AXIS/CO/CS/158/2021-22 5Th July, 2021 Chief Manager, Listing & Compliance Department National Stock Exchange of India Limi
Total Page：16
File Type：pdf, Size：1020Kb
AXIS/CO/CS/158/2021-22 5th July, 2021 Chief Manager, The Deputy General Manager, Listing & Compliance Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor 1st Floor, New Trading Ring, Plot No. C/1, “G” Block Rotunda Building Bandra-Kurla Complex P. J. Towers, ‘Dalal Street Fort, Bandra (E), Mumbai – 400 051 Mumbai – 400 001 NSE Symbol: AXISBANK BSE Scrip Code : 532215 Dear Sir(s), SUB: ANNUAL REPORT OF AXIS BANK LIMITED FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2021, INCLUDING THE NOTICE OF 27TH ANNUAL GENERAL MEETING. REF: REGULATION 34 (1) OF THE SEBI (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 (“LISTING REGULATIONS”). We wish to inform you that the 27th Annual General Meeting (the “AGM”) of Axis Bank Limited (the “Bank”) will be held on Friday, 30th July 2021 at 10.00 A.M. through Video Conferencing, in compliance with the relevant provisions of the Companies Act, 2013 and the Rules made thereunder read with General Circular No. 14/ 2020 dated 8th April, 2020, General Circular No. 17/2020 dated 13th April, 2020, General Circular 20/ 2020 dated 5th May, 2020 and General Circular No. 02/2021 dated 13th January, 2021 issued by the Ministry of Corporate Affairs (the “MCA”), and Circular No. SEBI/ HO/ CFD/ CMD1/ CIR/ P/ 2020/79 dated 12th May, 2020 and Circular No. SEBI/ HO/ CFD/ CMD2/ CIR/ P/ 2021/11 dated 15th January, 2021, issued by the Securities and Exchange Board of India (the “SEBI”) (the “Relevant Circulars”). In terms of Regulation 34(1) of the Listing Regulations, please find enclosed herewith a soft copy of the Notice convening the 27th AGM and the Annual Report of the Bank for the Financial Year 2020- 21, for your ready reference and records. Kindly note that the said documents have been uploaded on the website of the Bank, in compliance with the applicable norms. You are requested to take note of the above and arrange to bring the same to the notice of all concerned. Thanking You. Yours Sincerely, For Axis Bank Limited Girish V. Koliyote Company Secretary Encl.: As above AXIS BANK Legal &CS: Axis House, Wadia International Centre, Pandurang Budhkar marg, Worli, Mumbai 400 025 Registered Address: "Trishul" - 3rd Floor, Opp. Samartheswar Temple, Near Law Garden, Ellisbridge, Ahmedabad - 380006. Telephone No.: 079-26409322 Fax No.: 079-26409322 CIN : L65110GJ1993PLC020769 Website: www.axisbank.com Open to tocreating listening value to listening to nurturing to caring to empowering Annual Report 2020-21 Contents About Axis Bank Open to Caring 02 Key highlights for fiscal 2020-21 04 Axis Bank at a glance 08 Message from MD & CEO 14 Message from Executive Directors 21 Message from Management PG 52 26 Board of Directors For the communities of which we are a part and Open to Creating Value help improve their lives. Open to Empowering PG 30 PG 56 For our shareholders and other stakeholders by executing on our strategies, growing ‘One Axis Ecosystem’ and maintaining financial prudence. Our nation through financial inclusion and responsible awareness programmes. Open to Listening 60 Risk management 62 Awards and accolades Statutory Reports 64 Directors’ Report PG 38 81 Management Discussion and Analysis 111 Corporate Governance To the aspirations of our customers, and fulfilling 153 Other Reports them through our retail, corporate and digital franchise. Financial Statements 165 Independent Auditor’s Report - Open to Nurturing Standalone Financial Statements 172 Standalone Financial Statements 252 Independent Auditor’s Report - Consolidated Financial Statements 260 Consolidated Financial Statements PG 48 308 Form AOC 1 309 Basel III Disclosures Our team of go-getters to achieve more everyday. 'Open' For your dreams, our eyes are open. For about their aspirations and concerns, and took your hopes, our minds are open. For your that insight to reconfigure our operating rhythm plans, we promise to open every possible and rigour. Our innate flexibility helped us refine window of opportunity. We have always our strategies faster in an operating environment used this philosophy to deliver tangible value fraught with downside risks. and bring impactful change in the lives of millions of citizens. We further ramped up our technology and digital capabilities during the year to provide our Our credo has helped us respond with speed customers a host of additional conveniences, to economic and industry headwinds, evolving while continuing to invest in nurturing customer requirements, intensifying competition our relationships. We bring the same warmth and technological disruption. As our playground of openness to our work culture, which helps is constantly shifting, our solutions and our teams stay motivated in a architectures are dynamic and in sync with the high-performance environment. broad changes that we see around us. Over the last few years, we have built the Fiscal 2020-21 was an extraordinary year for foundation of a banking franchise that is India and the world. We adapted and persevered essentially relationship led, through the crisis to fortify our balance sheet and stakeholder driven and underpinned deliver a healthy overall performance. We asked by strong corporate governance. our customers, investors and other stakeholders Key highlights for fiscal 2020-21 Our performance for the year Financial 9% 10% E996,118 crores E707,306 crores Total assets Total deposits 9% 16% E623,720 crores E29,239 crores Total advances Net interest income 305% Growth in fiscal 2020-21 E6,588 crores vis-à-vis fiscal 2019-20 Net profit Environment 55,000 5 MN LED light fittings installed Paper sheets saved at 1,100 branches through Saksham application 1,493 Branches with CEMS energy management solution installed 2 Annual Report 2020-21 About Axis Bank People 78,000+ 52 Workforce Person hours of training per employee (33 person hours previous year) 45,457 Employees part of silver certification learning journeys Community C91 CR 198 CSR spending Districts in 25 states and UTs where Axis Bank Foundation (ABF) is active 0.92 MN Households/trainees impacted under ABF’s Sustainable Livelihoods programme under 'Mission2Million' Above are standalone figures as on/for year ended 31 March, 2021 unless otherwise mentioned 3 Axis Bank at a glance Always open, always future focused Our business landscape is evolving faster than ever, the financial needs of our customers are changing, technology breakthroughs are challenging legacy business processes and enriching customer journeys. Amid this era of radical transformation, flexibility and openness hold us in good stead. Our primary business comprises commercial and derivative products to India’s leading banking operations for retail and corporate corporations, middle market companies and customers. small and medium enterprises. Retail banking One Axis Our operations consist of retail lending, payments, Our integrated ‘One Axis’ philosophy (including deposit taking and distribution of third-party our subsidiaries) has helped us emerge as a insurance and investment products. The Bank also one-stop financial services provider for our offers agricultural and rural banking products. customers, with ability to cross-sell products and services. Commercial and wholesale banking Strong customer relationships, sharp execution We provide a range of products and services, focus, wide distribution network, motivated team including loan products, fee and and digital outreach have helped us strengthen commission-based products and services, our Balance Sheet across various business cycles. deposit products and foreign exchange 4 Annual Report 2020-21 About Axis Bank Our vision Our core values To be the preferred financial solutions provider excelling in customer delivery through insight, Customer empowered employees and smart Centricity use of technology. Ethics Growing prominence Transparency rd@ th 3 4 Teamwork Largest private Consecutive year bank in India of inclusion into the esteemed FTSE4Good Emerging Index Ownership @ In terms of total assets 5 Axis Bank at a glance contd. Attractive market share Traditional Banking Segment# 5.10% 4.30% 5.22% Assets Deposits Advances Digital Banking Segment 17% 16% 4th UPI@ Mobile@ Largest credit card issuer Growing touchpoints 4,594 17,0 43 121 Domestic branches ATMs and cash deposits/ SME centres (including extension counters) withdrawal machines 6 LAKH+ 7.15 MN 23.83 MN Point of Sale (POS) Active credit cards Debit cards in force machines 6 Annual Report 2020-21 About Axis Bank Strong balance sheet 19.12% 16.47% 1.05% Capital adequacy ratio Tier I capital adequacy ratio Net Non-Performing (Previous year 17.53%) (Previous year 14.49%) Asset (NPA) (Previous year 1.56%) 1.95% 72% A12,010 CR Standard Asset Coverage Provision coverage ratio Cumulative provisions Ratio (SACR) (Previous year 69%) (Standard + additional (Previous year 1.38%) non-NPA) Sound profitability 3.53% 1.96% 2.74% Net interest margin (NIM) Cost to assets Operating profit margin (Previous year 3.51%) (Previous year 2.09%) (Previous year 2.83%) #Source: RBI Report @ By volumes for fiscal 2020-21 Above are standalone figures as on/for year ended 31 March, 2021 unless otherwise mentioned 7 Message from MD & CEO “Staying true to our ethos of customer centricity, our 78,000+ team members collectively and individually went above and beyond their call of duty to serve our customers, our communities and most importantly our nation and the economy during one of the most challenging phases of our lifetime.” Amitabh Chaudhry Dear Shareholders, Fiscal 2020-21 was truly an extraordinary job that they have been doing, especially year in history. The unprecedented health the healthcare professionals, who are crisis that still continues to unfold across constantly fighting all odds to save the country, brought the best out of us thousands of lives. as we made steady progress towards our medium-term GPS objectives while As the economy continues to combat the delivering on our ‘Dil Se Open’ promise to second wave of unprecedented COVID-19 our stakeholders.