Understanding Axis Bank's Capital Adequacy Ratio and Performance

Axis Bank's capital adequacy ratio is a crucial indicator of the bank's financial health.

The bank's capital adequacy ratio was 13.98% as of March 2020, exceeding the regulatory requirement of 9% set by the Reserve Bank of India (RBI).

This ratio measures the bank's ability to absorb potential losses and maintain stability.

Axis Bank has consistently maintained a high capital adequacy ratio, indicating its robust financial position.

Axis Bank's capital adequacy ratio (CAR) is a strong 17.64% as of FY23, with a Common Equity Tier 1 (CET-1) ratio of 14.02%. This is a testament to the bank's well-capitalized status.

The bank's self-sustaining capital structure is a key factor in its stability, with a net accretion to CET-1 of 69 bps in FY23. This means that the bank's capital base is strong enough to absorb potential losses.

A significant portion of the bank's COVID provisions, amounting to ₹5,012 crores, is not considered in the CAR calculation, providing a cushion of 51 bps over the reported CAR. This is a prudent measure to ensure the bank's financial health.

The bank's excess Statutory Liquidity Ratio (SLR) of ₹75,071 crores is another indicator of its liquidity buffers. This excess SLR provides a safety net for the bank in times of financial stress.

Here's a summary of Axis Bank's CAR and CET-1 ratio for FY23:

Axis Bank's financial performance has been on the rise, with key subsidiaries delivering steady performance. Total FY23 PAT of domestic subsidiaries at `1,304 crs, up 9% YOY; Return on investments in subsidiaries at 50%.

Axis Finance FY23 PAT grew 30% YOY, ROE at 17.9%, and asset quality metrics improved with net NPA at 0.36%. Axis AMC's FY23 PAT grew 16% YOY, while Axis Capital FY23 PAT was at `441 crores. Axis Securities FY23 revenue up 9% YOY, with a customer base up 17% YOY.

Here's a snapshot of the bank's financial performance:

Axis Bank's financial performance has shown a positive trend in terms of declining NPAs and credit costs. The Gross Non-Performing Assets (GNPA) ratio declined by 29 basis points year-on-year to 1.44% in one of the examples.

The bank has also seen a decrease in the Net Non-Performing Assets (NNPA) ratio, which slightly decreased to 0.34%. This indicates a healthier asset quality.

In another example, the GNPA at 2.02% declined by 80 bps YOY & 36 bps QOQ, while the NNPA at 0.39% declined 34 bps YOY & 8 bps QOQ.

The bank's Provision Coverage Ratio (PCR) is healthy, standing at 81% in both examples.

A comparison of the bank's credit costs shows that the annualized credit cost at 0.22% declined 10 bps YOY and 43 bps QOQ in one example, while in another example, the annualized credit cost for Q3FY23 was 0.65%.

Here's a summary of the bank's declining NPAs and credit costs:

These numbers indicate a positive trend in the bank's financial performance, with declining NPAs and credit costs.

Axis Bank's key subsidiaries have delivered steady performance in the fiscal year 2023. Total PAT of domestic subsidiaries was `1,304 crores, up 9% YOY.

Axis Finance, a subsidiary, saw its PAT grow by 30% YOY, with a return on equity (ROE) of 17.9%. This is a notable improvement in asset quality, with net NPA at 0.36%.

Axis AMC's FY23 PAT grew 16% YOY, indicating steady growth in the investment management business.

Axis Capital's FY23 PAT was `441 crores, showing a stable performance in the financial services segment.

Axis Securities saw its revenue up 9% YOY, with a 17% increase in customer base. This indicates a growing customer base and increasing revenue in the securities business.

Here's a summary of the key subsidiaries' performance:

Axis Bank's financial health indicators are a crucial aspect of its overall performance. The bank's Capital Adequacy Ratio (CAR) stands at 16.61%.

This is a significant improvement in asset quality, as the Gross Non-Performing Assets (GNPA) ratio has declined by 29 basis points year-on-year to 1.44%.

The bank's Common Equity Tier 1 (CET-1) ratio is 14.12%, indicating a strong foundation for its operations.

The Net Non-Performing Assets (NNPA) ratio has slightly decreased to 0.34%, suggesting a reduction in bad loans.

AXIS BANK has shown a significant increase in its deposits, with a rise of 17.6% from Rs 6,983.0 bn in FY21 to Rs 8,209.1 bn in FY22.

The bank's advances have also seen a notable growth, increasing by 15.9% from Rs 6,257.5 bn in FY21 to Rs 7,251.3 bn in FY22.

AXIS BANK's cost of deposits has decreased by 14.6%, standing at 3.2% in FY22.

The lender's investments have risen to Rs 2,746.1 bn in FY22, an increase from Rs 2,253.4 bn in FY21.

AXIS BANK's borrowing has grown by 31.2% to Rs 1,997.8 bn in FY22.

The total assets and liabilities for FY22 stood at Rs 11,955.3 bn, a rise of 19.4% from Rs 10,010.0 bn in FY21.

Here is a summary of the key ratios for AXIS BANK:

AXIS BANK's net interest income has grown significantly, increasing by 14.0% to Rs 339,234 m in FY22.