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Lower provisions help Axis Bank to deliver healthy Q2FY22 Numbers | Axis Bank Q2 FY22 Conference Call Highlights

Lower provisions help Axis Bank to deliver healthy Q2FY22 Numbers | Axis Bank Q2 FY22 Conference Call Highlights

Published on 13 November 2021 Views 8 Comments 0

Business Highlights:

  • Bank opened 2.3 million new liabilities accounts in Q2, highest ever in a quarter.
  • Retail disbursements were up 54% on both YOY and QOQ basis.
  • Bank added 5.5 lakh credit cards in this quarter, a growth of 132% QOQ.
  • Bank become First Private Sector Bank to do a Secured Overnight Financing Rate (SOFR) linked trade credit transaction.
  • Bank Saw a sequential decline in retail slippages by 23%, resulting in lower provisions in credit costs.
  • Net slippage trend is lower with better recoveries across all segments.
  • Retail net slippages declined 81% QOQ. Restructuring at 0.64% of gross customer asset, is lower than larger private banking peers. 93% of retail restructuring is secured.
  • Fee income growth was 17% YOY and 21% QOQ remains healthy.
  • Combined first half PAT of domestic subsidiaries stood at Rs.513 crores, up 61% YOY.
  • Q2 average SA balances grew 23% YOY and 5% QOQ, while the average CA balances were up 18% YOY and 3% QOQ.
  • The rigor and rhythm across distribution channels and key projects - Triumph and Aarambh - now show up in new to bank (NTB) performance. 71% YOY and 58% QOQ growth in new retail savings customers. 1.2 lakh SA accounts opened via VCIP in Q2FY22. 36% YOY and 58% QOQ growth in new current account customers.
  •  Burgundy Private now manages nearly 2,790 HNI families, up from 1,225 families last year. Te total AUM here is in excess of Rs.75,950 crores, up from Rs.34,591 crores last year.
  • Asha Loans portfolio (Affordable Home Loans) crossed Rs. 10,000 crores in the quarter.
  • The passenger car sales industry de-grew by around 40% YoY while we grew by 37% YOY in the month of Sep’21

Credit Cards:

  • The Axis - Flipkart cobranded Card saw highest ever monthly acquisitions through Flipkart platform in Sep’21.
  • The cards book was up 11% QoQ.
  • Over 25% of cards sourced in Q2FY22 were through KnownTo-Bank channel as compared to 21% in FY21.
  • Bank also have few large partnerships in the pipeline that will add to the momentum in the upcoming quarters

Bharat Bank progress:

  •  Bharat focused 2,065 branches saw 45% growth in disbursements in Q2FY22. The rural deposits also grew at 19% over previous year.
  • ‘Bharat’ is the big opportunity of this decade as the farm sector reforms, infrastructure investments and digital inclusion story plays out in rural India.

 Whole Sale Banking:

  • Mid corporate and commercial banking business grew 32% and 18% on YOY basis. They were up 10% and 7% on QOQ basis respectively.
  • Current Account deposits from the commercial banking segment grew 10% YOY, with 50% growth in average balances per new to Bank (NTB) customer accounts, reflecting the quality of strong relationship led franchise we are building.

Digital Banking:

  • The bank is investing in Project ‘Neo’ to build a world class Digital Corporate Bank.
  • Number of customers acquired for the digital Buy Now Pay later product were up 14x QOQ.
  • VKYC insta savings account product crossed Rs. 1,000 crores in SA balances in less than a year of launch.
  • WhatsApp banking,  has~ 1.9 million customers within nine months of launch.
  • About ~85% of customer service requests in branches are now digitally available and served through a proprietary cloud-based system
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