as % of GDP)
Indonesia 1
Brazil 2 India 10
Russia 2
Russia 16
India 3
Indonesia 17
Brazil 24
China 5 China 40
Thailand 6 Singapore 60
Hong Kong SAR 14 Hong Kong SAR 67
Malaysia 17 Malaysia 71
Singapore 22 Thailand 71
Korea 26 United States 79
United States 37 Korea 89
0 10 20 30 40 0 50 100

Further potential for branch expansion Low support infrastructure


Commercial bank branches (per 100,000 adults)
Point-of-sale terminals (per 100,000 adults)
China 8
Singapore 9 Indonesia 120
Malaysia 11
India 165
Thailand 13
India 14 Malaysia 941
Korea, Rep. 17
Indonesia 18 Singapore 1,887
Hong Kong… 22
United States 2,156
United States 33
0 10 20 30 40 0 500 1000 1500 2000 2500

Source: World Bank

4
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


The retail-ization of Axis Bank has been the bedrock of our
financial performance… All figures in ` billion
Overall Deposits Overall Advances Overall Fee Income

Bank CAGR 13% Bank CAGR 17% Bank CAGR 9%


4,144
3,731 79
3,580 3,388 75

3,224 2,811 68
2,809
2,301 60
2,526
1,970 55

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 FY13 FY14 FY15 FY16 FY17

Retail % - Deposits Retail % - Advances Retail % - Fee Income

Retail Deposits* CAGR 18% Retail Advances CAGR 27% Retail Fees CAGR 19%

81% 81% 45% 44%


78% 40% 41% 40%
75% 38% 38%
68% 33% 31% 32%

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

* Includes CASA and Retail TD

6
… with subsidiaries complementing the strategy

Axis Bank is the third largest private sector bank in India offering the entire spectrum of financial services to customer
segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.

• Retail Online Investment platform for Equity, Mutual


• Fastest growing AMC since launch in ‘09
Fund & Currency
• 10th Largest AMC by AUM
• Fastest growing equity broker in India
• More than 2.1 Mn investors
• Among top 3 broker in India in total client base

• Loan Against Shares • Leading player in Investment banking - Mergers &


• Employee Stock Option Financing Acquisitions, IPOs, QIPs, Blocks & Institutional Equities
• IPO Financing
• Special Situations Funding
• Structured and Mezzanine Financing

7
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


We have been able to grow retail advances faster than Industry by
focusing on our core strengths
Banking Industry Retail Advances Axis Bank Retail Advances
15% CAGR 27% CAGR
` ‘000 cr ` ‘000 cr

1,548 168
1,323 139
1,010 1,166 112
898 88
65

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17
* Personal Loans from RBI reports on Sectoral deployment of Bank Credit

Granular Growth Leverage Branch Channel Focus on existing customers

Customer* Growth (in mn) % Sourcing through branches % Sourcing from existing customers
5.03 72%
68%
66% 65%
3.84 50%
45% 47%
41%
2.76 36% 58%
2.07
1.54

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

* Include unique customers availing retail loans, rural loans and credit cards
9
The portfolio has historically been heavy on Home Loans.
However, we are steadily shifting the mix…
Share of Home loans in Retail Advances Retail Advances – Portfolio Breakup

54%
50% Home Loans,
48% Others*, 10%
45% 44% Loans Against 44%
Property, 8%
Auto Loans,
10%

Personal
Loans &
Credit Cards,
12%
Rural Lending,
16%

Mar-13** Mar-14** Mar-15 Mar-16 Mar-17 Portfolio Size: `1,680 bn


#Others include Gold, Education, OD loans, FCNR

 Superior growth in Retail loan product distribution achieved by deepening within existing branches coupled with expansion in new
geographies, where the Bank already had seasoned branches.
 This strategy was well complemented and devised by using analytics, which helped in identifying the target segments and keep
risks under control.

**Figures restated to include the impact of loan book reclassification from FY15 onwards

10
…while keeping risks under control by using our risk
management toolbox

Choice of business

Portfolio Choice
― Enhanced Business Mix Control
― Customer type (ETB/ NTB)
― Channel (Branch / DSA/ Alternate)

Core lines of defense

Monitoring
Credit Models Credit Policy ― Portfolio Mix
― Scorecard monitoring

Final line of defense

Collections

11
Our new engines continue to see disproportionate growth

Product Wise Growth FY17 Over FY16

165%

Secured Unsecured

New engines of growth

75%

47%
39%
37% 37%
26%
24%
15% 18% 21%
12% Growth of
Retail book

Gold Loan Home Loan LAP Auto Loan CVCE EL Rural PL MFI Retail Credit Cards SBB
(Excl.MFI)
EL – Education Loan, PL – Personal Loan, SBB – Small Business Banking

12
We have used technology to bring the underserved into the
mainstream – Microfinance Example

Biometric CB assessment
Authentication for geographical
expansion

KYC validation Group Loan Disbursal

Real Time Credit End-to-End


Assessment Servicing

Geo-tagged villages Psychometric Web Based


for accuracy assessment Collection

13
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


Deposit franchise continues to remain healthy
All figures in ` Crores
CASA ratio amongst the best Savings Account Deposits
51% 19% CAGR
126,048
105,793
47% 88,292
77,776
45% 45% 63,778
44%

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Current Account Deposits Retail Term Deposits

16% CAGR 20% CAGR

87,002 121,955 123,925


106,581
63,652 84,233
56,108
48,322 48,686 59,531

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

15
Investment in the ‘quality’ of the book has led to strong and granular
savings book growth
Average SA Balance / Account Transaction Activity Rate*
147
134 68%
129
116 56%
100

FY13 FY14 FY15 FY16 FY17 Axis Bank Pvt.Sector Banks


* Defined as atleast 1 customer induced transaction in 6 months
Indexed to FY13 (Source – 2016 FIBAC banking industry survey conducted by IBA & BCG)

Products per Customer Digital Transactions %

66%
199
171 52%
146 44%
126
35%
100

FY13 FY14 FY15 FY16 FY17 FY14 FY15 FY16 FY17

Indexed to FY13

16
We launched Burgundy in the affluent space to complete our product
offering and have witnessed strong growth
Indian households by annual income Axis Bank Performance – Burgundy Segment
distribution (mn)

290
CAGR
Fastest growing segment -
18 16% the rich households - to
221 20 13% demand quality wealth
management services
4 50
6 9% The top 5% households,
22 predominantly residing
in the metros and Tier I
FY14 – FY17 CAGR
cities, will account for
75 30% of the total
120 5%
disposable income Revenue 43%
Wealth management
services will be an
integral part of the AUM 37%
114 product portfolio
82 (3%)

Savings Deposits 37%


2010 (E) 2020 (F)

<90k 90k - 2 Lacs 2 - 5 Lacs 5 - 10 Lacs > 10 Lacs

Source: Indian Banking 2020, Report by BCG in association


with FICCI and IBA

17
Focus on flow based businesses has helped in healthy growth in
Current Account and Transaction Banking in ` cr

Average CA CDAB / Account Transaction Banking Fees


11% YOY
134 541
121
100 99 514
93 501
489
465

FY13 FY14 FY15 FY16 FY17 Q4FY16 Q1FY17 Q2FY17 Q3FY17 Q4FY17
Indexed to FY13
CDAB – Cumulative Daily Average Balance

Mobile banking penetration


15.20%

7.40%
4.90%

FY15 FY16 FY17

18
Retail fees remain granular driven by Cards & Investments
All amounts in ` cr

Retail Fees Retail Fee Mix (FY17)


19% CAGR
3,481
3,027
2,604 MF & Ins
Others* 29%
2,008 35%
1,712

Cards, 36%

FY13 FY14 FY15 FY16 FY17


* Includes other retail assets and liability products

MF and Insurance Distribution Fees Card Fees


18% CAGR 30% CAGR
1,250
997
862 889 1,020

662 757
510 544
441

FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

19
Axis Bank is now amongst the leading players in the financial savings and
investment industry
Distributor MF AUM - 2nd highest in industry Huge Upside Potential
`.‘000 crores Current Product Penetration (SA customers)
41.20 8.0%
33.99
28.89
4.7%
4.0%

FY15 FY16 FY17 Mutual Fund Life Insurance Broking


Source - MF Dex

Crossed 1mn active MF customers Doubled broking customers in 2yrs


in mn 1.39 in mn

1.03 1.01
0.87
0.74 0.69

FY15 FY16 FY17 FY15 FY16 FY17

Awarded “Best Performing Private Bank” at CNBC Investing in digital channels: Option to invest, redeem
UTI MF Financial Advisor Awards, 2014 and 2016 and manage portfolio through Mobile App, Internet
Banking and RM tablets

20
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


We have organically built a market leading retail franchise spread
across the length and breadth of the country

Jammu & Kashmir


26

Chandigarh
Himachal
Pradesh
3rd Largest Private Sector Bank
12 12
Punjab
306 Uttarkhand
33 Arunachal
Haryana Meghalaya Pradesh
Delhi 190 8 3
135
Sikkim

Rajasthan
Uttar Pradesh
6
Assam
3,304 14,163 1,946
219 54 Nagaland
121 Bihar
89 9 Branches ATMs Centers
Manipur
Jharkhand Tripura 8
50 West 7
Gujarat Madhya Pradesh Bengal Mizoram
289 131 221 3
Chattisgarh

Daman &
Diu
61
Orissa
142 5th Savings & Current Deposits
2 Maharashtra
Dadra &
375
Nagar
Haveli
Andhra

5th
2
Pradesh
121,
Telangana 109
Retail Advances
Goa
10
Andaman and
Karnataka Nicobar Islands
199

Pondicherry
4
3
4th Credit Cards
Tamilnadu
245
Kerala
90

22
We will continue to invest in branches…
Branches per location Branch Area Trends Branch Vintage Classification

100% < 1 yr
2–4
12%
branches
8% 1 - 2 yrs
54% 9%
5 – 10 48% > 5 yrs 2 - 3 yrs
1 branch branches 49% 6%
89% 2%
3 - 4 yrs
14%
>10 4 - 5 yrs
Till FY13 FY14 + FY15 FY16 + FY17 10%
branches
1% Branch area indexed to area till FY13,
excludes unbanked branches

Immense potential to improve 27% branches with vintage less


branch density Smaller sized branches than 3 years, 63% of these are in
Metro & Urban

New Branches drive customer Reduced opex leading to faster Significant upside to be realised
acquisition and CASA breakeven from investments made

23
… in the process making branches ‘smarter’…

A platform to conduct financial and non-financial services to branch walk-


in customers

Reduced Queue Instant & Easy CSOs can pay Capture


lengths at bank transactions more attention Customer
branches to Sales feedback
instantly

Corporate eLobbies and Branch eLobbies

1 ATM

2 Recycler

3 SpeedBanking Kiosk

4 Passbook Printing Kiosk

5 Cheque Deposit Kiosk

24
… and transform employee productivity using digital tools

Lead management
Digital Performance through CRM
Sales Force Tracker Tracking by
on Mobile App Supervisors

Direct to customer Instant opening


New age techniques like using Tablet &
Big Data Analytics, Social fulfilment using Mobile
& Internet channel eKYC
Media Marketing,
Search optimization to
track potential
customers

Real Time Performance


Omni Channel straight monitoring and management
Data analytics to identify through fulfilment on
potential sales digital platforms

25
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


Retail profit has grown over 6X in last 4 years

Retail advances growth has not impacted the Retail profit has steadily improved
Bank’s profitability
45% 1.90%

40% 1.70% 4,000 70%

3,500 66% 60%


35% 1.50%

3,000
50%
30% 1.30%
2,500
40%

` cr
25% 1.10% 2,000
30%
1,500
20% 0.90%
20%
1,000 22%
15% 0.70%
500 10%
11%
7% 7%
10% 0.50% 0 0%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16 FY17

Retail Advances share (%) Bank RoA (RHS) Retail Segment PBT Share of overall PBT (RHS)

* The retail advances starting FY12 include rural lending

27
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


Payments remain core to Axis Bank’s strategy…
Savings account balance Vs. Transactions per account
across banks

Deposits &
Lending Investments

Payments at the core

Risk Management

Analytics on Payment data enables lending, Transactions drive balances and consequently
1 deposits and investments, and insurance cross-sell
2 market shares

1 Activeaccount defined as accounts which have had a user initiated transaction in last 6 months (as of 31 Mar 2014)
2 Total
Transactions include: cash withdrawal, deposits at branch, cheque (inward + outward), and financial transactions over internet banking, mobile banking, POS
machines, and ATMs / CDMs
Source: BCG

29
… and we offer multiple solutions for both customers and merchants

UPI
payments

Merchant
Scan & Pay
App
Wallet app Axis Remit Online

Mobile
Transit payments POS

Scan & Pay


Customers HCE based Tap & Pay Merchants
payments (Contactless Payments)

Merchant
In-App Payment
Payments Gateway

Wearable
payments Merchant Loans
Android Pay
Samsung Pay

UPI – Unified Payment Interface


HCE – Host Card Emulation
POS – Point of Sale
30
We are the 4th largest credit card issuer in India
Industry Credit Cards Axis Bank Credit Cards
11% CAGR 32% CAGR
# in mn # in mn
29.84 3.35
24.51
21.11 2.41
19.54 19.18
1.74
1.38
1.10

Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17

Industry Credit Card Spends Axis Bank Credit Card Spends


28% CAGR 56% CAGR

` ’000 cr 328 ` ‘000 cr 29

242
19
190
154 13
123
9
5

FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17

Source – RBI

31
We are also enabling a less-cash India

Samsung Pay Axis PayUPI Axis OK

2nd Largest 4th Largest


Merchant Debit Cards
Acquiring Business
Business (Spends)

Payments
business
• Enabled for Credit & • Partnered with Govt; • No internet connectivity
Debit Card across Among first to launch required
Amongst the Leader in Forex Visa & Master • Over 3 million downloads • Available in 6 languages
fastest growing Cards • 63,000+ registered • 8.5 Lakh VPAs across apps • Get balance and
Credit Cards cards recharge
Business

Kochi Metro BMTC FASTag

#2 in card acceptance industry with an overall


installed base of 433,000+ terminals
• Automated Fare • India's first prepaid • Electronic toll collection
Collection system transit card with shopping program
• 1st time “open loop” at over 1.3 million • Implementing in over
smart cards used in merchant outlets 350 toll plazas
metro

32
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


Our customers are going digital…

Customer Transaction Trends


66%

58%
54%
51% 52%
48% 49%
45%

37% 36% 36% 34%


40% 38%
23%
21%

19%
15% 14% 14% 13% 13%
12% 12%

Q1FY16 Q2FY16 Q3FY16 Q4FY16 Q1FY17 Q2FY17 Q3 FY17 Q4 FY17


Branch ATM Digital

Based on all financial transactions by individual customers

34
… at a continuously accelerating pace

11%
Internet 12%
10%
Mobile
33%
Both DIGITAL PENETRATION
Banking Banking

Axis Mobile
18 Months 12 Months 8 Months 4 Months
(Aug ‘13 – Jan ’15) (Feb ‘13 – Jan ‘16) (Feb ‘16 – Sep ‘16) (Oct ‘16 – Jan ‘17)

1 Mn 2 Mn 3 Mn 4 Mn

Internet Banking
50 Months 20 Months 20 Months 15 Months 7 Months
(Sep ‘07 – Nov ‘11) (Dec ‘11 – Jul ‘13) (Aug ‘13 – Mar ‘15) (Apr ‘15 – Jul ‘16) (Aug ‘16 – Mar ‘17)
4.9
1 Mn 2 Mn 3 Mn 4 Mn
Mn

35
… which is reflected in the growth in users and spends

4.3mn 4.9mn
Registrations

`1,119 bn `1,314 bn
FY17 Spends

102% 38%
Spends Growth

114.4mn 73.8mn
FY17 Tx#

104% 17%
Tx Growth

Data as of Mar’17

36
We have adopted a focused approach to provide a multitude of
options for customers

Responsive* Public Internet Banking Internet Banking For Mobile App For Mobile App For
Website For Desktop Mobiles Smartphones Feature Phones

* Responsive design allows pages to be viewed in response to the size of the viewing screen

37
Going forward we see customer needs being categorized around 8
key propositions…
Payments Personal Finance Digital Ops Digital Servicing
Bill Pay Financial
Mgmt.
Recharge

Investments Risk

Fund Transfer Shopping Digital Sales Digital Accounts

Domestic

International

38
We are creating partnerships in the ecosystem towards co-creation

Startup Collaboration
4 FinTech demo days Accelerator
35+ startups presented` 1 • 6 Fintech Startups selected
Payments & Mobile
hackathon 14 prototypes
4
Analytics & Digital
Hackathon In-House Incubator
10 prototypes, 2 winners 2
• 12 intraprenuers - 2 hired
through #hack4Hire
Governance & • POCs across AI/Deep learning,
5
Management Payments, Lending, Digital
• Tie-ups VISA, OCBC Bank, IIT B,
4 External Tech
IIT M, IIT K
Advisors 3
Innovation Think Tank Axis Amazon Social
• More than 40 startups have
worked out of the space
• Hosted 35 community events

39
Our investments in analytical capabilities have led to better
customer management and therefore competitive advantage
Competitive Advantage

Optimization
Prediction What should happen?
What might happen?
Insight
Why did it happen?
Information
What happened?
Data
What ?

Complexity

40
Retail opportunity in India remains large

Axis Retail Bank is strong, and getting stronger

Retail Lending has diversified over time

Liabilities franchise amongst the best

Branches continue to drive growth

Retail profit has grown over 6X in last 4 years

Continued leadership in Payments

Continue investments in Analytics and Digital

Strong Brand recall


We have created a differentiated identity and are amongst the most
valuable Brands in India
Amongst Top10 most valuable brands in India Ranked #2 in Forrester’s Customer Experience Index
- Indian Banks, 2016

71 69
Axis Bank Others-Avg

Amongst Top3 Most Trusted Banks - ET Amongst Top 75 safest banks in the world
for 3 years in a row

42
We have invested in digitizing key processes and have seen a clear
downtrend in product complaints
Turnaround times Product Complaints
Savings A/c opening Remittance

-92% -59%
100
-21%

50

0
From To From To

Credit card opening Home loan disbursal

-55% -68%
100

50 FY16 FY17

0
From To From To

43
In summary, we have created a Retail Banking architecture to
progress in our journey towards becoming the Bank of the future

A Compelling Brand

Customer A future ready Technology and


Centricity distribution model Operational Excellence

Simplified Journey Multi-Channel Delivery Integrated IT Architecture

Personalized Offerings Customize Branch Formats Open APIs

Investment Solutions Holistic Product Suite Process Automation

Digital & Analytics

Financial & Risk Control

44
Thank You

45