Axis Bank Limited Annual Report 2015

FY2015 Annual Report · Axis Bank Limited
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CONTENTS

Managing Director & CEO’s Letter to Shareholders

Board of Directors

Snap Shot of Key Financial Indicators : 2011-2015

Highlights

Directors’ Report

Management’s Discussion & Analysis

Auditors’ Report

Balance Sheet

Proﬁ t and Loss Account

Cash Flow Statement

Schedules Forming Part of Balance Sheet

Schedules Forming Part of Proﬁ t and Loss Account

Signiﬁ cant Accounting Policies

Notes to Accounts

Auditors’ Certiﬁ cate on Corporate Governance

Corporate Governance

Auditors’ Report on Consolidated Financial Statements

Consolidated Financial Statements

Disclosures under Basel III Capital Regulations

3

4

5

6

7

33

55

57

58

59

61

67

68

76

126

127

152

154

200

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MANAGING DIRECTOR & CEO’S LETTER
TO THE SHAREHOLDERS

Several encouraging developments during the year helped improve investor sentiment and business conﬁ dence in 
India, even as the economic environment remained challenging. The national parliamentary elections conducted 
during  the  year  resulted  in  a  decisive  mandate  for  change  with  a  majority  in  the  lower  house  of  parliament. 
Globally, a fall in commodity prices, particularly crude, provided signiﬁ cant headroom to the Government on ﬁ scal 
consolidation. India’s external fundamentals also improved, with the Current Account Deﬁ cit being estimated at 
around 1% of GDP in FY15. With price pressures easing, the Reserve Bank of India (RBI) started easing monetary 
policy with a half percent cut in the Repo Rate, which should progressively result in lower lending rates.  I believe 
that India’s economy holds immense promise and the Bank is well positioned to take advantage of the opportunities 
that are expected to arise as the economy turns around. 

Our  strategies  for  acquiring  low-cost  deposits,  diversifying  the  business  mix,  upgrading  product  and  process 
capabilities and putting in place robust risk management frameworks have all worked well. Key ﬁ nancial health 
indicators remained strong. Good proﬁ t numbers, coupled with efﬁ cient capital management, have resulted in a 
healthy accretion to the Bank’s book value, year-on-year.  The Bank’s retail asset franchise continued to show robust 
growth while the overall asset quality remained stable.

We have continued to build infrastructure, invest in technology and in human capital to support business growth, 
extend our reach and deepen existing customer relationships. Our digital strategy continues to see strong traction 
with a multi-fold increase in the use of our electronic banking channels. During the year, we launched our premium 
personal banking service, Burgundy, designed especially for the busy afﬂ uent HNI customer. It is our endeavour to 
provide customers with the best in class user experience, be it in terms of personalisation, control features or ease 
of use to help them transact in a seamless manner across all channels.  It was, therefore, a matter of great pride for 
us when the Bank was ranked once again as the ‘Most Trusted Private Sector Bank’ as per the  ‘Most Trusted Brand 
Survey’, conducted by Brand Equity, Economic Times.

We also created a new vertical called Transaction Banking, which seeks to integrate and deliver superior product 
solutions & services to our customers in the area of current accounts, cash management services, trade and forex. 
The Bank continues to remain the leading player in the Debt Capital Market segment and has been ranked number 
one in the Bloomberg Underwriter League Table for domestic bonds in India, 7th year in a row. 

Fiscal 2015 has been a good year for all our subsidiaries, as witnessed by a healthy growth in their total income and 
earnings.  Axis Capital has once again reafﬁ rmed its position as one of India’s leading investment banks. Axis Asset 
Management Company gained market share during the year and is now ranked 12th in assets under management 
amongst the Mutual Fund Industry.

In our constant endeavour to innovate and grow, we have not lost sight of the fact that we are all a part of a larger 
community and that we need to invest back into it. The Axis Bank Foundation works closely with NGOs in some of 
the poorest areas of the country with its special focus on providing sustainable livelihood, poverty alleviation, skill 
development and education to the underprivileged. In recognition of its efforts, I am happy to share that the Axis 
Bank Foundation was selected as the ‘Outstanding Corporate Foundation’ by the Forbes India Philanthropy Awards 
2014.

India stands at a deﬁ ning moment, poised to join the ranks of middle income countries within a generation. We are 
excited about the prospects that this offers and are conﬁ dent of our ability to capitalize on the opportunities that 
emerge as we move ahead. 

I wish to take this opportunity to thank all our stakeholders, past and present, for supporting us and for being a 
part of our endeavour to build out a high quality banking franchise.

Shikha Sharma

29th April 2015

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BOARD OF DIRECTORS*

Sanjiv Misra 
Shikha Sharma 
K. N. Prithviraj 
V. R. Kaundinya 
Prasad R. Menon 
Samir K. Barua 
Som Mittal 
Ireena Vittal 
Rohit Bhagat 
Usha Sangwan 
S. Vishvanathan 
V. Srinivasan 
Sanjeev K. Gupta  

Chairman
 Managing Director & CEO
Director
Director
Director
Director
Director
Director
Director
Director
Director
Executive Director & Head (Corporate Banking)
Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer

Sanjeev Kapoor 
THE CORE MANAGEMENT TEAM*

Company Secretary

P. Mukherjee 
Rajesh Kumar Dahiya 
Rajiv Anand 
Bapi Munshi 
V. K. Bajaj 
Sidharth Rath 
A. R. Gokulakrishnan 
Rajendra D. Adsul 
R. V. S. Sridhar 
Lalit Chawla 
Jairam Sridharan 
J. P. Singh 

*as on 31st March 2015

M/s S. R. Batliboi & Co. LLP 
Chartered Accountants

M/s Mehta & Mehta 
Company Secretaries

Group Executive - Corporate Relationship Group & International Business
Group Executive - Human Resources & Compliance
Group Executive - Retail Banking
President & Chief Risk Ofﬁ cer
President & Chief Audit Executive
President - Treasury & Business Banking
President - Wholesale Banking Operations
President - SME
President - Retail Operations
President - Corporate Client Coverage Group
President - Retail Lending & Payments
President - Business Banking

Auditors

Secretarial Auditors

M/s Karvy Computershare Private Limited  
UNIT: AXIS BANK LIMITED
Karvy Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad - 500 032.
Tel. No. : 040-67162222 Fax No. : 040-23001153

Registrar and Share Transfer Agent

Registered Ofﬁ ce
‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad - 380 006.
Tel. No. : 079-66306161 Fax No. : 079-26409321
Email: shareholders@axisbank.com
Website: www.axisbank.com

Corporate Ofﬁ ce
‘Axis House’, C-2, Wadia International Centre, Pandurang Budhkar Marg, Worli, Mumbai - 400 025.
Tel. No. : 022-24252525/43252525 Fax No. : 022-24251800

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SNAP SHOT OF KEY FINANCIAL INDICATORS : 2011 - 2015

FINANCIAL HIGHLIGHTS

2010 - 2011 2011 - 2012 2012 - 2013 2013 - 2014 2014 - 2015

(` in crores)

CAGR 
(5 Years)

Total Deposits

189,237.80

220,104.30

252,613.59

280,944.56

322,441.94

17.94%

- Savings Bank Deposits

40,850.31 

51,667.96 

63,777.73 

77,775.94 

88,292.08 

21.13%

- Current Account Deposits

36,917.09 

39,754.07 

48,322.10 

48,686.40 

56,108.22 

11.77%

Total Advances

142,407.83 

169,759.54 

196,965.96 

230,066.76  281,083.03 

21.92%

- Retail Advances

35,970.94

48,678.02

65,496.82

88,028.38 

111,932.27 

32.72%

Total Investments

71,991.62 

93,192.09 

113,737.54 

113,548.43  132,342.83 

18.78%

Shareholders' Funds

18,998.83 

22,808.54 

33,107.86 

38,220.48 

44,676.51 

22.73%

Total Assets/Liabilities

242,713.37 

285,627.79  340,560.66  383,244.89 

461,932.39 

20.66%

Net Interest Income

6,562.99 

8,017.75 

9,666.26 

11,951.64 

14,224.14 

23.23%

Other Income

4,632.13 

5,420.22 

6,551.11 

7,405.22 

8,365.04 

16.22%

Operating Revenue

11,195.12 

13,437.97 

16,217.37 

19,356.86 

22,589.18 

20.34%

Operating Expenses

4,779.43 

6,007.10 

6,914.24 

7,900.77 

9,203.74 

19.93%

Operating Proﬁ t

6,415.69 

7,430.87 

9,303.13 

11,456.09 

13,385.44 

20.63%

Provisions and Contingencies

3,027.20 

3,188.66 

4,123.70 

5,238.42 

6,027.62 

17.20%

Net Proﬁ t

3,388.49 

4,242.21 

5,179.43 

6,217.67 

7,357.82 

23.95%

FINANCIAL RATIOS

2010 - 2011 2011 - 2012 2012 - 2013 2013 - 2014 2014 - 2015

Earnings Per Share (Basic) (in `)*

Book Value (in `)*

Return on Equity

Return on Assets

16.59 

92.55 

20.59 

23.93 

26.51 

31.18 

110.40 

141.50 

162.69 

188.47 

20.13%

21.22%

20.51%

18.23%

18.57%

1.68%

1.68%

1.70%

1.78%

1.83%

Capital Adequacy Ratio (CAR)

12.65%

13.66%

17.00%

16.07%

15.09%

Tier - I Capital Adequacy Ratio

9.41%

9.45%

12.23%

12.62%

12.07%

Dividend Per Share (in `)*

2.80 

3.20 

3.60 

4.00 

4.60

Dividend Payout Ratio

19.78%

18.15%

19.06%

17.71%

17.79%

`1 Crore = `10 Million 

*  Previous  year  ﬁ gures  have  been  adjusted  to  reﬂ ect  the  effect  of  sub-division  of  one  equity  share  of  the  Bank  having 
nominal value of `10 each into 5 equity shares of nominal value `2 each

Previous year ﬁ gures have been re-grouped wherever necessary

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HIGHLIGHTS

Proﬁ t after tax up 18.34% to `7,357.82 crores

Net Interest Income up 19.01% to `14,224.14 crores

Other Income up 12.96% to `8,365.04 crores

Deposits up 14.77% to `322,441.94 crores

Demand Deposits up 14.18% to `144,400.30 crores

Advances up 22.17% to `281,083.03 crores

Retail Assets up 27.15% to `111,932.27 crores

Network of branches and extension counters increased from 2,402 to 2,589

Total number of ATMs stood at 12,355

Earnings per share (Basic) increased from `26.51 to `31.18

Proposed Dividend up from 200% to 230%

Capital Adequacy Ratio under Basel III stood at 15.09% as against the minimum regulatory 

norm of 9%

Tier - I Capital Adequacy Ratio under Basel III stood at 12.07%

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DIRECTORS’ REPORT : 2014-15

The Board of Directors have the pleasure of presenting the Twenty First Annual Report of the Bank together with the Audited 
Statement of Accounts, Auditors’ Report and the Report on business and operations of the Bank for the ﬁ nancial year ended 
31st March 2015.

FINANCIAL PERFORMANCE

The ﬁ nancial highlights for the year under review are presented below:

PARTICULARS
Deposits
Out of which
(cid:129)  Savings Bank Deposits
(cid:129)  Current Account Deposits
Advances
Out of which
(cid:129)  Retail Advances
(cid:129)  Non-retail Advances
Total Assets/Liabilities
Net Interest Income
Other Income
Out of which
(cid:129)  Fee Income
(cid:129)  Trading Proﬁ t (1)
(cid:129)  Misc. Income
Operating Expenses (excluding depreciation)
Proﬁ t before Depreciation, Provisions and Tax
Depreciation
Provision for Tax
Other Provisions and Write-offs
Net Proﬁ t
Appropriations:
Transfer to Statutory Reserve
Transfer to Investment Reserve
Transfer to Capital Reserve
Transfer to/(from) Reserve Fund
Proposed Dividend
Surplus carried over to Balance Sheet
(1) Excluding Merchant Exchange Proﬁ t

2014-15
322,441.94

2013-14
280,944.56

(` in crores)                 
GROWTH
14.77%

88,292.08
56,108.22
281,083.03

111,932.27
169,150.76
461,932.39
14,224.14
8,365.04

6,778.98
1,134.94
451.12
8,798.07
13,791.11
405.67
3,699.01
2,328.61
7,357.82

1,839.46
25.49
63.14
(1.27)
1,308.96
4,122.04

77,775.94
48,686.40
230,066.76

88,028.38
142,038.38
383,244.89
11,951.64
7,405.22

5,985.44
695.99
723.79
7,536.84
11,820.02
363.93
3,130.96
2,107.46
6,217.67

1,554.42
50.03
38.87
1.05
1,101.12
3,472.18

13.52%
15.24%
22.17%

27.15%
19.09%
20.53%
19.01%
12.96%

13.26%
63.07%
(37.67%)
16.73%
16.68%
11.47%
18.14%
10.49%
18.34%

18.34%
(49.05%)
62.44%
(220.95%)
18.88%
18.72%

KEY PERFORMANCE INDICATORS
Interest Income as a percentage of working funds*
Non-interest Income as a percentage of working funds*
Net Interest Margin
Return on Average Net Worth 
Operating Proﬁ t as a percentage of working funds*
Return on Average Assets
Proﬁ t per Employee**
Business (Deposits less inter-bank deposits + Advances) per employee**
Net non-performing assets as a percentage of net customer assets***

*  Working funds represent average total assets
** 
***  Customer assets include advances and credit substitutes

Productivity ratios are based on average number of employees for the year

Previous year ﬁ gures have been re-grouped wherever necessary

2014-15
8.81%
2.08%
3.92%
18.57%
3.33%
1.83%
`17.07 lacs
`13.71 crores
0.44%

2013-14
8.78%
2.12%
3.81%
18.23%
3.28%
1.78%
`15.42 lacs
`12.30 crores
0.40%

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The Bank continued to show a healthy growth in both 
business and earnings, with a net proﬁ t of `7,357.82 
crores for the year ended 31st March 2015, registering 
a growth of 18.34% over the net proﬁ t of `6,217.67 
crores  last  year.  The  robust  growth  in  earnings  was 
achieved on the back of a balanced business growth 
across  all  banking  segments  indicative  of  a  clear 
strategic  focus  of  the  Bank.  The  key  return  ratios 
continued  to  remain  healthy,  with  Return  on  Equity 
(ROE)  at  18.57%  and  Return  on  Assets  (ROA)  at 
1.83%. During the year, the Basic Earnings Per Share 
(EPS) was `31.18.

RISING PROFITABILITY

7,358 

6,218

22,589 

19,357 

(` in crores)

16,217 

13,438 

5,179 

11,195 

(` in crores)

4,242 

3,388 

2010-11 2011-12

2012-13 2013-14 2014-15

2010-11 2011-12

2012-13 2013-14

2014-15

Net Profit

Operating Revenue

5,059 

4,135 

5,797 

6,709 

7,230 

(` in crores)

(` in crores)

TRADING PROFITS

FEE & MISCELLANEOUS INCOME 

The  Bank’s  total  income  increased  by  15.24%  to 
reach  `43,843.64  crores  during  2014-15,  compared  to 
`38,046.38 crores last year. Operating revenue over the 
same period increased by 16.70% to `22,589.18 crores 
driven  by  healthy  growth  in  the  Bank’s  core  income 
streams: net interest income (NII), fees and other income. 
During the year, NII increased by 19.01% to `14,224.14 
crores from `11,951.64 crores last year and constituted 
62.97%  of  the  operating  revenue.  Fee,  trading  and 
other income increased by 12.96% to `8,365.04 crores 
from `7,405.22 crores last year. The operating expenses 
grew by 16.49% to `9,203.74 crores from `7,900.77 crores last year. As a result, operating proﬁ t increased by 16.84% to 
`13,385.44 crores from `11,456.09 crores reported last year. 

2010-11 2011-12 2012-13 2013-14 2014-15

2010-11 2011-12 2012-13 2013-14 2014-15

 1,135 

755 

497 

362 

696

The robust growth in NII for the year 2014-15 was achieved on the back of an expansion in the Balance Sheet size and healthy 
growth  in  low-cost  Current  Account  and  Savings  Bank  (CASA)  deposits.  During  the  year,  total  earning  assets,  on  a  daily 
average basis, increased by 15.75% to `363,186 crores from `313,775 crores last year. A steady growth in low-cost CASA, 
which on a daily average basis, increased by 14.78% to `107,328 crores from `93,506 crores last year helped in containing 
the cost of funds. Overall, the cost of funds for the year was 6.21% compared to 6.24% last year. During the year, the cost of 
deposits decreased to 6.31% from 6.43% last year, primarily due to a decrease in cost of term deposits by 16 basis points to 
8.67% from 8.83% last year. During this period, the yield on earning assets marginally improved to 9.63% from 9.59% last 
year. As a result, the Net Interest Margin (NIM) improved to 3.92% from 3.81% last year. 
Other  income  comprising  fees,  trading  proﬁ t  and  miscellaneous  income  increased  by  12.96%  to  `8,365.04  crores  in 
2014-15 from `7,405.22 crores last year and constituted 37.03% of the operating revenue of the Bank. Fee income increased 
by 13.26% to `6,778.98 crores from `5,985.44 crores last year and remains very well diversiﬁ ed with 38.39% from retail 
banking, 26.60% from corporate banking and balance contributed by treasury, business banking and SME segments. The 
Bank earns fee income from a diverse set of products and businesses such as client-based merchant foreign exchange trade, 
service charges on liability accounts, transaction banking (including cash management services), syndication and placement 
fees, processing fees from loans and commission on non-funded products (such as letters of credit and bank guarantees) and 
fee income from the distribution of third-party personnel investment products. Fee income continues to remain a signiﬁ cant 
part of the Bank’s earnings and constituted 30.01% of its operating revenue. A key factor for the slower growth in fee income 
has been the slowdown in corporate banking fees due to lack of fresh new investments and projects being undertaken. During 
the year, proprietary trading proﬁ ts increased by 63.07% to `1,134.94 crores from `695.99 crores last year. Miscellaneous 
income was lower at `451.12 crores compared to `723.79 crores last year.
As a result, the operating revenue of the Bank increased by 16.70% to `22,589.18 crores from `19,356.86 crores last year. 
The core income streams (NII, fee and miscellaneous income) now constitute 94.15% of the operating revenue, reﬂ ecting the 
stability and sustainability of the Bank’s earnings. The Bank continued to focus on reducing transaction costs besides ensuring 
smoothness in operations and increasing productivity. The operating expenses increased by 16.49% to `9,203.74 crores from 

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`7,900.77 crores last year. The increase in operating expenses was largely due to the growth of the Bank’s network and other 
infrastructure required for supporting the existing and new businesses. The Cost to Income ratio of the Bank was 40.74% 
compared to 40.82% last year. 
During  the  year,  the  operating  proﬁ t  of  the  Bank  increased  by  16.84%  to  `13,385.44  crores  from  `11,456.09  crores  last 
year.  During  this  period,  the  Bank  created  total  provisions  (excluding  provisions  for  tax)  of  `2,328.61  crores  compared  to 
`2,107.46 crores last year. The Bank provided `1,788.61 crores towards non-performing assets compared to `1,295.98 crores 
last year and `423.88 crores towards provision for standard assets including unhedged foreign currency exposure compared 
to `290.23 crores last year. During the year, there was a write-back of provisions against restructured assets of `81.88 crores 
compared  to  a  charge  of  `194.76  crores  last  year.  During  the  year  under  review,  the  Bank  has  also  created  a  contingent 
provision of `220 crores against advances and other exposures as a prudent measure and as on 31st March 2015, the Bank 
had outstanding contingent provision of `1,000 crores. During 2014-15, the Bank restructured loans of `2,721.86 crores and 
net restructured assets ratio (net restructured assets as percentage of net customer assets) was 2.71%. The Bank continued to 
maintain a healthy asset-quality with a ratio of Gross NPAs to gross customer assets at 1.34%, and Net NPA ratio (Net NPAs as 
percentage of net customer assets) at 0.44%. With higher levels of provisions built over and above regulatory norms during 
the year, the Bank’s provision coverage stood at 77.73% after considering prudential write-offs.

20.5

1.78

18.2

18.6

20.1

1.83

21.2

 92.55 

 141.50 

 188.47 

 162.69 

 110.40 

SHAREHOLDER RETURNS

The  healthy  growth 
in 
and 
business 
has 
earnings 
resulted  in  an  all-
round  improvement 
in  various  ﬁ nancial 
and 
parameters 
ratios  during 
the 
year.  Basic  Earnings 
Per  Share  (EPS)  was 
`31.18 
compared 
to  `26.51  last  year, 
while 
the  Diluted 
Earnings  Per  Share 
was `30.85 compared to `26.45 last year. Return on Equity (RoE) was 18.57% compared to 18.23% last year, while Book 
Value Per Share was `188.47 compared to `162.69 last year. Return on Assets (RoA) was 1.83% compared to 1.78% last year. 
The Net Interest Margin (NIM) for the year was 3.92% compared to 3.81% last year. Employee productivity has also improved 
with Proﬁ t per Employee increasing to `17.07 lacs from `15.42 lacs last year and Business per Employee increasing to `13.71 
crores from `12.30 crores last year.

2010-11 2011-12 2012-13

2010-11 2011-12 2012-13

2010-11 2011-12 2012-13

Book value per Share (`)

Return on Assets (%)

Return on Equity (%)

2013-14 2014-15

2013-14 2014-15

2013-14 2014-15

1.68

1.68

1.70

The Bank displayed healthy growth in several key Balance Sheet parameters for the year ended 31st March 2015. The total 
assets increased by 20.53% to `461,932 crores from `383,245 crores on 31st March 2014. The total deposits of the Bank 
increased by 14.77% to `322,442 crores against `280,945 crores last year. Savings Bank deposits increased by 13.52% to 
`88,292 crores, while Current Account deposits increased by 15.24% to `56,108 crores. As on 31st March 2015, low-cost 
CASA deposits increased by 14.18% to `144,400 crores from `126,462 crores last year, and constituted 44.78% of total 
deposits as compared to 45.01% last year. On a daily average basis, Savings Bank deposits increased by 16.82% to `72,694 
crores,  while  Current  Account  deposits  increased  by  10.72%  to  `34,634  crores.  The  percentage  share  of  CASA  in  total 
deposits, on a daily average basis, was at 39.53% compared to 38.89% last year. The Bank’s endeavour over the last few 
years has been to diversify its term deposit mix in favour of retail deposits. As on 31st March 2015, the retail term deposits 
grew 26.53% and stood at `106,581 crores, constituting 59.86% of the total term deposits compared to 54.53% last year. 
As on 31st March 2015, domestic retail term deposits grew 27.75% and stood at `106,049 crores, constituting 61.27% of the 
total domestic term deposits compared to 58.97% last year. As on 31st March 2015, CASA and retail term deposits constituted 
77.84% of total deposits. The domestic CASA and retail term deposits constituted 78.87% of total domestic deposits. In 
accordance with RBI’s guidelines on issuance of long term bonds for ﬁ nancing of infrastructure and affordable housing, the 
Bank successfully raised `5,705 crores of long term Infrastructure bonds during the year.

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The slowdown in economic activity has been much more prolonged than envisaged earlier and is reﬂ ected in the non-food 
credit growth of 13.2% for 2014-15. Total advances of the Bank as on 31st March 2015 increased by 22.17% to `281,083 
crores  from  `230,067  crores  as  on  31st  March  2014,  due  to  a  balanced  growth  across  all  segments.  Corporate  advances 
comprised 44.89% of total loans and increased by 23.42% to `126,184 crores, Retail loans comprised 39.82% of total loans 
and  increased  by  27.15%  to  `111,932  crores,  SME  loans  (excluding  the  non-retail  agricultural  loans)  increased  by  14.51% 
to `40,651 crores, while total SME advances (including non-retail agricultural loans) grew by 7.96% to `42,967 crores and 
constituted 15.29% of total loans. During the year, the Bank re-organised the agricultural lending business and merged the 
retail portion of agricultural advances with the existing portfolio of retail loans, while non-retail agricultural loans have been 
merged with the SME segment. With the alignment of retail agricultural lending with retail lending, the Bank intends to serve 
rural customers for all their ﬁ nancial needs - both as agriculturists and as customers. This strategy also allows the Bank to 
fully leverage its distribution network.  The retail loans portfolio continues to be focused on secured products, predominantly 
mortgages.  However,  as  indicated  in  the  earlier  years,  the  Bank  continued  its  strategic  intent  to  further  diversify  its  retail 
loans portfolio during the year. Secured loans accounted for 87% of the total retail loans. The total investments of the Bank 
increased by 16.55% to `132,343 crores, of which investments in Government and approved securities, held mainly for SLR 
requirement, increased by 18.15% to `82,229 crores. Other investments, including corporate debt securities, increased by 
14.03% to `50,114 crores. 

921 

2,402

1,263 

1,390 

1,947 

1,050 

1,622 

1,636 

9,924 

 1,714 

 2,589 

11,245 

12,922 

12,355 

INCREASING REACH

The Bank continued to expand 
its  distribution  network,  which 
remains an integral part of the 
Bank’s  strategy  for  tapping 
low-cost 
deposits, 
CASA 
lending to retail, SME segments 
and  the  distribution  of  third-
party  products.  During 
the 
year  under  review,  the  Bank 
added  187  branches,  taking 
the  total  number  of  branches 
and  extension  counters  (ECs) 
to  2,589,  of  which  1,324 
branches/ECs are in semi-urban 
and rural areas and 1,265 branches in metropolitan and urban areas. As on 31st March 2015, the Bank has 435 branches in 
rural unbanked areas. In addition, the Bank has a network of 12,355 ATMs. The overseas operations of the Bank are spread 
over  its  seven  international  ofﬁ ces  with  branches  at  Singapore,  Hong  Kong,  DIFC  (Dubai  International  Financial  Centre), 
Colombo and Shanghai and representative ofﬁ ces at Dubai and Abu Dhabi. The international operations of the Bank have 
generally  catered  to  the  needs  of  Indian  corporates  who  have  expanded  their  businesses  overseas  and  have  focused  on 
corporate lending, trade ﬁ nance, syndication, investment banking and liability businesses. As on 31st March 2015, the total 
assets of the Bank’s overseas branches stood at `49,112 crores, constituting 10.63% of the Bank’s total assets.

Branches + Extn. Counters

Centres covered

2012-13

2014-15

2010-11

2011-12

2014-15

2010-11

2012-13

2011-12

2011-12

2013-14

2010-11

2013-14

2013-14

2012-13

2014-15

6,270 

ATMs

CAPITAL & RESERVES

The  Bank  is  well  capitalised  with  an  overall  Capital 
Adequacy  Ratio  (CAR)  of  15.09%  as  on  31st  March 
2015,  computed  under  Basel  III  norms,  which  is  well 
above the benchmark requirement of 9% stipulated by 
the Reserve Bank of India (RBI). Of this, the Common 
Equity  Tier  I  CAR  was  12.07%  (minimum  regulatory 
requirement  of  5.50%)  against  12.62%  last  year 
and  Tier  I  CAR  was  12.07%  (minimum  regulatory 
requirement of 7.00%) against 12.62% last year. The 
Tier  II  CAR  was  at  3.02%  against  3.45%  last  year. 
During the year, the Bank raised capital of `850 crores 
by way of subordinated bonds (unsecured redeemable 
non-convertible  subordinated  debentures)  qualifying 

10

ENHANCING SHAREHOLDER VALUE

 30.85 

26.45 

 23.77 

230

200

180

160

140

20.44 

16.32 

2010-11

2011-12

2012-13

2013-14

2014-15

2010-11

2011-12

2012-13

2013-14

2014-15

Earning Per Share (Diluted) `

Dividend (%)

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as Tier II capital. The raising of this non-equity capital has helped the Bank continue its growth strategy and has strengthened 
its overall capital adequacy ratio. 
During  the  year,  a  total  of  1,708,232  equity  shares  of  face  value  of  `10  each  (before  sub-division  of  equity  shares)  and 
12,758,274 equity shares of `2 each were allotted by the Bank to its eligible directors/employees and that of its subsidiary 
companies pursuant to exercise of options under its Employee Stock Option Schemes. The paidup equity share capital of the 
Bank rose to `474.10 crores, as compared to `469.84 crores last year. 

The shareholding pattern of the Bank as on 31st March 2015 was as under:

Sr. No.
i.
ii.
iii.
iv.
v.
vi.
vii.

Name of Shareholders
Administrator of the Speciﬁ ed Undertaking of the Unit Trust of India (SUUTI)
Life Insurance Corporation of India (LIC) & its group entities (1)
General Insurance Corporation and four PSU insurance companies
Overseas investors (including FIIs/ OCBs/ NRIs)
Foreign Direct Investment (GDR issue)
Other Indian ﬁ nancial institutions/mutual funds/banks
Others
Total

% of Paid-up Capital
11.59
12.61
3.85
46.90
3.72
6.62
14.71
100.00

(1) Includes 296,075,087 equity shares of `2/- each, representing 12.49% of the total issued and paid-up equity share capital of the Bank, held by LIC.

The Bank’s shares are listed on The National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The GDRs issued by 
the Bank are listed on the London Stock Exchange (LSE). The Bonds issued by the Bank under the MTN programme are listed 
on the Singapore Stock Exchange (SSE). The listing fees relating to the Stock Exchanges for the current year have been paid. 

Sub-Division of the Bank’s Equity Shares

The shareholders at the last Annual General Meeting of the Bank held on 27th June 2014 had approved the sub-division of one 
equity share of the Bank having a face value of `10 each into ﬁ ve equity shares of the face value of `2 each. The sub-division 
of equity shares came into effect from 30th July 2014, being the record date ﬁ xed for the same.

DIVIDEND
The Bank’s Diluted Earnings Per Share (EPS) for 2014-15 has risen to `30.85 from `26.45 of equity share of `2 each (adjusted 
for sub-division) for the last year. In view of the overall performance of the Bank and the objective of rewarding shareholders 
with cash dividends while retaining capital to maintain a healthy capital adequacy ratio to support future growth, the Board 
of Directors has recommended a higher dividend of `4.60 per equity share of `2 each for the year ended 31st March 2015, as 
compared to `4.00 per equity share of `2 each (adjusted for sub-division) declared last year. This dividend shall be subject to 
tax on dividend to be paid by the Bank. This increase reﬂ ects our conﬁ dence in the Bank’s ability to consistently grow earnings 
over time.

BOARD OF DIRECTORS

During  the  year,  some  changes  in  the  composition  of  the  Board  of  Directors  have  taken  place.  Shri  R.  N.  Bhattacharyya, 
nominee  of  Speciﬁ ed  Undertaking  of  the  Unit  Trust  of  India  (SUUTI),  resigned  as  Director  of  the  Bank  with  effect  from 
28th June 2014. Shri Somnath Sengupta, Executive Director of the Bank had opted for early retirement and accordingly retired 
as such, with effect from 1st September 2014. Shri Sanjeev K. Gupta, President & Chief Financial Ofﬁ cer was inducted on the 
Board and took charge as the Executive Director (Corporate Centre) & CFO of the Bank, with effect from 4th September 2014. 
Shri S. B. Mathur, attained the upper age limit of 70 years as prescribed under RBI guidelines and accordingly resigned as 
Director of the Bank, with effect from 30th September 2014. Shri S. Vishvanathan was appointed as an Additional Independent 
Director of the Bank, with effect from 11th February 2015. The Board places on record its appreciation for the valuable services 
rendered by Shri R. N. Bhattacharyya, Shri Somnath Sengupta and Shri S. B. Mathur, during their tenure as Director of the 
Bank. 

During the ﬁ nancial year 2014-15, the approval of shareholders, by way of Postal Ballot was taken on 10th March 2015 for 
appointment of the existing Independent Directors of the Bank. 

The said Independent Directors have given their declaration stating that they meet the criteria of independence as laid down 
under Section 149 (6) of the Companies Act, 2013 and revised Clause 49 of the Listing Agreement. The appointment of the 

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Independent Directors have been done in accordance with the relevant provisions of the Companies Act, 2013 and Rules made 
thereunder. The details of the terms and conditions of their appointment have been hosted on the website of the Bank in 
compliance with revised Clause 49 of the Listing Agreement.

In terms of Section 152 of the Companies Act, 2013, Smt. Usha Sangwan shall retire at the ensuing AGM and being eligible 
for re-appointment, offers herself for re-appointment.

Apart from the above, no other Director was appointed or has resigned during the ﬁ nancial year 2014-15.

Key Managerial Personnel

Smt. Shikha Sharma, MD & CEO, Shri V. Srinivasan, Executive Director & Head (Corporate Banking), Shri Sanjeev K. Gupta, 
Executive  Director  (Corporate  Centre)  &  Chief  Financial  Ofﬁ cer  and  Shri  Sanjeev  Kapoor,  Company  Secretary  of  the  Bank 
are deemed to be Key Mangerial Personnel of the Bank as per the provisions of the Companies Act, 2013 and Rules made 
thereunder and that they were already in ofﬁ ce before the commencement of the Companies Act, 2013.

Meetings

A calendar of Meetings is prepared and circulated in advance to the Directors. During the year, seven Board Meetings were 
convened and held, the details of which are given in the Report on Corporate Governance, which is forming a part of this 
report. The intervening gap between the said Board Meetings was within the period prescribed under the Companies Act, 
2013 and revised Clause 49 of the Listing Agreement.

Selection and Appointment of Directors

The charter of Nomination and Remuneration Committee of the Board empowers it to review the structure, size, composition, 
diversity  of  the  Board,  evaluation  of  existing  skills,  deﬁ ning  gaps  and  making  necessary  recommendations  to  the  Board. 
The Board of the Bank is constituted in accordance with the provision of Section 10A of the Banking Regulation Act, 1949, 
Companies Act, 2013 and Rules made thereunder and revised Clause 49 of the Listing Agreement. The Bank has adhered to 
the process and methodology as prescribed by the Reserve Bank of India in respect of ‘Fit & Proper’ criteria as applicable to 
Private Sector Banks. The same has been followed at the time of appointment and re-appointment of Directors of the Bank.

Board Evaluation

Pursuant  to  the  provisions  of  the  Companies  Act,  2013  and  revised  Clause  49  of  the  Listing  Agreement,  the  Board  has 
carried out an annual evaluation of its performance, of the Directors individually as well as the evaluation of the working of 
its Committees. The manner in which the evaluation was carried out was explained in the Report on Corporate Governance, 
which is forming a part of this report.

Audit Committee

The composition and the functions of the Audit Committee of the Board of Directors of the Bank is disclosed in the Report on 
Corporate Governance, which is forming a part of this report.

Remuneration Policy

The Board has on the recommendation of the Nomination & Remuneration Committee of the Board of Directors of the Bank 
formulated and adopted a policy for the selection and appointment of its MD & CEO, Executive Directors, Senior Management 
and their remuneration. The details of the Remuneration Policy have been stated in the Report on Corporate Governance, 
which is forming a part of this report.

WHISTLE BLOWER POLICY AND VIGIL MECHANISM

The details of the Whistle Blower Policy and Vigil Mechanism have been explained in the Report on Corporate Governance, 
which is forming a part of this report and hosted on the website of the Bank.

SUBSIDIARIES

As on 31st March 2015, the Bank has eight unlisted subsidiaries: Axis Asset Management Company Ltd., Axis Bank UK Ltd., 
Axis Capital Ltd., Axis Finance Ltd., Axis Mutual Fund Trustee Ltd., Axis Private Equity Ltd., Axis Securities Ltd. and Axis Trustee 
Services Ltd. 

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

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

i) 

ii) 

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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 loan against shares, margin funding, IPO ﬁ nancing, etc. 

v) 

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

vi)  Axis Private Equity Ltd. primarily carries on the activities of managing equity investments and provides venture capital 

support to businesses. 

vii)  Axis Securities Ltd. is primarily in the business of marketing of credit cards and retail asset products and also provides 

retail broking services. 

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

securitisation trusts.

In accordance with the provisions of Section 129(3) of the Companies Act, 2013 read with Rule 8 of Companies (Accounts) 
Rules, 2014, the Bank has prepared its consolidated ﬁ nancial statement including all of its subsidiaries, which is forming part 
of this report. The ﬁ nancial position and performance of its subsidiaries are given in the statement containing salient features 
of the ﬁ nancial statements of the said subsidiaries, which forms part of the consolidated ﬁ nancial statements. 

In accordance with third proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of the Bank, containing 
therein its standalone and the consolidated ﬁ nancial statements has been hosted on its website www.axisbank.com. Further, 
as per fourth proviso to the said section, the audited annual accounts of each of the said subsidiary companies of the Bank 
have also been hosted on the Bank’s website www.axisbank.com. Any shareholder who may be interested in obtaining a 
copy of the aforesaid documents may write to the Company Secretary at the Bank’s Registered Ofﬁ ce. Further, please note 
that  the  said  documents  will  be  available  for  examination by  the  shareholders  of  the  Bank  at  its  Registered  Ofﬁ ce  during 
business hours. The said documents have been hosted on the website of the concerned subsidiary companies of the Bank, in 
compliance with the said section.  

During the year, the Bank has divested its entire stake in its Joint Venture, Bussan Auto Finance India Private Ltd.

RELATED PARTY TRANSACTIONS

All related party transactions entered into during the ﬁ nancial year were on an arm’s length basis and in the ordinary course 
of the business of the Bank. Accordingly, Form AOC-2 is not applicable to the Bank. All related party transactions are placed 
before the Audit Committee of the Board of Directors for its approval. Prior omnibus approval of the Audit Committee of the 
Board of Directors is obtained for the transactions, which are of foreseen and repetitive nature. A statement giving details of 
all related party transactions, entered pursuant to the omnibus approval so granted, is placed before the Audit Committee 
of the Board of Directors for their review on a quarterly basis. The Bank has developed a Standard Operating Procedure for 
the purpose of identiﬁ cation and monitoring of such transactions.  The policy on Related Party Transactions as approved by 
the Board is hosted on the Bank’s website. During the year under reference, the Bank has not entered into any transaction 
with any related party, which may be deemed to be material, in terms of the proviso to revised Clause 49 VII C of the Listing 
Agreement.

EMPLOYEE STOCK OPTION PLAN (ESOP)

The Bank has instituted an Employee Stock Option Scheme. The objective of the Scheme is to enhance employee motivation, 
enable employees to participate, whether directly or indirectly, in the long-term growth and ﬁ nancial success of the Bank, 
to act as a retention mechanism by enabling employee participation in the business as an active stakeholder to usher in an 
‘owner-manager’ culture. Under the Scheme 240,087,000 (adjusted for sub-division) options can be granted to the eligible 
Directors/employees  of  the  Bank  and  its  subsidiaries  including  its  Key  Managerial  Personnel.  The  Employee  Stock  Option 
Scheme has been formulated in accordance with 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 
Beneﬁ ts) Regulations, 2014. The eligibility and number of options to be granted to eligible Directors/employees is determined 
on the basis of their work performance and is approved by the Board of Directors.

During the period February 2001 to July 2013, the Bank’s shareholders approved plans for the issuance of stock options to 
employees on six occasions. Under the ﬁ rst two plans and upto the grants made on 29th April 2004, the option conversion 
price was set at the average daily high-low price of the Bank’s equity shares traded during the 52 weeks preceding the date 
of grant at the Stock Exchange which had the maximum trading volume of the Bank’s equity share during that period. Under 

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the third plan and subsequent plans and with effect from the grants made by the Bank on 10th June 2005 and thereafter, the 
pricing formula has been changed to the latest available closing price of the equity shares of the Bank prevailing on the NSE (as 
the NSE recorded more trading volume than BSE), on the day prior to the grant date. Along with approving the sub-division of 
the Bank’s equity shares, the shareholders at the AGM held on 27th June 2014 also approved the consequent adjustments to 
the stock options granted to its eligible Directors/employees under its various schemes such that all stock options available for 
grant (including lapsed and forfeited options available for reissue) and those already granted but not exercised as on record 
date ﬁ xed for the purpose of sub-division were proportionately converted into options for shares of face value of `2/- each 
and the grant price of all the outstanding stock options (vested, unvested and unexercised) on the said record date were 
proportionately adjusted by dividing the existing grant price by 5. The record date for this purpose was  30th July 2014. 

All the numbers given herein and in the Annexure I to this report pertaining to stock options are post sub-division of shares 
as stated above. 

The Nomination and Remuneration Committee of the Board of Directors and erstwhile HR and Remuneration Committee of 
the Board of Directors granted options under these plans on fourteen occasions aggregating to 231,975,450 options. The 
options granted, which are non-transferable, vest at rates of 30%, 30% and 40% on each of three successive anniversaries 
following the respective grant, subject to standard vesting conditions and must be exercised within three/ﬁ ve years of the date 
of respective vesting, as the case may be. As of 31st March 2015, 166,703,149 options had been exercised and 41,829,791 
options were still in force.

Other  statutory  disclosures  as  required  under  the  SEBI  (Employee  Stock  Options  &  Employee  Share  Purchase  Scheme) 
Guidelines, 1999 has been given in the Annexure I to this report.

CORPORATE GOVERNANCE

The Bank is committed to achieve the highest standards of Corporate Governance and it aspires to benchmark itself with 
international  best  practices  in  this  regard.  The  Corporate  Governance  practices  followed  by  the  Bank  are  enclosed  as  an 
Annexure to this report. The Corporate Governance framework of the Bank incorporates all the recommendations as set out 
in revised Clause 49 of the Listing Agreement.

DIRECTORS’ RESPONSIBILITY STATEMENT

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

a. 

b. 

c. 

d. 

e. 

f. 

That in the preparation of the annual accounts for the year ended 31st March 2015, the applicable accounting standards 
had been followed along with proper explanation relating to material departures.

That such accounting policies as mentioned in Note 17 of the Notes to the Financial Statements have been selected and 
applied consistently and judgement 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 2015 and of the proﬁ t of the Bank for the year ended 
on that date.

That proper and sufﬁ cient 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.

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

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

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

EXTRACT OF ANNUAL RETURN

The details forming part of the extract of the Annual Return in Form MGT 9 is given in Annexure II to this report.

STATUTORY DISCLOSURE

Considering the nature of activities of the Bank, the provisions of Section 134(m) of the Companies Act, 2013 read with Rule 8 
of the Companies (Accounts) Rules, 2014 relating to conservation of energy and technological absorption do not apply to the 

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Bank. The Bank is however, constantly pursuing its goal of technological up-gradation in a cost-effective manner for delivering 
quality customer service. 

The information required pursuant to Section 197 read with Rule 5 of the Companies (Appointment and Remuneration of 
Managerial Personnel) Rules, 2014 in respect of employees of the Bank forms part of Annexure III to this Report. The Bank 
had 139 employees who were employed throughout the year and were in receipt of remuneration more than `60 lakhs per 
annum and 23 employees were employed for part of the year and were in receipt of remuneration of more than `5 lakh per 
month. In terms of Section 136 of the Companies Act, 2013, the copy of the ﬁ nancial statements of the Bank, including the 
consolidated ﬁ nancial statements, the auditor’s report and relevant annexures to the said ﬁ nancial statements and reports are 
being sent to the Members and other persons entitled thereto, excluding the information in respect of the said employees 
containing the particulars as speciﬁ ed in Rule 5(2) of the said Rules, which is available for inspection by the Members at its 
Registered Ofﬁ ce during business hours on working days of the Bank up to the date of the ensuing Annual General Meeting. 
If any Member is interested in obtaining a copy thereof, he may write to the Company Secretary of the Bank at its Registered 
Ofﬁ ce. The ﬁ nancial statements, reports etc. of the Bank have been hosted on the website of the Bank, www.axisbank.com.

MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

The Management’s Discussion and Analysis Report for the year under review, as stipulated under revised Clause 49 of the 
Listing Agreement with the Stock Exchanges is given in Annexure IV to this report.

BUSINESS RESPONSIBILITY REPORT

The  Securities  and  Exchange  Board  of  India  (SEBI)  through  its  Circular  CIR/CFD/DIL/8/2012  dated  13th  August  2012  has 
mandated the inclusion of Business Responsibility (BR) Report as part of the Annual Report for Top 100 listed entities based 
on market capitalisation at BSE and NSE as on 31st March 2012. The Bank’s Business Responsibility Report has been hosted on 
the Bank’s website, www.axisbank.com. Any shareholder interested in obtaining a physical copy of the same may write to the 
Company Secretary at the Registered Ofﬁ ce of the Bank.

RISK MANAGEMENT POLICY

Pursuant to revised Clause 49 of the Listing Agreement, the Bank constituted a Risk Management Committee of the Board of 
Directors of the Bank. The details of the said Committee and its terms of reference are set out in the Corporate Governance 
Report, which is forming a part of this report. The Bank has formulated and adopted a robust risk management framework. 
Whilst the Board is responsible for framing, implementing and monitoring the said risk management framework, it has delegated 
its powers relating to monitoring and reviewing of risk associated with the business of the Bank to the said Committee. The 
details of the risk management framework and issues related thereto have been explained in the Management’s Discussion 
and Analysis Report which is annexed to this report.

CORPORATE SOCIAL RESPONSIBILITY

The Bank has constituted the Corporate Social Responsibility Committee (CSR) of the Board of Directors in accordance with 
the provisions of Section 135 of the Companies Act, 2013 read with The Companies (Corporate Social Responsibility) Rules, 
2014. The brief outline of the CSR Policy, including overview of the program proposed to be undertaken, the composition of 
the CSR Committee, average net proﬁ ts of the Bank for the past three ﬁ nancial years, prescribed CSR expenditure and details 
of amount spent on CSR activities during the year have been disclosed in Annexure V to this Report, as mandated under the 
said Rules.

AUDITORS

Statutory Auditors

M/s S. R. Batliboi & Co. LLP, Chartered Accountants, Statutory Auditors of the Bank (Membership No.301003E) will retire at 
the conclusion of the Twenty First Annual General Meeting of the Bank and are eligible for re-appointment, subject to the 
approval of Reserve Bank of India and ratiﬁ cation by the shareholders of the Bank. As recommended by the Audit Committee 
of the Board of Directors, the Board of Directors has proposed the ratiﬁ cation of re-appointment of M/s S. R. Batliboi & Co. 
LLP, Chartered Accountants as Statutory Auditors of the Bank for the ﬁ nancial year 2015-16 by the shareholders of the Bank 
at the ensuing Annual General Meeting. The shareholders are requested to ratify their re-appointment and the remuneration 
as decided by the Audit Committee of the Board of Directors.

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As required under revised Clause 41 I (h) of the Listing Agreement, the Statutory Auditors have  conﬁ rmed that they have 
subjected themselves to the peer review process of the Institute of Chartered Accountants of India (ICAI) and that they hold 
a valid certiﬁ cate issued by the Peer Review Board of ICAI.

Secretarial Auditors

Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the Companies (Appointment and Remuneration of 
Managerial Personnel) Rules, 2014, the Bank has appointed M/s Mehta & Mehta, Company Secretaries in Practice (Membership 
No. P1996MH007500) to conduct Secretarial Audit of the Bank. The Secretarial Audit Report is given in Annexure VI to this 
report.

There are no qualiﬁ cations, reservations or adverse remarks made by M/s S. R. Batliboi & Co. LLP, Chartered Accountants, 
Statutory Auditors of the Bank, in their Auditors’ report or by M/s Mehta & Mehta, Company Secretaries in Practice, Secretarial 
Auditors of the Bank in their Secretarial Audit Report.

SIGNIFICANT  AND  MATERIAL  ORDER  PASSED  BY  REGULATORS  OR  COURTS  OR  TRIBUNALS  IMPACTING  THE 
GOING CONCERN STATUS AND OPERATIONS OF THE BANK

During the ﬁ nancial year 2014-15, no signiﬁ cant or material orders were passed by Regulators, Courts or Tribunals against the 
Bank, which could impact its going concern status and operations.

ADEQUACY OF INTERNAL FINANCIAL CONTROLS RELATED TO FINANCIAL STATEMENTS

The  Board  has  inter  alia  reviewed  the  adequacy  and  effectiveness  of  the  Bank’s  internal  ﬁ nancial  controls  relating  to  its 
ﬁ nancial statements.

The Board has discussed with the Management of the Bank the major ﬁ nancial risk exposures and the steps taken by it to 
monitor and control such exposures, overseen and reviewed the functioning of the Whistle Blower Mechanism (which is a part 
of the Banks’ Fraud Risk Management Policy) and reviewed the ﬁ ndings in respect of investigations into frauds which were 
material in nature and the actions taken by the Bank in this regard.

CEO & CFO CERTIFICATION

Certiﬁ cate issued by Smt. Shikha Sharma, Managing Director & CEO and Shri Sanjeev K. Gupta, Executive Director (Corporate 
Centre) and CFO of the Bank, in terms of revised Clause 49 (IX) of the Listing Agreement, for the year under review was placed 
before the Board of Directors at its meeting held on 29th April 2015.

ACKNOWLEDGEMENTS

The Board of Directors places on record its gratitude to the Reserve Bank of India, other government and regulatory authorities, 
ﬁ nancial institutions and correspondent banks for their strong support and guidance. The Board acknowledges the support of 
the shareholders and also places on record its sincere thanks to its valued clients and customers for their continued patronage. 
The Board also expresses its deep sense of appreciation to all employees of the Bank for their strong work ethic, excellent 
performance,  professionalism,  teamwork,  commitment  and  initiative,  which  has  led  to  the  Bank  making  commendable 
progress in today’s challenging environment.

For and on behalf of the Board of Directors

Place : Mumbai
Date : 29th April 2015

Sanjiv Misra
Chairman

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ANNEXURE I

STATUTORY DISCLOSURES REGARDING ESOP
(FORMING PART OF THE DIRECTORS’ REPORT FOR THE YEAR ENDED 31st MARCH 2015)

Options Granted

Options Exercised & Shares Allotted*

Options lapsed/cancelled

Total Options (in force) as on 31st March 2015

Options Vested
Money realised by exercise of options  (` in lacs)

* One (1) share would arise on exercise of one (1) stock option

Other details are as under:

Pricing Formula

Variation in terms of ESOP

Details of options granted:

231,975,450

166,703,149

23,442,510

41,829,791

21,204,291

145,674.61

For  options  granted  upto  29th  April  2004,  Fixed  Price  i.e. 
The average daily high – low price of the shares of the Bank 
traded during the 52 weeks preceding the date of grant on 
the stock exchange which had the maximum trading volumes 
of the Bank’s share during that period.

For options granted on and after 10th June 2005, the grant 
price  considered  is  the  latest  available  closing  market  price 
as on the day preceding the date of the grant on the Stock 
Exchange which had the maximum  trading  volumes of the 
Bank’s share on that date.

Exercise  period  in  respect  of  options  granted  with  effect 
from  April  2014  onwards  has  been  changed  from  3  years 
to 5 years.

(cid:2)  Employee  wise  details  of  grants  to  senior  managerial 

Managing Director & CEO: 5,500,000 options

personnel.

(cid:2)  Employees  who  were  granted,  during  any  one  year, 
options amounting to 5% or more of the options granted 
during the year 2014-15

Executive Director & Head (Corporate Centre) @: 3,019,400 
options *

Executive Director & Head (Corporate Banking): 2,575,000 
options *

Executive Director (Corporate Centre) & Chief Financial 
Ofﬁ cer: 1,240,250 options *

Managing Director & CEO: 1,125,000 options granted during 
the year 2014-15

Executive  Director  &  Head  (Corporate  Banking):  625,000 
options granted during the year 2014-15

Executive  Director  &  Head  (Corporate  Centre)@:  500,000 
options granted during the year 2014-15

(cid:2) 

Identiﬁ ed employees who were granted options, during 
any one year, equal or exceeding 1% of the issued capital 
(excluding outstanding warrants and conversions) of the 
Bank under the grant

None

* Includes options granted prior to appointment as Executive Director
@ Retired during the year

17

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Diluted  Earnings  Per  Share  pursuant  to  issue  of  shares  on 
exercise of options calculated in accordance with Accounting 
Standard (AS) 20 ‘Earnings Per Share’

`30.85 per share

Weighted average exercise price of Options whose:

(cid:2)  Exercise price equals market price

Weighted average exercise price of the stock options granted 
during the year is `306.54

(cid:2)  Exercise price is greater than market price

(cid:2)  Exercise price is less than market price

Nil

Nil

Weighted average fair value of Options whose:

(cid:2)  Exercise price equals market price

Weighted  average  fair  value  of  the  stock  options  granted 
during the year is `109.72.

(cid:2)  Exercise price is greater than market price

(cid:2)  Exercise price is less than market price

Fair Value Related Disclosure 

Nil

Nil

(cid:2)  Increase  in  the  employee  compensation  cost  computed 
at  fair  value  over  the  cost  computed  using  intrinsic  cost 
method.

`90.26 crores

(cid:2)  Net Proﬁ t, if the employee compensation cost had been 

`7,267.56 crores

computed at fair value.

(cid:2)  Basic EPS, if the employee compensation cost had been 

`30.80 per share

computed at fair value.

(cid:2)  Diluted EPS, if the employee compensation cost had been 

`30.49 per share

computed at fair value.

Signiﬁ cant Assumptions used to estimate fair value

(cid:2)  Risk free interest rate

(cid:2)  Expected life

(cid:2)  Expected Volatility

(cid:2)  Dividend Yield

(cid:2)  Price of the underlying share in the market at the time of 

option grant.

8.62% to 8.78%

2.57 to 4.57 years

35.77% to 38.01%

1.32%
`306.54

18

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ANNEXURE II
Form No. MGT-9
EXTRACT OF ANNUAL RETURN
as on the ﬁ nancial year ended on 31st March 2015
[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of 
The Companies (Management and Administration) Rules, 2014]

I.  

REGISTRATION AND OTHER DETAILS

i)
ii)
iii)
iv)
v)

CIN
Registration Date
Name of the Company
Category / Sub-Category of the Company
Address of the Registered ofﬁ ce and contact details

vi)
vii)

Whether listed company – Yes/No
Name, Address and Contact details of Registrar and Transfer 
Agent

L65110GJ1993PLC020769
3rd December 1993
Axis Bank Limited
Company having Share Capital
‘Trishul’, 3rd Floor, 
Opp. Samartheshwar Temple, 
Law Garden, Ellisbridge, Ahmedabad, 
Gujarat – 380 006.
Phone No. :  079-66306161 
Fax No. :  079-26409321
Email : shareholders@axisbank.com
Yes
Karvy Computershare Private Ltd.
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District, 
Nanakramguda, Hyderabad – 500 032.
Phone No. : 040-67162222
Fax No. : 040-23001153

II.   PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Sr. 
No.
1

Name and Description of main 
products / services
(cid:2) Deposits
(cid:2) Loans
(cid:2) Investments and foreign exchange

NIC Code of the Product/ 
service
Section K : Financial and 
Insurance activities
Code : 64191

III.  PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

% to total turnover of the 
Company
Not applicable

Sr. 
No.

1

2

3
4
5
6
7
8
9

Name and
Address of
the Company
Axis Asset Management 
Company Limited
Axis Bank UK Limited

CIN/GLN

U65991MH2009PLC189558

7554558

U51900MH2005PLC157853
Axis Capital Limited
Axis Finance Limited
U65921MH1995PLC212675
Axis Mutual Fund Trustee Limited U66020MH2009PLC189325
U66020MH2006PLC165039
Axis Private Equity Limited
U74992MH2006PLC163204
Axis Securities Limited
U74999MH2008PLC182264
Axis Trustee Services Limited
5540630
Axis Securities Europe Limited

Holding/
Subsidiary/
Associate
Subsidiary

% of 
shares
held
74.99%

Applicable 
Section

2(87)(ii)

100%

2(87)(ii)

100%
100%
74.86%
100%
100%
100%
100%

2(87)(ii)
2(87)(ii)
2(87)(ii)
2(87)(ii)
2(87)(ii)
2(87)(ii)
2(87)(ii)

Foreign 
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Foreign 
Step-down 
Subsidiary

19

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IV.   SHAREHOLDING PATTERN (Equity Share Capital breakup as percentage of Total Equity)

Note:  The  shareholders  at  the  20th  Annual  General  Meeting  of  the  Bank  held  on  27th  June  2014  had  approved  the 
sub-division of one equity share having a face value of `10 each into ﬁ ve equity shares of face value of `2 each. The 
shareholding has been adjusted to reﬂ ect the said sub-division.

I) 

Category-wise Shareholding

No. of shares held at the beginning of the year

No. of shares held at the end of the year

Demat

Physical

Total

Demat

Physical

Total

% 
change
during
the year

% of
total
shares

Category of
Shareholders

A.  Promoters

(1)  Indian

a) Individual/HUF

b) Central Govt.

c) State Govt(s)

d) Bodies Corp.

e) Banks/FI

f) Any Other

-

-

-

-

69,39,11,965

-

Sub-total (A) (1):-

69,39,11,965

(2)  Foreign

a)  NRIs - Individuals

b)  Other - Individuals

c)  Bodies Corp.

d)  Banks/FI

e)  Any Other

Sub-total (A) (2):-

-

-

-

-

-

Total shareholding of 
Promoter (A) =(A)(1)+(A)(2)

B.  Public Shareholding

69,39,11,965

(1)  Institutions

a)  Mutual Funds

b)  Banks/FI

c)  Central Govt

d)  State Govt(s)

8,59,34,895

13,24,410

-

-

e)  Venture Capital Funds

f) 

Insurance Companies

14,73,08,560

g)  FIIs

1,14,50,74,925

h)  Foreign Venture Capital 

-

Funds

i)  Others (Qualiﬁ ed Foreign 
Investor - Corporate)

19,57,475

Sub-total (B)(1):-

1,38,16,00,265

% of
total
shares

-

-

-

-

-

-

-

-

-

-

-

-

69,39,11,965

29.54

66,20,93,177

-

-

-

69,39,11,965

29.54

66,20,93,177

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

69,39,11,965

29.54

66,20,93,177

8,59,34,895

13,24,410

-

-

3.66

0.06

-

-

15,55,10,061

13,77,755

-

-

-

14,73,08,560

6.27

14,50,74,071

1,14,50,74,925

48.74

1,10,56,36,277

-

-

19,57,475

0.08

-

-

1,38,16,00,265

58.81

1,40,75,98,164

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

66,20,93,177

27.93

(1.61)

-

-

-

66,20,93,177

27.93

(1.61)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

66,20,93,177

27.93

(1.61)

15,55,10,061

13,77,755

6.56

0.06

-

-

-

-

-

-

14,50,74,071

6.12

1,10,56,36,277

46.64

-

-

-

-

2.90

-

-

-

-

(0.15)

(2.10)

-

(0.08)

1,40,75,98,164

59.38

(0.57)

(2) Non-Institutions

a)  Bodies Corp.

i. 

Indian

ii.  Overseas

b)  Individuals

i)  

ii)  

Individual shareholders 
holding nominal share 
capital upto `1 lakh

Individual shareholders 
holding nominal share 
capital in excess of `1 
lakh

20

2,60,61,030

78,65,550

3,39,26,580

1.44

3,37,57,118

68,050

3,38,25,168

1.43

(0.01)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

7,29,79,950

1,05,65,530

8,35,45,480

3.56

8,83,20,215

93,23,248

9,76,43,463

4.12

0.56

5,28,45,830

1,39,120

5,29,84,950

2.26

6,28,09,489

67,500

6,28,76,989

2.65

0.39

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Category of
Shareholders

c)  Others

i. 

ii. 

HUF

Trusts

No. of shares held at the beginning of the year

No. of shares held at the end of the year

Demat

Physical

Total

Demat

Physical

Total

% 
change
during
the year

% of
total
shares

13,49,125

41,08,515

iii.  Clearing Members

1,46,76,310

iv.  NRIs

v. 

Foreign Bodies – DR

vi. 

Foreign Bank

vii.  Foreign Nationals

43,51,490

21,52,820

46,370

-

-

-

-

-

-

-

-

13,49,125

41,08,515

1,46,76,310

43,51,490

21,52,820

46,370

-

19,83,163

56,13,509

53,58,119

49,88,533

3,12,194

1,46,195

500

-

-

-

-

-

-

-

19,83,163

56,13,509

53,58,119

49,88,533

3,12,194

1,46,195

500

0.08

0.24

0.23

0.21

0.01

0.01

-

Sub-total (B)(2):-

17,85,71,440 1,85,70,200

19,71,41,640

8.39

20,32,89,035

94,58,798

21,27,47,833

8.97

Total Public Shareholding 
(B)=(B)(1)+ (B)(2)

1,56,01,71,705 1,85,70,200

1,57,87,41,905

67.20

1,61,08,87,199

94,58,798

1,62,03,45,997

68.35

0.02

0.07

(0.39)

0.02

(0.08)

0.01

-

0.58

1.15

% of
total
shares

0.06

0.17

0.62

0.19

0.09

-

-

C.  Shares held by Custodian 

7,65,68,895

-

7,65,68,895

3.26

8,80,83,025

-

8,80,83,025

3.72

0.46

for GDRs

Grand Total (A+B+C)

2,33,06,52,565 1,85,70,200

2,34,92,22,765

100.00

2,36,10,63,401

94,58,798

2,37,05,22,199

100.00

(ii) 

Shareholding of Promoters

Sr
No.

Shareholder’s
Name

Shareholding at the beginning of the 
year

Shareholding at the end of the year

No. of
shares

% of 
total
shares 
of the
Bank

% of shares
pledged/ 
encumbered 
to total shares

No. of
shares

% of total
shares of 
the
Bank

% of shares
pledged/ 
encumbered to 
total shares

% change
in share-
holding 
during the
year

1

2

3

4

5

6

7

Administrator of the 
Speciﬁ ed Undertaking 
of the Unit Trust of 
India - (SUUTI)

Life Insurance 
Corporation of India

General Insurance 
Corporation of India

The New India 
Assurance Company 
Limited

National Insurance 
Company Limited

The Oriental Insurance 
Company Limited

United India Insurance 
Company Limited

27,48,40,905

11.70

31,98,93,555

13.62

4,12,65,495

2,74,45,900

1.76

1.17

1,71,00,285

0.73

68,27,520

0.29

65,38,305

0.28

-

-

-

-

-

-

-

27,48,40,905

11.59

29,60,75,087

12.49

3,93,21,498

2,66,07,567

1,36,75,285

62,30,020

53,42,815

1.66

1.12

0.58

0.26

0.23

-

-

-

-

-

-

-

(0.11)

(1.13)

(0.10)

(0.05)

(0.15)

(0.03)

(0.05)

21

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10859_2_Directors Report & MDA.indd   22
10859_2_Directors Report & MDA.indd   22

6/11/2015   6:29:30 PM
6/11/2015   6:29:30 PM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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10859_2_Directors Report & MDA.indd   23
10859_2_Directors Report & MDA.indd   23

6/11/2015   6:29:30 PM
6/11/2015   6:29:30 PM

23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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1

10859_2_Directors Report & MDA.indd   24
10859_2_Directors Report & MDA.indd   24

6/11/2015   6:29:30 PM
6/11/2015   6:29:30 PM

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                     
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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25

10859_2_Directors Report & MDA.indd   25
10859_2_Directors Report & MDA.indd   25

6/11/2015   6:29:30 PM
6/11/2015   6:29:30 PM

 
 
 
 
 
 
 
                                     
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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10859_2_Directors Report & MDA.indd   26
10859_2_Directors Report & MDA.indd   26

6/11/2015   6:29:30 PM
6/11/2015   6:29:30 PM

 
 
 
 
 
 
 
                                     
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
          
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
              
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
V.  

INDEBTEDNESS

Indebtedness of the Bank including interest outstanding/accrued but not due for payment 

Particulars

Indebtedness  at  the  beginning  of  the 
ﬁ nancial year

i) 

ii) 

Principal Amount

Interest due but not paid

iii) 

Interest accrued but not due

Total (i+ii+iii)

Change in Indebtedness during the ﬁ nancial 

year

Addition

Reduction

Net Change

Indebtedness  at  the  beginning  of  the 
ﬁ nancial year

i) 

ii) 

Principal Amount

Interest due but not paid

iii) 

Interest accrued but not due

Total (i+ii+iii)

Notes:

(` in crores)

Unsecured
Loans

Deposits

Total
Indebtedness

Secured 
Loans
Excluding  
Deposits

-

-

-

-

50,290.94

-

585.43

50,876.37

96,785.23

1,55,174.63

(96,785.23)

(1,25,374.74)

-

-

-

-

-

29,799.89

79,758.27

-

917.99

80,676.26

-

-

-

-

-

-

-

-

-

-

-

50,290.94

-

585.43

50,876.37

2,51,959.86

(2,22,159.97)

29,799.89

79,758.27

-

917.99

80,676.26

1. 

2. 

3. 

Deposits accepted by the Bank are in normal course of banking business and an operating activity of the Bank and 
hence not included in the indebtedness disclosure.

Principal  amount  represents  outstanding  balance  of  borrowings  as  reported  in  ﬁ nancial  statements  as  of  the 
beginning and end of the ﬁ nancial year.

Additions also include the effect of exchange rate ﬂ uctuation and net change in interest accrued but not due 
between the beginning of ﬁ nancial year and the end of ﬁ nancial year.

VI.  REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A.  Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sr.
No.

Particulars of 
Remuneration

Name of MD/WTD/Manager

                          (in  `)

Total
Amount

Shikha 
Sharma

V. Srinivasan

Somnath 
Sengupta 
(upto 
1.9.2014)

Sanjeev K. 
Gupta
(from 
4.9.2014)*

3,76,35,134

2,40,92,028

2,12,66,176

75,22,099

9,05,15,437

1

Gross salary
(a) Salary as per provisions 
contained u/s 17(1) of 
the Income-Tax Act, 
1961

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Sr.
No.

Particulars of 
Remuneration

Name of MD/WTD/Manager

Shikha 
Sharma

V. Srinivasan

41,47,447 
(Exclusive 
ESOP Perks)
-

5,12,181
(Exclusive 
ESOP Perks)
-

Somnath 
Sengupta 
(upto 
1.9.2014)

16,68,513
(Exclusive 
ESOP Perks)
2,22,14,819 
(Gratuity)

Sanjeev K. 
Gupta
(from 
4.9.2014)*

8,45,692
(Exclusive 
ESOP Perks)
-

1,125,000
-

6,25,000
-

5,00,000
-

-
-

-
-

-
-

-
-

-
-

Total
Amount

71,73,833

2,22,14,819

22,50,000
-

-
-

4,17,82,581
-

2,46,04,209
-

4,51,49,508
-

83,67,791 11,99,04,089
-

-

*Shri Sanjeev K. Gupta was President & Chief Financial Ofﬁ cer till 3rd September 2014 and took charge as Executive 
Director (Corporate Centre) & Chief Financial Ofﬁ cer of the Bank, with effect from 4th September 2014.

** In terms of provisions of the Banking Regulation Act, 1949, the provisions relating to Managerial Remuneration under 
the Companies Act, 2013 and Rules made thereunder are not applicable to the Bank.

B. 

Remuneration to other Directors:

V R 
Kaundinya

S B Mathur 
(upto 
30.9.2014)

Prasad R 
Menon

Samir 
Barua

Som 
Mittal

Ireena 
Vittal

Rohit 
Bhagat

S Vishvanathan

   (in `)

Total 
Amount

15,60,000

8,00,000

12,30,000

18,30,000

7,00,000

5,60,000

4,60,000

50,000

71,90,000

(b) Value of perquisites u/s 
17(2) of the Income-Tax 
Act, 1961

(c) Proﬁ ts in lieu of salary 

u/s 17(3) of the Income-
Tax Act, 1961

Stock Options
Sweat Equity
Commission
- as % of proﬁ t
- others
Others
Total (A)
Ceiling as per the Act**

2
3
4

5

Sr.
No.

1

2

3

Particulars of 
Remuneration 
to Independent 
Directors

Fee for attending 
board / 
committee
meetings

Commission

Others

Total (1)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

15,60,000

8,00,000

12,30,000

18,30,000

7,00,000

5,60,000

4,60,000

-

-

-

-

50,000

71,90,000
             (in `)
Total 
Amount

Sr.
No.

Particulars of 
Remuneration to other 
Non-Executive Directors

Sanjiv 
Misra*

K N 
Prithviraj

R N 
Bhattacharyya 
(upto 
28.6.2014)

Usha 
Sangwan

1

2
3

7,10,000

Fee for attending board / 
committee
meetings
Commission
Others
Total (2)
Total (B)=(1+2)
Total Managerial Remuneration (A+B)

-
26,47,516
33,57,516

18,10,000

1,40,000

3,10,000

29,70,000

-
-
18,10,000

-
-
1,40,000

-
-
3,10,000

-
26,47,516
56,17,516
1,28,07,516
13,27,11,605

* In terms of approval granted by Ministry of Corporate Affairs u/s. 309 (4) of the Companies Act, 1956.

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C. 

Remuneration to Key Managerial Personnel other than MD/MANAGER/WTD

Particulars of Remuneration

Sr.
No.

1

Gross salary

(a)   Salary as per provisions contained 
in u/s 17(1) of the Income-Tax Act, 
1961

(b)   Value of perquisites u/s 17(2) of 
the Income-Tax Act, 1961

(c)   Proﬁ ts in lieu of salary u/s 17(3) of 

the Income-tax Act, 1961

2

3

4

5

Stock Options

Sweat Equity

Commission

-  

-  

as % of proﬁ t

others

Others

Total

                (in `)

Total
Amount

Sanjeev Kapoor
Company 
Secretary

Sanjeev K Gupta
(from 1.4.2014 to 
3.9.2014)
President & Chief 
Financial Ofﬁ cer

95,11,887

55,33,125

1,50,45,012

6,20,708

21,600

6,42,308

-

-

-

1,75,000

5,000

1,80,000

-

-

-

-

-

-

-

-

-

-

-

-

1,01,32,595

55,54,725

1,56,87,320

VII.  PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Brief
Description

Section of
the
Companies
Act

Details of
Penalty/
Punishment/
Compounding
fees imposed

Authority
(Regional 
Director/National 
Company Law 
Tribunal/Court)

Appeal made

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

Type

A. Company

  Penalty

  Punishment

  Compounding

B. Directors

  Penalty

  Punishment

  Compounding

C. Other Ofﬁ cers in Default

  Penalty

  Punishment

  Compounding

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ANNEXURE III

Disclosure  on  remuneration  pursuant  to  Section  197  of  the  Companies  Act,  2013  read  with  Rule  5  (1)  of  the 
Companies (Appointment & Remuneration of Managerial Personnel) Rules, 2014

The information relating to managerial remuneration in terms of Rule 5 (1) of the Companies (Appointment and Remuneration 
of Managerial Personnel) Rules, 2014, are detailed as under: –

(i) 

The ratio of the remuneration of each Whole Time Director of the Bank to the median remuneration of the employees 
of the Bank for the ﬁ nancial year 2014-15;

Ratio  of  the  remuneration  of  each  Whole  Time  Director  of  the  Bank  to  the  median  remuneration  of  the  employees 
(excluding  front  line  sales  force)  of  the  Bank  are,  Smt.  Shikha  Sharma  -  Managing  Director  &  CEO)  ratio  is  1:74.2,
Shri  V.  Srinivasan  -  Executive  Director  &  Head  (Corporate  Banking)  ratio  is  1:47.3,  Shri  Sanjeev  K.  Gupta  -  Executive 
Director (Corporate Centre) & CFO ratio is 1:30.3.

Note - Information is only in respect of Whole Time Directors who are on rolls of the Bank as on 31st March 2015.

(ii) 

The percentage increase in remuneration of each  Whole Time Director, and the Company Secretary of the Bank, during 
the ﬁ nancial year 2014-15, are as under;

Percentage increase in remuneration  for Smt. Shikha Sharma - Managing Director & CEO was 15%, Shri V. Srinivasan - 
Executive Director & Head (Corporate Banking) was 14%, Shri Sanjeev K. Gupta* [on his appointment as the Executive 
Director (Corporate Centre) & CFO] was 25% and that of Shri Sanjeev Kapoor (Company Secretary) was 12%.

* was appointed as the Whole Time Director of the Bank w.e.f. 4th September 2014.

(iii)  The percentage increase in the median remuneration of employees of the Bank during  the ﬁ nancial year; 

Median remuneration of employees of the Bank increased by 6.16% during the ﬁ nancial year 2014-15, as compared to 
the ﬁ nancial year 2013-14.

(iv)  The number of permanent employees on the rolls of the Bank;  

The Bank had 42,230 permanent employees on its rolls as on 31st March 2015.

(v) 

The explanation on the relationship between average increase in remuneration and Company performance;

The  Bank’s  performance  management  and  compensation  philosophies  are  structured  to  support  the  achievement 
of  the  Bank’s  strategic  business  objectives.  These  strategic  priorities  are  cascaded  through  annualised  objectives  to 
the  employees.  Based  on  the  Bank’s  performance,  individual  performance,  market  benchmarks  on  compensation 
and  attrition  trends,  compensation  strategy  including  increment  benchmarks  are  proposed  by  the  Nomination  and 
Remuneration Committee of the Directors of the Bank for adoption by the Bank.

(vi)  Comparison of the remuneration of the Key Managerial Personnel against the performance of the Bank;

As stated earlier, the Bank’s performance management and compensation philosophies are structured to support the 
achievement of the Bank’s strategic business objectives.  

The Bank follows the balanced scorecard approach/KRA in designing its performance management system. Adequate 
attention is given to robust goal setting process to ensure alignment of individual objectives to support the achievement 
of business strategy, ﬁ nancial and non-ﬁ nancial goals across and through the organization. The non-ﬁ nancial goals for 
employees includes customer service, process improvement, adherence to risk and compliance norms, self-capability 
development and behaviours such as integrity and team management. 

Accordingly, the remuneration for Key Managerial Personnel has been decided based on the above parameters.

(vii)  Variations in the market capitalization of the Bank, price earnings ratio as at the closing date of the current ﬁ nancial year 
and previous ﬁ nancial year and percentage increase over decrease in the market quotations of the shares of the Bank in 
comparison to the rate at which the Bank came out with the last public offer in case of listed companies.

Variation in market capitalization
As on 31st March 2015, the market capitalization of the Bank was `132,797 crores (based on the closing price of Bank’s 
Equity Shares on the NSE on 31st March 2015) as compared to `68,621 crores at the end of 31st March 2014, representing 
an increase of 93.52%. The Price Earning Ratio for the Bank’s equity as on 31st March 2015 was 17.97 compared to 11.02 
on 31st March 2014, representing an increase of 63.07%.

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In the past, the Bank had come out with initial public offering in 1998 at price of `21 per equity share of face value of 
`10/- each, including premium of `11 per equity share.

(viii)  Average percentile increase already made in the salaries of employees of the Bank other than its Managerial Personnel 
(viz. Whole Time Directors of the Bank) during the last ﬁ nancial year and its comparison with the percentile increase 
in the managerial remuneration and justiﬁ cation thereof and point out if there are any exceptional circumstances for 
increase in the managerial remuneration;

Average remuneration increase for Non Managerial Personnel of the Bank during the ﬁ nancial year was 8% and the 
average remuneration increase for the said Managerial Personnel of the Bank was around 15% (exception being the 
remuneration paid to Shri Sanjeev K. Gupta on his appointment as the Executive Director (Corporate Centre) & CFO of 
the Bank, w.e.f. 4th September 2014.

Remuneration  increase  is  dependent  on  the  Bank’s  performance  as  a  whole,  individual  performance  level  and  also 
market benchmarks.

(ix)  Comparison of the remuneration of the Key Managerial Personnel against the performance of the Bank;

The Bank’s performance management and compensation philosophies are structured to support the achievement of 
the Bank’s on-going business objectives by rewarding achievement of objectives linked directly to its strategic business 
priorities. These strategic priorities are cascaded through annualised objectives to the employees. 

The  Bank  follows  the  balanced  scorecard  approach  in  designing  its  performance  management  system.  Adequate 
attention is given to robust goal setting process to ensure alignment of individual objectives to support the achievement 
of business strategy, ﬁ nancial and non-ﬁ nancial goals across and through the organization. The non-ﬁ nancial goals for 
employees includes customer service, process improvement, adherence to risk and compliance norms, self-capability 
development and behavior’s such as integrity and team management.

The  remuneration  is  decided  taking  into  account  the  Bank’s  performance,  individual  performance  and  market 
benchmarks. The same is ﬁ rst approved by the Nomination and Remuneration Committee of the Board of Directors and 
thereafter it is recommended to the Board for its approval. 

Further,  it  is  imperative  to  note  that  the  terms  and  conditions  relating  to  the  appointment  including  remuneration 
payable to the Whole Time Directors of the Bank and any revision thereof, is subject to prior approval of the Reserve 
Bank of India (RBI)  in accordance with the relevant provisions of the Banking Regulation Act, 1949, as amended, from 
time to time.

Accordingly, the increase in the remuneration for the ﬁ nancial year 2014-15 for Smt. Shikha Sharma (Managing Director 
& CEO) was 15%, Shri V. Srinivasan – Executive Director & Head (Corporate Banking) was 14%, Shri Sanjeev K. Gupta 
– Executive Director (Corporate Centre) & CFO  was 25% (on his appointment as Executive Director as aforesaid) and 
Shri Sanjeev Kapoor (Company Secretary) was 12%.

(x) 

The key parameters for any variable component of remuneration availed by the Whole Time Directors of the Bank;

Key parameters include the ﬁ nancial parameters, compliance parameters, risk and control aspects, process and people 
deliverables.

- 

- 

Percentage of variable pay for the CEO/WTDs to be capped at 70% of ﬁ xed pay (in terms of the RBI guidelines)

If the variable pay exceeds 40% of their ﬁ xed pay, then 45% of such variable pay is deferred proportionately over 
a period of three years.

(xi)  The ratio of the remuneration of the highest paid director to that of the employees who are not directors but receive 

remuneration in excess of the highest paid director during the year; 

Not Applicable.

(xii)  Afﬁ rmation that the remuneration is as per the Remuneration Policy of the Bank.

Remuneration Policy which has been approved by the Nomination and the Remuneration Committee of the Board of 
Directors of the Bank, is in line with Risk Alignment Policy Guidelines issued by the RBI. The remuneration has been paid 
as per the Remuneration Policy of the Bank.

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ANNEXURE IV

MANAGEMENT’S DISCUSSION AND ANALYSIS

MACRO-ECONOMIC ENVIRONMENT

India’s macro-economic environment has improved across various parameters compared to the previous ﬁ scal 2014, with low 
stable inﬂ ation, lower ﬁ scal deﬁ cit, lower current account deﬁ cit, higher foreign exchange reserves and a stable currency.  An 
electoral victory reﬂ ecting a strong political mandate for economic change along with the improved macro-economic situation 
has inspired optimism of an economic revival, leading to an improved sentiment on the ground.

The  Central  Statistical  Organisation  has  made  changes  to  the  methodology  of  estimating  India’s  GDP  in  line  with  the 
International Standards. Based on this methodology the GDP is projected to grow at 7.4% in ﬁ scal 2015.

Fiscal  consolidation  continues  apace,  with  the  Union  Government  committed  to  meeting  its  earlier  ﬁ scal  deﬁ cit  target  of 
4.1%. Together with the sharp drop in CPI inﬂ ation of 5.17% in March 2015 from 8.25% in March 2014, RBI had sufﬁ cient 
conﬁ dence in the inﬂ ation management efforts to start a rate easing cycle, cutting its policy rate by 50 bps in the year to 7.5%. 
The new ﬂ exible inﬂ ation targeting Monetary Policy Framework is also expected to anchor inﬂ ation expectations.

India’s potential and prospects were sufﬁ ciently attractive for it to attract foreign capital, particularly portfolio ﬂ ows. This 
allowed RBI to replenish its foreign exchange reserves, currently over USD 340 billion through market intervention, thereby 
permitting the Rupee to depreciate gradually against the US Dollar over the course of the year.

The developments noted above have allowed a more co-ordinated response to revive growth. The Government had taken 
various steps, including initiating an auction to allocate a number of coal mines whose licenses had previously been cancelled 
and of spectrum for telecom companies. There have also been relaxations of clearances required, including environmental, 
and some process rationalisations of regulatory approvals. RBI has also changed its monetary policy stance to an easing cycle, 
and has cut the repo rate by 50 bps in Q4 in ﬁ scal 2015. The transmission of these repo rate cuts had been constrained in the 
last quarter, given expectations of a credit demand surge and consequent tight liquidity, but has begun in the ﬁ rst quarter of 
ﬁ scal 2016 and is likely to continue over the next few months.

Credit demand had remained weak both due to lack of new projects and low working capital demand, arising from weak 
commodity prices and diesel de-regulation. Within this weak credit environment, there had been a structural shift of credit 
demand to non-bank sources, with increasing reliance on Commercial Paper and corporate bond issues, both domestic and 
offshore. For ﬁ scal 2015, deposit growth in the system was 12.8%, while credit growth was at 12.6%.

Prospects for Fiscal 2016

India’s status as a favoured investment destination is likely to continue in ﬁ scal 2016. Global conditions are likely to remain 
favourable for continuing weak commodity prices, which will provide headroom for a moderate stimulus via monetary policy 
easing. Rating agency Moody’s has revised India’s sovereign ratings outlook upwards. However, there is likely to be the risk 
of persisting ﬁ nancial markets volatility as global central banks embark on asymmetric monetary policy strategies. India is 
perhaps better prepared to deal with this turbulence as it has reigned in its twin (ﬁ scal and current account) deﬁ cits within 
acceptable levels.

The immediate objective of the current Government in India is to revive capital expenditure and investment demand. The latest 
Budget announced a signiﬁ cant increase of `70,000 crores in investment in infrastructure during 2015-16, with a focus on 
railways and roads. We believe this outlay will initially help to boost public investment and thereafter have multiplier effects 
to catalyse demand in related ancillary sectors in the entire value chain within a few quarters. However, given the moderate 
capacity utilisation in the private sector and sluggish demand in many sectors, the immediate priorities for the private sector 
are likely to be completion of projects and tying up of fuel and other mineral inputs before signiﬁ cant new capacities can be 
considered. We expect that RBI has room to cut its policy repo rate by another 25-50 bps over ﬁ scal 2016, given projections 
of inﬂ ation. Coupled with gradual economic and investment recovery and funding needs for auction proceeds, bank credit 
growth is likely to be in the 12-14% range in ﬁ scal 2016, while we expect deposit growth in the range of 12-13%.

OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE

The Bank’s strategy to build its business upon strong customer franchises while adopting a prudent approach has continued 
to deliver good results. The Bank reported a net proﬁ t of `7,357.82 crores for the year ended 31st March 2015, registering a 

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3.92

3.81

3.65

3.59

3.53

14,224 

11,952

9,666 

8,018 

6,563 

growth of 18.34% over the net proﬁ t of `6,217.67 
crores  last  year.  The  steady  growth  in  earnings 
was  achieved  due  to  a  much  more  balanced 
contribution  across  all  its  business  segments. 
The Bank displayed steady growth in key balance 
sheet  parameters  for  the  year  ended  31st  March 
2015.  The  total  assets  increased  by  20.53%  to 
`461,932  crores,  total  deposits  increased  by 
14.77% to `322,442 crores while total advances 
increased by 22.17% to `281,083 crores.

2010-11

2011-12

2012-13

2013-14 2014-15

During the year, the Bank continued to expand its 
network,  with  increased  focus  on  the  non-rural 
areas  as  last  year  it  had  signiﬁ cantly  expanded 
its  footprint  in  the  rural  areas.  The  network 
expansion  has  continued  to  support  the  steady 
growth in Retail and SME segments. The Bank’s 
digital initiatives have continued to make signiﬁ cant progress and remain integral towards making banking simple through the 
adoption of simple processes for seamless multichannel delivery.

Net Interest Income (` in crores)

Net Interest Margins (%)

2013-14

2012-13

2014-15

2011-12

2010-11

The Bank continued to enhance its shareholder value by delivering healthy ﬁ nancial return ratios. Basic Earnings Per Share (EPS) 
was `31.18 compared to `26.51 last year, while the Diluted Earnings Per Share was `30.85 compared to `26.45 last year. Key 
return  ratios  continued  to  remain  healthy,  with  Return 
on  Equity  (RoE)  at  18.57%  compared  to  18.23%  last 
year, and Return on Assets (RoA) at 1.83% compared to 
1.78% last year. The Net Interest Margin (NIM) for the 
year was 3.92% compared to 3.81% last year. The asset 
quality remained stable with ratio of Gross NPAs to gross 
customer assets at 1.34%, and Net NPA ratio (Net NPAs 
as percentage of net customer assets) was 0.44%.

LOW COST OF FUNDS

45.01

44.78

6.24

6.21

4.96

6.28

6.55

CAPITAL MANAGEMENT

44.38

41.54

41.10 

for  continual  enhancement  of 
The  Bank  strives 
shareholder  value  by  efﬁ ciently  using  capital  in  order 
to  maximise  return  on  equity.  Aiming  to  achieve  this 
objective,  the  Bank  endeavours  to  develop  an  asset 
structure  that  will  be  sensitive  to  the  importance  of 
increasing the proportion of low risk weighted assets. The 
Bank’s capital management framework helps ensure an appropriate composition of capital and an optimal mix of businesses.

Demand Deposits as % Share of Total Deposits

2010-11 2011-12

2010-11 2011-12

2013-14 2014-15

2013-14 2014-15

Cost of Funds (%)

2012-13

2012-13

The Bank has implemented the Basel III capital regulation from 1st April 2013 in India in a phased manner and is to be fully 
implemented as on 31st March 2019. This will also align full implementation of Basel III in India closer to the internationally 
agreed date of 1st January 2019.

Accordingly, the Bank has computed Capital Adequacy Ratio (CAR) as on 31st March 2015 in terms of regulatory guidelines 
on Basel III, wherein the capital charge for operational risk is computed under the Basic Indicator Approach and the capital 
charge for credit and market risk is computed under the Standardised Approach. As on 31st March 2015, the Bank’s CAR under 
Basel III was 15.09% against the minimum regulatory requirement of 9%. Of this, the Common Equity Tier I (CET I) CAR 
was 12.07% (against minimum regulatory requirement of 5.50%) and Tier I CAR was 12.07% (against minimum regulatory 
requirement of 7.00%). As on 31st March 2015, the Bank’s Tier II CAR under Basel III was 3.02%. The capital adequacy ratio 
of the Bank computed under Basel III as on 31st March 2014 was 16.07% with CET I and Tier I CAR of 12.62% and Tier II CAR 
of 3.45%.

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The following table sets forth the capital, risk-weighted assets and capital adequacy ratios computed as on 31st March 2015 
and 31st March 2014 in accordance with the applicable RBI guidelines under Basel III.

As on 31st March
Tier I Capital
Tier II Capital

Out of which

 -   Tier II capital Instruments

 -   Other eligible for Tier II capital
Total Capital qualifying for computation of Capital Adequacy Ratio
Total Risk-Weighted Assets and Contingencies
Total Capital Adequacy Ratio 

Out of above

-    Common Equity Tier I capital ratio

-    Tier I capital ratio

-    Tier II capital ratio

BUSINESS OVERVIEW

2015
41,680.96
10,423.85

8,950.42

1,473.43
52,104.81
345,200.44
15.09%

12.07%

12.07%

3.02%

(` in crores)
2014
35,805.48
9,790.55

8,802.04

988.51
45,596.03
283,807.26
16.07%

12.62%

12.62%

3.45%

An  overview  of  the  Bank’s  various  business  segments  along  with  their  performance  during  ﬁ nancial  2014-15  and  future 
strategies is presented below.

RETAIL BANKING

The  Retail  Banking  segment  continues  to  be  one  of  the  key  drivers  of  the  Bank’s  overall  growth  strategy.  It  encompasses 
a  wide  array  of  products  and  services  delivered  through  multiple  channels  to  customers  ranging  across  deposits,  loans, 
investments and payment solutions. The Bank has over the years developed long-
term  relationships  with  its  customers  by  being  their  preferred  ﬁ nancial  solutions 
partner,  excelling  in  customer  delivery  through  insight,  superior  service  and 
smart  use  of  technology.  The  Bank  also  focuses  on  meeting  the  ﬁ nancial  needs 
of its customers by providing high quality products and services through regular 
customer engagement.

RETAIL LIABILITIES

(` in crores)

 88,292 

77,776

63,778 

The  Bank  continues  to  be  one  of  the  strongest  ﬁ nancial  services  brand  in  the 
country. The Bank has been rated twice in a row as the Most Trusted Private Sector 
Bank in the survey conducted by Brand Equity for 2013 and 2014. The Bank is the 
3rd largest Indian Banking brand on Facebook and among the top 5 Global Banking 
brands on Social Media (Source: theﬁ nancialbrand.com during the period October 
to December 2014).

51,668 

40,850 

The  Bank  pursues  an  effective  customer  segmentation  strategy  and  has  over 
the  years  built  a  sustainable  retail  deposit  franchise.  During  the  year,  the  Bank 
continued  to  focus  on  increasing  its  retail  deposits  base,  particularly  demand 
deposits.  Savings  Bank  deposits  have  grown  at  a  Compounded  Annual  Growth 
Rate (CAGR) of 21.13% over the last ﬁ ve years. During the year, Savings Bank deposits grew by 13.52% to `88,292 crores from 
`77,776 crores last year. On a daily average basis, Savings Bank deposits grew by 16.82% to `72,694 crores. As on 31st March 
2015, the Bank had over 149.4 lac savings account customers, registering a growth of 12.56%. The Bank has also maintained 
its approach to widen the retail deposit base and continued its focus on increasing the share of retail term deposits. As on 
31st March 2015, retail term deposits grew 26.53% to `106,581 crores. CASA and retail term deposits constituted 77.84% 
of total deposits as on 31st March 2015 compared to 75.00% last year. Domestic CASA and retail term deposits constituted 
78.87% of total domestic deposits.

2010-11 2011-12 2012-13

2013-14 2014-15

SB DEPOSITS 

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35

During the year, the Bank launched its most premium personal banking service, Burgundy, designed especially for the busy 
afﬂ uent  HNI  customer.  Burgundy  offers  end-to-end  personalised  banking  and  wealth  management  solutions,  along  with 
business solutions to meet the personalised investment needs of high net worth individuals as well as the corporate advisory 
needs of families in business. Burgundy brings solutions offered by various business groups (both retail and corporate) within 
the Bank and various group entities under one integrated platform.

With the development in technology, consumer expectations have increased in terms of real-time data availability and speed 
of transaction. The internet and mobile banking platforms of the Bank provide customers the ease of transacting real time 
from the comfort of their home or ofﬁ ce while ensuring security. Our Internet Banking user base is growing at 20% and 
transaction volumes are growing at 22% YoY. The Bank has also launched Internet Banking Version 2.0 for faster and better 
navigation, along with richer consumer experience and ease of operation. The Axis Mobile Application has also been very well 
adopted by customers with close to 15 lac users generating a monthly transaction value of over `1,500 crores.

The  Bank  distributes  investment  products  such  as  mutual  funds,  Bancassurance  products  (life  and  general  insurance)  and 
online trading products through its branches. The Bank is one of the leading banking distributors of mutual funds in India and 
distributes mutual fund products of all major asset management companies. The fee income from this segment witnessed a 
robust growth of 110% during the year and contributed 12% to the total Retail Banking fees. These products are sold through 
the Bank’s branch distribution network based on client requirements. For the Life Insurance distribution, the Bank distributes 
products of Max Life Insurance Company. The fee income from this segment has witnessed a growth of 5% this year and 
contributes  19%  to  total  Retail  Banking  fees.  During  the  year,  more  than  2.2  lac  lives  were  insured,  with  a  collection  of 
`1,135.37 crores towards annual premiums. In General Insurance, the Bank has a tie-up with Tata AIG (American International 
Group) and during the year sold more than 3.3 lac policies and collected `204.5 crores of premium. The Bank offers online 
trading services to its customers in collaboration with Axis Securities Ltd. (a 100% subsidiary of the Bank) under the name 
Axis Direct - an enhanced and simpliﬁ ed online trading platform, which is now available to NRI customers as well. During the 
year, the Bank opened more than 2.2 lac online trading accounts, which helped to bring in quality accounts in terms of fee 
income and low cost deposit balances.

The  Bank  also  offers  a  complete  suite  of  banking  and  investment  products  under  its  NRI  Services  for  Indians  living  and 
working overseas. As on 31st March 2015, the Bank’s aggregate NRI deposits (Savings Bank+Term Deposits) stood at `41,112 
crores registering a year-on-year growth of 47.05%. The Bank now offers Portfolio Investment Scheme (PIS) services across 
all  its  branches,  as  compared  to  only  49  branches  in  the  last  year.  Accordingly,  all  branches  are  now  authorised  to  issue 
PIS permissions to NRIs/PIOs who want to trade in the Indian secondary markets 
through a registered stockbroker on a recognised Stock Exchange. The Bank has a 
strong focus on customer service and provides a 24x7 helpdesk for NRI customers 
with the facility of Toll-Free numbers from key overseas geographies.

RETAIL ASSETS

(` in crores)

111,932 

88,028 

65,497

48,678

35,971

2010-11 2011-12 2012-13

2013-14 2014-15

last  year, 

COMPOSITION OF RETAIL LOANS

The Bank continued to increase the share of retail loans to total advances. The total 
retail  loans  portfolio  of  the  Bank 
increased to `111,932 crores as on 
31st  March  2015  from  `88,028 
crores 
registering  a 
growth of 27.15% and constituted 
39.82%  of 
total  advances  as 
compared  to  38.26%  last  year. 
The  domestic  retail  loans  were 
`105,174 crores on 31st March 2015 
compared  to  `84,282  crores  last 
year,  thereby  registering  a  growth 

12%

16%

8%

9%

7%

of 24.79%.

The  three  main  elements  of  the  Bank’s  strategy  on  the  retail  lending  and 
payments businesses for the ﬁ nancial year 2014-15 were: Cross-sell to internal 
customers, growth in the rural lending and retail payments franchises.

During the course of the year, the reach of the retail assets business expanded 
to include 100% of the Bank’s branches. For unsecured lending products, the 

48%

Housing loans

Retail agricultural loans

Personal Loans & Credit Cards

Auto loans

Loans against Property

Others

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Bank focused predominantly on the existing customers of the Bank. Overall, more than 40% of incremental retail loans were 
sourced through branches. Existing deposit customers contributed about two-third of the incremental retail loans. The credit 
quality of retail loans has remained steady.

Rural agricultural lending was another focus area for the Bank. The agriculture lending business was reorganized during the 
year and the retail portion of the business was aligned with the existing retail loans portfolio to enable it to leverage the 
existing  efﬁ ciencies  in  process  and  technology.  It  also  allowed  the  Bank  to  serve  the  multiple  needs  of  the  farmer  -  both 
as a producer and as a consumer.  In order to provide a strategic focus, the Bank has adopted an area-centric approach in 
agriculture intensive areas with the presence of decentralised area ofﬁ ces following a hub and spoke model. As on 31st March 
2015, the Bank’s outstanding loans in the agricultural sector grew at a healthy 32.68% to `17,960 crores from `13,537 crores 
last year.

The retail payments franchise is central to the retail strategy for the Bank as it leads to an increase in customer stickiness and 
loyalty, enabling us to increase our share of the customer’s wallet. The Bank is one of the largest debit card issuers in the 
country, with a base of 143 lac. The Bank had 17.4 lac credit cards in force as of 31st March 2015, making it the 5th largest 
credit card issuer in the country. The credit cards portfolio saw a substantial increase in spends by 54%, to `13,536 crores 
from `8,779 crores last year. The Bank is also one of the largest acquirers of point-of-sale terminals in the country with an 
installed base of around 2.5 lac.

The Bank also offers products in the area of retail forex and remittance, including travel currency cards, inward and outward 
wire transfers, traveller’s cheques and foreign currency notes, remittance facilities through online portals as well as through 
collaboration with correspondent banks, exchange houses and money transfer operators. The Bank has a market leadership 
position  in  Travel  Currency  Cards  with  15  currency  options  other  than  INR  being  offered.  Additionally,  the  Bank  offers  a 
Multicurrency Forex Card, aimed at frequent travellers to multiple countries. The aggregate load value on travel currency cards 
crossed USD 1.1 billion during the year, taking the total volume for the business since inception to over USD 5 billion. The Bank 
has a strong focus on developing electronic channels for remittance and has launched the facility of outward remittances 
through internet banking for its retail customers in over 100+ currencies. The volumes of retail remittances also rose by 18% 
during the year and the Bank processed outward remittances of USD 1.66 billion and inward remittance of USD 6.2 billion.

eDGE Loyalty Rewards program is a bank-wide loyalty program that rewards customers across their savings account, credit 
card,  debit  card,  current  account,  loans  and  forex  relationships.  The  Rewards  program  won  an  award  for  ‘Champion  of 
Champions  Loyalty/CRM  Program  of  the  Year’  and  the  ‘Best  Rewards  Program’  at  the  8th  Loyalty  Summit  organised  by 
Kamikaze B2B Media Ltd.

The Bank regards Financial Inclusion (FI) as an integral component of its rural strategy to further extend its reach in the rural 
market. The Bank’s FI initiatives maintained momentum this year with the Bank opening around 16 lac basic savings bank 
accounts through its branches and Business Correspondents (BC) network. The Bank now has a FI customer base of around 
89.8 lac customers, being serviced through a network of 575 rural branches and more than 53,000 BC agents spread over 
18,004  villages.  The  Bank  has  consolidated  its  position  in  G2C  (Government  to  Consumer)  payments,  disbursing  close  to 
`972 crores of Government payments during 2014-2015. The Bank has further consolidated its position in C2C (Customer 
to  Customer)  transfers  and  has  done  more  than  `3,924.15  crores  of  domestic  money  transfers  over  109.4  lac  remittance 
transactions.
The Bank has opened more than 1.19 lac accounts through e-KYC and has handled `70.9 crores of government beneﬁ ts 
through APBS (Aadhaar Payments Bridge System). The Bank has handled close to 22.8 lac AEPS (Aadhaar Enabled Payment 
System) transactions amounting to `126 crores during 2014-2015.  The Bank has actively participated in the Pradhan Mantri 
Jan Dhan Yojana (PMJDY) and successfully covered the Sub Service Areas (SSA) and Wards allocated to the Bank with the help 
of its branches and Business Correspondents.

The Retail Banking contribution to total fees for the year 2014-15 stood at 38.39% compared to 33.55% in 2014 and 32.62% 
in  2013.  Its  contribution  has  steadily  improved  over  the  past  few  years  and  continues  to  remain  very  granular  and  well 
diversiﬁ ed. All its three segments comprising of liabilities, assets and investment distribution have been instrumental in this 
improved performance.

The Bank’s organically built branch network over the last twenty years has helped it to strategically lay down one of the best 
pan India branch distribution networks. During the year, the Bank added 187 branches and its geographical reach extends to 
29 states and 6 Union Territories, covering 1,714 centres and 552 districts. As on 31st March 2015, the Bank had a network 

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of 2,589 branches/ECs as compared to 2,402 last year. Around 22% of the Bank’s branches are in rural areas and 76% of 
the Bank’s rural branches are in unbanked locations. As on 31st March 2015, the Bank had 12,355 ATMs. The Bank has also 
deployed  955  Automated  Deposit  Machines  (for  cash  deposits  into  customer  accounts)  and  has  extended  this  facility  for 
24x7 availability in certain branches, which have integrated self-service lobbies. Axis Bank was the ﬁ rst private sector Bank 
to introduce recyclers. As on 31st March 2015, the Bank had deployed 100 recyclers. Besides the Branch and ATM network, 
Internet banking, mobile banking and phone banking have developed as important electronic channels for the Bank.

CORPORATE CREDIT

The slowdown in economic activity has been much more prolonged than envisaged earlier and is now visibly reﬂ ected in the 
sluggish industrial loan demand. However, the current Government’s policy initiatives in land acquisition, faster clearances 
for reviving stalled projects, efforts to unlock mining activity, widening the ambit of foreign direct investment in defence and 
railways should create a more conducive environment for industrial revival going forward. Recent initiatives by RBI to provide 
new sources of cost effective long term borrowing in the form of infrastructure bonds coupled with ﬂ exible reﬁ nancing norms 
for infrastructure assets, also remain a positive development.

During the year, the Bank merged its large and mid-corporate customer groups to form the Corporate Relationship Group 
(CRG). The newly formed CRG further enhances the relationship banking model adopted in earlier years, which has successfully 
delivered a higher wallet share for the Bank, across a wide range of banking products for its corporate customers.
As  on  31st  March  2015,  the  Bank’s  corporate  credit  portfolio  stood  at  `126,184  crores  as  against  `102,238  crores  as  on 
31st March 2014, registering a growth of 23.42%. The Bank has leveraged its relationship with highly rated companies to 
fund their domestic and international requirements. Further, actions by certain corporates in improving their liquidity position 
through sale of non-core assets have also provided opportunities that have helped the Bank to show higher than industry 
growth. The advances at overseas branches amounted to `38,786 crores (equivalent to USD 6.21 billion) and mainly comprised 
loans to Indian corporates and their subsidiaries, which grew by 22.29% and accounted for 13.80% of total advances as at 
the end of March 2015.

The Bank continued its focus on fee-based, trade ﬁ nance and treasury businesses. The Bank’s strategy of sectoral approach 
to credit continued with the focus on identifying sector-speciﬁ c opportunities and risks. Industry, group and company speciﬁ c 
exposure limits have been deﬁ ned by the Bank and continuous monitoring is undertaken with a view to identify risks and 
take proactive decisions to mitigate them at the earliest. Portfolio diversiﬁ cation is also ensured through the sectoral credit 
approach. The Bank continued its focus on higher rated corporates, with 62% of outstanding loans and more than 79% of 
incremental sanctions during the year being rated ‘A’ and above in respect of total corporate loans.

The Bank continued to retain its leadership position in the loan syndication market and syndicated an aggregate amount of 
`15,930 crores by way of Rupee loans and USD 1.55 billion of foreign currency loans during the year.

TREASURY

The Bank has an integrated Treasury business covering Asset Liability Management (ALM), Global Markets, Investments, Trade 
Finance and Debt Capital Markets. Treasury plays an important role in the sovereign debt market, participating in primary 
auctions of RBI and market activities in Government securities. The ALM group manages asset-liability mismatches and interest 
rate sensitivities of the Bank’s portfolio, along with the responsibility for liquidity management for the domestic operations 
and foreign branches across different geographies.

Forex Trading Group within Global Markets is a major participant in the foreign exchange and derivatives market. The Bank has 
established itself as one of the leading banks providing foreign exchange and derivative solutions to its clients. The Bank has 
been awarded the Best Bank by Euromoney in their 2014 FX Survey under three distinct categories: ‘Best Bank for Emerging 
Market Currencies Trading, Spot/Forward’, ‘Best Bank for Emerging Market Options, Trading Strategies & Ideas’, and ‘Best 
Bank for Asian Currencies’.

The  Bank  continues  to  remain  a  dominant  player  in  the  Debt  Capital  Market  (DCM)  segment.  During  the  year,  the  Bank 
arranged `178,438 crores of bonds and debentures for various PSUs and corporates. For the seventh year in a row, the Bank 
has been ranked number one in the Bloomberg underwriter league table for domestic bonds in India for calendar year 2014 
and also ranked number one arranger as per Prime Database for nine months ended December 2014. The Bank has also been 
ranked number one bank by The Asset Benchmark Research in Asian Currency bonds in secondary corporate bond markets. 
During the year, the Bank won the award for the Best Domestic Bank in India and Best Debt House in India by Asia Money 

38

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and Best DCM House by Finance Asia.

The Global Financial Institutions Division (GFID) within Treasury is responsible for fostering business relationships with ﬁ nancial 
institutions (FI) across geographies and facilitates institutional fund raising and trade ﬁ nance. The Global Trade Service Division 
(GTSD) is entrusted with the responsibility of transforming Trade Finance business into a key ﬂ ow business for the Bank by 
providing trade solutions for corporates as well as the FI clients of the Bank. The Customer Trade and Forex Group (CTFG), as 
part of Treasury, drives cross-border forex ﬂ ows, remittances, capital account transactions and derivatives from all segments 
of corporate relationships through its dedicated and experienced Relationship Managers positioned across the Bank. Treasury 
has taken steps to enhance the digital connect with clients by providing Trade Portal and Fx Connect for booking online trade 
and forex transactions.

BUSINESS BANKING

Business  Banking  focuses  on  providing  payments  and  transaction  banking  solutions  across  corporates,  SMEs,  ﬁ nancial 
institutions, Government segments and small business customers. The key product offerings of this business segment include 
current accounts, collection and payment solutions, custodial and demat services.

Current accounts are a key focus area for the Bank. With a customer centric model, the Bank offers current account products 
categorised into value-based products, segmented products for speciﬁ c industry sectors (e.g. ﬁ nancial services, pharmaceuticals 
etc.) and need-based products (e.g. escrows, dividend payments etc.). The Bank effectively leveraged its distribution network 
and technology platform to deliver a seamless banking experience to its customers. The Business Banking team also works 
on various process redesign initiatives to deliver a simple, easy and user-friendly customer experience. As on 31st March 2015 
the Bank had around 16.9 lac live current account customers and a Current account deposit base of `56,108 crores, which 
constituted 17.40% of total deposits. During the year, current account balances, on a daily average basis, grew by 10.72% to 
`34,634 crores from `31,281 crores last year.

The Bank continues to focus on its two-pronged approach adopted for the collection and payments business - introducing 
new  products,  features  and  channels  on  the  one  hand  and  developing  sector-speciﬁ c  solutions  on  the  other.  The  Bank  is 
in  the  process  of  implementing  a  technology  initiative  in  terms  of  setting  up  an  enterprise-wide  payment  hub  to  process 
payments - both domestic and in foreign currency in a phased manner. The ﬁ rst phase, which focused on domestic payments 
is  nearing  completion  and  has  already  signiﬁ cantly  augmented  the  Bank’s  capacity  to  seamlessly  handle  large  transaction 
volumes. The next phase on foreign currency payments is expected to be completed during the next ﬁ nancial year 2015-16. In 
order to provide a wider access for its transaction processing services, the Bank has undertaken initiatives during the year 
to further leverage its business correspondent network. The Bank offers advanced products such as Power Access®, which 
enable  corporates  and  institutions  to  ensure  straight-through  transaction  processing  with  multi-layered  security  protocols 
and customised MIS. The Bank has also developed transaction banking solutions, delivered through digital channels enabling 
customers to transact using multiple payment modes on an online platform.

In the cash management services business, the Bank focuses on offering customised service to its customers to cater to speciﬁ c 
corporate requirements. Towards this end, the Bank has identiﬁ ed select industry sectors and rolled out customised solutions 
to meet speciﬁ c needs of clients in these sectors. The Bank processed transactions of more than `3,131,299 crores during 
2014-15, registering a growth of 54% over the last year. The Bank has one of the largest distribution channels to support the 
collections and payments business, with 1,188 locations enabled for collections and 433 branches enabled for remote printing 
of instruments.

The  Bank,  also  acts  as  an  agency  bank  for  various  Central  Government  ministries,  departments,  State  Governments  and 
Union Territories, undertaking acceptance of income and other direct taxes. The Bank also handles the disbursement of civil 
and  defence  pension  through  the  Centralised  Pension  Processing  Centre  (CPPC).  In  addition,  the  Bank  provides  collection 
and payment services to four Central Government ministries/departments and 13 State Governments and Union Territories. 
The Bank rolled out customised solutions such as PFMS (Public Financial Management System), e-procurement/e-Tendering 
and e-freight to meet the unique needs of the Government segment. The Bank has also partnered various CFMS (Centralised 
Fund Management System) projects of two State Governments viz. Chattisgarh and Andhra Pradesh. The Bank is the nodal 
bank for collection of subscription to the National Pension Scheme. It is also acting as the ‘Trustee Bank’ for the National 

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Pension System of Pension Fund Regulatory and Development Authority.  During the year, the Bank also commenced opening 
of accounts under the Sukanya Samridhi Scheme. The total Government business throughput during the year was `113,516 
crores.

The  Bank  is  a  SEBI-registered  custodian  and  offers  custodial  services  to  both  domestic  and  offshore  customers.  As  on 
31st March 2015, the Bank held assets around `13,350 crores under its custody and had 3,376 demat accounts in the corporate 
and institutional segment.

LENDING TO SMALL AND MEDIUM ENTERPRISES

The  Small  and  Medium  Enterprises  (SMEs)  business  comprises  of  three  groups:  Medium  Enterprises  Group  (MEG),  Small 
Enterprises Group (SEG) and Supply Chain Finance (SCF) which as on 31st March 2015 comprised 44%, 43% and 13% of 
total SME advances (excluding non-retail agricultural loans) respectively. The Bank extends working capital, term loan, trade 
ﬁ nance and project ﬁ nance facilities to SMEs. The gamut of products includes fund based and non-fund based products with 
a ﬂ exible tenure ranging from short-term to long-term catering to various credit requirements. The wide range of fast-track 
and customised products ensure that customers get ﬁ nance, which is best suited for their businesses.

The Bank continues to focus on acquiring customers rated SME 3 and above. The loan book remains well diversiﬁ ed and carries 
lower concentration risk with 85% of the outstanding loans being rated between SME 1 and SME 3, which corresponds to 
single  ‘A’  rating.  The  SME  business  continues  to  perform  well  and  the  portfolio  behaviour  remains  healthy.  The  Bank  has 
further improved its risk management capabilities by enhancing the early warning system model, based on holistic customer 
information and by developing more advanced rating tools.

The backbone of the Bank’s relationship with SMEs has been the commitment to support them, not only through innovative 
ﬁ nancial products but also by extending non-ﬁ nancial services to grow their businesses. The Bank sponsors various exhibitions 
and  trade  fairs  to  support  and  cater  to  SMEs  across  India.  The  Bank  also  revolutionised  the  concept  of  capacity  building 
for SMEs in India by successfully conducting SME knowledge series ‘EvOlve’ across 30 locations in India to help customers 
understand the importance of innovation, marketing, technology and use of social media to grow their businesses. On the 
operational efﬁ ciency front, to further improve the turnaround time from sanction to disbursement, the Bank implemented 
‘Project Pratham’ to achieve lean and efﬁ cient processes.

As explained earlier, during the year, the Bank reorganised the agricultural lending business and merged the non-retail portion 
of  agricultural  advances  with  the  SME  business,  while  retail  portion  has  been  merged  with  the  existing  portfolio  of  retail 
loans. As on 31st March 2015, non-retail agricultural loans declined by 46.12% and stood at `2,316 crores against `4,299 
crores last year.  During the year, advances to SMEs excluding the non-retail agricultural loans increased by 14.51% to `40,651 
crores from `35,502 crores last year. Total SME advances grew by 7.96% to `42,967 crores from `39,800 crores last year and 
constituted 15.29% of the Bank’s total advances as on 31st March 2015. The Bank currently operates from 42 SME Centres 
and 17 SME Cells, across the country to service customers effectively covering around 1,200 branches.

As on 31st March 2015, the Bank has achieved its overall priority sector lending requirements.

INTERNATIONAL BANKING

The  international  operations  of  the  Bank  continue  to  be  a  key  focus  area  due  to  the  increasing  integration  of  the  Indian 
economy globally and the rising two way ﬂ ow of funds and services.  The Bank, through its international operations aims to 
leverage the skills and strengths built in its domestic operations. It also widens the horizon of the product offerings covering 
a  varied  spectrum  of  corporate  and  retail  banking  solutions  across  client  segments  in  various  geographies.  The  Bank  has 
established its presence at strategic international ﬁ nancial hubs in six countries with a network of ﬁ ve branches at Singapore, 
Hong Kong, DIFC – Dubai, Colombo (Sri Lanka) and Shanghai (China), two representative ofﬁ ces at Dubai and Abu Dhabi and 
an overseas banking subsidiary in the United Kingdom.

The Bank continues to offer corporate banking, trade ﬁ nance, treasury and risk management solutions through the branches 
at Singapore, Hong Kong, DIFC, Shanghai and Colombo, and also retail liability products from its branches at Hong Kong 
and Colombo. Further, the Bank’s Gulf Co-operation Council (GCC) initiatives in the form of representative ofﬁ ces in Dubai 
and Abu Dhabi, and alliances with banks and exchange houses in the Middle East provide support for leveraging the business 
opportunities emanating from the large NRI diaspora present in these countries.

With global economies showing signs of uncertainty, there has been moderate asset growth at the overseas centres. Focus 
was towards trade ﬁ nance business and value added services. The Bank’s Shanghai Branch, which commenced operations in 

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January 2014, has achieved break-even in the ﬁ rst year of its operations.  As on 31st March 2015, the total assets at overseas 
branches  stood  at  USD  7.86  billion  as  compared  to  USD  7.20  billion  last  year.  Axis  Bank  UK  Limited,  the  Bank’s  overseas 
banking subsidiary, consolidated its operations during the year under review and its total assets stood at USD 431 million as 
against USD 372 million as on 31st March 2014.

RISK MANAGEMENT

The risk management objective of the Bank is to balance the trade-off between risk and return, and ensure optimum risk-
adjusted  return  on  capital.  The  risk  is  managed  through  a  risk  management  architecture  as  well  as  through  policies  and 
processes approved by the Board of Directors encompassing independent identiﬁ cation, measurement and management of 
risks across the various businesses of the Bank. An independent risk management function ensures that the Bank operates 
within the Board approved risk appetite statement. The risk management function in the Bank strives to proactively anticipate 
vulnerabilities  at  the  transaction  as  well  as  at  the  portfolio  level,  through  quantitative  or  qualitative  examination  of  the 
embedded risks. The Bank continued to focus on reﬁ ning and improving its risk measurement systems including automation 
of processes wherever feasible not only to ensure compliance with regulatory requirements, but also to ensure better risk-
adjusted return and optimal capital utilisation, keeping in view its business objectives. Pursuant to review of the risk proﬁ le of 
the Bank, the Board has not come across any element of risk which would threaten the existence of the Bank.

The overall risk appetite and philosophy of the Bank is deﬁ ned by its Board of Directors. The Risk Appetite framework provides 
guidance to the management on the desired level of risk for various types of risks in the long term and helps steer critical 
portfolio decisions. Further, the Internal Capital Adequacy Assessment Process (ICAAP) of the Bank assesses all the signiﬁ cant 
risks  associated  with  various  businesses.  The  independent  risk  management  structure  within  the  Bank  is  responsible  for 
managing the credit risk, market risk, liquidity risk, operational risk, other Pillar II risks like reputational risk and strategic risk 
and  exercising  oversight  on  risks  associated  with  subsidiaries.  The  risk  management  processes  are  guided  by  well-deﬁ ned 
policies  appropriate  for  the  various  risk  categories  viz.  credit  risk,  market  risk,  operational  risk,  liquidity  risk,  counterparty 
risk, country risk, reputational risk, strategic risk and subsidiaries risk, supplemented by periodic validations of the methods 
used  and  monitoring  through  the  sub-committees  of  the  Board.  The  Risk  Management  Committee  (RMC),  a  committee 
constituted  by  the  Board,  approves  policies  related  to  risk  and  reviews  various  aspects  of  risk  arising  from  the  businesses 
undertaken by the Bank. The Committee of Directors (COD) and the Audit Committee of the Board (ACB) supervises certain 
functions and operations of the Bank, which ultimately enhances the risk and control governance framework within the Bank. 
Various senior management credit and investment committees, Credit Risk Management Committee (CRMC), Asset-Liability 
Committee (ALCO), Operational Risk Management Committee (ORMC), Subsidiaries Risk Management Committee (SRMC) 
and Reputation Risk Management Committee (RRMC) operate within the broad policy framework of the Bank.

Credit Risk

Credit  risk  is  the  risk  of  ﬁ nancial  loss  if  a  client,  issuer  of  securities  that  the  Bank  holds  or  any  other  counterparty  fails  to 
meet its contractual obligations. Credit risk arises from all transactions that give rise to actual, contingent or potential claims 
against any counterparty, borrower or obligor. The goal of credit risk management focuses on risk-adjusted rate of return on 
capital, targeted asset quality and managing the credit risk inherent in individual exposures as well as at the portfolio level. 
The emphasis is placed, both on evaluation and management of risk at the individual exposures and analysis of the portfolio 
behaviour.

The Bank has structured and standardised credit approval processes, including a well-established procedure of comprehensive 
credit  appraisal.  Every  extension  of  credit  facility  or  material  change  of  a  credit  facility  to  any  counterparty  requires  credit 
approval  at  the  appropriate  authority  level.  Internal  risk  rating  remains  the  foundation  of  the  credit  assessment  process, 
which provides standardisation and objectivity to the process. All sanctioning processes including the delegation of powers 
are linked to the ratings and the sizes of the exposure. The monitoring frequency applicable to the exposure also depends on 
the rating of the exposure. Individual borrower exposure ceilings linked to the internal rating and sector speciﬁ c caps are laid 
down in the Credit Policy to avoid concentration risk. For the retail portfolio including small businesses and small agriculture 
borrowers, the Bank uses different product-speciﬁ c scorecards. Both credit and market risk expertise are combined to manage 
risks arising out of traded credit products such as bonds and market related off-balance sheet transactions. Model validation 
is carried out periodically by objectively assessing its discriminatory power, calibration accuracy and stability of ratings both by 
the Risk Department as well as independently by a Validation Committee.

The  Bank  continuously  monitors  portfolio  concentrations  by  segment,  borrower,  groups,  industry  and  geography,  where 

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applicable. The portfolio level delinquency matrices are tracked at frequent intervals with focus on detection of early warning 
signals of stress. Key sectors are analysed in detail to suggest strategies for business, considering both risks and opportunities. 
Such analysis is reviewed by the Credit Risk Management Committee to arrive at the appropriate industry ceilings as well 
as deﬁ ne the origination and account management strategy for the sector. The Risk Management Committee of the Board 
periodically reviews the impact of the stress scenarios resulting from various scenarios like increased regulatory prescriptions on 
provisioning requirements, rating downgrades, or drop in the asset values in case of secured exposures etc. on the portfolio. 
The portfolio level risk analytics provide insight into the capital allocation required to absorb unexpected losses at a deﬁ ned 
conﬁ dence level.

Market Risk

Market risk is the risk of losses in ‘on and off-balance sheet’ positions arising from the movements in market price as well as 
the volatilities of those changes, which may impact the Bank’s earnings and capital. The risk may pertain to interest rate related 
instruments (interest rate risk), equities (equity price risk) and foreign exchange rate risk (currency risk). Market Risk for the 
Bank emanates from its trading and investment activities, which are undertaken both for the customers and on a proprietary 
basis. The Bank adopts a comprehensive approach to market risk management for its banking book as well as its trading 
book for both its domestic and overseas operations. The market risk management framework of the Bank provides necessary 
inputs regarding the extent of market risk exposures, the performance of portfolios vis-à-vis the risk exposure and comparable 
benchmarks which assists in maximising the risk-adjusted rate of return of the Bank’s trading and investment portfolio.

Market risk management is guided by well-laid policies, guidelines, processes and systems for the identiﬁ cation, measurement, 
monitoring and reporting of exposures against various risk limits set in accordance with the risk appetite of the Bank. Treasury 
Mid-Ofﬁ ce independently monitors the Bank’s investment and trading portfolio in terms of risk limits stipulated in the Market 
Risk Management Policy and reports deviations, if any, to the appropriate authorities as laid down in the policy. The Bank 
utilises  both  statistical  as  well  as  non-statistical  measures  for  the  market  risk  management  of  its  trading  and  investment 
portfolios. The statistical measures include Value at Risk (VaR), stress tests, back tests and scenario analysis while position 
limits, marked-to-market (MTM), stop-loss limits, alarm limits, gaps and sensitivities (duration, PVBP, option greeks) are used 
as non-statistical measures of market risk management.

Historical simulation and its variants are used to compute VaR for the trading portfolio which is calculated at a 99% conﬁ dence 
level  for  a  one-day  holding  period  over  a  time  horizon  of  250  days.  VaR  models  for  different  portfolios  are  back-tested 
on an ongoing basis and the results are used to maintain and improve the efﬁ cacy of the model. VaR measurements are 
supplemented with a series of stress tests and sensitivity analysis as per a well laid stress testing framework.

Liquidity Risk

The Asset Liability Management Policy of the Bank stipulates broad framework for liquidity risk management to ensure that 
the Bank is in a position to meet its daily liquidity obligations as well as to withstand a period of liquidity stress from, bank-
wide factors, market-wide factors or a combination of both.

The liquidity proﬁ le of the Bank is analysed on a static as well as on a dynamic basis by using the gap analysis technique 
supplemented by monitoring of key liquidity ratios and conduct of liquidity stress tests periodically. The liquidity position is 
monitored for both domestic as well as overseas operations. The Bank has laid down liquidity risk policies for its overseas 
branches  in  line  with  host  country  regulations  and  the  asset-liability  management  framework  as  stipulated  for  domestic 
operations. Periodical liquidity positions and liquidity stress results of overseas branches are reviewed by the Bank’s ALCO.

The Bank has adopted the liquidity risk management guidelines issued by RBI pursuant to the Basel III framework on liquidity 
standards. These include the intraday liquidity management and the Liquidity Coverage Ratio (LCR). These guidelines have been 
integrated into the asset liability management framework of the Bank to ensure adherence to RBI guidelines on monitoring 
and management of liquidity including liquidity ratios.

Operational Risk

Operational risks may emanate from inadequate and/or missing controls in internal processes, people and systems or from 
external events or a combination of all the four. The Bank has in place an Operational Risk Management (ORM) Policy to 
manage the operational risk in an effective, efﬁ cient and proactive manner. The policy aims at assessing and measuring the 
magnitude of risks, monitoring and mitigating them through well-deﬁ ned framework and governance structure.

The  RMC  at  the  apex  level  is  the  policy  making  body  and  is  supported  by  the  Operational  Risk  Management  Committee 

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(ORMC),  responsible  for  the  implementation  of  the  Operational  Risk  framework  of  the  Bank  and  the  management  of 
operational risks across the Bank. A sub-committee of the ORMC, Sub-ORMC has been constituted to assist the ORMC in 
discharging its functions.

All new products and processes, as well as changes in existing products and processes are subjected to risk evaluation by the 
Bank’s Product Management Committee and Change Management Committee. Outsourcing arrangements are examined and 
approved by the Bank’s Outsourcing Committee. The IT Security Committee of the Bank provides directions for mitigating 
operational  risk  in  the  information  systems.  The  Bank  has  set  up  a  comprehensive  Operational  Risk  Measurement  System 
(ORMS) for documenting, assessing, and periodic monitoring of various risks and controls linked to various processes through 
the implementation of a software solution.

Recognising its responsibility to ensure continuity of service to its large customer base, the Bank has placed a well-deﬁ ned 
Business Continuity Framework. The effectiveness of the approved Business Continuity Plan (BCP) framework is tested for 
all identiﬁ ed critical internal activities to ensure readiness to meet various contingency scenarios. The learning from the BCP 
exercises are used as inputs to further reﬁ ne the framework.

OPERATIONS

The  Bank  has  carried  out  separation  of  its  production  and  distribution  functions.  Transaction  processing  operations  have 
been centralised while product sales and customer handling (the distribution technology) are being primarily carried out at 
the branches. This business process re-engineering has enabled reduction of transaction costs besides ensuring smoothness 
in  operations  and  increasing  productivity.  The  Bank  continued  to  reﬁ ne  operational  processes  from  the  perspective  of 
implementation of best practices, risk identiﬁ cation and containment to bring about greater precision in the management of 
operations in both the corporate and retail side of the Bank’s businesses. Operational instructions were issued on a continual 
basis and efforts are made to introduce risk-free working at branches.

Retail Banking Operations

Retail Banking Operations (RBO) comprises of four main functions, namely Retail Branch Operations, Retail Business Processes, 
Process Quality and Customer Services. Jointly these functions manage branch based operations and centralised processes for 
various retail business activities such as data processing for new customers, servicing of transactions, reconciliation activities 
etc. The teams bring efﬁ ciencies to the various retail liabilities and retail asset businesses of the Bank.

Retail  Branch  Operations  operate  closely  with  various  control  units  and  ensures  that  branch  services  meet  the  business 
objectives  along  with  strict  adherence  to  risk  and  compliance  requirements.  Retail  Business  Processes  is  the  centralised 
operations department, operating through 2 National Processing Centers, supported by 23 Regional Centers and multiple 
service partners.  Customer Services manages the 24x7 Customer Contact Center for all retail businesses. A dedicated Phone 
Banking Service for Premium and NRI customers has recently been launched. Customer Service follows a well laid out service 
quality framework and drives initiatives across retail businesses through the Service Quality team.

Improving customer service quality remains core to the Bank’s vision and with a view to ensure comprehensive improvement, 
the  Bank  initiated  Project  ‘PRATHAM’,  a  program  to  reduce  turnaround  time,  achieve  high  automation  index,  better  risk 
management  and  improved  customer  experience.  Some  of  the  key  initiatives  in  these  areas  are,  image  based  workﬂ ow 
system for customer acquisition, optimisation of branch cash and phone banking services. Re-engineering plans are driven 
by a dedicated team, which manages cross functional initiatives to create breakthrough improvements in process quality and 
handles transformational projects.

Wholesale Banking Operations

Wholesale Banking Operations (WBO) caters to corporate customers of the Bank. WBO provides specialised services to the 
target customer group through four verticals which are Corporate Banking Operations (CBO), Treasury Operations, Trade and 
Forex Operations (TFO) and Centralised Collection and Payment Hub (CCPH).

CBO  is  responsible  for  credit  delivery  and  post  disbursement  control,  monitoring  and  administration  of  credit  portfolio 
consisting of Large Corporates and SME segments. CBO operates through Corporate Banking Branches (CBBs) located at 8 
major cities, 62 Mini-Credit Management Centres (MCMCs) mostly at Tier II cities, and Corporate Credit Operations Hubs 
(CCOH) at Hyderabad and Gurgaon. It also processes transactions pertaining to supply chain channel ﬁ nance business, through 
a dedicated set up in the form of Channel Finance Hub (CFH).

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Treasury Operations handles settlement and accounting of treasury-related transactions and operates the centralised electronic 
payment  hubs  for  Real  Time  Gross  Settlement  (RTGS)  and  National  Electronic  Funds  Transfer  (NEFT)  through  automated 
processes with minimal manual intervention.

TFO is responsible for ensuring compliance of regulatory and internal guidelines with regard to processing of international and 
domestic trade as well as retail forex transactions and efﬁ cient service delivery to customers within the agreed turnaround 
time.  TFO  processes  international  trade  transactions  through  234  B-Category  branches  and  3  state-of-art  Trade  Finance 
Centres located at Mumbai, Hyderabad and New Delhi. TFO also processes inland trade and retail forex transactions through 
all the branches of the Bank as well as state-of-art centralised Domestic Trade Finance Centre and Retail Forex & Remittance 
Centre respectively located at Mumbai with Hyderabad serving as ’Business Continuity Centre’.

CCPH  handles  processing  of  specialised  payments  and  collections  products  like  Cash  Management  Schemes,  Dividend 
Payments etc. and operates through 2 units located at Mumbai and Hyderabad. To extend operational support and customer 
hand-holding at the local level, 35 Transaction Banking Centres (TBCs) have been set-up by CCPH, which are manned by skilled 
resources, thereby ensuring efﬁ cient service delivery coupled with strict adherence to risk and compliance requirements.

INFORMATION TECHNOLOGY

The Bank has undertaken various technology enabled business initiatives to deliver improved customer experience, ease of 
banking, and operational excellence. As the number of ways to connect with customers’ increase and self-service channels 
become the primary way for banking, an Omni-channel approach provides competitive advantage to the Bank. Technology 
has enabled customer accessibility of all products across all channels through seamless multi-channel integration. To achieve 
this, the Bank has been simultaneously focusing on ‘Digitisation’ of its backend processes and empowerment of its customers 
with mobile-led simple anytime anywhere ‘Digital’ banking. The Bank provides a personalised experience on the Axis Mobile 
Application based on the user segment. It has been very well adopted by customers with close to 15 lac users. The Bank has 
also focused on further improving the governance processes and compliance requirements in IT.

The Bank’s continuous endeavour has been to use technology to further improve the customer’s experience while transacting 
with  the  Bank.  Tablet  based  processes  provide  instant,  door-step  account  opening  services.  An  enterprise  level  Customer 
Relationship Management solution provides the Bank a single view of both Corporate and Retail customer segments. Digital 
tools like lead management applications have been built for the sales team to enhance their productivity. Mobile based digital 
ﬁ nancial  services  are  launched  for  Financial  Inclusion  customers.  The  Bank  has  also  launched  Kiosk  based  agent  assisted 
transaction services for remitting money to a customer’s family members account from anywhere in the country. The ﬁ nancial 
inclusion gateway successfully manages various products across business verticals including direct beneﬁ t transfer. The Bank 
also offers outward remittance to customers in 100+ currencies.

The  Bank  has  been  implementing  a  multi-year  technology  initiative  to  set  up  an  enterprise-wide  payment  hub  to  process 
payments  in  both  domestic  and  foreign  currency.  It  would  enable  seamless  integration  of  large  volumes  of  e-payments, 
multiple payment methods and dynamic market conditions, thus facilitating efﬁ cient cash management for corporates. The 
Bank has undertaken various Government Business enablements to fulﬁ l the vision of e-governance and empower different 
co-operative societies and government bodies with digital solutions.

During the year, large scale IT transformation has been undertaken to build a Lean and Agile IT Information Architecture that 
enables Next Generation Banking and supports the future growth.

The  Bank  has  implemented  all  the  recommendations  of  the  RBI  Working  Group  issued  on  29th  April  2011  as  applicable, 
related to Information Security, Electronic Banking, Technology Risk Management and Cyber Frauds. The Bank is committed to 
implementing the recommendations in letter and spirit to strengthen the security posture of the Bank and to provide safe and 
secure banking services to its customers.  As a part of this, various security solutions have been deployed to protect customer 
data and prevent external and internal attacks. In addition to compliance with the ISO 27001 standards of information security 
management, the Bank has also complied with the Payment Card industry Data Security Standards (PCI DSS) for card acquiring 
infrastructure to protect card related data.

COMPLIANCE

The  Bank  is  committed  to  adhere  to  the  highest  standards  of  compliance  vis-a-vis  regulatory  prescriptions  and  internal 
guidelines. The Compliance function proactively drives improvement in the compliance culture within the Bank through various 
enablers like dissemination of regulatory changes and percolation of compliance knowledge through training, newsletters, 

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e-learning initiatives and other means of communication apart from direct interaction. To ensure that all the businesses of 
the Bank are operating within the ambit of Compliance Framework, the Compliance Department is involved in vetting all new 
products and processes. It evaluates the adequacy of internal controls and examines the systemic correction required, based 
on its analysis and interpretation of the regulatory doctrine and the deviations observed during compliance monitoring and 
testing programme. It also ensures that internal policies address the regulatory requirements comprehensively.

As the focal point of contact with RBI and other regulatory entities, the Compliance Department periodically apprises both the 
Bank’s management as well as the Board of Directors on the status of compliance in the Bank and the changes in regulatory 
environment.  During  the  year,  the  Bank  has  fully  operationalised  the  Enterprise-wide  Governance  Risk  and  Compliance 
Framework,  an  online  tool,  which  is  pivotal  in  addressing  operational,  compliance  and  ﬁnancial  reporting  risks,  bringing 
efﬁ ciency in processes and improvement in compliance levels besides facilitating annual assessment of said risks. The Bank 
registered with United States Internal Revenue Service (USIRS) for Foreign Accounts Tax Compliance Act (FATCA) during the 
year and has actively pursued all FATCA compliance activities for its Indian operations, overseas branches and subsidiaries. 
The Compliance Department also propagates and monitors a Group Compliance approach encompassing the Bank and its 
subsidiaries.

INTERNAL AUDIT

The Bank’s Internal Audit function provides an independent assurance to the Board of Directors and Senior Management 
on  the  quality  and  effectiveness  of  the  Bank’s  internal  controls,  risk  management,  governance  systems  and  processes  on 
an ongoing basis, thereby ensuring that the audited units comply with both internal and regulatory guidelines. In line with 
the RBI’s guidelines on Risk Based Internal Audit (RBIA), the Bank has adopted a robust audit policy. The policy has a well-
deﬁ ned architecture for conducting RBIA across all audit entities. The audit policy drives for a concerted focus on strategic and 
emerging business risks. This forms a key step in the identiﬁ cation of individual audits for the audit planning exercise. The audit 
frequencies are in sync with the risk proﬁ le of each unit to be audited. This is in alignment with guidelines relating to RBIA. The 
scope of RBIA includes examining the adequacy and effectiveness of internal control systems, external compliances and also 
evaluates the risk residing at the audit entities. The RBIA has been designed taking into account regulatory guidelines and also 
international best practices. Further to augment the internal audit function, concurrent audit, thematic audits and integrated 
audit, reviews have been intertwined into the internal audit function to make the function more robust.

The Internal Audit functions independently under the supervision of the Audit Committee of the Board, thereby ensuring its 
independence. The Board reviews the efﬁ cacy of the internal audit function, effectiveness of controls laid down by the Bank 
and compliance with regulatory guidelines. This is in alignment with the best global practices on corporate governance.

CORPORATE SOCIAL RESPONSIBILITY (CSR)

The primary purpose of the Bank’s CSR philosophy is to make a meaningful and measurable impact on the lives of economically, 
physically and socially challenged communities of the country by supporting initiatives aimed at creating conditions suitable 
for sustainable livelihood in these communities. The Bank aims to promote literacy among the disadvantaged and differently-
abled people, and also ﬁ nancial literacy amongst consumers at large which includes consumer education and awareness as 
well as capacity building and skill building in various sectors of the economy. The Bank promotes initiatives that preserve, 
restore  and  enhance  environment,  ecological  balance,  and  natural  resources.  It  undertakes  measures  to  eradicate  hunger, 
poverty and malnutrition as well as to improve sanitation, health and hygiene. The Bank also aims to undertake activities to 
reduce inequalities faced by socially and economically backward groups.

The Bank has put in place ‘Policy on Corporate Social Responsibility’ to strategically guide its efforts in the area of CSR and 
hosted on the Bank’s website www.axisbank.com. The CSR activities are pursued through various initiatives undertaken by 
the Bank or through Axis Bank Foundation (ABF) or through any other Trust or agencies and entities as deemed suitable. The 
Bank leverages its geographical spread to undertake such initiatives. The prescribed CSR expenditure for the Bank for 2014-15 
in terms of the Section 135 of the Companies Act and Rules framed thereunder was `133.77 crores, against which the Bank 
has spent `123.22 crores towards various CSR initiatives. The details of initiatives taken by the Bank on CSR during the year as 
per annexure attached to the Companies (Corporate Social Responsibility Policy) Rules, 2014 are given in Annexure V of the 
Directors’ Report.

Axis Bank Foundation (ABF) was set up as a Public Trust in 2006 to carry out the Corporate Social Responsibility initiatives of 

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the Bank. The Foundation has committed itself to participate in various socially relevant endeavours with a special focus on 
providing sustainable livelihoods, poverty alleviation, skill development, education of the underprivileged, highway trauma 
care etc. The Foundation also aims to help create capabilities in terms of skills and employment opportunities for disadvantaged 
or differently abled people, especially children. The Bank contributes one percent of its net proﬁ t annually to the Foundation 
under its CSR initiatives. At the end of March 2015, the Foundation had 43 programs spread over 239 districts in 26 states. As 
of 31st March, 2015 ABF has reached out to more than 5 lac beneﬁ ciaries cumulatively.

In 2011, the Foundation ventured into the domain of providing sustainable livelihoods which aims at alleviating poverty and 
providing  livelihood  options  for  economically  weak  households.  In  continuation  with  the  mission  of  creating  one  million 
livelihoods  by  2017,  60%  of  the  beneﬁ ciaries  being  women,  ABF  focused  on  projects  pertaining  to  agriculture  and  allied 
activities as majority of India’s population still rely on agriculture for their livelihood. ABF has also been providing vocational 
training  to  unemployed  youth,  adolescent  girls  and  housewives.  As  of  31st  March  2015,  the  cumulative  disbursals  for  the 
various livelihood programs were to the tune of `144.07 crores. Further, an important aspect of creating sustainable livelihoods 
is ﬁ nancial inclusion of the beneﬁ ciaries in mainstream banking. Thus, substantial borrowings have been mobilised for such 
beneﬁ ciaries through ﬁ nancial linkages with banks.

ABF evaluates the success of the livelihood programs through mid-term impact studies. ABF also conducts sectoral studies in 
order to evaluate the sectoral impacts.

ABF has been working in the ﬁ eld of education since its inception in 2006 and at the end of March 2015, was running 18 
programs  providing  education  to  underprivileged  individuals  across  India  focusing  on  special  education  and  education  for 
disadvantaged/marginalised children. As of 31st March 2015, cumulative disbursals for the various education programs were 
to the tune of `50.36 crores covering 135,191 children. Further to education programs, ABF continues to work in the ﬁ eld 
of Highway Trauma Care and has expanded its operations to conduct First Responder Trainings. As of March 2015, 20,646 
accident victims have been rescued across 5 states while 7,097 stakeholders viz. police, toll personnel, village task force etc. 
have been trained in 3 states.

The Foundation provides Axis Bank staff opportunities to volunteer and participate in its various initiatives and also runs a 
payroll program to collect contributions from the employees. During the year, 8,205 employees of the Bank had enrolled for 
the payroll program and the monthly collection amounted to `15.49 lac. Since 2006, the Bank has contributed a grant of 
`255.68 crores and the staff members have contributed `5.04 crores towards the Foundation’s activities. The total amount of 
grant disbursed up to March, 2015 was `197.36 crores.

ABF was selected as the ‘Outstanding Corporate Foundation’ by the Forbes India Philanthropy Awards 2014.

HUMAN RESOURCES

The Human Resource (HR) function in the Bank remains focused on creating and developing human capital through improving 
organisational  effectiveness,  providing  safe  and  ethical  work  environment,  and 
maintaining  stability  and  sustainability  amidst  the  rapidly  changing  business 
environment and growth.

INTELLECTUAL CAPITAL

0.04% 1.59%

7.30%

1.95%

41.39%

47.73%

CA/CS/ICWA/CFA

Graduates/Post Graduate/Diploma

MBA/Masters

Engg/Tech

Doctorate

Bankers/Law Prof.

The Bank focuses on building learning infrastructure by entering into tie-ups with 
universities  of  repute,  for  ensuring  adequate  supply  of  skilled  manpower  with 
day  zero  productivity  to  support  its  growing  business.  The  Bank  also  focuses  on 
‘Leadership Development’ with particular focus on developing strategic leadership 
capabilities in future leaders. The Bank has deﬁ ned ‘Axis Leadership Practices’ (ALPs) 
for all employees to promote desired behaviours at different levels of the hierarchy 
and has promoted the ALPs by seamlessly integrating it to the Bank’s people oriented 
processes  like  Talent  Acquisition,  Performance  Management  System,  Leadership 
Development and Feedback.

The  Bank  has  built  a  learning  infrastructure  that  facilitates  the  learning  process 
across  all  levels  through  a  blended  learning  approach  of  classroom  programs, 
external programs, certiﬁ cation programs as well as e-learning modules. The learning management system ‘Axis Academy’ 
allows the Bank to reach out to employees across geographies in real time with minimal cost to provide best in class learning 
solutions. The Bank has partnered with leading online portals to impart capability development.

46

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To promote a healthy and safe work environment for the employees, the Bank fosters work-life balance and condemns any 
kind of unfair treatment in the workplace. The Bank also offers an emergency helpline service to the women employees in 
order to provide immediate safety response during any emergency situation.

PROFILE BY AGE

Regulation  and  compliance  have  remained  as  the  major  focus  areas  for  the 
Bank  with  adequate  channels  for  raising  concerns  supported  by  a  grievance 
handling mechanism. In recognition to the strict compliant and ethical culture, 
the Bank has been awarded ‘Best Work Ethics Award 2014’ by Economic Times.

The Bank hosts several employee engagement programs through online and 
ofﬂ ine  channels  to  foster  a  spirit  of  connectedness.  Employee  Engagement 
surveys are conducted periodically to seek regular feedback from employees 
on  the  policies  and  practices  to  strengthen  the  journey  towards  creating  a 
team of empowered employees oriented towards the realisation of the Bank’s 
corporate vision.

The  strength  of  the  workforce  was  42,230  at  the  end  of  the  year.  A  young 
and engaged workforce with an average age of 30 years and the Bank’s policy 
on being an equal opportunity employer continues to signiﬁ cantly contribute 
towards the Axis Bank brand.

5.20%

1.00%

42.20%

51.60%

Below 30 Years

Above 30 yrs to 40 yrs

Above 40 yrs to 50 yrs

Above 50 yrs to 60 yrs

The  Bank  is  also  a  socially  responsible  employer.  In  addition  to  the  activities  carried  out  through  ‘Axis  Bank  Foundation’, 
the Bank has partnered with ‘Teach for India’ in its mission to reform education and seek an innovative solution to ending 
educational inequality in India by deputing employees as Fellows in their program. Through the fulﬁ llment of its HR program, 
the  Bank  continues  to  strive  towards  realisation  of  its  vision  of  being  the  preferred  ﬁ nancial  service  provider  excelling  in 
customer delivery through insight, empowered employees and smart use of technology.

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47

ANNEXURE V

ANNUAL REPORT ON CORPORATE SOCIAL 
RESPONSIBILITY (CSR) ACTIVITIES
(As prescribed under Section 135 of the Companies Act, 2013 and The Companies 
(Corporate Social Responsibility Policy) Rules 2014)

1.   A  brief  outline  of  the  Bank’s  CSR  policy,  including  overview  of  projects  or  programs  proposed  to  be 

undertaken and a reference to the web-link to the CSR policy and projects or programs.

The Bank’s website and the web-link for the same is http://www.axisbank.com/csr/pdf/Axis-Bank-Policy-CSR.pdf

The  primary  purpose  of  the  Bank’s  CSR  philosophy  is  to  make  a  meaningful  and  measurable  impact  on  the  lives  of 
economically, physically and socially challenged communities of the country by supporting initiatives aimed at creating 
conditions  suitable  for  sustainable  livelihood  in  these  communities.  The  Bank  aims  to  promote  literacy  among  the 
disadvantaged  and  differently-abled  people  and  also  ﬁ nancial  literacy  amongst  consumers  at  large  which  includes 
consumer education and awareness as well as capacity building and skill building in various sectors of the economy. The 
Bank promotes initiatives that preserve, restore and enhance environment, ecological balance, and natural resources. It 
undertakes measures to eradicate hunger, poverty and malnutrition as well as to improve sanitation, health and hygiene. 
The Bank also aims to undertake activities to reduce inequalities faced by socially and economically backward groups.

The CSR activities are pursued through various initiatives undertaken by the Bank or through Axis Bank Foundation (ABF) 
or through any other Trust or agencies and entities which are registered under the relevant provisions of the Foreign  
Contribution and Regulation Act, 2010 as deemed suitable. The Bank leverages its geographical spread to undertake 
such initiatives.

Axis  Bank  Foundation  (ABF)  was  set  up  as  a  Public  Trust  in  2006  to  carry  out  the  Corporate  Social  Responsibility 
initiatives of the Bank. The Foundation has committed itself to participate in various socially relevant endeavours on 
creating sustainable livelihoods by focusing on interventions related to Agricultural Practices and Farm Income, Vocational 
Training leading to Income and Employment and Women Empowerment. The Foundation has impacted the livelihood 
and skill level of 5,92,327 beneﬁ ciaries from 2006 to date.  An illustrative list of various programs and activities to be 
supported under the Bank’s CSR focus areas can be accessed at http://www.axisbank.com/csr/csrFocusArea.aspx

ABF measures the impact of its programs through reputed external partner organizations. The impact from the evaluated 
programs has been manifold viz. developing capacities of rural poor, building community institutions, higher crop yields, 
increased  savings,  greater  access  of  women  to  ﬁ nancial  services,  placement  of  trainees  leading  to  employment  and 
substantial increase in income over baseline income, all of which resulting in holistic development of communities.

ABF has been recognized as the “Outstanding Corporate Foundation for the year 2014” by Forbes India.

2.   The Composition of the CSR Committee:  Shri Som Mittal (Chairman), Smt. Usha Sangwan and Shri V. Srinivasan.
3.   Average net proﬁ t of the Bank for last three ﬁ nancial years: `6,688.67 crores
4.   Prescribed CSR Expenditure (2% of the said proﬁ ts as stated in item 3 above):  `133.77 crores

 5.   Details of CSR spent during the ﬁ nancial year:

(a)   Total amount spent for the ﬁ nancial year (2014-15): `123.22 crores
(b)   Amount unspent, if any: `10.55 crores

(c)   Manner in which the amount spent during the ﬁ nancial year is detailed in Annexure A.

6.  

In case the Bank has failed to spend the two per cent of the average net proﬁ t of the last three ﬁ nancial 
years  or  any  part  thereof,  the  Bank  shall  provide  the  reasons  for  not  spending  the  amount  in  its  Board 
report.
During the year 2014-15, the Bank has spent `123.22 crores on various CSR activities, which is equivalent to 1.84% of 
its average net proﬁ ts of the last three ﬁ nancial years.

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As  an  integral  part  of  society,  the  Bank  is  aware  of  its  corporate  social  responsibilities  and  has  been  engaged  in 
community and social investment. For this purpose, the Bank has set-up a Trust – the Axis Bank Foundation and has 
been contributing one percent of its previous year’s net proﬁ t to the Foundation since 2006-07 under its CSR initiatives. 
The Bank stays committed to its corporate social responsibility and intends to continually increase the impact of its CSR 
initiatives. The Bank will make concerted efforts to spend the prescribed CSR amount in the subsequent years.

7. 

The CSR Committee of the Board of Directors hereby conﬁ rms that the implementation and monitoring of 
CSR Policy, is in compliance with CSR objectives and CSR Policy of the Bank.

V. Srinivasan 
Executive Director 
& Head (Corporate Banking)

Som Mittal
Chairman – CSR Committee

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51

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ANNEXURE VI

Form No. MR-3
SECRETARIAL AUDIT REPORT
FOR THE FINANCIAL YEAR ENDED 31ST MARCH 2015

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule 9 of the Companies 
(Appointment and Remuneration of Managerial Personnel) Rules, 2014]

To,

The Members,
Axis Bank Limited
“Trishul”, 3rd Floor,
Opp. Samartheshwar Temple,
Near Law Garden, Ellisbridge,
Ahmedabad 380 006.

We  have  conducted  the  secretarial  audit  of  the  compliance  of  applicable  statutory  provisions  and  the  adherence  to  good 
corporate practices by Axis Bank Limited (hereinafter called “the Bank”). Secretarial audit was conducted in a manner that 
provided  us  a  reasonable  basis  for  evaluating  the  corporate  conducts  /  statutory  compliances  and  expressing  our  opinion 
thereon.

Based on our veriﬁ cation of the Bank’s books, papers, minutes books, forms and returns ﬁ led and other records maintained by 
the Bank and also the information provided by the Bank, its ofﬁ cer, agents and authorized representatives during the conduct 
of secretarial audit, we hereby report that in our opinion, the Bank has, during the audit period covering the ﬁ nancial year 
ended on 31st March 2015, complied with the statutory provisions listed hereunder and also that the Bank has proper Board 
processes and compliance mechanism in place to the extent, in the manner and subject to the reporting made hereinafter: 

We have examined the books, papers, minutes books, forms and returns ﬁ led and other records maintained by the Bank for 
the ﬁ nancial year ended on 31st March 2015 according to the provisions of:

(i) 

(ii) 

The Companies Act, 2013 (the Act) and the rules made thereunder;

The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the Rules made thereunder;

(iii) 

The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

(iv) 

(v) 

Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign 
Direct Investment;

The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI 
Act’):-

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;

The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 1992;

The  Securities  and  Exchange  Board  of  India  (Issue  of  Capital  and  Disclosure  Requirements)  Regulations,  2009 
(during the year under review not applicable to the Bank);

The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008;

The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, 1993 
regarding the Companies Act and dealing with client;

The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (during the year under 
review not applicable to the Bank); and

The  Securities  and  Exchange  Board  of  India  (Buyback  of  Securities)  Regulations,  1998  (during  the  year  under 
review not applicable to the Bank);

52

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(vi) 

The Banking Regulation Act, 1949;

(vii)  Securities and Exchange Board India (Merchant Bankers) Regulations, 1992;

(viii)  Securities and Exchange Board India (Depositories and Participants) Regulations, 1996;

(ix) 

Securities and Exchange Board India (Bankers to an Issue) Regulations, 1994;

(x) 

Securities and Exchange Board India (Custodian of Securities) Regulations, 1996;

(xi) 

Securities and Exchange Board India (Stock Brokers and Sub-brokers) Regulations, 1992;

(xii)  Securities and Exchange Board India (Portfolio Managers) Regulations, 1993;

We have examined compliance with the applicable clauses of the following:

a) 

b) 

Secretarial Standards issued by the Institute of Company Secretaries of India (it is not applicable to the Bank during the 
period under review);

Equity Listing Agreement and Debt Listing Agreement entered with National Stock Exchange of India Limited and BSE 
Limited.

During the period under review the Bank has complied with the provisions of Act, Rules, Regulations, Guidelines etc. 
mentioned above.

We further report that:

The Board of Directors of the Bank is duly constituted with proper balance of the Executive Directors, Non-Executive Directors 
and Independent Directors. The changes in the composition of the Board of Directors that took place during the period under 
review were carried out in compliance with the provisions of the Act. 

Adequate notice is given to all Directors to schedule the Board Meetings, agenda and detailed notes on agenda were sent at 
least seven days in advance, and a system exists for seeking and obtaining further information and clariﬁ cations on the agenda 
items before the meeting and for meaningful participation at the meeting. 

All decisions of the Board are carried through unanimously. As per the records provided by the Bank, none of the member of 
the Board dissented on any resolution passed at the meeting.

We further report that there are adequate systems and processes in the Bank commensurate with the size and operations of 
the Bank to monitor and ensure compliance with applicable laws, rules, regulations and guidelines.
We further report that during the audit period the Bank has made the stock split from `10 per equity share to `2 equity per 
share vide resolution passed by the members of the Bank in its Annual General Meeting dated 27th June 2014.

For Mehta & Mehta
Company Secretaries
(ICSI Unique Code P1996MH007500)

Dipti Mehta
Partner
FCS No. : 3667
CP No. : 3202

Place : Mumbai
Date  : 29th April 2015

Note: This report is to be read with our letter of even date which is annexed as ‘ANNEXURE A’ and forms an integral part of 
this report.

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53

 
Annexure A

To,

The Members,
Axis Bank Limited
“Trishul”, 3rd Floor,
Opp. Samartheshwar Temple,
Near Law Garden, Ellisbridge,
Ahmedabad 380 006.

Our report of even date is to be read along with this letter.

1.  Maintenance of secretarial record is the responsibility of the management of the Bank. Our responsibility is to express 

an opinion on these secretarial records based on our audit.

2.  We  have  followed  the  audit  practices  and  processes  as  were  appropriate  to  obtain  reasonable  assurance  about  the 
correctness of the contents of the secretarial records. The veriﬁ cation was done on test basis to ensure that correct facts 
are reﬂ ected in secretarial records. We believe that the processes and practices, we followed provide a reasonable basis 
for our opinion.

3.  We have not veriﬁ ed the correctness and appropriateness of ﬁ nancial records and Books of Accounts of the Bank.

4.  Wherever  required,  we  have  obtained  the  Management  representation  about  the  compliance  of  laws,  rules  and 

regulations and happening of events etc.

5. 

6. 

The compliance of the provisions of corporate and other applicable laws, rules, regulations, standards is the responsibility 
of management. Our examination was limited to the veriﬁ cation of procedures on test basis.

The secretarial audit report is neither an assurance as to the future viability of the Bank nor of the efﬁ cacy or effectiveness 
with which the management has conducted the affairs of the Bank.

For Mehta & Mehta
Company Secretaries
(ICSI Unique Code P1996MH007500)

Dipti Mehta
Partner
FCS No. : 3667
CP No. : 3202

Place : Mumbai
Date  : 29th April 2015

54

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INDEPENDENT AUDITORS’ REPORT

To

The Members of Axis Bank Limited

Report on the Standalone Financial Statements

1.  We have audited the accompanying standalone ﬁ nancial statements of Axis Bank Limited (hereinafter referred to as “the 
Bank”), which comprise the Balance Sheet as at 31 March, 2015 and the Proﬁ t and Loss Account and the Cash Flow 
statement for the year then ended and signiﬁ cant accounting policies and notes forming part of the accounts.

Management’s Responsibility for the Standalone Financial Statements 

2. 

The Bank’s Board of Directors is responsible for the matters stated in section 134(5) of the Companies Act, 2013 (“the 
Act”) with respect to preparation of these standalone ﬁ nancial statements that give a true and fair view of the ﬁ nancial 
position,  ﬁ nancial  performance  and  cash  ﬂ ows  of  the  Bank  in  accordance  with  the  provisions  of  Section  29  of  the 
Banking Regulation Act, 1949, the accounting principles generally accepted in India, including the Accounting Standards 
speciﬁ ed under section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014, in so far as they 
apply to the Bank and the Guidelines issued by Reserve Bank of India. This responsibility also includes maintenance of 
adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Bank and 
for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies, 
making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of 
internal ﬁ nancial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting 
records, relevant to the preparation of the ﬁ nancial statements that give a true and fair view and are free from material 
misstatement, whether due to fraud or error. 

Auditor’s Responsibility 

3.  Our responsibility is to express an opinion on these standalone ﬁ nancial statements based on our audit. We have taken 
into account the provisions of the Act, the accounting and auditing standards, in so far as they apply to the Bank and 
matters  which  are  required  to  be  included  in  the  audit  report  under  the  provisions  of  the  Act  and  the  Rules  made 
thereunder. We conducted our audit in accordance with the Standards on Auditing speciﬁ ed under section 143(10) of 
the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain 
reasonable assurance about whether the ﬁ nancial statements are free from material misstatement. 

4. 

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the ﬁ nancial 
statements.  The  procedures  selected  depend  on  the  auditor’s  judgement,  including  the  assessment  of  the  risks  of 
material misstatement of the ﬁ nancial statements, whether due to fraud or error. In making those risk assessments, 
the  auditor  considers  internal  control  relevant  to  the  Bank’s  preparation  of  the  ﬁ nancial  statements  that  give  a  true 
and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of 
expressing an opinion on whether the Bank has in place an adequate internal controls system over ﬁ nancial reporting 
and the operating effectiveness of such controls. An audit also includes evaluating the appropriateness of accounting 
policies used and the reasonableness of the accounting estimates made by the Bank’s Directors, as well as evaluating 
the overall presentation of the ﬁ nancial statements. We believe that the audit evidence we have obtained is sufﬁ cient 
and appropriate to provide a basis for our audit opinion. 

Opinion 

5. 

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone 
ﬁ nancial statements together with the notes thereon give the information required by the Banking Regulation Act, 1949 
as well as the Companies Act, 2013, in the manner so required for the banking companies and give a true and fair view 
of the state of affairs of the Bank as at 31 March, 2015, and its proﬁ t and its cash ﬂ ows for the year then ended. 

Report on Other Legal and Regulatory Matters 

6. 

The Balance Sheet and the Proﬁ t and Loss Account have been drawn up in accordance with the provisions of Section 
29 of the Banking Regulation Act, 1949 read with Section 133 of the Companies Act, 2013 and read with Rule 7 of the 
Companies (Accounts) Rules, 2014. 

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7. 

As required sub section (3) of section 30 of the Banking Regulation Act, 1949 and our appointment letter dated 2 July, 
2014, we report that:

(a)  We have obtained all the information and explanations which, to the best of our knowledge and belief, were 

necessary for the purpose of our audit and have found them to be satisfactory;

(b) 

The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and 

(c) 

The ﬁ nancial accounting systems of the Bank are centralised and therefore, accounting returns for the purpose of 
preparing ﬁ nancial statements are not required to be submitted by the branches; we have visited 161 branches for 
the purpose of our audit.

8. 

Further, as required by section 143(3) of the Companies Act, 2013, we further report that:

(a)  We have sought and obtained all the information and explanation which to the best of our knowledge and belief 

were necessary for the purpose of our audit;

(b) 

(c) 

(d) 

In our opinion, proper books of account as required by law have been kept by the Bank so far as appears from our 
examination of those books;

The Balance Sheet, the Proﬁ t and Loss Account and the Cash Flow Statement dealt with by us in the Report are in 
agreement with the books of account; 

In  our  opinion,  the  aforesaid  standalone  ﬁ nancial  statements  comply  with  the  Accounting  Standards  speciﬁ ed 
under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and

(e)  On the basis of the written representations received from the directors as on 31 March, 2015 taken on record 
by the Board of Directors, none of the directors is disqualiﬁ ed as on 31 March, 2015 from being appointed as a 
director in terms of Section 164 (2) of the Act.

Other Matters 

9.  With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the Companies 
(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations 
given to us: 

(a) 

(b) 

The  Bank  has  disclosed  the  impact  of  pending  litigations  on  its  ﬁ nancial  position  in  its  standalone  ﬁ nancial 
statements – Refer Schedule 12.1 and Note 18.2.2.15 (a) to the standalone ﬁ nancial statements; 

The  Bank  has  made  provision,  as  required  under  the  applicable  law  or  accounting  standards,  for  material 
foreseeable losses on long-term contracts including derivative contracts – Refer Note 18.2.2.15 to the standalone 
ﬁ nancial statements and

(c) 

There were no amounts which were required to be transferred to the Investor Education and Protection Fund by 
the Bank.

10.  The  ﬁ nancial  statements  for  the  year  ended  31  March,  2014  were  audited  by  another  auditor  who  expressed  an 

unmodiﬁ ed opinion on these ﬁ nancial statements on 25 April, 2014.  

For S. R. Batliboi & Co LLP. 
Chartered Accountants 
ICAI Firm Registration Number: 301003E

Viren H. Mehta
Partner
Membership Number: 048749

Mumbai, 29 April 2015

56

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AXIS BANK LIMITED - BALANCE SHEET

BALANCE SHEET AS AT 31 MARCH, 2015

CAPITAL AND LIABILITIES

Capital

Reserves & Surplus

Deposits

Borrowings

Other Liabilities and Provisions

TOTAL

ASSETS

Cash and Balances with Reserve Bank of India

Balances with Banks and Money at Call and Short Notice

Investments

Advances

Fixed Assets

Other Assets

TOTAL

Contingent Liabilities

Bills for Collection

As at
31-03-2015
(` in Thousands)

As at
31-03-2014
(` in Thousands)

Schedule No.

1

2

3

4

5

6

7

8

9

 4,741,044

 4,698,446

 442,024,106

 377,506,419

 3,224,419,369

 2,809,445,649

 797,582,689

 502,909,425

 150,556,734

 137,888,943

 4,619,323,942

 3,832,448,882

 198,188,397

 170,413,196

 162,801,921

 111,973,750

 1,323,428,317

 1,135,484,344

 2,810,830,297

 2,300,667,584

10

11

 25,143,105

 24,102,106

 98,931,905

 89,807,902

 4,619,323,942

 3,832,448,882

12

 5,911,749,072

 5,950,644,942

 490,086,861

 366,015,787

Signiﬁ cant Accounting Policies and Notes to Accounts

17 & 18

Schedules referred to above form an integral part of the Balance Sheet

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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57

AXIS BANK LIMITED - PROFIT & LOSS ACCOUNT

PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2015

Year ended
31-03-2015
(` in Thousands)

Year ended
31-03-2014
(` in Thousands)

Schedule No.

I

II

III

IV
V

VI

13
14

15
16
18 (2.1.1)

INCOME
Interest earned
Other income
TOTAL
EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies
TOTAL
NET PROFIT FOR THE YEAR (I - II)
Balance  in  Proﬁ t  &  Loss  Account  brought  forward  from 
previous year
AMOUNT AVAILABLE FOR APPROPRIATION
APPROPRIATIONS :
Transfer to Statutory Reserve
Transfer to Investment Reserve
Transfer to Capital Reserve
Transfer to/(from) Reserve Fund
Proposed dividend (includes tax on dividend)
Balance in Proﬁ t & Loss Account carried forward
TOTAL
EARNINGS PER EQUITY SHARE
(Face value `2/- per share) (Rupees)
Basic
Diluted
Signiﬁ cant Accounting Policies and Notes to Accounts
17 & 18
Schedules referred to above form an integral part of the Proﬁ t and Loss Account

18 (2.2.1)
18 (2.2.2)
18 (2.2.5)

18 (2.2.3)

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

 354,785,977
 83,650,458
 438,436,435

 306,411,554
 74,052,247
 380,463,801

 212,544,595
 92,037,456
 60,276,161
 364,858,212
 73,578,223

 186,895,220
 79,007,739
 52,384,176
 318,287,135
 62,176,666

 135,014,461

 100,292,624

 208,592,684

 162,469,290

 18,394,555
 254,885
 631,421
 (12,664)
 13,089,573
 176,234,914
 208,592,684

 15,544,167
 500,289
 388,664
 10,465
 11,011,244
 135,014,461
 162,469,290

 31.18
 30.85

 26.51
 26.45

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

58

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AXIS BANK LIMITED - CASH FLOW STATEMENT

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2015

Cash ﬂ ow from operating activities

Net proﬁ t before taxes

Adjustments for:

Depreciation on ﬁ xed assets

Depreciation on investments

Amortisation of premium on Held to Maturity investments

Provision for Non Performing Assets (including bad debts)

Provision on standard assets

Provision on Unhedged Foreign Currency Exposure

Provision for wealth tax

(Proﬁ t)/Loss on sale of ﬁ xed assets (net)

Provision for country risk

Provision for restructured assets

Provision for other contingencies

Adjustments for:

(Increase)/Decrease in investments

(Increase)/Decrease in advances

Increase/(Decrease) in deposits

(Increase)/Decrease in other assets

Increase/(Decrease) in other liabilities & provisions

Direct taxes paid

Net cash ﬂ ow from operating activities

Cash ﬂ ow from investing activities

Purchase of ﬁ xed assets

(Increase)/Decrease in Held to Maturity investments

(Increase)/Decrease in Investment in Subsidiaries

Proceeds from sale of ﬁ xed assets

Net cash used in investing activities

Year ended
31-03-2015
(` in Thousands)

Year ended
31-03-2014
(` in Thousands)

 110,568,345

 93,486,266

 4,056,721

 3,639,307

 (509,798)

 (1,002,934)

 733,501

 741,629

 17,886,115

 12,959,797

 2,902,218

 2,902,257

 1,336,600

 9,300

 35,854

 -

 -

 4,200

 142,344

 -

 (818,769)

 1,947,624

 2,480,373

 4,263,632

 138,680,460

 119,084,122

 (114,269,391)

 139,416,485

 (526,386,792)

 (344,886,856)

 414,973,720

 283,309,768

 (5,543,072)

 (15,824,833)

 4,112,258

 20,351,130

 (40,787,347)

 (34,424,254)

 (129,220,164)

 167,025,562

 (5,239,405)

 (5,894,258)

 (73,659,581)

 (131,889,049)

 (1,097,500)

 (6,378,202)

 99,961

 1,686,699

 (79,896,525)

 (142,474,810)

59

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CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2015

Cash ﬂ ow from ﬁ nancing activities

Proceeds from issue of subordinated debt, perpetual debt & upper Tier II
instruments (net of repayment)

Increase/(Decrease) in borrowings (excluding subordinated debt,
perpetual debt & upper Tier II instruments)

Proceeds from issue of share capital

Proceeds from share premium (net of share issue expenses)

Payment of dividend

Net cash generated from ﬁ nancing activities

Effect of exchange ﬂ uctuation translation reserve

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Notes to the Cash Flow Statement:

Cash and cash equivalents includes the following

Year ended
31-03-2015
(` in Thousands)

Year ended
31-03-2014
(` in Thousands)

 9,164,337

 (1,341,919)

 285,508,927

 64,740,359

 42,599

 18,901

 4,768,948

 1,356,819

 (11,024,839)

 (9,872,689)

 288,459,972

 54,901,471

 (739,911)

 (1,414,876)

 78,603,372

 78,037,347

 282,386,946

 204,349,599

 360,990,318

 282,386,946

Cash and Balances with Reserve Bank of India (Refer Schedule 6)

 198,188,397

 170,413,196

Balances with Banks and Money at Call and Short Notice (Refer Schedule 7)

 162,801,921

 111,973,750

Cash and cash equivalents at the end of the year

 360,990,318

 282,386,946

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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AXIS BANK LIMITED - SCHEDULES

SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

SCHEDULE 1 - CAPITAL

Authorised Capital
4,250,000,000 (Previous year - 4,250,000,000) Equity Shares of  `2/- each
Issued, Subscribed and Paid-up capital
2,370,522,199 (Previous year - 2,349,222,765) Equity Shares of  `2/- each fully 
paid-up [Refer Schedule 18.1]

 8,500,000

 8,500,000

 4,741,044

 4,698,446

SCHEDULE 2 - RESERVES AND SURPLUS

I.

Statutory Reserve

Opening Balance

Additions during the year

II.

Share Premium Account

Opening Balance

Additions during the year

Less: Share issue expenses

III.

Investment Reserve Account

Opening Balance

Additions during the year

IV.

General  Reserve

Opening Balance

Additions during the year

V.

Capital  Reserve

Opening Balance

Additions during the year [Refer Schedule 18 (2.2.1)]

VI.

Foreign Currency Translation Reserve [Refer Schedule 17 (4.5)]

Opening Balance

Additions/(Deductions) during the year (net)

VII. Reserve Fund

Opening Balance

Additions/(Deductions) during the year (net) [Refer Schedule 18 (2.2.2)]

VIII. Balance in Proﬁ t & Loss Account

TOTAL

 66,918,613

 18,394,555

 85,313,168

 51,374,446

 15,544,167

 66,918,613

 158,971,691

 157,614,872

 4,768,948

 1,356,819

 -

 -

 163,740,639

 158,971,691

 1,034,860

 254,885

 1,289,745

 534,571

 500,289

 1,034,860

 3,543,100

 3,543,100

 -

 -

 3,543,100

 3,543,100

 9,848,828

 631,421

 10,480,249

 2,138,317

 (739,911)

 1,398,406

 36,549

 (12,664)

 23,885

 9,460,164

 388,664

 9,848,828

 3,553,193

 (1,414,876)

 2,138,317

 26,084

 10,465

 36,549

 176,234,914

 135,014,461

 442,024,106

 377,506,419

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SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 3 - DEPOSITS

A.

I.

Demand Deposits

II.

III.

(i)    From banks

(ii)   From others

Savings Bank Deposits

Term Deposits

(i)   From banks

(ii)   From others

TOTAL

B.

I.

Deposits of branches in India

II. Deposits of branches outside India

TOTAL

SCHEDULE 4 - BORROWINGS

I.

Borrowings in India

(i)    Reserve Bank of India

(ii)   Other banks #

(iii)   Other institutions & agencies **

II.

Borrowings outside India $

TOTAL

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

 39,562,710

 32,988,992

 521,519,479

 453,875,002

 882,920,829

 777,759,443

 84,010,165

 118,566,234

 1,696,406,186

 1,426,255,978

 3,224,419,369

 2,809,445,649

 3,171,892,483

 2,669,187,357

 52,526,886

 140,258,292

 3,224,419,369

 2,809,445,649

 -

 2,790,000

 20,582,000

 28,653,700

 255,729,912

 155,918,476

 521,270,777

 315,547,249

 797,582,689

 502,909,425

Secured borrowings included in I & II above
 -
# Borrowings from other banks include Subordinated Debt of `377.60 crores (previous year `407.60 crores) in the nature 
of Non-Convertible Debentures, Perpetual Debt of Nil (previous year Nil) and Upper Tier II instruments of `49.10 crores 
(previous year `59.10 crores) [Also refer Notes 18 (2.1.2) & 18 (2.1.3)]

 -

**  Borrowings  from  other  institutions  &  agencies  include  Subordinated  Debt  of  `10,823.20  crores  (previous  year 
`9,943.20 crores) in the nature of Non-Convertible Debentures, Perpetual Debt of `214.00 crores (previous year `214.00 
crores) and Upper Tier II instruments of `258.40 crores (previous year `248.40 crores) [Also refer Notes 18 (2.1.2) & 
18 (2.1.3)]
$ Borrowings outside India include Perpetual Debt of `287.50 crores (previous year `275.61 crores) and Upper Tier II 
instruments of `1,311.98 crores (previous year `1,257.44 crores) [Also refer Note 18 (2.1.3)]

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

Bills payable

Inter-ofﬁ ce adjustments (net)

Interest accrued

Proposed dividend (includes tax on dividend)

Contingent provision against standard assets

Others (including provisions)

TOTAL

I.

II.

III.

IV.

V.

VI.

62

 39,372,758

 35,781,997

 -

 -

 20,547,095

 11,428,311

 13,055,440

 10,990,706

 15,956,484

 12,970,256

 61,624,957

 66,717,673

 150,556,734

 137,888,943

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SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA
I.
II.

Cash in hand (including foreign currency notes)
Balances with Reserve Bank of India:
(i)  
in Current Account
(ii)   in Other Accounts
TOTAL

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

 42,154,312

 41,646,443

 156,034,085
 -
 198,188,397

 128,766,753
 -
 170,413,196

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE
I.

In India
(i)  Balance with Banks

(a) 
(b) 

in Current Accounts
in Other Deposit Accounts
(ii)  Money at Call and Short Notice

(a)   With banks
(b)  With other institutions

TOTAL
Outside India
in Current Accounts
(i) 
(ii) 
in Other Deposit Accounts
(iii)  Money at Call & Short Notice
TOTAL
GRAND TOTAL (I+II)

II.

SCHEDULE 8 - INVESTMENTS
I.

 1,941,210
 12,852,440

 2,218,145
 10,252,205

 -
 86,192,067
 100,985,717

 8,062,433
 24,314,311
 29,439,460
 61,816,204
 162,801,921

 -
 6,587,734
 19,058,084

 13,926,856
 27,706,630
 51,282,180
 92,915,666
 111,973,750

 812,460,111
 -
 7,390,249
 250,682,120
 8,694,365
 229,073,943
 1,308,300,788

 690,967,197
 -
 6,118,086
 236,365,878
 7,596,865
 183,325,790
 1,124,373,816

II.

Investment in Subsidiaries/Joint Ventures

Investments in India in -
(i)  Government Securities  ##  **
(ii)  Other approved securities
(iii)  Shares
(iv)  Debentures and Bonds
(v) 
(vi)  Others (Mutual Fund units, CD/CP, Priority Sector deposits, PTC etc.) @
Total Investments in India
Investments outside India in -
(i)  Government Securities (including local authorities)
(ii)  Subsidiaries and/or joint ventures abroad
(iii)  Others (Equity Shares and Bonds)
Total Investments outside India
GRAND TOTAL (I+II)
## 

 5,037,042
 2,995,713
 3,077,773
 11,110,528
 1,135,484,344
Includes securities costing `11,981.89 crores (previous year `5,224.77 crores) pledged for availment of fund transfer 
facility, clearing facility and margin requirements
Inclusive of Repo Lending of Nil (previous year `2,600.00 crores) and net of Repo borrowing of `6,194.55 crores 
(previous year Nil) under the Liquidity Adjustment Facility in line with the RBI requirements
Includes Priority Sector deposits of `14,792.62 crores (previous year `11,006.97 crores) and PTC's of `1,037.59 
crores (previous year `2,328.21 crores) net of depreciation, if any

 9,831,909
 2,995,712
 2,299,908
 15,127,529
 1,323,428,317

** 

@ 

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SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 9 - ADVANCES

A.

(i)

Bills purchased and discounted *

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

 52,037,662

 32,128,953

(ii) Cash credits, overdrafts and loans repayable on demand @

 804,186,766

 688,438,246

(iii) Term loans #

TOTAL

B.

(i)

Secured by tangible assets $

(ii) Covered by Bank/Government Guarantees &&

(iii) Unsecured

TOTAL

C.

I.

Advances in India

(i)  Priority Sector

(ii)  Public Sector

(iii)  Banks

(iv)  Others

TOTAL

II. Advances Outside India

(i)  Due from banks

(ii)  Due from others -

(a)  Bills purchased and discounted

(b)  Syndicated loans

(c)  Others

TOTAL

 1,954,605,869

 1,580,100,385

 2,810,830,297

 2,300,667,584

 2,194,008,860

 1,888,972,790

 34,123,543

 30,464,715

 582,697,894

 381,230,079

 2,810,830,297

 2,300,667,584

 697,714,885

 627,610,775

 35,629,745

 37,642,652

 2,392,968

 2,088,299

 1,616,864,530

 1,275,998,080

 2,352,602,128

 1,943,339,806

 1,562,500

 6,211,853

 4,528,093

 2,455,311

 117,111,191

 104,660,986

 335,026,385

 243,999,628

 458,228,169

 357,327,778

GRAND TOTAL (CI+CII)
Net of borrowings under Bills Rediscounting Scheme Nil (previous year `2,800.00 crores)

*
@ Net of borrowings under Inter Bank Participation Certiﬁ cate/Funded Risk Participation `1,301.43 crores (previous 

 2,300,667,584

 2,810,830,297

year `4,129.04 crores)
Net of borrowings under Inter Bank Participation Certiﬁ cate `15,317.68 crores (previous year `11,908.59 crores)

Includes advances against book debts

#

$

&& Includes advances against L/Cs issued by banks

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SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

SCHEDULE 10 - FIXED ASSETS

I.

Premises

Gross Block

At cost at the beginning of the year

Additions during the year

Deductions during the year

TOTAL

Depreciation

As at the beginning of the year

Charge for the year

Deductions during the year

Depreciation to date

Net Block

II.

Other ﬁ xed assets (including furniture & ﬁ xtures)

Gross Block

At cost at the beginning of the year

Additions during the year

Deductions during the year

TOTAL

Depreciation

As at the beginning of the year

Charge for the year

Deductions during the year

Depreciation to date

Net Block

III.

CAPITAL WORK-IN-PROGRESS (including capital advances)

GRAND TOTAL (I+II+III)

SCHEDULE 11 - OTHER ASSETS

I.

II.

III.

IV.

V.

VI.

Inter-ofﬁ ce adjustments (net)

Interest Accrued

Tax paid in advance/tax deducted at source (net of provisions)

Stationery and stamps

Non banking assets acquired in satisfaction of claims

Others #

TOTAL

 9,041,075

 9,041,075

 465,496

 -

 -

 -

 9,506,571

 9,041,075

 556,787

 151,921

 -

 409,511

 147,276

 -

 708,708

 556,787

 8,797,863

 8,484,288

 32,507,770

 30,404,839

 4,757,982

 6,148,638

 (1,802,270)

 (4,045,707)

 35,463,482

 32,507,770

 17,886,636

 16,731,046

 3,904,800

 3,492,031

 (1,660,585)

 (2,336,441)

 20,130,851

 17,886,636

 15,332,631

 14,621,134

 1,012,611

 996,684

 25,143,105

 24,102,106

 -

 -

 41,505,112

 33,854,722

 2,047,331

 10,081

 -

 -

 12,598

 438,108

 55,369,381

 55,502,474

 98,931,905

 89,807,902

#  Includes deferred tax assets of `1,886.91 crores (previous year `1,733.55 crores) [Refer Schedule 18 (2.2.10)]

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SCHEDULES FORMING PART OF THE BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 12 - CONTINGENT LIABILITIES

I.

II.

III.

Claims against the Bank not acknowledged as debts

Liability for partly paid investments

 2,740,743

 2,370,182

 -

 -

Liability on account of outstanding forward exchange and derivative contracts :

 As at
 31-03-2015
(` in Thousands)

 As at
 31-03-2014
(` in Thousands)

Forward Contracts

 2,800,956,981

 2,312,741,992

a)

b)

Interest  Rate  Swaps,  Currency  Swaps,  Forward  Rate  Agreement 
& Interest Rate Futures

c)

Foreign Currency Options

TOTAL (a+b+c)

IV.

Guarantees given on behalf of constituents

In India

Outside India

V.

VI.

Acceptances, endorsements and other obligations

Other items for which the Bank is contingently liable

 1,641,749,576

 2,299,486,452

 238,438,623

 202,687,973

 4,681,145,180

 4,814,916,417

 582,793,361

 529,708,072

 137,954,192

 133,640,480

 315,837,757

 238,821,561

 191,277,839

 231,188,230

GRAND TOTAL (I+II+III+IV+V+VI) [Refer Schedule 18 (2.2.15)]

 5,911,749,072

 5,950,644,942

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SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2015

SCHEDULE 13 - INTEREST EARNED

I.

II.

III.

IV.

Interest/discount on advances/bills

Income on investments

Interest on balances with Reserve Bank of India and other inter-bank funds

Others

TOTAL

SCHEDULE 14 - OTHER INCOME

I.

II.

III.

IV.

V.

Commission, exchange and brokerage

Proﬁ t/(Loss) on sale of investments (net) [Refer Schedule 18 (2.2.1)]

Proﬁ t/(Loss) on sale of ﬁ xed assets (net)

Proﬁ t on exchange/derivative transactions (net)

Income earned by way of dividends etc. from

subsidiaries/companies and/or joint venture abroad/in India

VI. Miscellaneous Income

[including recoveries on account of advances/investments written-off in earlier 
years `169.86 crores (previous year `183.91 crores) and net proﬁ t on account 
of  portfolio  sell  downs/securitisation  `43.40  crores  (previous  year  net  loss  of 
`20.57 crores)]
TOTAL

SCHEDULE 15 - INTEREST EXPENDED

I.

II.

III.

Interest on deposits

Interest on Reserve Bank of India/Inter-bank borrowings

Others

TOTAL

SCHEDULE 16 - OPERATING EXPENSES

Year ended
 31-03-2015
(` in Thousands)

 Year ended
 31-03-2014
(` in Thousands)

 258,678,187

 219,504,303

 91,170,923

 83,431,301

 2,312,594

 2,624,273

 1,667,839

 1,808,111

 354,785,977

 306,411,554

 61,210,700

 53,937,636

 9,949,036

 (35,854)

 3,275,775

 (142,344)

 9,841,234

 15,176,525

 338,125

 2,347,217

 18,750

 1,785,905

 83,650,458

 74,052,247

 171,368,102

 154,588,983

 15,170,269

 26,006,224

 9,006,843

 23,299,394

 212,544,595

 186,895,220

Payments to and provisions for employees

 31,149,697

 26,013,494

I.

II.

III.

IV.

V.

VI.

Rent, taxes and lighting

Printing and stationery

Advertisement and publicity

Depreciation on bank's property

Directors' fees, allowance and expenses

VII. Auditors' fees and expenses

VIII.

Law charges

IX.

X.

XI.

Postage, telegrams, telephones etc.

Repairs and maintenance

Insurance

XII. Other expenditure

TOTAL

 8,102,644

 1,183,585

 905,679

 4,056,721

 17,596

 15,692

 108,424

 3,069,818

 7,323,168

 3,663,895

 32,440,537

 92,037,456

 8,047,786

 1,136,346

 959,548

 3,639,307

 10,377

 19,551

 105,915

 2,805,292

 6,257,486

 3,166,611

 26,846,026

 79,007,739

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17  Signiﬁ cant accounting policies for the year ended 31 March, 2015

1 

Background

Axis Bank Limited (‘the Bank’) was incorporated in 1993 and provides a complete suite of corporate and retail banking 
products.

2 

Basis of preparation

The ﬁ nancial statements have been prepared and presented under the historical cost convention on the accrual basis 
of accounting in accordance with the generally accepted accounting principles in India to comply with the, statutory 
requirements prescribed under the Banking Regulation Act, 1949, the circulars and guidelines issued by the Reserve 
Bank of India (‘RBI’) from time to time and the Accounting Standards notiﬁ ed under Section 133 of the Companies Act, 
2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 to the extent applicable and practices 
generally prevalent in the banking industry in India.

3 

Use of estimates

The preparation of the ﬁ nancial statements in conformity with the generally accepted accounting principles requires the 
Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues 
and expenses and disclosure of contingent liabilities at the date of the ﬁ nancial statements. Actual results could differ 
from those estimates. The Management believes that the estimates used in the preparation of the ﬁ nancial statements 
are prudent and reasonable. Any revisions to the accounting estimates are recognised prospectively in the current and 
future periods.

4 

Signiﬁ cant accounting policies

4.1 

Investments

Classiﬁ cation

In accordance with the RBI guidelines, investments are classiﬁ ed at the time of purchase as:

• 

• 

• 

Held for Trading (‘HFT’);

Available for Sale (‘AFS’); and

Held to Maturity (‘HTM’).

Investments that are held principally for sale within a short period are classiﬁ ed as HFT securities. As per the RBI 
guidelines, HFT securities, which remain unsold for a period of 90 days are reclassiﬁ ed as AFS securities.

Investments that the Bank intends to hold till maturity are classiﬁ ed under the HTM category. Investments in 
the equity of subsidiaries/joint ventures are categorised as HTM in accordance with the RBI guidelines.

All other investments are classiﬁ ed as AFS securities.

However,  for  disclosure  in  the  Balance  Sheet,  investments  in  India  are  classiﬁ ed  under  six  categories  - 
Government Securities, Other approved securities, Shares, Debentures and Bonds, Investment in Subsidiaries/
Joint Ventures and Others.

Investments made outside India are classiﬁ ed under three categories – Government Securities, Subsidiaries and/
or Joint Ventures abroad and Others.

Transfer of security between categories

Transfer of security between categories of investments is accounted as per the RBI guidelines.

Acquisition cost

Costs  including  brokerage  and  commission  pertaining  to  investments,  paid  at  the  time  of  acquisition,  are 
charged to the Proﬁ t and Loss Account.

Broken period interest is charged to the Proﬁ t and Loss Account.

Cost of investments is computed based on the weighted average cost method.

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Valuation

Investments classiﬁ ed under the HTM category are carried at acquisition cost unless it is more than the face 
value, in which case the premium is amortised over the period remaining to maturity on a constant yield to 
maturity basis. In terms of RBI guidelines, discount on securities held under HTM category is not accrued and 
such securities are held at the acquisition cost till maturity.

Investments  classiﬁ ed  under  the  AFS  and  HFT  categories  are  marked  to  market.  The  market/fair  value  of 
quoted investments included in the ‘AFS’ and ‘HFT’ categories is the market price of the scrip as available from 
the trades/quotes on the stock exchanges or prices declared by Primary Dealers Association of India (‘PDAI’) 
jointly  with  Fixed  Income  Money  Market  and  Derivatives  Association  of  India  (‘FIMMDA’),  periodically.  Net 
depreciation, if any, within each category of each investment classiﬁ cation is recognised in the Proﬁ t and Loss 
Account. The net appreciation if any, under each category of each investment classiﬁ cation is ignored. The 
book value of individual securities is not changed consequent to the periodic valuation of investments.

Treasury  Bills,  Exchange  Funded  Bills,  Commercial  Paper  and  Certiﬁ cate  of  Deposits  being  discounted 
instruments, are valued at carrying cost.

Units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.

Market  value  of  investments  where  current  quotations  are  not  available,  is  determined  as  per  the  norms 
prescribed by the RBI as under:

• 

• 

• 

• 

• 

in  case  of  unquoted  bonds,  debentures  and  preference  shares  where  interest/dividend  is  received 
regularly  (i.e.  not  overdue  beyond  90  days),  the  market  price  is  derived  based  on  the  YTM  for 
Government Securities as published by FIMMDA/PDAI and suitably marked up for credit risk applicable 
to the credit rating of the instrument. The matrix for credit risk mark-up for each categories and credit 
ratings along with residual maturity issued by FIMMDA is adopted for this purpose;

in case of bonds and debentures (including Pass Through Certiﬁ cates) where interest is not received 
regularly  (i.e.  overdue  beyond  90  days),  the  valuation  is  in  accordance  with  prudential  norms  for 
provisioning as prescribed by RBI;

equity shares, for which current quotations are not available or where the shares are not quoted on the 
stock exchanges, are valued at break-up value (without considering revaluation reserves, if any) which 
is ascertained from the company’s latest Balance Sheet. In case the latest Balance Sheet is not available, 
the shares are valued at `1 per company;

units  of  Venture  Capital  Funds  (‘VCF’)  held  under  AFS  category  where  current  quotations  are  not 
available are marked to market based on the Net Asset Value (‘NAV’) shown by VCF as per the latest 
audited ﬁ nancials of the fund. In case the audited ﬁ nancials are not available for a period beyond 18 
months, the investments are valued at `1 per VCF. Investment in unquoted VCF after 23rd August, 2006 
are categorised under HTM  category for the initial period of three years and valued at cost as per RBI 
guidelines and

security  receipts  are  valued  as  per  the  NAV  obtained  from  the  issuing  Reconstruction  Company/
Securitisation Company.

Investments in subsidiaries/joint ventures are categorised as HTM and assessed for impairment to determine 
permanent diminution, if any, in accordance with the RBI guidelines.

Realised  gains  on  investments  under  the  HTM  category  are  recognised  in  the  Proﬁ t  and  Loss  Account  and 
subsequently  appropriated  to  Capital  Reserve  account  (net  of  taxes  and  transfer  to  statutory  reserves)  in 
accordance with the RBI guidelines. Losses are recognised in the Proﬁ t and Loss Account.

All investments are accounted for on settlement date, except investments in equity shares which are accounted 
for on trade date as the corporate actions are effected in equity on the trade date.

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Repurchase and reverse repurchase transactions

Repurchase  and  reverse  repurchase  transactions  in  government  securities  and  corporate  debt  securities 
[excluding those conducted under the Liquid Adjustment Facility (‘LAF’) and Marginal Standby Facility (‘MSF’) 
with RBI] are accounted as collateralised borrowing and lending respectively. Such transactions done under LAF 
and MSF are accounted as outright sale and outright purchase respectively.

Short Sales

In  accordance  with  the  RBI  guidelines,  the  Bank  undertakes  short  sale  transactions  in  Central  Government 
dated  securities.  The  short  positions  are  reﬂ ected  in  ‘Securities  Short  Sold  (‘SSS’)  A/c’,  speciﬁ cally  created 
for  this  purpose.  Such  short  positions  are  categorised  under  HFT  category.  These  positions  are  marked-to-
market along with the other securities under HFT portfolio and the resultant mark-to-market gains/losses are 
accounted for as per the relevant RBI guidelines for valuation of investments discussed earlier.

4.2 

Advances

Advances are classiﬁ ed into performing and non-performing advances (‘NPAs’) as per the RBI guidelines and 
are stated net of speciﬁ c provisions made towards NPAs and ﬂ oating provisions. Further, NPAs are classiﬁ ed 
into sub-standard, doubtful and loss assets based on the criteria stipulated by the RBI. Provisions for NPAs are 
made for sub-standard and doubtful assets at rates as prescribed by the RBI with the exception for agriculture 
advances and schematic retail advances. In respect of schematic retail advances, provisions are made in terms 
of a bucket-wise policy upon reaching speciﬁ ed stages of delinquency (90 days or more of delinquency) under 
each type of loan, which satisﬁ es the RBI prudential norms on provisioning. Provisions in respect of agriculture 
advances  classiﬁ ed  into  sub-standard  and  doubtful  assets  are  made  at  rates  which  are  higher  than  those 
prescribed by the RBI.

In addition to the above, the Bank on a prudential basis, makes provision for expected losses against advances 
or other exposures to speciﬁ c assets/industry/sector either on a case-by-case basis or for a group of assets, 
based on speciﬁ c information or general economic environment. These are classiﬁ ed as contingent provision 
and included under Schedule 5 - Other Liabilities in the Balance Sheet.

Loss assets and unsecured portion of doubtful assets are provided/written-off as per the extant RBI guidelines. 
NPAs are identiﬁ ed by periodic appraisals of the loan portfolio by the Management.

Amounts recovered against debts written-off are recognised in the Proﬁ t and Loss account.

For restructured/rescheduled assets, provision is made in accordance with the guidelines issued by RBI, which 
requires the diminution in the fair value of the assets to be provided at the time of restructuring.

For  entities  with  Unhedged  Foreign  Currency  Exposure  (UFCE),  provision  is  made  in  accordance  with  the 
guidelines issued by RBI, which requires to ascertain the amount of UFCE, estimate the extent of likely loss and 
estimate the riskiness of unhedged position. This provision is classiﬁ ed under Schedule 5 – Other Liabilities in 
the Balance Sheet.

The Bank maintains a general provision on standard advances at the rates prescribed by RBI. In case of overseas 
branches, general provision on standard advances is maintained at the higher of the levels stipulated by the 
respective overseas regulator or RBI.

Under its home loan portfolio, the Bank offers housing loans with certain features involving waiver of Equated 
Monthly Installments (‘EMIs’) of a speciﬁ c period subject to fulﬁ lment of a set of conditions by the borrower. 
The Bank makes provision on an estimated basis against the probable loss that could be incurred in future on 
account of waivers to eligible borrowers in respect of such loans. This provision is classiﬁ ed under Schedule 
5 – Other Liabilities in the Balance Sheet.

4.3 

Country risk

In  addition  to  the  provisions  required  to  be  held  according  to  the  asset  classiﬁ cation  status,  provisions  are 
held for individual country exposure (other than for home country as per the RBI guidelines). The countries 
are categorised into seven risk categories namely insigniﬁ cant, low, moderate, high, very high, restricted and 

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off-credit and provision is made on exposures exceeding 180 days on a graded scale ranging from 0.25% to 
100%. For exposures with contractual maturity of less than 180 days, 25% of the normal provision requirement 
is held. If the country exposure (net) of the Bank in respect of each country does not exceed 1% of the total 
funded assets, no provision is maintained on such country exposure.

4.4 

Securtisation

The Bank enters into purchase/sale of corporate and retail loans through direct assignment/Special Purpose 
Vehicle (‘SPV’). In most cases, post securtisation, the Bank continues to service the loans transferred to the 
assignee/SPV. The Bank also provides credit enhancement in the form of cash collaterals and/or by subordination 
of cash ﬂ ows to Senior Pass Through Certiﬁ cate (‘PTC’) holders. In respect of credit enhancements provided 
or  recourse  obligations  (projected  delinquencies,  future  servicing  etc.)  accepted  by  the  Bank,  appropriate 
provision/disclosure is made at the time of sale in accordance with AS 29, Provisions, Contingent Liabilities and 
Contingent Assets as notiﬁ ed under Section 133 of the Companies Act, 2013 read together with paragraph 7 
of the Companies (Accounts) Rules, 2014.

In accordance with RBI guidelines of 7 May 2012, on ‘Guidelines on Securitisation of Standard Assets’, gain 
on  securtisation  transaction  is  recognised  over  the  period  of  the  underlying  securities  issued  by  the  SPV  as 
prescribed under RBI guidelines. Loss on securtisation is immediately debited to the Proﬁ t and Loss Account.

4.5 

Foreign currency transactions

In  respect  of  domestic  operations,  transactions  denominated  in  foreign  currencies  are  accounted  for  at  the 
rates prevailing on the date of the transaction. Monetary foreign currency assets and liabilities are translated at 
the Balance Sheet date at rates notiﬁ ed by Foreign Exchange Dealers Association of India (‘FEDAI’). All proﬁ ts/
losses resulting from year end revaluations are recognised in the Proﬁ t and Loss Account.

Financial statements of foreign branches classiﬁ ed as non-integral foreign operations as per the RBI guidelines 
are translated as follows:

• 

• 

• 

Assets and liabilities (both monetary and non-monetary as well as contingent liabilities) are translated 
at closing rates notiﬁ ed by FEDAI at the year end.

Income and expenses are translated at the rates prevailing on the date of the transactions.

All resulting exchange differences are accumulated in a separate ‘Foreign Currency Translation Reserve’ 
till the disposal of the net investments. Any realised gains or losses are recognised in the Proﬁ t and Loss 
Account.

Outstanding forward exchange contracts including tom/spot contracts (excluding currency swaps undertaken 
to hedge foreign currency assets/liabilities and funding swaps which are not revalued) are revalued at year end 
on PV basis by discounting the forward value till spot date and converting the FCY amount using the respective 
spot rates as notiﬁ ed by FEDAI. The resulting gains or losses on revaluation are included in the Proﬁ t and Loss 
Account in accordance with RBI/FEDAI guidelines.

Premium/discount on currency swaps undertaken to hedge foreign currency assets and liabilities and funding 
swaps is recognised as interest income/expense and is amortised on a pro-rata basis over the underlying swap 
period.

Contingent  liabilities  on  account  of  forward  exchange  and  derivative  contracts,  guarantees,  acceptances, 
endorsements  and  other  obligations  denominated  in  foreign  currencies  are  disclosed  at  closing  rates  of 
exchange notiﬁ ed by FEDAI.

4.6 

Derivative transactions

Derivative transactions comprise of forward contracts, swaps and options which are disclosed as contingent 
liabilities. The forwards, swaps and options are categorised as trading or hedge transactions. Trading derivative 
contracts are revalued at the Balance Sheet date with the resulting unrealised gain or loss being recognised 
in the Proﬁ t and Loss Account and correspondingly in other assets or other liabilities respectively. For hedge 
transactions, the Bank identiﬁ es the hedged item (asset or liability) at the inception of transaction itself. The 

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effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. Hedge swaps are 
accounted for on accrual basis except in case of swaps designated with an asset or liability that is carried at 
market value or lower of cost or market value in the ﬁ nancial statements. In such cases the swaps are marked 
to market with the resulting gain or loss recorded as an adjustment to the market value of designated asset 
or  liability.  The  premium  on  option  contracts  is  accounted  for  as  per  FEDAI  guidelines.  Pursuant  to  the  RBI 
guidelines any receivables under derivative contracts comprising of crystallised receivables as well as positive 
Mark  to  Market  (MTM)  in  respect  of  future  receivables  which  remain  overdue  for  more  than  90  days  are 
reversed through the Proﬁ t and Loss account and are held in separate Suspense Account.

Currency futures contracts are marked to market using daily settlement price on a trading day, which is the 
closing price of the respective futures contracts on that day. While the daily settlement price is computed based 
on the last half an hour weighted average price of such contract, the ﬁ nal settlement price is taken as the RBI 
reference rate on the last trading day of the futures contract or as may be speciﬁ ed by the relevant authority 
from time to time. All open positions are marked to market based on the settlement price and the resultant 
marked to market proﬁ t/loss is daily settled with the exchange.

Valuation of Exchange Traded Currency Options (ETCO) is carried out on the basis of the daily settlement price 
of each individual option provided by the exchange and valuation of Interest Rate Futures (IRF) is carried out on 
the basis of the daily settlement price of each contract provided by the exchange.

4.7 

Revenue recognition

Interest income is recognised on an accrual basis except interest income on non-performing assets, which is 
recognised on receipt in accordance with AS – 9, Revenue Recognition as notiﬁ ed under Section 133 of the 
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the RBI 
guidelines.

Fees and commission income is recognised when due, except for guarantee commission which is recognized 
on a pro-rata basis over the period of the guarantee.

Arrangership/syndication fee is accounted for on completion of the agreed service and when right to receive is 
established.

Dividend is accounted on an accrual basis when the right to receive the dividend is established.

Gain/loss on sell down of loans and advances through direct assignment is recognised at the time of sale.

In accordance with RBI guidelines on sale of non-performing advances, if the sale is at a price below the net 
book value (i.e. book value less provisions held), the shortfall is charged to the Proﬁ t and Loss Account. If the 
sale is for a value higher than the net book value, the excess provision is credited to the Proﬁ t and Loss Account 
in the year the amounts are received.

4.8 

Fixed assets and depreciation/impairment

Fixed  assets  are  carried  at  cost  of  acquisition  less  accumulated  depreciation  and  impairment,  if  any.  Cost 
includes freight, duties, taxes and incidental expenses related to the acquisition and installation of the asset.

Capital work-in-progress includes cost of ﬁ xed assets that are not ready for their intended use and also includes 
advances paid to acquire ﬁ xed assets.

Depreciation is provided on the straight-line method from the date of addition. Till the year ended 31 March, 
2014, depreciation rates prescribed under Schedule XIV to the Companies Act, 1956, were treated as minimum 
rates and the Bank was not allowed to charge depreciation at lower rates even if such lower rates were justiﬁ ed 
by the estimated useful life of the asset. Schedule II to the Companies Act, 2013, prescribes useful lives of ﬁ xed 
assets which, in many cases, are different from lives prescribed under the erstwhile Schedule XIV. Considering 
the applicability of Schedule II, the management has re-estimated useful lives and residual values of all its ﬁ xed 
assets.

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Asset
Owned premises
Computer hardware including printers
Application software
Vehicles
EPABX, telephone instruments
CCTV and video conferencing equipment
Mobile phone
Locker cabinets/cash safe/strong room door
Modem, scanner, routers, hubs, switches, racks/cabinets for IT equipment
UPS, VSAT, fax machines
Cheque book/cheque encoder, currency counting machine, fake note detector
Assets at staff residence
All other ﬁ xed assets

Estimated useful life*
60 years
3 years
5 years
4 years
8 years
3 years
2 years
10 years
5 years
5 years
5 years
3 years
10 years

*  

The management believes that depreciation rates currently used fairly reﬂ ect its estimate of the useful 
lives  and  residual  values  of  ﬁ xed  assets,  though  these  rates  in  certain  cases  are  different  from  lives 
prescribed under Schedule II of Companies Act, 2013.

Depreciation on assets sold during the year is recognised on a pro-rata basis to the Proﬁ t and Loss Account till 
the date of sale.

Proﬁ t on sale of premises is appropriated to Capital Reserve Account in accordance with RBI instructions.

Change in estimated useful life of ﬁ xed assets

During the year, the Bank has revised the estimated useful lives of the following ﬁ xed assets:

• 

• 

Premises from 61 years to 60 years

Locker cabinets/cash safe/strong room door from 16 years to 10 years

As a result of the aforesaid revision, the net depreciation charge for the year is higher by `3.69 crores with a 
corresponding decrease in the net block of ﬁ xed assets.

The carrying amounts of assets are reviewed at each Balance Sheet date to ascertain if there is any indication 
of  impairment  based  on  internal/external  factors.  An  impairment  loss  is  recognised  wherever  the  carrying 
amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net 
selling price and value in use. In assessing value in use, the estimated future cash ﬂ ows are discounted to their 
present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised 
carrying amount of the asset over its remaining useful life.

4.9 

Lease transactions

Leases where the lessor effectively retains substantially all the risks and beneﬁ ts of ownership over the lease 
term are classiﬁ ed as operating lease. Lease payments for assets taken on operating lease are recognised as an 
expense in the Proﬁ t and Loss Account on a straight-line basis over the lease term.

4.10  Retirement and other employee beneﬁ ts

Provident Fund

Retirement  beneﬁ t  in  the  form  of  provident  fund  is  a  deﬁ ned  beneﬁ t  plan  wherein  the  contributions  are 
charged to the Proﬁ t and Loss Account of the year when the contributions to the fund are due and when 
services are rendered by the employees. Further, an actuarial valuation is conducted by an independent actuary 
to determine the deﬁ ciency, if any, in the interest payable on the contributions as compared to the interest 
liability as per the statutory rate.

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Gratuity

The Bank contributes towards gratuity fund (deﬁ ned beneﬁ t retirement plan) administered by various insurers 
for eligible employees. Under this scheme, the settlement obligations remain with the Bank, although various 
insurers administer the scheme and determine the contribution premium required to be paid by the Bank. The 
plan provides a lump sum payment to vested employees at retirement or termination of employment based on 
the respective employee’s salary and the years of employment with the Bank. Liability with regard to gratuity 
fund is accrued based on actuarial valuation conducted by an independent actuary using the Projected Unit 
Credit Method as at 31 March each year. In respect of employees at overseas branches (other than expatriates) 
liability with regard to gratuity is provided on the basis of a prescribed method as per local laws, wherever 
applicable.

Compensated Absences

Short term compensated absences are provided for based on estimates of encashment/availment of leave. The 
Bank provides long term compensated absences based on actuarial valuation conducted by an independent 
actuary. The actuarial valuation is carried out as per the Projected Unit Credit Method as at 31 March each year.

Actuarial gains/losses are immediately taken to the Proﬁ t and Loss Account and are not deferred.

Superannuation

Employees of the Bank are entitled to receive retirement beneﬁ ts under the Bank’s Superannuation scheme 
either  under  a  cash-out  option  through  salary  or  under  a  deﬁ ned  contribution  plan.    Through  the  deﬁ ned 
contribution plan, the Bank contributes annually a speciﬁ ed sum of 10% of the employee’s eligible annual 
basic  salary  to  LIC,  which  undertakes  to  pay  the  lumpsum  and  annuity  beneﬁ t  payments  pursuant  to  the 
scheme.  Superannuation contributions are recognised in the Proﬁ t and Loss Account in the period in which 
they accrue.

4.11  Reward points

The Bank runs a loyalty program which seeks to recognize and reward customers based on their relationship 
with the Bank. Under the program, eligible customers are granted loyalty points redeemable in future, subject 
to certain conditions. In addition, the Bank continues to grant reward points in respect of certain credit cards 
(not covered under the loyalty program). The Bank estimates the probable redemption of such loyalty/reward 
points using an actuarial method at the Balance Sheet date by employing an independent actuary. Provision 
for  the  said  reward  points  is  then  made  based  on  the  actuarial  valuation  report  as  furnished  by  the  said 
independent actuary.

4.12 

Taxation

Income tax expense is the aggregate amount of current tax and deferred tax charge. Current year taxes are 
determined in accordance with the Income tax Act, 1961. Deferred income taxes reﬂ ects the impact of current 
year timing differences between taxable income and accounting income for the year and reversal of timing 
differences of earlier years.

Deferred  tax  is  measured  based  on  the  tax  rates  and  the  tax  laws  enacted  or  substantively  enacted  at  the 
Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists 
to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities 
relate to the taxes on income levied by same governing taxation laws.

Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufﬁ cient future 
taxable income will be available against which such deferred tax assets can be realised. The impact of changes 
in the deferred tax assets and liabilities is recognised in the Proﬁ t and Loss Account.

Deferred  tax  assets  are  recognised  and  reassessed  at  each  reporting  date,  based  upon  the  Management’s 
judgement as to whether realisation is considered as reasonably certain. Deferred tax assets are recognised 
on  carry  forward  of  unabsorbed  depreciation  and  tax  losses  only  if  there  is  virtual  certainty  supported  by 
convincing evidence that such deferred tax asset can be realised against future proﬁ ts.

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4.13 

Share issue expenses

Share issue expenses are adjusted from Share Premium Account in terms of Section 52 of the Companies Act, 
2013.

4.14 

Earnings per share

The Bank reports basic and diluted earnings per share in accordance with AS 20, Earnings per Share, as notiﬁ ed 
under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) 
Rules, 2014. Basic earnings per share is computed by dividing the net proﬁ t after tax by the weighted average 
number of equity shares outstanding for the year.

Diluted earnings per share reﬂ ect the potential dilution that could occur if securities or other contracts to issue 
equity shares were exercised or converted during the year. Diluted earnings per share is computed using the 
weighted average number of equity shares and dilutive potential equity shares outstanding at the year end.

4.15 

Employee stock option scheme

The 2001 Employee Stock Option Scheme (‘the Scheme’) provides for grant of stock options on equity shares 
of the Bank to employees and Directors of the Bank and its subsidiaries. The Scheme is in accordance with 
the  Securities  and  Exchange  Board  of  India  (SEBI)  (Employees  Stock  Option  Scheme  and  Employee  Stock 
Purchase Scheme) Guidelines, 1999 (‘the Guidelines’). These Guidelines have been repealed in the month of 
October, 2014 and were substituted by Securities and Exchange Board of India (Share Based Employee Beneﬁ ts) 
Regulations,  2014.  The  Scheme  is  in  compliance  with  the  said  regulations.  The  Bank  follows  the  intrinsic 
value method to account for its stock based employee compensation plans as per the Guidelines. Options are 
granted at an exercise price, which is equal to/less than the fair market price of the underlying equity shares.  
The excess of such fair market price over the exercise price of the options as at the grant date is recognised as 
a deferred compensation cost and amortised on a straight-line basis over the vesting period of such options.

The fair market price is the latest available closing price, prior to the date of grant, on the stock exchange on 
which the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock 
exchange where there is highest trading volume on the said date is considered.

4.16 

Provisions, contingent liabilities and contingent assets

A provision is recognised when the Bank has a present obligation as a result of past event where it is probable 
that an outﬂ ow of resources will be required to settle the obligation, in respect of which a reliable estimate can 
be made. Provisions are not discounted to its present value and are determined based on best estimate required 
to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted 
to reﬂ ect the current best estimates.

A disclosure of contingent liability is made when there is:

• 

• 

a possible obligation arising from a past event, the existence of which will be conﬁ rmed  by occurrence 
or non-occurrence of one or more uncertain future events not within the control of the Bank; or

a  present  obligation  arising  from  a  past  event  which  is  not  recognised  as  it  is  not  probable  that  an 
outﬂ ow of resources will be required to settle the obligation or a reliable estimate of the amount of the 
obligation cannot be made.

When there is a possible obligation or a present obligation in respect of which the likelihood of outﬂ ow of 
resources is remote, no provision or disclosure is made.

Contingent  assets  are  not  recognised  in  the  ﬁ nancial  statements.  However,  contingent  assets  are  assessed 
continually  and  if  it  is  virtually  certain  that  an  inﬂ ow  of  economic  beneﬁ ts  will  arise,  the  asset  and  related 
income are recognised in the period in which the change occurs.

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75

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18  Notes forming part of the ﬁ nancial statements for the year ended 31 March, 2015

(Currency: In Indian Rupees)

1. 

The shareholders of the Bank at the 20th Annual General Meeting held on 27 June, 2014, approved the sub-division 
(split) of one equity share of the Bank from nominal value of `10/- each into ﬁ ve equity shares of nominal value of `2/- 
each. The record date for the sub-division was 30 July, 2014. All shares, stock options and per share information in the 
ﬁ nancial statements reﬂ ect the effect of sub-division (split) retrospectively for the earlier reporting periods.

2. 

Statutory disclosures as per RBI

2.1.1 

‘Provisions and contingencies’ recognised in the Proﬁ t and Loss Account comprise of:

For the year ended
Provision for income tax
-  Current tax
-  Deferred tax (Refer 2.2.10)

Provision for wealth tax
Provision for non-performing assets 
(including bad debts written-off and write-backs)
Provision for restructured assets
Provision towards standard assets
Provision for depreciation in value of investments
Provision for unhedged foreign currency exposure
Provision for country risk
Provision for other contingencies
Total

31 March, 2015

(` in crores)  
31 March, 2014

3,852.37
(153.36)
3,699.01
0.93

1,788.61
(81.88)
290.22
(50.98)
133.66
-
248.05
6,027.62

3,489.74
(358.78)
3,130.96
0.42

1,295.98
194.76
290.23
(100.29)
-
-
426.36
5,238.42

2.1.2  The capital adequacy ratio of the Bank, calculated as per the RBI guidelines (under Basel III) is set out below:

Capital adequacy
Common Equity Tier I 
Tier I
Tier II
Total capital
Total risk weighted assets and contingents
Capital ratios
Common Equity Tier I
Tier I
Tier II
CRAR 
Amount of equity capital raised
Amount of additional Tier I capital raised of which:
Perpetual Non-Cumulative Preference Shares (PNCPS)
Perpetual Debt Instruments (PDI)
Amount of Tier II capital raised of which:
Debt capital instrument (details given below)
Preferential capital instrument

31 March, 2015

(` in crores)
31 March, 2014

41,680.96
41,680.96
10,423.85
52,104.81
3,45,200.44

35,805.48
35,805.48
9,790.55
45,596.03
2,83,807.26

12.07%
12.07%
3.02%
15.09%
-

-
-

850.00
-

12.62%
12.62%
3.45%
16.07%
-

-
-

-
-

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During the year ended 31 March, 2015, the Bank has raised subordinated debt of `850 crores, the details of 
which are set out below:

Date of maturity

12 February, 2025

Period

           Coupon

120 months

8.45%

Amount
`850 crores

The Bank has not raised subordinated debt during the year ended 31 March, 2014.

The Bank has not redeemed subordinated debt during the year ended 31 March, 2015.

During the year ended 31 March, 2014, the Bank redeemed subordinated debt of `278.50 crores, the details 
of which are set out below:

Date of maturity

26 April, 2013 

22 June, 2013

22 June, 2013

28 September, 2013

15 October, 2013

Period

          Coupon

117 months

  87 months

  87 months

87 months

117 months

7.00%

8.50%

8.32%

8.95%

6.50%

Amount
`65.00 crores
`125.00 crores
`5.00 crores
`33.50 crores
`50.00 crores

2.1.3  The Bank has not raised any hybrid capital during the years ended 31 March, 2015 and 31 March, 2014.

2.1.4  The key business ratios and other information is set out below: 

As at 

31 March, 2015 31 March, 2014

Interest income as a percentage to working funds#

Non-interest income as a percentage to working funds# 

Operating proﬁ t as a percentage to working funds#

Return on assets (based on working funds)#

%

8.81

2.08

3.33

1.83

%

8.78

2.12

3.28

1.78

Business (deposits less inter-bank deposits plus advances) per employee**

`13.71 crores    `12.30 crores

Proﬁ t per employee** 

`0.17 crore

   `0.15 crore

Net non-performing assets as a percentage of net customer assets *

0.44

0.40

#  

Working funds represent average of total assets as reported to RBI in Form X under Section 27 of the 
Banking Regulation Act, 1949 during the year

*  

Net Customer assets include advances and credit substitutes

**  

Productivity ratios are based on average employee numbers for the year

2.1.5  The provisioning coverage ratio of the Bank computed in terms of the RBI guidelines as on 31 March, 2015 was 

77.73% (previous year 78.10%). 

2.1.6  Asset Quality

i) 

Net non-performing advances to net advances is set out below:

Net non-performing advances as a percentage of net advances 

31 March, 2015 31 March, 2014

%

0.46

%

0.44

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ii)  

Movement in gross non-performing assets is set out below:

              (` in crores)

31 March, 2015

Advances Investments
144.91

3,001.42

Gross NPAs as at the beginning of the year

Intra Category Transfer

Additions (fresh NPAs) during the year

Sub-total (A)
Less:-

(i)  Upgradations
(ii)  Recoveries (excluding recoveries made 

from upgraded  accounts)

(iii)  Technical/Prudential Write-offs
(iv)   Write-offs other than those under (iii) 

above

Sub-total (B)

0.08

2,747.81

5,749.31

317.16

355.33

832.48

377.43

1,882.40

Gross NPAs as at the end of the year (A-B) 3,866.91

-

106.58

251.49

-

-

-

   8.21

   8.21

243.28

Others*
0.08

(0.08)

Total
3,146.41

-

     -

     -   

2,854.39

6,000.80

-

-

-

317.16

355.33

832.48

     -

     -

385.64

1,890.61

-   

4,110.19

      (` in crores)

Gross NPAs as at the beginning of the year
Intra Category Transfer
Additions (fresh NPAs) during the year 

Sub-total (A)
Less:-

31 March, 2014

Advances Investments
10.29
1.76
159.67

2,371.41
5.11
2,387.44

Others*
11.72
(6.87)
0.52

Total
2,393.42
-
2,547.63

4,763.96

171.72

5.37

4,941.05

(i)  Upgradations 
(ii)  Recoveries (excluding recoveries made 

from upgraded accounts)
(iii)  Technical/Prudential Write-offs
(iv)  Write-offs other than those under (iii) 

above

Sub-total (B)

331.32

534.94
761.55

134.73

1,762.54

-

8.23
-

18.58

26.81

-

331.32

-
5.29

      -

5.29

543.17
766.84

153.31

1,794.64

3,146.41

Gross NPAs as at the end of the year (A-B)
*represents amount outstanding under application money classiﬁ ed as non-performing asset

3,001.42

144.91

0.08

iii)    Movement in net non-performing assets is set out below:

31 March, 2015

Advances Investments

Others 

Total

(` in crores)

Opening balance at the beginning of the year

Additions during the year

Effect of exchange rate ﬂ uctuation

Reductions during the year
Interest Capitalisation – Restructured NPA 
Accounts

Closing balance at the end of the year#

1,015.13

1,012.22

(10.50)

(655.87)

(74.01)

1,286.97

9.49

20.69

(0.44)

(8.21)

8.21

29.74

-

1,024.62

(0.08)

1,032.83

-   

-   

(10.94)

(664.08)

0.08

(65.72)

-   

1,316.71

#net of balance outstanding in interest capitalisation-restructured NPA accounts amounting to `101.22 
crores

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 (` in crores)

31 March, 2014

Advances Investments

Others 

Total

Opening balance at the beginning of the year

704.13

Additions during the year

Effect of exchange rate ﬂ uctuation

Reductions during the year

Interest Capitalisation – Restructured NPA 
Accounts 

1,180.30

(1.61)

(873.75)

6.06

Closing balance at the end of the year#

1,015.13

-

25.88

(0.07)

(8.11)

(8.21)

9.49

-

704.13

0.08

1,206.26

-

-

(1.68)

(881.86)

(0.08)

(2.23)

-

1,024.62

# net of balance outstanding in interest capitalisation-restructured NPA accounts amounting to `35.50 crores

iv)    Movement in provisions for non-performing assets is set out below:

31 March, 2015

Advances Investments

Others 

Total

(` in crores)

Opening balance at the beginning of the year

1,962.15

124.14

Intra-Category Transfer

Provisions made during the year

Effect of exchange rate ﬂ uctuation

Transfer from restructuring provision

-

1,715.68

10.50

19.99

Write-offs/(write-back) of excess provision

(1,226.53)*

-

85.89

0.44

-

-

Closing balance at the end of the year

2,481.79

210.47

* includes provision utilised for sale of NPAs amounting to `20.39 crores

-

-

-   

-

-

-

-

2,086.29

-

1,801.57

10.94

19.99

(1,226.53)

2,692.26

(` in crores)

31 March, 2014

Advances

Investments

Others 

Total

Opening balance at the beginning of the year

1,637.08

Intra-Category Transfer

5.11

7.22

1.32

11.72

(6.43)

Provisions made during the year

1,153.40

134.23

Effect of exchange rate ﬂ uctuation

Transfer from restructuring provision

Write-offs/(write-back) of excess provisions

Closing balance at the end of the year

1.61

53.74

(888.79)*

1,962.15

0.07

-

(18.70)

124.14

* includes provision utilised for sale of NPAs amounting to `1.50 crores

1,656.02

-

1,287.63

1.68

53.74

-

-

-

(5.29)

(912.78)

-

2,086.29

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v)  

Movement in technical/prudential written-off accounts is set out below:

(` in crores)

  31 March, 2015   31 March, 2014

Opening balance at the beginning of the year

Add: Technical/Prudential write-offs during the year

Sub-total (A)

Less: Recovery made from previously technical/prudential written-
off accounts during the year

Less: Sacriﬁ ce  made from previously technical/prudential written-
off accounts during the year

Sub-total (B)

Closing balance at the end of the year (A-B)

1,694.13

832.48

2,526.61

1,143.00

  766.84

1,909.84

(132.83)

(155.85)

(138.21)

(271.04)

2,255.57

(59.86)

(215.71)

1,694.13

vi)  

Total exposure to top four non-performing assets is given below:

Total exposure to top four NPA accounts

vii)  

Sector-wise advances:  

(` in crores)

31 March, 2015 31 March, 2014

931.34

650.77

Sr. 
No. Sector

Outstanding 
Total 
Advances

Outstanding
Total
Advances

Gross
NPAs

31 March, 2015
%
of Gross
NPAs to
Total
Advances
in that 
sector

(` in crores)

Gross 
NPAs

31 March, 2014
%
of Gross
NPAs to
Total
Advances
in that 
sector

Priority Sector
Agriculture and allied 
activities
Advances to industries
sector eligible as priority 
sector lending
-  

Basic Metal & Metal 
Products
Infrastructure

-  
Services
-  

Banking and Finance 
other than NBFCs and 
MFs
Commercial Real Estate 
-  
-  
Trade
Personal loans
- 
Housing
Sub-total (A)

17,878.06

404.61

2.26% 15,326.93

433.95

2.83%

16,726.92

256.30

1.53% 16,751.10

231.68

1.38%

1,380.51

18.74

1.36%

-*

-*

-*

506.78
12,779.07
4,899.58

8.82
78.68
14.59

1.74%
515.66
0.62% 12,367.01
4,560.94
0.30%

13.85
81.81
42.32

114.52
6,505.10
22,896.47
18,531.98
70,280.52

0.43
52.87
108.82
69.17
848.41

61.11
0.38%
0.81%
5,347.13
0.48% 18,862.66
0.37% 15,978.52
1.21% 63,307.70

0.43
22.27
68.66
50.91
816.10

2.69%
0.66%
0.93%

0.70%
0.42%
0.36%
0.32%
1.29%

A
1

2

3

4

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Sr. 
No. Sector

B
1

2

3

4

Non Priority Sector
Agriculture and allied 

activities

Basic Metal & Metal 
Products
Infrastructure

Industry
- 

- 
Services
- 

Banking and Finance 
other than NBFCs and 
MFs
Commercial Real Estate
-  
- 
Trade
Personal loans
- 
Housing
Sub-total (B)
Total (A+B)

Outstanding 
Total 
Advances

Outstanding
Total
Advances

Gross
NPAs

31 March, 2015
%
of Gross
NPAs to
Total
Advances
in that 
sector

Gross 
NPAs

31 March, 2014
%
of Gross
NPAs to
Total
Advances
in that 
sector

22.68

-

-

21.08

-

-

101,326.00 1,696.24
128.15

14,714.28

1.67% 79,476.97
-*
0.87%

971.88
-*

36,449.43
42,988.97
4,934.56

394.70
870.63
-

1.08% 30,703.41
2.03% 36,906.29
4,333.37

-

240.77
873.22
-

11,129.20
8,727.17
69,390.57
36,408.22

65.00
123.36
451.63
137.43
213,728.22 3,018.50
284,008.74 3,866.91

9,860.66
0.58%
1.41%
7,335.84
0.65% 52,786.76
0.38% 29,638.61
1.41% 169,191.11
1.36% 232,498.80

50.00
131.66
340.22
92.07
2,185.32
3,001.42

1.22%
-*

0.78%
2.37%
-

0.51%
1.79%
0.64%
0.31%
1.29%
1.29%

Classiﬁ cation of advances into sector is based on Sector wise Industry Bank Credit return submitted to 
RBI

Figures in italics represent sub-sectors where the outstanding advance exceeds 10% of total outstanding 
advance to that sector.

*does not exceed 10% of total advances to sector as on 31st March 

2.1.7  During the years ended 31 March, 2015 and 31 March, 2014; none of the exposures to Indian corporates at 
overseas branches of the Bank have been classiﬁ ed as NPA by any host banking regulator for reasons other 
than record of recovery.

2.1.8  Movement in ﬂ oating provision is set out below:

For the year ended 

31 March, 2015

31 March, 2014

(` in crores)

Opening balance at the beginning of the year

Provisions made during the year

Draw down made during the year

Closing balance at the end of the year

3.25

-

-

3.25

3.25

-

-

3.25

The Bank has not made any draw down out of the ﬂ oating provision during the current and the previous year. 

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2.1.9  Provision on Standard Assets

Provision  towards  Standard  Assets  [includes  `19.13  crores  (previous 
year `38.14 crores) of standard provision on derivative exposures]

1,595.65

1,297.03

(` in crores)

31 March, 2015

31 March, 2014

2.1.10  Details of Investments are set out below:

i)  

Value of Investments:

1)   Gross value of Investments

a)  

In India

b)   Outside India

2)  

(i)   Provision for Depreciation

a)  

In India

b)   Outside India

(ii)   Provision for Non-Performing Investments

a)  

In India

b)   Outside India

3)   Net value of Investments

      a)  

In India

      b)   Outside India

(` in crores)

31 March, 2015

31 March, 2014

131,153.97

        112,743.29 

1,471.67

            1,052.60 

(126.62)

             (184.94)

54.28

                 61.62 

(197.27)

             (120.97)

(13.20)

                 (3.17)

130,830.08

        112,437.38 

1,512.75

            1,111.05 

ii) 

Movement of provisions held towards depreciation on investments:

Opening balance 

Add: Provisions made during the year

Less: Write-offs/write-back of excess provisions during the year 

Closing balance 

2.1.11  A summary of lending to sensitive sectors is set out below:

As at

A.    Exposure to Real Estate Sector 

1) Direct Exposure

(` in crores)

31 March, 2015

31 March, 2014

123.32

52.21

103.19

72.34

223.61

53.44

153.73

123.32

31 March, 2015

31 March, 2014

(` in crores)

(i)    Residential mortgages

63,757.61

52,684.58

-  of  which  housing  loans  eligible  for  inclusion  in  priority 
sector advances

(ii)  Commercial real estate

19,523.78

20,834.52

16,914.94

18,101.75

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As at

(iii)  Investments in Mortgage Backed Securities (MBS) and other 

securtised exposures - 

        a.  

        b.  

Residential

Commercial real estate

2)

Indirect Exposure

Fund based and non-fund based exposures on National Housing 
Bank (NHB) and Housing Finance Companies (HFCs)

Total Exposure to Real Estate Sector

B.    Exposure to Capital Market

1) Direct investments in equity shares, convertible bonds, convertible 
debentures and units of equity-oriented mutual funds the corpus 
of which is not exclusively invested in corporate debt

2) Advances against shares/bonds/debentures or other securities or 
on  clean  basis  to  individuals  for  investment  in  shares  (including 
IPOs/ESOPs), convertible bonds, convertible debentures, and units 
of equity-oriented mutual funds

3) Advances  for  any  other  purposes  where  shares  or  convertible 
bonds  or  convertible  debentures  or  units  of  equity-oriented 
mutual funds are taken as primary security

4) Advances  for  any  other  purposes  to  the  extent  secured  by  the 
collateral  security  of  shares  or  convertible  bonds  or  convertible 
debentures  or  units  of  equity-oriented  mutual  funds  i.e.  where 
primary  security  other  than  shares/convertible  bonds/convertible 
debentures/units of equity-oriented mutual funds does not fully 
cover the advances

5)

6)

Secured and unsecured advances to stockbrokers and guarantees 
issued on behalf of stockbrokers and market makers

Loans  sanctioned  to  corporates  against  the  security  of  shares/
bonds/debentures or other securities or on clean basis for meeting 
promoter’s  contribution  to  the  equity  of  new  companies  in 
anticipation of raising resources

7)

Bridge loans to companies against expected equity ﬂ ows/issues

8) Underwriting commitments taken up in respect of primary issue 
of shares or convertible bonds or convertible debentures or units 
of equity-oriented mutual funds

9)

Financing to stock brokers for margin trading

10) All  exposures  to  Venture  Capital  Funds  (both  registered  and 

31 March, 2015

31 March, 2014

(` in crores)

-

-

-

-

12,332.48

10,768.87

96,924.61

          81,555.20

904.84

789.15    

3.19

1.53

1,159.56

1,010.47

4,236.16

3,207.00

4,198.67

2,845.30

2.34

3.59

-

-

13.94

0.31

-

-

unregistered) 

Total exposure to Capital Market (Total of 1 to 10)

104.43

10,612.78

105.31

7,973.01

2.1.12  During  the  years  ended  31  March,  2015  and  31  March,  2014  there  are  no  unsecured  advances  for  which 
intangible securities such as charge over the rights, licenses, authority etc. has been taken as collateral by the 
Bank.

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2.1.13  Details of Non-SLR investment portfolio are set out below:

i) 

Issuer composition as at 31 March, 2015 of non-SLR investments*:

No.

Issuer

Total 
Amount

Extent of 
private

placement

Extent of 
“below 
investment 
grade” 
securities

Extent of 
“unrated” 
securities

(` in crores)
Extent of 
“unlisted” 
securities

(1)

(2)

i.
ii.
iii.
iv.
v.
vi.
vii.

viii

Public Sector Units
Financial Institutions
Banks
Private Corporates
Subsidiaries
Others
Provision held towards 
depreciation on 
investments
Provision held towards 
non performing 
investments
Total

(3)
4,911.76
17,516.33
7,031.48
19,460.90
1,169.01
1,290.15

(72.34)

(210.47)
51,096.82

(4)

4,016.26
16,003.26
990.50
16,369.10
1,169.01
306.96

(5)

-
-
-
3,803.95
-
-

(6)

-
-
-
1,169.33
-
-

(7)

40.59
14,794.62
5,452.24
3,744.49
1,169.01
851.82

38,855.09

3,803.95

1,169.33

26,052.77

Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.

Issuer composition as at 31 March, 2014 of non-SLR investments*:  

No.

Issuer

(1)

(2)

i.
ii.
iii.
iv.
v.

vi.
vii.

viii

Public Sector Units
Financial Institutions
Banks
Private Corporates
Subsidiaries/Joint 
Ventures
Others
Provision held towards 
depreciation on 
investments
Provision held towards 
non performing 
investments
Total

Total 
Amount

Extent of 
private

placement

Extent of 
“below 
investment 
grade” 
securities

Extent of 
“unrated” 
securities

(` in crores)
Extent of 
“unlisted” 
securities

(3)

5,552.52
13,557.22
4,785.11
18,901.86

(4)
4,418.59
12,453.61
80.00
16,323.46

(5)

-
-
-
1,525.62

(6)

-
-
-
430.76

(7)

48.41
11,006.97
4,569.50
2,335.50

1,059.26
799.01

1,059.26
302.89

-
-

-
-

1,059.26
736.68

(79.13)

(124.14)
44,451.71

34,637.81

1,525.62

430.76

19,756.32

Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.

*excludes  investments  in  non-SLR  government  securities  amounting  to  `84.51  crores  (previous  year 
`172.09 crores)

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ii) 

Non-performing non SLR investments is set out below:

Opening balance
Transfer from Other Assets
Additions during the year 
Reductions during the year
Closing balance 
Total provisions held

31 March, 2015
144.91
-
106.58
(8.21)
243.28
210.47

(` in crores)
31 March, 2014
10.29
1.76
159.67
(26.81)
 144.91 
124.14

2.1.14  Details of securities sold/purchased (in face value terms) during the years ended 31 March, 2015 and 31 March, 

2014 under repos/reverse repos (excluding LAF transactions):

Year ended 31 March, 2015 

Minimum 
outstanding  
during the year

Maximum 
outstanding 
during the year

Daily Average 
outstanding 
during the year

(` in crores) 
As at 
31 March, 2015

Securities sold under repos
i.  Government Securities 
ii.  Corporate debt Securities  
Securities purchased under reverse repos
i.  Government Securities 
ii.  Corporate debt Securities  

Year ended 31 March, 2014 

Securities sold under repos

i.  Government Securities 

-
-

-
-

4,515.08
143.75

8,362.49
-

175.26
15.90

-
-

1,197.93
-

8,387.80
-

Minimum 
outstanding  
during the year

Maximum 
outstanding 
during the year

Daily Average 
outstanding 
during the year

(` in crores) 
As at 
31 March, 2014

                    -   

 5,123.17 

 196.25                          -   

ii.  Corporate debt Securities  

                    -   

202.21 

47.56                          -   

Securities purchased under reverse repos

i.  Government Securities 

                    -   

5,178.69 

330.24

688.46

ii.  Corporate debt Securities  

                    -   

                       -   

                       -                            -   

2.1.15  Details of ﬁ nancial assets sold to Securtisation/Reconstruction companies for Asset Reconstruction: 

Number of accounts* 

Aggregate value (net of provisions) of accounts sold 

Aggregate consideration 

Additional  consideration  realised  in  respect  of  accounts  transferred  in 
earlier years

Aggregate gain/(loss) over net book value

(` in crores)

31 March, 2015 31 March, 2014

15

18.99

33.11

-

14.12

3

269.78

265.03

-   

(4.75)

* Excludes 5 accounts already written-off from books amounting to `42.00 crores (previous year 12 accounts 
amounting to `32.13 crores)

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Particulars 

Backed by NPAs sold by the 
Bank as underlying

As on 
31 March, 
2015

As on
31 March, 
2014

Backed by NPAs sold by 
other banks/ﬁ nancial 
institutions/non-banking 
ﬁ nancial companies as 
underlying
As on 
31 March, 
2015

As on
31 March, 
2014

(` in crores)

Total

As on 
31 March, 
2015

As on
31 March, 
2014

Book value of 
investments in 
security receipts

248.16

248.16

-

-

248.16

248.16

2.1.16  During the years ended 31 March, 2015 and 31 March, 2014 there were no Non-Performing Financial Assets 
purchased/sold by the Bank from/to other banks/FIs/NBFCs (excluding securitisation/reconstruction companies).

2.1.17  Details of securtisation transactions undertaken by the Bank are as follows:

Sr. 
No.
1

2

3

Particulars

No. of SPVs sponsored by the Bank for securitisation transactions

Total amount of securitised assets as per books of the SPVs 
sponsored by the Bank
Total amount of exposures retained by the Bank to comply with 
MRR as on the date of balance sheet
a) Off-balance sheet exposures

First loss

Others

b) On-balance sheet exposures

First loss

Others

4

Amount of exposures to securitisation transactions other than MRR

a) Off-balance sheet exposures

i)

Exposure to own securitisations

First loss

Loss

ii)

Exposure to third party securitisations

First loss

Others

b) On-balance sheet exposures

i)

Exposure to own securitisations

First loss

Loss

ii)

Exposure to third party securitisations

First loss

Others

(` in crores)
31 March, 2015 31 March, 2014

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

 -

 -

 -

 -

 -

 -

 -

 -

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2.1.18  The information on concentration of deposits is given below:

Total deposits of twenty largest depositors

(` in crores)

31 March, 2015

31 March, 2014

40,662.19

38,298.32

Percentage of deposits of twenty largest depositors to total deposits 

12.61

13.63

2.1.19  The information on concentration of advances* is given below:

Total advances to twenty largest borrowers

(` in crores)

31 March, 2015

31 March, 2014

51,643.70

44,144.64

Percentage of advances to twenty largest borrowers to total advances 
of the Bank 

11.01

11.00

* Advances represent credit exposure (funded and non-funded) including derivative exposure as deﬁ ned by RBI

2.1.20  The information on concentration of exposure* is given below:

(` in crores)

31 March, 2015

31 March, 2014

Total exposure to twenty largest borrowers/customers

67,703.30

55,126.86

Percentage  of  exposures  to  twenty  largest  borrowers/customers  to 
total exposure on borrowers/customers

13.06

12.49

* Exposure includes credit exposure (funded and non-funded), derivative exposure and investment exposure 
(including underwriting and similar commitments)

2.1.21  During the years ended 31 March, 2015 and 31 March, 2014, the Bank’s credit exposure to single borrower 

and group borrowers was within the prudential exposure limits prescribed by RBI.

2.1.22  Details of Risk Category wise Country Exposure:

Risk Category

Exposure (Net) 
as at
31 March, 2015

Provision 
Held as at 
31 March, 2015

Exposure (Net) 
as at
31 March, 2014

Insigniﬁ cant

Low

Moderate

High

Very High

Restricted

Off-Credit

Total

-

17,551.08

2,972.54

2,404.28

1,205.42

-

             - 

24,133.32

-

-

-

-

-

-

             -

-

-

10,981.18

3,401.42

1,763.33

1,122.48

-

             -

17,268.41

(` in crores)

Provision 
Held as at
31 March, 2014

-

-

-

-

-

-

             -

-

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2.1.23  A maturity pattern of certain items of assets and liabilities at 31 March, 2015 and 31 March, 2014 is set out 

below:

Year ended 31 March, 2015 

1 day

2 days 
to 
7 days

8 days 
to 
14 days

15 days 
to 
28 days

29 days 
and upto 
3 months

Over 3 
months 
and upto 
6 months

Over 6 
months 
and upto 
1 year

Over 1 
year 
and upto 
3 years

Over 3 
years 
and upto 
5 years

 (` in crores)

Over 5 
years

Total

Deposits

Advances*

Investments

Borrowings

Foreign 
Currency
Assets

Foreign 
Currency 
Liabilities

3,487.11

13,848.67

6,782.45

8,116.71

25,252.71

23,064.54

40,701.47

56,206.76

16,600.54 128,380.98 322,441.94

3,376.71

1,630.75

2,633.26

4,411.82

16,013.76

12,532.52

19,564.37

58,341.24

32,965.09 129,613.51 281,083.03

14,174.30

1,668.29

1,466.93

1,434.52

12,217.30

9,625.02

17,069.13

19,192.48

10,786.11

44,708.75 132,342.83

95.23

417.38

595.21

1,360.92

4,377.89

8,439.18

20,123.76

20,830.78

6,223.74

17,294.18

79,758.27

2,573.71

3,718.38

1,088.87

3,091.86

5,155.69

4,846.97

6,115.71

17,760.69

8,510.98

28,880.66

81,743.52

121.47

646.06

547.50

1,749.52

7,040.70

8,265.01

13,277.51

34,605.08

4,468.73

9,542.40

80,263.98

Year ended 31 March, 2014 

1 day

2 days 
to 
7 days

8 days 
to 
14 days

15 days 
to 
28 days

29 days 
and upto 
3 months

Over 3 
months 
and upto 
6 months

Over 6 
months 
and upto 
1 year

Over 1 
year 
and upto 
3 years

Over 3 
years 
and upto 
5 years

 (` in crores)

Over 5 
years

Total

Deposits

3,135.21

8,425.45

5,552.27

6,897.19 24,101.11

32,802.80

49,916.39

26,416.62

18,844.33 104,853.19 280,944.56

Advances*

2,645.96

2,188.01

757.19

2,001.85

9,114.02

8,276.42

14,787.17

52,732.45

28,931.58 108,632.11 230,066.76

Investments

Borrowings

Foreign 
Currency
Assets

Foreign 
Currency 
Liabilities

7,700.68

4,875.59

2,746.36

2,664.58

7,482.62

10,064.69

12,817.34

17,872.01

8,914.47 38,410.09 113,548.43

4.17

-

3.00

627.84

5,906.63

4,599.39

6,283.64

16,017.90

8,101.69

8,746.68

50,290.94

3,061.25

5,653.40

204.05

576.70

3,774.27

3,169.66

4,116.25

17,741.80

6,074.12 19,627.33

63,998.83

144.51

1,657.77

303.00

748.47

6,992.40

6,894.70

9,958.86

28,012.90

7,084.74

1,263.15

63,060.50

Classiﬁ cation of assets and liabilities under the different maturity buckets is based on the same estimates and 
assumptions as used by the Bank for compiling the return submitted to the RBI, which has been relied upon by 
the auditors. Maturity proﬁ le of foreign currency assets and liabilities is excluding Off Balance Sheet items.

*  For  the  purpose  of  disclosing  the  maturity  pattern,  loans  and  advances  that  have  been  subject  to  risk 
participation vide Inter-Bank Participation Certiﬁ cates (‘IBPCs’) and Funded Risk Participation (‘FRPs’) have been 
classiﬁ ed  in  the  maturity  bucket  corresponding  to  the  contractual  maturities  of  such  underlying  loans  and 
advances  gross  of  any  risk  participation.  The  IBPC  and  FRP  amounts  have  been  classiﬁ ed  in  the  respective 
maturities of the corresponding underlying loans.

2.1.24  Details of loans subjected to restructuring during the year ended 31 March, 2015 are given below:

Type of Restructuring
Asset Classiﬁ cation

Restructured accounts 
as on April 1 of the FY 
(Opening Balance)

Movement in balance 
for accounts appearing 
under opening balance1

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

Standard

45
4,719.82
470.57
319.47
-
298.03
238.65
(123.67)

88

3

Loss

Doubtful

Under CDR Mechanism
Sub-
Standard
1
8.58
-
0.50
(1)
(5.63)
-
(0.50)

5
145.10 126.13
7.53
-
2
83.23
-
-

-
17.84
(1)
(77.16)
-
(17.48)

(` in crores)

Under SME Debt Restructuring Mechanism

Total

Standard

Sub-
Standard

Doubtful

Loss

Total

54
4,999.63
478.10
337.81
-
298.47
238.65
(141.65)

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
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Type of Restructuring
Asset Classiﬁ cation

Fresh Restructuring 
during the year 2,3,4

Upgradation to 
restructured standard 
category during the FY

Restructured Standard 
Advances which cease 
to attract higher 
provisioning and/or 
additional risk weight at 
the end of FY

Downgradation of 
restructured accounts 
during the FY5

Write-offs of 
restructured accounts 
during the FY6,7,8

Restructured accounts 
as on March 31 of the 
FY (closing ﬁ gures)

Type of Restructuring
Asset Classiﬁ cation

Restructured accounts 
as on April 1 of the FY 
(Opening Balance)

Movement in balance 
for accounts appearing 
under opening balance1

Fresh Restructuring 
during the year2, 3, 4

Upgradation to 
restructured standard 
category during the FY

Restructured Standard 
Advances which cease 
to attract higher 
provisioning and/or 
additional risk weight 
at the end of FY

Downgradation of 
restructured accounts 
during the FY5

Write-offs of 
restructured accounts 
during the FY6,7,8

Restructured accounts 
as on March 31 of the 
FY (closing ﬁ gures)

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility

Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility

Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

Standard

15
881.83
245.65
41.78
-
-
-
-
(4)
(94.58)
(34.97)

(2.20)
(6)
(307.32)
(14.44)
(11.26)
-
(37.47)
(10.75)
50
5,460.31
894.71
224.12

Standard

1,603
2,300.65
403.82
110.86
-
111.91
54.50
(49.53)
100
1,938.79
505.09
52.31
-
-
-
-
(14)
(40.39)
(0.64)

(2.84)
(189)
(391.68)
(1.37)
(3.81)
(166)
(170.35)
(20.77)
1,334
3,748.93
940.63
106.99

Loss

Doubtful

Under CDR Mechanism
Sub-
Standard
1
21.05
0.81
1.22
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
(2.95)
-
1
21.05
0.81
1.22

4
247.08
14.44
11.24
-
(0.50)
-
6

2
60.25
-
-
(2)
(87.74)
(5.94)
7
314.52 181.87
1.59
14.44
-
11.60

Under SME Debt Restructuring Mechanism

Total

Standard

Sub-
Standard

Doubtful

Loss

Total

16
902.88
246.46
43.00
-
-
-
-
(4)
(94.58)
(34.97)

(2.20)
-
0.01
-
(0.02)
(2)
(128.66)
(16.69)
64
5,977.75
911.55
236.94

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-

Others
Doubtful

Loss

Total

Standard

Sub-
Standard
60
5.75
1.29
0.07
(57)
(4.92)
(1.12)
(0.07)
-
-
-
-
-
-
-
-

84
24.19
3.30
0.62
44
(8.04)
(0.27)
(0.62)
-
-
-
-
-
-
-
-

33
61.67
6.02
-
5
12.96
1.96
-
-
-
-
-
-
-
-
-

13
0.51
0.27
-
(5)
(0.83)
(0.22)
11
0.51
0.22
-

120
143.30
0.81
3.81
(60)
(9.37)
(1.62)
188
150.08
2.22
3.81

64
249.43
0.43
-
(22)
(75.62)
(6.01)
80
248.44
2.40
-

Sub-
Standard
61
14.33
1.29
0.57
(58)
(10.55)
(1.12)
(0.57)
1
21.05
0.81
1.22
-
-
-
-

13
0.51
0.27
-
(5)
(3.78)
(0.22)
12
21.56
1.03
1.22

Total
Doubtful

Loss

Total

87
169.29
3.30
18.46
43
(85.20)
(0.27)
(18.10)
-
-
-
-
-
-
-
-

124
390.38
15.25
15.05
(60)
(9.87)
(1.62)
194
464.60
16.66
15.41

38
187.80
13.55
-
7
96.19
1.96
-
-
-
-
-
-
-
-
-

1,834
7,391.89
892.53
449.36
(8)
410.38
293.72
(191.87)
116
2,841.67
751.55
95.31
-
-
-
-
(18)
(134.97)
(35.61)

66
309.68
0.43
-
(24)
(163.36)
(11.95)
87

(5.04)
8
1.57
0.14
(0.02)
(255)
(384.83)
(45.31)
1,677
430.31 10,125.71
1,857.02
347.74

3.99
-

1,780
2,392.26
414.43
111.55
(8)
111.91
55.07
(50.22)
100
1,938.79
505.09
52.31
-
-
-
-
(14)
(40.39)
(0.64)

(2.84)
8
1.56
0.14
-
(253)
(256.17)
(28.62)
1,613
4,147.96
945.47
110.80

1,648
7,020.47
874.39
430.33
-
409.94
293.15
(173.20)
115
2,820.62
750.74
94.09
-
-
-
-
(18)
(134.97)
(35.61)

(5.04)
(195)
(699.00)
(15.81)
(15.07)
(166)
(207.82)
(31.52)
1,384
9,209.24
1,835.34
331.11

Amount outstanding under restructuring facilities and other facilities is as on 31 March, 2015
1Includes accounts closed during the year on account of payment of outstanding facilities by the borrower
2Amount reported here represents outstanding as on 31 March, 2015. Actual amount subjected to restructuring determined as on the date of approval of restructuring proposal 
is `2,721.86 crores for the FY 2014-15
3Includes accounts on account of re-work of restructuring and these accounts are not included in opening balance of standard restructured accounts
4Includes `234.72 crores of fresh/additional sanction to existing restructured accounts (`0.28 crores under restructured facility and `234.44 crores under other facility)
5Includes accounts which were not attracting higher provisioning and/or additional risk weight at the beginning of FY
6Includes accounts partially written-off during the year
7Amount outstanding under restructuring facilities and other facilities is as on the date of write-off in the books
8Includes `248.62 crores of reduction from existing restructured accounts by way of sale/recovery (`216.20 crores from restructured facility a nd `32.42 crores from other facility)
9The  cumulative  value  of  net  restructured  advances  after  reducing  the  provision  held  for  diminution  in  fair  value  and  balance  in  interest  capitalisation  account  upto 
31 March, 2015 aggregated `8,165.59 crores
10Ten borrower accounts with aggregate outstanding under restructured facility of `153.46 crores, outstanding under other facility of `4.04 crores and provision of `8.59 crores 
at 31 March, 2014 were reported under ‘SME Debt Restructuring’ mechanism in FY 2014. Subsequently these accounts have been reclassiﬁ ed under ‘Others’ as at 1 April 2014. 
Previous year numbers have accordingly been reclassiﬁ ed to make them comparable.
11Information appearing under substandard, doubtful and loss category also include accounts slipped into NPAs from restructured standard advances along with restructured NPAs

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Details of loans subjected to restructuring during the year ended 31 March, 2014 are given below:

Type of Restructuring
Asset Classiﬁ cation

Restructured accounts as on 
April 1 of the FY (Opening 
Balance)

Movement in balance for 
accounts appearing under 
opening balance1

Fresh Restructuring during 
the year 2,3,4

Upgradation to restructured 
standard category during 
the FY

Restructured Standard 
Advances which cease to 
attract higher provisioning 
and/or additional risk weight 
at the end of FY
Downgradation of 
restructured accounts during 
the FY5

Write-offs of restructured 
accounts during the FY6,7,8

Restructured accounts as on 
March 31 of the FY (closing 
ﬁ gures)

Type of Restructuring
Asset Classiﬁ cation

Restructured accounts as on 
April 1 of the FY (Opening 
Balance)

Movement in balance for 
accounts appearing under 
opening balance1

Fresh Restructuring during 
the year2, 3,4

Upgradation to restructured 
standard category during 
the FY

Restructured Standard 
Advances which cease to 
attract higher provisioning 
and/or additional risk weight 
at the end of FY
Downgradation of 
restructured accounts during 
the FY5

Write-offs of restructured 
accounts during the FY6,7,8

Restructured accounts as on 
March 31 of the FY (closing 
ﬁ gures)

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
No. of borrowers
Amount Outstanding – Restructured  facility
Amount Outstanding – Other facility
Provision thereon

Standard

30
2,237.42
47.35
186.73
(4)
(177.83)
87.72
(75.39)
24
2,946.29
359.13
224.38
-
-
-
-
-
-
-
-

(5)
(223.63)
(6.72)
(16.25)
-
      (62.43)
      (16.91)
45
4,719.82
470.57
319.47

Standard

1,318
1,760.49
80.99
61.64
(117)
40.46
31.60
(22.89)
474
1,007.55
307.39
72.80
-
-
-
-
(16)
(2.29)
(0.37)
-

(56)
(35.14)
(7.96)
(0.69)
-
(470.42)
(7.83)
1,603
2,300.65
403.82
110.86

Under CDR Mechanism
Doubtful

Loss

Sub-
Standard

         (` in crores)

Under SME Debt Restructuring Mechanism

Total

Standard

Sub-
Standard

Doubtful

Loss

Total

3
85.82
22.24
10.65
(1)
(7.19)
(20.38)
(10.65)
-
-
-
-
-
-
-
-

2
71.22
-
3.12
-
0.24
-
(1.03)
-
-
-
-
-
-
-
-

2
100.78
0.78
0.50
(3)
      (170.83)
          (2.64)
1
8.58
-
0.50

Sub-
Standard
93
14.22
2.93
0.09
(91)
(13.62)
(2.42)
(0.09)
-
-
-
-
-
-
-
-

63
5.75
1.30
0.07
(5)
(0.60)
(0.52)
60
5.75
1.29
0.07

1
78.87
-
15.75
-
        (5.23)
               -
3
145.10
-
17.84

Others
Doubtful

18
26.04
0.51
0.10
66
(13.97)
1.45
(0.10)
-
-
-
-
-
-
-
-

2
12.99
1.53
0.62
(2)
(0.87)
(0.19)
84
24.19
3.30
0.62

4
90.41
2.34
-
1
18.81
1.59
-
-
-
-
-
-
-
-
-

39
2,484.87
71.93
200.50
(4)
(165.97)
68.93
(87.07)
24
2,946.29
359.13
224.38
-
-
-
-
-
-
-
-

2
43.98
5.94
-
(2)
     (27.07)
       (2.34)
5
126.13
7.53
-

-
-
-
-
(5)
   (265.56)
(21.89)
54
4,999.63
478.10
337.81

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-

-
-
-
-
-
-
-
-
-
-
-

Loss

Total

Standard

23
43.17
3.92
-
13
22.71
0.62
-
-
-
-
-
-
-
-
-

4
17.38
5.19
-
(7)
(21.59)
(3.71)
33
61.67
6.02
-

1,452
1,843.92
88.35
61.83
(129)
35.58
31.25
(23.08)
474
1,007.55
307.39
72.80
-
-
-
-
(16)
(2.29)
(0.37)
-

13
0.98
0.06
-
(14)
(493.48)
(12.25)
1,780
2,392.26
414.43
111.55

1,348
3,997.91
128.34
248.37
(121)
(137.37)
119.32
(98.28)
498
3,953.84
666.52
297.18
-
-
-
-
(16)
(2.29)
(0.37)
-

(61)
(258.77)
(14.68)
(16.94)
-
(532.85)
(24.74)
1,648
7,020.47
874.39
430.33

Sub-
Standard
96
100.04
25.17
10.74
(92)
(20.81)
(22.80)
(10.74)
-
-
-
-
-
-
-
-

65
106.53
2.08
0.57
(8)
(171.43)
(3.16)
61
14.33
1.29
0.57

Total
Doubtful

20
97.26
0.51
3.22
66
(13.73)
1.45
(1.13)
-
-
-
-
-
-
-
-

3
91.86
1.53
16.37
(2)
(6.10)
(0.19)
87
169.29
3.30
18.46

Loss

Total

27

1,491
133.58 4,328.79
160.28
6.26
262.33
-
(133)
14
(130.39)
41.52
100.18
2.21
(110.15)
-
-
498
- 3,953.84
666.52
-
297.18
-
-
-
-
-
-
-
-
-
(16)
(2.29)
(0.37)
-

6
61.36
11.13
-
(9)
(48.66)
(6.05)
38

13
0.98
0.06
-
(19)
(759.04)
(34.14)
1,834
187.80 7,391.89
892.53
13.55
449.36
-

Amount outstanding under restructuring facilities and other facilities is as on 31 March, 2014
1Includes accounts closed during the year on account of payment of outstanding facilities by the borrower
2Amount reported here represents outstanding as on 31 March 2014. Actual amount subjected to restructuring determined as on the date of approval of restructuring proposal 
is `3,456.95 crores for the FY 2013-14

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3Includes `87.63 crores of fresh/additional sanction to existing restructured accounts (`79.53 crores under restructured facility and `8.10 crores under other facility)
4Includes accounts on account of re-work of restructuring and these accounts are not included in opening balance of standard restructured accounts
5Includes accounts which were not attracting higher provisioning and/or additional risk weight at the beginning of FY
6Includes accounts partially written-off during the year
7Amount outstanding under restructuring facilities and other facilities is as on the date of write-off in the books
8Includes `565.36 crores of reduction from existing restructured accounts by way of sale/recovery (`539.93 crores from restructured facility and `25.43 crores from other facility)
9The  cumulative  value  of  net  restructured  advances  after  reducing  the  provision  held  for  diminution  in  fair  value  and  balance  in  interest  capitalisation  account  upto 
31 March, 2014 aggregated `6,079.12 crores
10Information appearing under substandard, doubtful and loss category also include accounts slipped into NPAs from restructured standard advances along with restructured NPAs

2.1.25  Disclosure in respect of Interest Rate Swaps (IRS), Forward Rate Agreement (FRA) and Cross Currency Swaps 

(CCS) outstanding is set out below:

Sr. 
No.

i)
ii)

Items

Notional principal of swap agreements
Losses which would be incurred if counterparties failed to fulﬁ ll 
their obligations under the agreements

iii) Collateral required by the Bank upon entering into swaps
iv) Concentration of credit risk arising from the swaps

Maximum single industry exposure with Banks (previous year with 
Banks)
- Interest Rate Swaps/FRAs
- Cross Currency Swaps
Fair value of the swap book (hedging & trading)
- Interest Rate Swaps/FRAs
- Currency Swaps

v)

The nature and terms of the IRS as on 31 March, 2015 are set out below:

As at

(` in crores)
As at

31 March, 2015
162,401.82

31 March, 2014
229,690.75

2,321.49
570.34

3,206.47
387.66

2,252.75
1,584.71

66.22
688.56

3,115.12
1,132.13

(106.35)
820.12

             (` in crores)

Nature

Hedging

Hedging

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Nos.

Notional Principal Benchmark

Terms

60

1

1

40

264

363

378

54

306

388

295

18

3

1

1

3

12,906.25 LIBOR

Fixed Receivable v/s Floating Payable

625.00 LIBOR

Floating Receivable v/s Fixed Payable

60.00 OTHER

Fixed Payable v/s Fixed Receivable

1,436.00 INBMK

Fixed Receivable v/s Floating Payable

22,404.97 LIBOR

Fixed Receivable v/s Floating Payable

22,360.53 MIBOR

Fixed Receivable v/s Floating Payable

17,060.00 MIFOR

Fixed Receivable v/s Floating Payable

3,234.00 INBMK

Floating Receivable v/s Fixed Payable

23,782.43 LIBOR

Floating Receivable v/s Fixed Payable

22,142.36 MIBOR

Floating Receivable v/s Fixed Payable

15,769.00 MIFOR

Floating Receivable v/s Fixed Payable

1,862.50 LIBOR

Floating Receivable v/s Floating Payable

93.75 LIBOR

Pay Cap

352.80 LIBOR

352.80 LIBOR

Pay Cap/Receive Floor

Pay Floor/Receive Cap

93.75 LIBOR

Receive Cap

2,176

144,536.14

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The nature and terms of the IRS as on 31 March, 2014 are set out below:

Nature

Hedging

Hedging

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Trading

Nos. Notional Principal Benchmark

Terms

             (` in crores)

16

5

1

44

182

711

287

61

263

785

144

20

3

1

1

3

4,589.49 LIBOR

3,091.61 LIBOR

Fixed receivable v/s ﬂ oating payable

Floating receivable v/s ﬁ xed payable

105.00 OTHERS

Fixed payable v/s ﬁ xed receivable

1,547.00 INBMK

Fixed receivable v/s ﬂ oating payable

13,814.39 LIBOR

Fixed receivable v/s ﬂ oating payable

70,543.16 MIBOR

Fixed receivable v/s ﬂ oating payable

11,677.00 MIFOR

Fixed receivable v/s ﬂ oating payable

3,681.00 INBMK

Floating receivable v/s ﬁ xed payable

17,873.76 LIBOR

Floating receivable v/s ﬁ xed payable

76,191.19 MIBOR

Floating receivable v/s ﬁ xed payable

6,584.00 MIFOR

Floating receivable v/s ﬁ xed payable

1,851.37 LIBOR

Floating receivable v/s ﬂ oating payable

93.25 LIBOR

416.25 LIBOR

416.25 LIBOR

93.25 LIBOR

Pay cap

Pay cap/receive ﬂ oor

Pay ﬂ oor/receive cap

Receive cap

2,527

212,567.97

The nature and terms of the FRA as on 31 March, 2015 are set out below:

Nature

Hedging

Nos. Notional Principal Benchmark

Terms

1

         1

750.00 LIBOR

Fixed receivable v/s ﬂ oating payable

  750.00

There were no FRA’s outstanding as on 31 March, 2014.

The nature and terms of the CCS as on 31 March, 2015 are set out below:

             (` in crores)

Nature

Hedging

Hedging

Trading

Trading

Trading

Trading

Trading

Trading

Nos. Notional Principal Benchmark

Terms

1

1

56

44

69

5

18

32

91.29 Principal & Coupon Swap Fixed Payable v/s Fixed Receivable

312.50 LIBOR

Fixed Receivable v/s Floating Payable

3,415.59 Principal & Coupon Swap Fixed Payable v/s Fixed Receivable

3,154.15 LIBOR

5,286.20 LIBOR

Fixed Receivable v/s Floating Payable

Floating Receivable v/s Fixed Payable

1,097.25 LIBOR/MIFOR

Floating Receivable v/s Floating Payable

1,327.53 Principal Only

Fixed Receivable

2,431.16 Principal Only

Fixed Payable

226

17,115.67

Agreements with Banks/Financial Institutions and corporates are under approved credit lines.

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The nature and terms of the CCS as on 31 March, 2014 are set out below:

             (` in crores)

Nature
Hedging
Hedging
Hedging
Trading
Trading
Trading
Trading
Trading
Trading

Nos. Notional Principal Benchmark

Terms

1
1
1
50
53
63
5
12
30
 216

95.77 Principal & Coupon Swap Fixed payable v/s ﬁ xed receivable

299.58 LIBOR
248.05 LIBOR

Fixed receivable v/s ﬂ oating payable
Floating receivable v/s ﬁ xed payable

3,552.62 Principal & Coupon Swap Fixed payable v/s ﬁ xed receivable
3,801.80 LIBOR
5,499.02 LIBOR
1,079.70 LIBOR/MIFOR
557.33 Principal Only
1,988.90 Principal Only

Fixed receivable v/s ﬂ oating payable
Floating receivable v/s ﬁ xed payable
Floating receivable v/s ﬂ oating payable
Fixed receivable
Fixed payable

17,122.77

Agreements with Banks/Financial Institutions and corporates are under approved credit lines.

Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March, 2015 are set out below:

Sr. No.

Particulars

i)

ii)

iii)

iv)

Notional principal amount of exchange traded interest rate derivatives 
undertaken during the year
840GS2024
883GS2023

Notional principal amount of exchange traded interest rate derivatives 
outstanding as on 31 March, 2015
840GS2024

Notional principal amount of exchange traded interest rate derivatives 
outstanding as on 31 March, 2015 and “not highly effective”
Mark-to-market value of exchange traded interest rate derivatives 
outstanding as on 31 March, 2015 and “not highly effective”

             (` in crores)
As at
31 March, 2015

20,320.36
13,211.52
33,531.88

1,773.14
1,773.14
N.A.

N.A.

Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March, 2014 are set out below:

Sr. No.

Particulars

i)

ii)

iii)

iv)

Notional principal amount of exchange traded interest rate derivatives 
undertaken during the year
883GS2023

Notional principal amount of exchange traded interest rate derivatives 
outstanding as on 31 March, 2014
883GS2023

Notional principal amount of exchange traded interest rate derivatives 
outstanding as on 31 March, 2014 and “not highly effective”
Mark-to-market value of exchange traded interest rate derivatives 
outstanding as on 31 March, 2014 and “not highly effective”

             (` in crores)
As at
31 March, 2014

5,776.30
 5,776.30

  257.90
257.90
N.A.

N.A.

The Bank has not undertaken any transactions in Credit Default Swaps (CDS) during the year ended 31 March, 
2015 and 31 March, 2014.

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2.1.26  Disclosure on risk exposure in Derivatives

Qualitative disclosures:

(a)  

Structure and organisation for management of risk in derivatives trading, the scope and nature 
of risk measurement, risk reporting and risk monitoring systems, policies for hedging and/or 
mitigating risk and strategies and processes for monitoring the continuing effectiveness of 
hedges/mitigants:

Derivatives are ﬁ nancial instruments whose characteristics are derived from an underlying asset, or from 
interest and exchange rates or indices. The Bank undertakes over the counter and Exchange Traded 
derivative transactions for Balance Sheet management and also for proprietary trading/market making 
whereby the Bank offers derivative products to the customers to enable them to hedge their interest 
rate and currency risks within the prevalent regulatory guidelines.

Proprietary trading includes Interest Rate Futures, Currency Futures and Rupee Interest Rate Swaps under 
different benchmarks (viz. MIBOR, MIFOR and INBMK), and Currency Options for USD/INR pair (both 
OTC and exchange traded). The Bank also undertakes transactions in Cross Currency Swaps, Principal 
Only Swaps, Coupon Only Swaps and Long Term Forex Contracts (LTFX) for hedging its Balance Sheet 
and also offers them to its customers. These transactions expose the Bank to various risks, primarily 
credit, market, legal, reputation and operational risk. The Bank has adopted the following mechanism 
for managing risks arising out of the derivative transactions.

There is a functional separation between the Treasury Front Ofﬁ ce, Risk and Treasury Back Ofﬁ ce to 
undertake derivative transactions. The derivative transactions are originated by Treasury Front Ofﬁ ce, 
which  ensures  compliance  with  the  trade  origination  requirements  as  per  the  Bank’s  policy  and  the 
RBI  guidelines.  The  Market  Risk  Group  within  the  Bank’s  Risk  Department  independently  identiﬁ es 
measures and monitors the market risks associated with derivative transactions and apprises the Asset 
Liability Management Committee (ALCO) and the Risk Management Committee of the Board (RMC) 
on  the  compliance  with  the  risk  limits.  The  Treasury  Back  Ofﬁ ce  undertakes  activities  such  as  trade 
conﬁ rmation, settlement, ISDA documentation, accounting and other MIS reporting.

The  derivative  transactions  are  governed  by  the  derivative  policy,  market  risk  management  policy, 
hedging policy and the suitability and appropriateness policy of the Bank as well as by the extant RBI 
guidelines. The Bank has also put in place a detailed process ﬂ ow for customer derivative transactions 
for effective management of operational risk/reputation risk.

Various risk limits are set up and actual exposures are monitored vis-à-vis the limits allocated. These 
limits are set up taking into account market volatility, risk appetite, business strategy and management 
experience. Risk limits are in place for risk parameters viz. PV01, VaR, Stop Loss, Delta, Gamma and 
Vega.  Actual  positions  are  monitored  against  these  limits  on  a  daily  basis  and  breaches,  if  any,  are 
reported promptly. Risk assessment of the portfolio is undertaken periodically. The Bank ensures that 
the  Gross  PV01  (Price  value  of  a  basis  point)  position  arising  out  of  all  non-option  rupee  derivative 
contracts are within 0.25% of net worth of the Bank as on Balance Sheet date.

Hedging transactions are undertaken by the Bank to protect the variability in the fair value or the cash 
ﬂ ow of the underlying Balance Sheet item. These deals are accounted on an accrual basis except the 
swap designated with an asset/liability that is carried at market value or lower of cost or market value. 
In that case, the swap is marked to market with the resulting gain or loss recorded as an adjustment to 
the market value of designated asset or liability. These transactions are tested for hedge effectiveness 
and in case any transaction fails the test, the same is re-designated as a trading deal with the approval 
of the competent authority and appropriate accounting treatment is followed.

(b) 

Accounting policy for recording hedge and non-hedge transactions, recognition of income, 
premiums and discounts, valuation of outstanding contracts

The Hedging Policy approved by the RMC governs the use of derivatives for hedging purpose. Subject 
to the prevailing RBI guidelines, the Bank deals in derivatives for hedging ﬁ xed rate and ﬂ oating rate 
coupon or foreign currency assets/liabilities. Transactions for hedging and market making purposes are 
recorded separately. For hedge transactions, the Bank identiﬁ es the hedged item (asset or liability) at 
the inception of the transaction itself. The effectiveness is ascertained at the time of inception of the 
hedge and periodically thereafter. Hedge derivative transactions are accounted for in accordance with 
the  hedge  accounting  principles.  Derivatives  for  market  making  purpose  are  marked  to  market  and 

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the resulting gain/loss is recorded in the Proﬁ t and Loss Account. The premium on option contracts is 
accounted for as per FEDAI guidelines. Derivative transactions are covered under International Swaps 
and  Derivatives  Association  (ISDA)  master  agreements  with  respective  counterparties.  The  exposure 
on account of derivative transactions is computed as per the RBI guidelines and is marked against the 
credit limits approved for the respective counterparties.

(c) 

Provisioning, collateral and credit risk mitigation

Derivative transactions comprise of swaps and options which are disclosed as contingent liabilities. The 
swaps are categorised as trading or hedging and all the options are categorised as the trading book.  
Trading swaps/options are revalued at the Balance Sheet date with the resulting unrealised gain or loss 
being recognised in the Proﬁ t and Loss Account and correspondingly in other assets or other liabilities 
respectively. Hedged swaps are accounted for as per the RBI guidelines. Pursuant to the RBI guidelines, 
any receivables (crystallised receivables and positive MTM) under derivatives contracts, which remain 
overdue for more than 90 days, are reversed through the Proﬁ t and Loss Account and are held in a 
separate Suspense account.

Collateral requirements for derivative transactions are laid down as part of credit sanction terms on 
a  case  by  case  basis.  Such  collateral  requirements  are  determined,  based  on  usual  credit  appraisal 
process. The Bank retains the right to terminate transactions as a risk mitigation measure in certain 
cases.

The credit risk in respect of customer derivative transactions is sought to be mitigated through a laid 
down policy on sanction of Loan Equivalent Risk (LER) limits, monitoring mechanism for LER limits and 
trigger events for escalation/margin calls/termination.

Quantitative disclosure on risk exposure in derivatives*:

As at 31 March, 2015

Currency Derivatives

(` in crores)

Interest rate 
Derivatives

Sr. 
No.
1

2

3
4

5

Particulars

Forward 
Contracts^

CCS

Options

Derivatives (Notional Principal Amount)
a)   For hedging
b)   For trading
Marked to Market Positions#
a)   Asset (+)
b)   Liability (-)
Credit Exposure@
impact  of  one  percentage 
Likely 
change 
interest  rate  (100*PV01) 
in 
(as at 31 March, 2015)
a)   on hedging derivatives
b)   on trading derivatives
Maximum  and  Minimum  of  100*PV01 
observed during the year
a)   on hedging

I)   Minimum
II)   Maximum

b)   on Trading

I)   Minimum
II)   Maximum

30,669.21
249,426.49

403.79
16,711.88

-
23,843.86

14,281.25
131,004.89

107.93
-
10,764.04

722.55
-
3,001.53

34.76
-
543.13

-
(52.62)
2,684.50

122.66
48.56

4.60
169.65

-
0.93

279.25
250.04

21.13
226.22

27.20
84.52

4.56
6.74

161.37
197.18

-
-

0.24
10.13

18.11
279.25

213.58
386.32

 #   Only on trading derivatives and represents net position
@  
Includes accrued interest
^   Excluding Tom/Spot contracts

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Sr. 
No.
1

2

3
4

5

Particulars

Derivatives (Notional Principal Amount)
a)   For hedging
b)   For trading
Marked to Market Positions#
a)   Asset (+)
b)   Liability (-)
Credit Exposure@
Likely  impact  of  one  percentage  change  in 
interest rate (100*PV01) (as at 31 March, 2014)
a) on hedging derivatives
b) on trading derivatives
Maximum  and  Minimum  of  100*PV01 
observed during the year
a)  on hedging

I)   Minimum
II)  Maximum

b)   on Trading

I)   Minimum
II)   Maximum

As at 31 March, 2014

Currency Derivatives

Forward 
Contracts^

CCS Options

18,197.07

-
213,077.13 16,479.37 20,268.80

643.40

(` in crores)

Interest rate 
Derivatives

7,681.10
204,886.87

432.03
-
7,580.14

839.12
-
3,267.62

-
(35.33)
385.76

-
(175.88)
3,651.88

253.29
25.76

5.99
191.02

-
4.54

30.26
393.23

24.59
291.02

5.52
11.45

-
-

1.91
33.94

7.43
220.20

0.02
8.21

1.61
261.47

210.88
650.88

 #   Only on trading derivatives and represents net position
@  
Includes accrued interest
^   Excluding Tom/Spot contracts

* only Over The Counter derivatives included

Pursuant to RBI guidelines, the Bank has started dealing in Exchange Traded Currency Options. The outstanding 
notional  principal  amount  of  these  derivatives  as  at  31  March,  2015  was  Nil  (previous  year  Nil)  and  the 
mark-to-market value was Nil (previous year Nil).

2.1.27  Details of penalty/strictures levied by RBI during the year ended 31 March, 2015 is as under:

Sr. 
No.

1.

Amount    
(` in crores)

0.15

2.

-

Reason for levy of penalty/stricture by RBI

Non-compliance of RBI guidelines on lending under consortium/
multiple banking arrangements. Penalty was imposed in terms of 
Section 47A (1) of the Banking Regulation Act, 1949

Warning issued by RBI on 17 December, 2014 for non-adherence 
to  certain  aspects  of  Know  Your  Customer  (KYC)  norms  and 
instructions on monitoring of transactions in customer accounts

Date of payment 
of penalty

4 August, 2014

-

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Details of penalty levied by RBI during the year ended 31 March, 2014 is as under:

Sr. No.

1.

Amount    
(` in crores)
5.001

Date of payment 
of penalty

12 June, 2013

 Reason for levy of penalty by RBI

Non-compliance  of  instructions  with  respect  to  direction  on 
Know  Your  Customer  (KYC)  norms/Anti  Money  Laundering 
(AML) standards/Combating of Financial Terrorism/Obligation of 
banks under the Prevention of Money Laundering Act, 2002 and 
under Foreign Exchange Management Act, 1999 (FEMA). Penalty 
was imposed in terms of Section 47A 1(c) read with Section 46 
(4) (i) of the Banking Regulation Act, 1949 and sub-section (3) of 
Section 11 of FEMA

2.

0.05

Non-compliance with instructions on issuance and operations of 
Pre-Paid Instruments (PPIs)

20 August, 2013

2.1.28  Disclosure of Customer Complaints

a.

b.

c.

d.

No. of complaints pending at the beginning of the year

No. of complaints received during the year

No. of complaints redressed during the year

No. of complaints pending at the end of the year

31 March, 2015

31 March, 2014

7,697

231,466

229,650

9,513

5,564

261,894

259,761

7,697

The above information does not include complaints redressed within 1 working day and is as certiﬁ ed by the 
Management and relied upon by the auditors.

2.1.29  Disclosure of Awards passed by the Banking Ombudsman

31 March, 2015

31 March, 2014

a.

b.

c.

d.

No. of unimplemented awards at the beginning of the year

No. of awards passed by the Banking Ombudsman during the year

No. of awards implemented during the year

No. of unimplemented awards at the end of the year

2

-

1

-*

*During the year, 1 ﬁ nancial award carried forward from previous year got cancelled

The above information is as certiﬁ ed by the Management and relied upon by the auditors.

3

4

5

2

2.1.30  Draw Down from Reserves

The Bank has not undertaken any drawdown from reserves during the year.

2.1.31  Letter of Comfort

The Bank has not issued any Letter of Comfort (LoC) on behalf of its subsidiaries.

2.1.32   Disclosure on Remuneration

Qualitative disclosures

a) 

Information relating to the composition and mandate of the Remuneration Committee

The  Nomination  and  Remuneration  Committee  of  the  Board  oversees  the  framing,  review  and 
implementation of the compensation policy of the Bank on behalf of the Board. The Committee works 
in close coordination with the Risk Management Committee of the Bank, in order to achieve effective 
alignment between remuneration and risks.

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During the year, the Nomination Committee and the HR and Remuneration Committee of the Board 
were merged to form the Nomination and Remuneration Committee.

As on 31 March, 2015, the Nomination and Remuneration Committee comprises of the following Non-
Executive Directors:

1. 

2. 

3. 

4. 

Shri Prasad R. Menon - Chairman

Shri K. N. Prithviraj

Shri V. R. Kaundinya

Prof. Samir K. Barua

In respect of Remuneration/HR matters, the Nomination and Remuneration Committee of the Board, 
functions with the following main objectives -

a. 

b. 

c. 

d. 

e. 

Review and recommend to the Board for approval, the overall remuneration framework and 
associated policy of the Bank (including remuneration policy for Directors and key managerial 
personnel) including the level and structure of ﬁ xed pay, variable pay, perquisites, bonus pool, 
stock-based compensation and any other form of compensation as may be included from time 
to time to all the employees of the Bank including the Managing Director & CEO (MD & CEO), 
other Whole-Time Directors (WTD) and senior managers one level below the Board.

Review and recommend to the Board for approval, the total increase in manpower cost budget 
of the Bank as a whole, at an aggregate level, for the next year.

Recommend to the Board the compensation payable to the Chairman of the Bank.

Review the Code of Conduct and HR strategy, policy and performance appraisal process within 
the Bank, as well as any fundamental changes in organization structure which could have wide 
ranging or high risk implications.

Review  and  recommend  to  the  Board  for  approval,  the  talent  management  and  succession 
policy and process in the Bank for ensuring business continuity, especially at the level of MD & 
CEO, the other WTDs, senior managers one level below the Board and other key roles and their 
progression to the Board.

f. 

Review and recommend to the Board for approval:

(cid:2) 

(cid:2) 

the creation of new positions one level below MD & CEO

appointments, promotions and exits of senior managers one level below the MD & CEO

g. 

h. 

i. 

j. 

Set the goals, objectives and performance benchmarks for the Bank and for MD & CEO, the 
other WTDs for the ﬁ nancial year and over the medium to long term.

Review the performance of the MD & CEO and other WTDs at the end of each year.

Review organization health through feedback from employee surveys conducted on a regular 
basis.

Perform  such  other  duties  as  may  be  required  to  be  done  under  any  law,  statute,  rules, 
regulations  etc.  enacted  by  Government  of  India,  Reserve  Bank  of  India  or  by  any  other 
regulatory or statutory body.

b)  

Information  relating  to  the  design  and  structure  of  remuneration  processes  and  the  key 
features and objectives of remuneration policy

Objectives of the Remuneration Policy

The compensation philosophy of the Bank aims to attract, retain and motivate professionals in order 
to enable the Bank to attain its strategic objectives and develop a strong performance culture in the 
competitive environment in which it operates. To achieve this, the following principles are adopted:

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- 

- 

- 

- 

- 

- 

Competitiveness in talent market

Pay for job through ﬁ xed pay

Pay for performance to drive meritocracy through variable pay

Employee Stock Options for long-term value creation

Beneﬁ ts and  perquisites are offered to employees to remain aligned with market practices and 
provide ﬂ exibility

Affordability: Pay to reﬂ ect productivity improvements to retain cost-income competitiveness

Apart from the above, the compensation structure for MD & CEO and WTDs is aligned to RBI’s guidelines 
for sound compensation practices (effective FY 2012-13) and addresses the general principles of:

- 

- 

- 

Effective and independent governance and monitoring of compensation.

Alignment  of  compensation  with  prudent  risk-taking  through  well  designed  and  consistent 
compensation structures.

Clear and timely disclosure to facilitate supervisory oversight by all stakeholders.

Accordingly, the Compensation Policy for MD & CEO and WTDs seeks to:

a) 

b) 

c) 

d) 

Ensure that the compensation, in terms of structure and total amount, is in line with the best 
practices, as well as competitive vis-à-vis that of peer banks.

Establish the linkage of compensation with individual performance as well as achievement of 
the corporate objectives of the Bank.

Include  a  signiﬁ cant  variable  pay  component  tied  to  the  achievement  of  pre-established 
objectives in line with Bank’s scorecard while ensuring that the compensation is aligned with 
prudent risk taking.

Encourage  attainment  of  long  term  shareholder  returns  through  inclusion  of  equity  linked 
long-term incentives as part of compensation.

Design & Structure of Remuneration process

Compensation is structured in terms of ﬁ xed pay, variable pay and employee stock options (for selective 
employees), with the last two being highly contingent on employee performance. The compensation 
policy of the Bank is approved by the Nomination and Remuneration Committee. Additional approval 
from Shareholders and RBI is obtained speciﬁ cally for compensation of MD & CEO and WTDs.

c)   

Description  of  the  ways  in  which  current  and  future  risks  are  taken  into  account  in  the 
remuneration process

Employees are categorized into following three categories for the purpose of remuneration

Category 1

MD & CEO and WTDs.

Category 2

All the employees in the Grade of Vice President and above engaged in the functions of Risk Control 
and Compliance.

Category 3

Other Staff

‘Other staff’ has been deﬁ ned as a “group of employees who pose a material risk”. This category will 
include all the employees of the Bank in the grade of Executive Vice President (EVP) and above and also 
few other key business roles in case they are below the grade of Executive Vice President.

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Performance Parameters aligned to relevant risk measures

The following relevant risk measures are included in the scorecards of MD & CEO and WTDs

• 

• 

• 

NPA - net slippages

Ratio of Risk Weighted Assets to Total Assets

Liquidity Coverage Ratio

Inclusion of the above measures ensure that performance parameters are aligned to risk measures at 
the time of performance evaluation.

d)  

Description of the ways in which the Bank seeks to link performance during a performance 
measurement period with levels of remuneration

The Bank’s performance management and compensation philosophies are structured to support the 
achievement of the Bank’s on-going business objectives by rewarding achievement of objectives linked 
directly  to  its  strategic  business  priorities.  These  strategic  priorities  are  cascaded  through  annualised 
objectives to the employees.

The Bank follows the balanced scorecard approach in designing its performance management system. 
Adequate attention is given to robust goal setting process to ensure alignment of individual objectives to 
support the achievement of business strategy, ﬁ nancial and non-ﬁ nancial goals across and through the 
organization. The non-ﬁ nancial goals for employees includes customer service, process improvement, 
adherence to risk and compliance norms, self-capability development and behaviours such as integrity 
and team management.

Appraisals are conducted annually and initiated by the self-appraisal of an employee. The immediate 
supervisor reviews the appraisal ratings in a joint consultation meeting with the employee and assigns 
the performance rating. The ﬁ nal rating is discussed by a Moderation Committee comprising of senior 
ofﬁ cials of the Bank. Both relative and absolute individual performance is considered in the moderation 
process.  Individual  ﬁ xed  pay  increases,  variable  pay  and  ESOPs  are  linked  to  the  ﬁ nal  performance 
ratings. In addition, the ﬁ xed pay increase is also inﬂ uenced by an employee’s position in the salary 
range.

e)  

Bank’s policy on deferral and vesting of variable remuneration and Bank’s policy and criteria 
for adjusting deferred remuneration before vesting and after vesting

Deferral of Variable Pay

The deferral of the Variable Pay for the three categories of employees as stated earlier is given below -

Category 1 : MD & CEO and  WTDs

Variable Pay will not exceed 70% of the Fixed Pay

- 

To ensure that risk measures do not focus only on achieving short term goals; variable payout is 
deferred. If the variable pay exceeds 40% of ﬁ xed pay, 45% of the variable pay to be deferred 
proportionately over a period of three years.

Category  2  :  All  the  employees  in  the  Grade  of  Vice  President  and  above  engaged  in  the 
functions of Risk Control and Compliance.

- 

- 

- 

- 

- 

Variable  Pay  will  be  paid  on  the  basis  of  laid  down  risk  control,  compliance  and  process 
improvement parameters in the balance score card / key deliverables of staff in this function.

The parameters will be independent of performance of the business area they oversee and will 
commensurate with their key role in the Bank.

The ratio of ﬁ xed and variable compensation will be weighed towards ﬁ xed compensation.

Percentage of variable pay to be capped at 70% of ﬁ xed pay.

Appropriate deferral structure as approved by the Nomination and Remuneration Committee 
will be applicable to this category of employees.

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Category 3 : Other Staff

- 

- 

- 

Variable  Pay  will  be  paid  on  the  basis  of  performance  against  key  deliverables  and  overall 
business performance for the ﬁ nancial year.

Percentage of variable pay to be capped at 70% of ﬁ xed pay.

Appropriate deferral structure as approved by the Nomination and Remuneration Committee 
will be applicable to this category of employees.

f)  

Description  of  the  different  forms  of  variable  remuneration  (i.e.  Cash,  Shares,  ESOPs  and 
other forms) that the Bank utilises and the rationale for using these different forms

Different forms of variable remuneration are as mentioned below:

• 

• 

Variable  Pay:  Variable  Pay  is  linked  to  corporate  performance,  business  performance  and 
individual  performance  and  ensures  differential  pay  based  on  the  performance  levels  of 
employees.

ESOPs: ESOPs are given to selective set of employees at senior levels based on their level of 
performance  and  role.  ESOP  scheme  has  an  inbuilt  deferral  vesting  design  which  helps  in 
retention of employees along with providing an opportunity of long term wealth creation for 
the employees.

Quantitative disclosures

The quantitative disclosures pertaining to the MD & CEO, Whole Time Directors and other risk takers for the 
year ended 31 March, 2015 are given below. Other risk takers include all employees in the grade of Executive 
Vice President (EVP) and above and also cover certain select roles in case they are below the grade of EVP.

a.

b.

c.

d.

e.

f.

g.

h.

i)   Number  of  meetings  held  by 
the  Remuneration  Committee 
during the ﬁ nancial year

ii)   Remuneration paid to its mem-

bers (sitting fees)

Number  of  employees  having 
received  a  variable  remuneration 
award during the ﬁ nancial year
Number  and  total  amount  of  sign-
on awards made during the ﬁ nancial 
year
Details of guaranteed bonus, if any, 
paid as joining/sign on bonus
Details of severance pay, in addition 
to accrued beneﬁ ts, if any
Total 
amount  of  outstanding 
deferred  remuneration,  split  into 
cash, shares and share-linked instru-
ments and other forms.
Total 
deferred 
of 
remuneration paid out in the ﬁ nan-
cial year
Breakdown  of  amount  of  remu-
neration  awards  for  the  ﬁ nancial 
year  to  show  ﬁ xed  and  variable, 
deferred and non-deferred

amount 

31 March, 2015

31 March, 2014

8

`1,100,000

5

`380,000

36*

N.A.

N.A.

N.A.

`0.90 crores
(cash bonus)

3

N.A.

N.A.

N.A.

N.A.

N.A.
Fixed - `32.72 crores#
Variable - `12.01 crores*
Deferred - `0.90 crores
Non-deferred - `11.11 crores*

N.A.
Fixed - `6.32 crores
Variable - `1.96 crores
Deferred - Nil
Non-deferred - `1.96 crores

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i.

j.

k.

Total 
amount  of  outstanding 
deferred remuneration and retained 
remuneration  exposed  to  ex-post 
explicit and/or implicit adjustments
Total  amount  of  reductions  during 
the  ﬁ nancial  year  due  to  ex-post 
explicit adjustments
Total  amount  of  reductions  during 
the  ﬁ nancial  year  due  to  ex-post 
implicit adjustments

31 March, 2015

31 March, 2014

N.A.

N.A.

N.A.

N.A.

N.A.

N.A.

#  Fixed  Remuneration  includes  basic  salary,  ﬁ xed  allowance,  leave  fare  concession,  house  rent  allowance, 
superannuation allowance, certain other allowances and contribution towards provident fund

* pertains to FY 2013-14 paid to MD & CEO, WTDs and other risk takers (previous year pertains to FY 2012-13 
paid to MD & CEO and WTDs)

2.1.33  Bancassurance Business

Details of income earned from Bancassurance business are as under:

Sr. No. Nature of Income*

                                                    (` in crores)
31 March, 2014

31 March, 2015

1.

2.

3.

4.

For selling life insurance policies

For selling non-life insurance policies

For selling mutual fund products

Others  (selling  of  gold  coins,  wealth  advisory,  RBI  and  other 
bonds etc.)

Total

491.30

22.40

314.44

34.18

862.32

468.11

18.16

149.43

  26.27

661.97

*includes receipts on account of marketing activities undertaken on behalf of bancassurance partners

2.1.34  The Bank has not sponsored any special purpose vehicle which is required to be consolidated in the consolidated 

ﬁ nancial statements as per accounting norms.

2.1.35  Amount of total assets, non-performing assets and revenue of overseas branches is given below:

Particulars

Total assets

Total NPAs

Total revenue

(` in crores)
31 March, 2015 31 March, 2014

49,111.72

43,129.73

265.24

2,608.85

254.28

2,304.87

2.1.36  During  the  year  ended  31  March,  2015  the  value  of  sales/transfers  of  securities  to/from  HTM  category 
(excluding one-time transfer of securities and sales to RBI under OMO auctions) exceeded 5% of the book 
value of investments held in HTM category at the beginning of the year by `2.57 crores.

Market value of investments
held in HTM category

Excess of book value over market value for which 
provision is not made

 `81,266.08 crores

Nil

During  the  year  ended  31  March,  2014  the  value  of  sales/transfers  of  securities  to/from  HTM  category 
(excluding one-time transfer of securities and sales to RBI under OMO auctions) was within 5% of the book 
value of investments held in HTM category at the beginning of the year.

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2.1.37  Disclosure on transfers to Depositor Education and Awareness Fund (DEAF)

Particulars

Opening balance of amounts transferred to DEAF

Add : Amounts transferred to DEAF during the year

Less : Amounts reimbursed by DEAF towards claims

Closing balance of amounts transferred to DEAF

*includes `0.08 crores of claim raised and pending settlement with RBI

2.1.38  Disclosure on Intra-Group Exposures

Particulars

Total amount of intra-group exposures

Total amount of top-20 intra-group exposures

Percentage of intra-group exposures to total exposure of the Bank on borrowers/customers

(` in crores)

31 March, 2015

-

26.94

(0.27)*

26.67

(` in crores)

31 March, 2015

2,394.34

2,394.34

0.46

During the year ended 31 March, 2015, the intra-group exposures were within the limits speciﬁ ed by RBI. 

2.1.39  Unhedged Foreign Currency Exposure

The Bank’s Corporate Credit Policy lays down the framework to manage credit risk arising out of unhedged 
foreign currency exposures of the borrowers. Both at the time of initial approval as well as subsequent reviews, 
the  assessment  of  credit  risk  arising  out  of  foreign  currency  exposure  of  the  borrowers  include  details  of 
imports,  exports,  repayments  of  foreign  currency  borrowings,  as  well  as  hedges  done  by  the  borrowers  or 
naturally enjoyed by them vis-a-vis their intrinsic ﬁ nancial strength, history of hedging and losses arising out of 
foreign currency volatility. The extent of hedge/cover required on the total foreign currency exposure including 
natural  hedge  and  hedged  positions,  is  guided  through  a  matrix  of  internal  ratings.  The  hedging  policy  is 
applicable for existing as well as new clients with foreign currency exposures above a predeﬁ ned threshold. The 
details of un-hedged foreign currency exposure of customers for transactions undertaken through the Bank are 
monitored periodically. The Bank also maintains additional provision and capital, in line with RBI guidelines.

During the year ended 31 March, 2015, the Bank has made incremental provision of `133.66 crores and held 
incremental capital of `3,624.97 crores towards borrowers having unhedged foreign currency exposures.

2.1.40  Disclosure on Liquidity Coverage Ratio

Qualitative disclosure

The Bank has adopted the Basel III framework on liquidity standards as prescribed by RBI and has put in place 
requisite  systems  and  processes  to  enable  periodical  computation  and  reporting  of  the  Liquidity  Coverage 
Ratio (LCR). The mandated regulatory threshold as per the transition plan is embedded into the Risk Appetite 
Statement of the Bank thus subjecting LCR maintenance to Board oversight and periodical review. The Risk 
department computes the LCR and reports the same to the Asset Liability Management Committee (ALCO) 
every  month  for  review  as  well  as  to  the  Risk  Management  Committee  of  the  Board.  The  Bank  has  been 
submitting LCR reports to RBI commencing from January 2015.

The Bank follows the criteria laid down by RBI for month-end calculation of High Quality Liquid Assets (HQLA), 
gross  outﬂ ows  and  inﬂ ows  within  the  next  30-day  period.    HQLA  predominantly  comprises  Government 
securities in excess of minimum SLR requirement viz. Treasury Bills, Central and State Government securities. A 
relatively smaller part of HQLA is accounted for by the corporate bonds rated AA- and above with mandated 
haircuts applied thereto.

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The Bank monitors the concentration of funding sources from signiﬁ cant counterparties, signiﬁ cant instruments/
products as part of the asset liability management framework. The Bank adheres to the regulatory and internal 
limits on Inter-bank liability and call money borrowings which form part of the ALM policy. The Bank’s funding 
sources are fairly dispersed across sources and maturities.

Expected  derivative  cash  outﬂ ows  and  inﬂ ows  are  calculated  for  outstanding  contracts  in  accordance  with 
laid  down  valuation  methodologies.  Cash  ﬂ ows,  if  any,  from  collaterals  posted  against  derivatives  are  not 
considered.

The Bank monitors the LCR in US Dollar currency which qualiﬁ es as a signiﬁ cant currency for monitoring LCR 
as per RBI guidelines.

The liquidity risk management of the Bank is undertaken by the Asset Liability Management group in the Treasury 
in  accordance  with  the  Board  approved  policies  and  ALCO  approved  funding  plans.  The  Risk  department 
measures and monitors the liquidity proﬁ le of the Bank with reference to the Board approved limits, for both 
domestic as well as overseas operations, on a static as well as on a dynamic basis by using the gap analysis 
technique supplemented by monitoring of key liquidity ratios and periodical liquidity stress testing. Periodical 
reports are placed before the Bank’s ALCO for perusal and review.

All signiﬁ cant outﬂ ows and inﬂ ows determined in accordance with RBI guidelines are included in the prescribed 
LCR computation template.

Quantitative disclosure

(` in crores)

Quarter ended 31 March, 2015

 Total Unweighted 
Value (average)

 Total Weighted 
Value (average)

High Quality Liquid Assets

1

Total High Quality Liquid Assets  (HQLAs)

 55,211.76

Cash Outﬂ ows

2

3

4

5

6

7

8

Retail Deposits and deposits from small business customers, 
of which:

 133,461.49

 11,756.57

(i)   Stable Deposits

(ii)   Less Stable Deposits

Unsecured wholesale funding,
of which:

(i)   Operational deposits (all counterparties)

(ii)   Non-operational deposits (all counterparties)

(iii)   Unsecured debt

Secured wholesale funding

Additional requirements,
of which:

 31,791.67

 101,669.82

133,049.25

 21,024.50

 112,024.75

 -

17,357.11

 1,589.59

 10,166.98

49,462.48

 5,250.14

 44,212.34

 -

 1,902.52

9,273.62

(i)   Outﬂ ows related to derivative exposures and other 

 8,442.79

8,442.79

collateral requirements

(ii)   Outﬂ ows related to loss of funding on debt products

(iii)   Credit and liquidity facilities

Other contractual funding obligations

Other contingent funding obligations

TOTAL CASH OUTFLOWS

 2,831.70

 6,082.62

 1,846.78

 171,438.09

 266.64

 564.19

 1,846.78

 8,571.90

 82,813.87

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Cash Inﬂ ows

9

10

11

12

21

22

23

Secured lending (eg. reverse repo)

Inﬂ ows from fully performing exposures

Other cash inﬂ ows

TOTAL CASH INFLOWS

TOTAL HQLA

TOTAL NET CASH OUTFLOWS

LIQUIDITY COVERAGE RATIO %

Quarter ended 31 March, 2015

 Total Unweighted 
Value (average)

 Total Weighted 
Value (average)

 -

 16,209.48

 8,438.68

24,648.16

 -

 11,673.13

 8,438.68

 20,111.81

 Total adjusted Value

 55,211.76

 62,702.06

88.05%

Note: The above data represents simple average of monthly observations for the period January 2015 to March 
2015

2.2 

Other disclosures

2.2.1  During  the  year,  the  Bank  has  appropriated  `63.14  crores  (previous  year  `38.87  crores),  net  of    taxes  and 
transfer to statutory reserve to the Capital Reserve, being the gain on sale of HTM investments in accordance 
with RBI guidelines.

2.2.2  During the year, the Bank has appropriated an amount of `0.96 crores (previous year `0.89 crores) to Reserve 
Fund  account  towards  statutory  reserve  in  accordance  with  guidelines  issued  by  Central  Bank  of  Sri  Lanka 
in  respect  of  Colombo  branch  operations.  Additionally,  an  amount  of  `2.22  crores  appropriated  to  the 
Reserve Fund towards investment reserve in earlier years has been transferred to the proﬁ t and loss account in 
accordance with guidelines issued by Central Bank of Sri Lanka (previous year appropriation of `0.16 crores).

2.2.3  Earnings Per Share (‘EPS’)

The details of EPS computation is set out below:

Basic and Diluted earnings for the year (Net proﬁ t after tax) (`in crores)

Basic weighted average no. of shares (in crores)

Add:  Equity  shares  for  no  consideration  arising  on  grant  of  stock 
options under ESOP (in crores)

Diluted weighted average no. of shares (in crores)

Basic EPS (`)

Diluted EPS (`)

Nominal value of shares (`)

31 March, 2015

31 March, 2014

7,357.82

235.98

6,217.67

234.52

2.53

238.51

31.18

30.85

2.00

0.58

235.10

26.51

26.45

2.00

Dilution of equity is on account of 25,286,978 (previous year 5,847,940) stock options.

2.2.4  Employee Stock Options Scheme (‘the Scheme’)

In  February  2001,  pursuant  to  the  approval  of  the  shareholders  at  the  Extraordinary  General  Meeting,  the 
Bank approved an Employee Stock Option Scheme. Under the Scheme, the Bank is authorised to issue upto 
65,000,000 equity shares to eligible employees.  Eligible employees are granted an option to purchase shares 
subject to vesting conditions. Further, over the period June 2004 to July 2013, pursuant to the approval of 

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the  shareholders  at  Annual  General  Meetings,  the  Bank  approved  an  ESOP  scheme  for  additional  options 
aggregating 175,087,000. The options vest in a graded manner over 3 years. The options can be exercised 
within three/ﬁ ve years from the date of the vesting as the case may be. Within the overall ceiling of 240,087,000 
stock  options  approved  for  grant  by  the  shareholders  as  stated  earlier,  the  Bank  is  also  authorised  to  issue 
options to employees and directors of the subsidiary companies.

222,052,950 options have been granted under the Scheme till the previous year ended 31 March, 2014.

On 26 April, 2014, the Bank granted 9,922,500 stock options (each option representing entitlement to one 
equity share of the Bank) to its employees including the MD & CEO and employees of certain subsidiaries of 
the Bank at a price of `306.54 per option.

The Shareholders of the Bank at the Twentieth Annual General Meeting held on 27 June, 2014, approved the 
amendment to the exercise period from 3 years to 5 years from the date of vesting of options, in respect of the 
options granted with effect from April 2014 onwards.

Stock option activity under the Scheme for the year ended 31 March, 2015 is set out below:

Options 
outstanding

Range of 
exercise prices 
(`)

Weighted 
average 
exercise 
price (`)

Outstanding at the beginning of the year

54,227,780 100.65 to 289.51

Granted during the year

Forfeited during the year

Expired during the year

Exercised during the year

9,922,500

306.54

(293,290) 100.65 to 306.54

(727,765) 100.65 to 242.96

(21,299,434) 100.65 to 289.51

Outstanding at the end of the year

41,829,791 100.65 to 306.54

Exercisable at the end of the year

21,204,291 100.65 to 289.51

244.45

306.54

253.57

209.14

225.90

269.17

256.34

The weighted average share price in respect of options exercised during the year was `444.13.

Stock option activity under the Scheme for the year ended 31 March, 2014 is set out below:

Weighted 
average 
remaining 
contractual 
life (Years)

2.44

-

-

-

-

3.13

1.57

Options 
outstanding

Range of 
exercise prices 
(`)

Outstanding at the beginning of the year
Granted during the year
Forfeited during the year
Expired during the year
Exercised during the year
Outstanding at the end of the year
Exercisable at the end of the year

93.78 to 289.51
54,325,125
288.96
10,015,000
93.78 to 289.51
(300,020)
93.78 to 164.88
(361,900)
(9,450,425)
93.78 to 289.51
54,227,780 100.65 to 289.51
30,212,130 100.65 to 289.51

Weighted 
average 
exercise 
price (`)

218.09
288.96
230.43
112.57
145.57
244.45
228.69

Weighted 
average 
remaining 
contractual 
life (Years)
2.69
-
-
-
-
2.44
1.42

The weighted average share price in respect of options exercised during the year was `262.80.

Fair Value Methodology

On applying the fair value based method in Guidance Note on ‘Accounting for Employee Share-based Payments’ 
the impact on reported net proﬁ t and EPS would be as follows:

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Net Proﬁ t (as reported) (` in crores)

Add:  Stock based employee compensation expense included in net 
income (` in crores)

Less:  Stock  based  employee  compensation  expense  determined 
under fair value based method (proforma) (` in crores)
Net Proﬁ t (Proforma) (` in crores)
Earnings per share: Basic (in `)

As reported

Proforma
Earnings per share: Diluted (in `)

As reported

Proforma

31 March, 2015 31 March, 2014

7,357.82

6,217.67

-

-

(90.26)

7,267.56

(103.48)

6,114.19

31.18

30.80

30.85

30.49

26.51

26.07

26.45

26.01

The  fair  value  of  the  options  is  estimated  on  the  date  of  the  grant  using  the  Black-Scholes  options  pricing 
model, with the following assumptions:

Dividend yield

Expected life

Risk free interest rate

Volatility

31 March, 2015

31 March, 2014

1.32%

2.57-4.57 years

1.36%

2-4 years

8.62% to 8.78%

7.45% to 7.57%

35.77% to 38.01% 33.86% to 36.93%

Volatility is the measure of the amount by which a price has ﬂ uctuated or is expected to ﬂ uctuate during a 
period. The measure of volatility used in the Black-Scholes options pricing model is the annualised standard 
deviation of the continuously compounded rates of return on the stock over a period of time. For calculating 
volatility, the daily volatility of the stock prices on the National Stock Exchange, over a period prior to the date 
of grant, corresponding with the expected life of the options has been considered.

The weighted average fair value of options granted during the year ended 31 March, 2015 is `109.72 (previous 
year `87.77).

2.2.5  Dividend paid on shares issued on exercise of stock options

The Bank may allot shares between the Balance Sheet date and record date for the declaration of   dividend 
pursuant to the exercise of any employee stock options. These shares will be eligible for full dividend for the 
year ended 31 March, 2015, if approved at the ensuing Annual General Meeting. Dividend relating to these 
shares has not been recorded in the current year.

Appropriation to proposed dividend during the year ended 31 March, 2015 includes dividend of `3.41 crores 
(previous year `2.05 crores) paid pursuant to exercise of employee stock options after the previous year end 
but before the record date for declaration of dividend for the year ended 31 March, 2014.

2.2.6  Segmental reporting

The business of the Bank is divided into four segments: Treasury, Retail Banking, Corporate/Wholesale Banking 
and Other Banking Business. These segments have been identiﬁ ed based on the RBI’s revised guidelines on 
Segment  Reporting  issued  on  18  April,  2007  vide  Circular  No.  DBOD.No.BP.BC.81/21.04.018/2006-07.  The 
principal activities of these segments are as under.

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Segment

Treasury

Retail Banking

Principal Activities

Treasury operations include investments in sovereign and corporate debt, equity 
and mutual funds, trading operations, derivative trading and foreign exchange 
operations on the proprietary account and for customers. The Treasury segment 
also includes the central funding unit.

Constitutes lending to individuals/small businesses through the branch network 
and  other  delivery  channels  subject  to  the  orientation,  nature  of  product, 
granularity of the exposure and the quantum thereof. Retail Banking activities 
also include liability products, card services, internet banking, mobile banking, 
ATM services, depository, ﬁ nancial advisory services and NRI services.

Corporate/Wholesale Banking Includes corporate relationships not included under Retail Banking, corporate 
advisory services, placements and syndication, project appraisals, capital market 
related services and cash management services.

Other Banking Business

Includes para banking activities like third party product distribution and other 
banking transactions not covered under any of the above three segments.

Revenues of the Treasury segment primarily consist of fees and gains or losses from trading operations and 
interest income on the investment portfolio. The principal expenses of the segment consist of interest expense 
on funds borrowed from external sources and other internal segments, premises expenses, personnel costs, 
other direct overheads and allocated expenses.

Revenues of the Corporate/Wholesale Banking segment consist of interest and fees earned on loans given to 
customers falling under this segment and fees arising from transaction services and merchant banking activities 
such  as  syndication  and  debenture  trusteeship.  Revenues  of  the  Retail  Banking  segment  are  derived  from 
interest earned on loans classiﬁ ed under this segment, fees for banking and advisory services, ATM interchange 
fees and cards products. Expenses of the Corporate/Wholesale Banking and Retail Banking segments primarily 
comprise interest expense on deposits and funds borrowed from other internal segments, infrastructure and 
premises expenses for operating the branch network and other delivery channels, personnel costs, other direct 
overheads and allocated expenses.

Segment income includes earnings from external customers and from funds transferred to the other segments. 
Segment  result  includes  revenue  as  reduced  by  interest  expense  and  operating  expenses  and  provisions,  if 
any, for that segment. Segment-wise income and expenses include certain allocations.  Inter segment interest 
income and interest expense represent the transfer price received from and paid to the Central Funding Unit 
(CFU) respectively.  For this purpose, the funds transfer pricing mechanism presently followed by the Bank, 
which is based on historical matched maturity and internal benchmarks, has been used. Operating expenses 
other than those directly attributable to segments are allocated to the segments based on an activity-based 
costing methodology. All activities in the Bank are segregated segment-wise and allocated to the respective 
segment.

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Segmental results are set out below:

          (` in crores)

31 March, 2015

Treasury Corporate/
Wholesale 
Banking

Retail 
Banking

Other 
Banking 
Business

Total

Segment Revenue

Gross interest income (external customers)

9,610.70   13,793.09   12,074.81                -   35,478.60

Other income

 2,234.30     3,103.08     2,152.13       875.53     8,365.04

Total income as per Proﬁ t and Loss 
Account

11,845.00   16,896.17   14,226.94       875.53   43,843.64

Add/(less) inter segment interest income

   39,936.35     4,209.43   14,070.80                -   58,216.58

Total segment revenue

   51,781.35   21,105.60   28,297.74       875.53 102,060.22

Less: Interest expense (external customers)

   10,298.20        455.24   10,501.02                -   21,254.46

Less: Inter segment interest expense

   38,016.17   10,505.60     9,694.81                -   58,216.58

Less: Operating expenses

        385.83     2,263.01     6,469.14        85.76     9,203.74

Operating proﬁ t

     3,081.15     7,881.75     1,632.77       789.77   13,385.44

Less: Provision for non-performing assets/others*          13.36     1,859.07        455.25           0.93     2,328.61

Segment result

Less: Provision for tax

Extraordinary proﬁ t/loss

Net Proﬁ t

Segment assets

Unallocated assets

Total assets

Segment liabilities

Unallocated liabilities

Total liabilities

Net assets

     3,067.79     6,022.68     1,177.52       788.84 11,056.83

3,699.01

-

7,357.82

 170,598.44 160,628.30 127,917.60       618.56 459,762.90

2,169.49

461,932.39

 154,185.37   77,741.83 183,949.89         41.96 415,919.05

   16,413.07   82,886.47 (56,032.29)       576.60 44,676.51

1,336.83

417,255.88

Capital expenditure for the year

          12.97        158.81        343.72           6.85        522.35

Depreciation on ﬁ xed assets for the year

          10.07        123.33        266.94           5.33        405.67

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109

 
 
          (` in crores)

31 March, 2014

Treasury Corporate/
Wholesale 
Banking

Retail 
Banking

Other 
Banking 
Business

Total

Segment Revenue

Gross interest income (external customers)

     8,690.80   12,605.67     9,344.69                -   30,641.16

Other income

     2,102.78     3,016.49     1,619.06       666.89     7,405.22

Total income as per Proﬁ t and Loss 
Account

   10,793.58   15,622.16   10,963.75       666.89   38,046.38

Add/(less) inter segment interest income

   35,545.78     3,802.28   11,355.87                -   50,703.93

Total segment revenue

   46,339.36   19,424.44   22,319.62       666.89   88,750.31

Less: Interest expense (external customers)

     9,904.69        383.58     8,401.25                -   18,689.52

Less: Inter segment interest expense

   33,763.53     9,370.03     7,570.37                -   50,703.93

Less: Operating expenses

        384.68     2,012.82     5,405.82         97.45     7,900.77

Operating proﬁ t

     2,286.46     7,658.01        942.18       569.44   11,456.09

Less: Provision for non-performing assets/others*          11.34     1,765.41        330.29           0.42     2,107.46

Segment result

Less: Provision for tax

Extraordinary proﬁ t/loss

Net Proﬁ t

Segment assets

Unallocated assets

Total assets

Segment liabilities

Unallocated liabilities

Total liabilities

Net assets

     2,275.12     5,892.60        611.89       569.02     9,348.63

3,130.96

-

6,217.67

 143,268.32 132,124.20 105,609.76       383.62 381,385.90

1,858.99

383,244.89

 123,757.71   69,718.11 150,297.09         25.94 343,798.85

   19,510.61   62,406.09 (44,687.33)       357.68   38,220.49

1,225.55

345,024.40

Capital expenditure for the year

          20.48        157.66        432.03           4.69        614.86

Depreciation on ﬁ xed assets for the year

          12.12          93.32        255.71           2.78        363.93

*represents material non-cash items other than depreciation

Geographic Segments

Domestic

International

Total

31 March, 
2015
41,234.79

31 March,  
2014
35,741.51
412,820.67 340,115.16

31 March, 
2015
2,608.85
49,111.72

31 March,  
2014
2,304.87

31 March, 
2015
43,843.64
43,129.73 461,932.39

31 March,  
2014
38,046.38
383,244.89

(` in crores)

521.44
402.80

608.18
361.74

0.91
2.87

6.68
2.19

522.35
405.67

614.86
363.93

Revenue
Assets
Capital Expenditure 
incurred
Depreciation provided

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2.2.7  Related party disclosure

The related parties of the Bank are broadly classiﬁ ed as:

a) 

Promoters

The Bank has identiﬁ ed the following entities as its Promoters.

• 

• 

• 

Administrator of the Speciﬁ ed Undertaking of the Unit Trust of India (SUUTI)

Life Insurance Corporation of India (LIC)

General Insurance Corporation and four Government-owned general insurance companies - New India 
Assurance  Co.  Limited,  National  Insurance  Co.  Limited,  United  India  Insurance  Co.  Limited  and  The 
Oriental Insurance Co. Limited.

b) 

Key Management Personnel

• 

• 

• 

• 

Mrs. Shikha Sharma (Managing Director & Chief Executive Ofﬁ cer)

Mr. Somnath Sengupta [Executive Director & Head (Corporate Centre)] upto 31 August, 2014

Mr. V. Srinivasan [Executive Director & Head (Corporate Banking)]

Mr. Sanjeev K. Gupta [Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer] with effect from 
4 September, 2014

c) 

Relatives of Key Management Personnel

Mr.  Sanjaya  Sharma,  Mrs.  Usha  Bharadwaj,  Mr.  Tilak  Sharma,  Ms.  Tvisha  Sharma,  Dr.  Sanjiv  Bharadwaj, 
Dr. Prashant Bharadwaj, Dr. Brevis Bharadwaj, Dr. Reena Bharadwaj, Mrs. Chaitaly Sengupta, Mrs. Renukona 
Sengupta,  Mr.  Niloy  Sengupta,  Mrs.  Gayathri  Srinivasan,  Mrs.  Vanjulam  Varadarajan,  Mr.  V.  Satish,  Mrs. 
Camy Satish, Ms. Ananya Srinivasan, Ms. Anagha Srinivasan, Ms. Geetha N., Ms. Chitra R., Ms. Sumathi N., 
Mr. S. Ranganathan, Mr. R. Narayan, Mrs. Poonam Gupta, Mr. Somya Gupta, Mr. Shubham Gupta, Mr. Rajeev 
Agarwal and Mr. Deepak Kumar Gupta

d) 

Subsidiary Companies

• 

• 

• 

• 

• 

• 

• 

• 

Axis Capital Limited

Axis Private Equity Limited

Axis Trustee Services Limited

Axis Asset Management Company Limited

Axis Mutual Fund Trustee Limited

Axis Bank UK Limited

Axis Finance Limited

Axis Securities Limited

e) 

Step down Subsidiary Companies

• 

• 

Enam International Limited  (voluntarily dissolved on 24 August, 2014)

Axis Securities Europe Limited

f) 

Associate

• 

Bussan Auto Finance India Private Limited (upto 30 March, 2015)

The  above  investment  does  not  fall  within  the  deﬁ nition  of  a  Joint  Venture  as  per  AS-27,  Financial 

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Reporting of Interest in Joint Ventures, notiﬁ ed under Section 2(2) and Section 133 of the Companies 
Act, 2013 and the said accounting standard is thus not applicable. However, pursuant to RBI guidelines, 
the  Bank  classiﬁ ed  the  same  as  investment  in  joint  ventures  in  the  Balance  Sheet.  On  30  March, 
2015, the Bank has sold its stake in Bussan Auto Finance India Private Limited. Such investment has 
been accounted as an Associate in Consolidated Financial Statements as per AS-23, Accounting for 
Investments  in  Associates  in  Consolidated  Financial  Statements,  notiﬁ ed  under  Section  133  of  the 
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 till 
the date of sale. Based on RBI guidelines, details of transactions with Associates are not disclosed since 
there is only one entity/party in this category.

The signiﬁ cant transactions between the Bank and related parties during the years ended 31 March, 
2015  and  31  March,  2014  are  given  below.  A  speciﬁ c  related  party  transaction  is  disclosed  as  a 
signiﬁ cant related party transaction wherever it exceeds 10% of the aggregate value of all related party 
transactions in that category:

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

Dividend paid: Administrator of The Speciﬁ ed Undertaking of the Unit Trust of India `109.94 
crores  (previous  year  `175.00  crores),  Life  Insurance  Corporation  of  India  `127.35  crores 
(previous year `78.77 crores)

Dividend received: Axis Securities Ltd. `18.06 crores (previous year Nil), Axis Trustee Services Ltd. 
`10.50 crores (previous year `1.88 crores) and Axis Private Equity Ltd. `5.25 crores (previous 
year Nil)

Interest paid: Life Insurance Corporation of India `744.04 crores (previous year `928.77 crores)

Interest received: Axis Bank UK Ltd. `6.85 crores (previous year `6.52 crores) and Axis Finance 
Ltd. `1.59 crores (previous year `1.27 crores)

Investment of the Bank: Axis Asset Management Company Ltd. `48.75 crores (previous year 
Nil), Axis Finance Ltd. `100 crores (previous year `250 crores) and Axis Bank UK Ltd. Nil (previous 
year `299.57 crores)

Investment of related party in bonds of the Bank: Life Insurance Corporation of India `500.00 
crores (previous year Nil)

Investment of related party in the Bank: Mrs. Shikha Sharma `22.65 crores (previous year `7.35 
crores),  Mr.  V.  Srinivasan  `6.81  crores  (previous  year  `2.43  crores),  Mr.  Somnath  Sengupta 
`7.04 crores (previous year `0.89 crores)

Redemption of subordinated debt: Life Insurance Corporation of India Nil (previous year `25.00 
crores) and General Insurance Corporation of India Nil (previous year `15 crores)

Sale  of  Investments:  Life  Insurance  Corporation  of  India  Nil  (previous  year  `221.71  crores), 
General  Insurance  Corporation  of  India  `211.06  crores  (previous  year  `181.37  crores),  New 
India Assurance Company Ltd. `50 crores (previous year `147.51 crores), National Insurance 
Company Ltd. `222.34 crores (previous year `109.97 crores), United India Insurance Company 
Ltd. `120.02 crores (previous year `79.12 crores)

Management Contracts: Axis Securities Limited `4.41 crores (previous year `4.76 crores), Axis 
Trustee Services Ltd. `2.62 crores (previous year `2.63 crores) and Axis Finance Ltd. `2.70 crores 

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• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

(previous  year  `2.52  crores),  Mrs.  Shikha  Sharma  `4.18  crores  (previous  year  `4.07  crores), 
Mr. Somnath Sengupta `4.51 crores (previous year `2.30 crores) and Mr. V. Srinivasan `2.46 
crores (previous year `2.18 crores)

Contribution  to  employee  beneﬁ t  fund:  Life  Insurance  Corporation  of  India  `16.04  crores 
(previous year `15.49 crores)

Placement of Deposit by the Bank: Life Insurance Corporation of India `0.14 crores (previous 
year Nil)

Non-funded  commitments  (net):  Axis  Securities  Ltd.  `69.00  crores  (previous  year  Nil),  Life 
Insurance  Corporation  of  India  `0.01  crores  (previous  year  `0.02  crores),  Oriental  Insurance 
Company Ltd. `0.01 crores (previous year `0.04 crores)

Call/Term borrowing from related party: Axis Bank UK Ltd. Nil (previous year `143.99 crores)

Call/Term lending to related party: Axis Bank UK Ltd. Nil (previous year `12.65 crores)

Swap/forward contracts: Axis Bank UK Ltd. `158.85 crores (previous year `413.52 crores)

Advance  granted  (net):  Axis  Asset  Management  Company  Ltd.  `44.69  crores  (previous  year 
Nil), Axis Bank UK Ltd. Nil (previous year `148.48 crores) and Axis Finance Ltd. Nil (previous year 
`62.12 crores)

Advance  repaid:  Life  Insurance  Corporation  of  India  Nil  (previous  year  `27.91  crores),  Axis 
Finance Ltd. `30.05 crores (previous year Nil)

Purchase of loans: Axis Bank UK Ltd. `8.92 crores (previous year Nil)

Sell  down  of  loans  (including  undisbursed  loan  commitments):  Axis  Bank  UK  Ltd.  `321.44 
crores (previous year `694.79 crores)

Advance  to  related  party  against  rendering  of  services:  Axis  Securities  Ltd.  `21.00  crores 
(previous year `25.00 crores)

Receiving  of  services:  Oriental  Insurance  Company  Ltd.  `61.47  crores  (previous  year  `51.20 
crores), Axis Securities Limited `318.10 crores (previous year `241.95 crores)

Rendering  of  services:  Axis  Asset  Management  Company  Ltd.  `194.15  crores  (previous  year 
`15.97 crores), Axis Bank UK Ltd. `0.94 crores (previous year `4.15 crores) and Axis Capital Ltd. 
`5.90 crores (previous year `7.66 crores)

Purchase of equity shares from related party: Axis Capital Ltd. Nil (previous year `38.25 crores)

Other reimbursement from related party: Axis Securities Ltd. `0.93 crores (previous year `1.01 
crores), Axis Asset Management Company Ltd. `1.70 crores (previous year `1.73 crores), Axis 
Bank  UK  Ltd.  `0.16  crores  (previous  year  `2.17  crores)  and  Axis  Capital  Ltd.  `4.67  crores 
(previous year `3.56 crores)

Other reimbursement to related party: Life Insurance Corporation of India `0.37 crores (previous 
year `0.39 crores), Axis Asset Management Company Ltd. `3.36 crores (previous year `0.01 
crores), Axis Capital Ltd. `0.50 crores (previous year Nil) and Axis Securities Ltd. Nil (previous 
year `0.40 crores)

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113

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The details of transactions of the Bank with its related parties during the year ended 31 March, 2015 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Dividend paid
Dividend received
Interest paid
Interest received
Investment of the Bank
Investment of related party in 
the Bank
Investment of related party 
in  Subordinated Debt/Hybrid 
Capital/Bonds of the Bank
Redemption of subordinated 
debt
Purchase of investments
Sale of investments
Management contracts
Contribution to employee 
beneﬁ t fund
Purchase of ﬁ xed assets
Sale of ﬁ xed assets
Placement of deposits
Non-funded commitments (net)
Call/Term borrowing
Call/Term lending
Swaps/Forward contracts
Advance granted (net)
Advance repaid
Purchase of loans
Sell down of loans (including 
undisbursed loan commitments)
Advance to related party against 
rendering of services
Receiving of services
Rendering of services
Purchase of equity shares from 
related party
Other reimbursements from 
related party
Other reimbursements to related 
party

275.28
 -
 810.09
 0.05
 -

0.28
 -
 0.30
 0.12
 -

 -

 39.74

 550.00

 -

 -
 -
 658.93
 -

 16.04
 -
 -
 0.14
 0.08
 -
 -
 -
 0.04
 -
 -

 -

 -
 78.43
 2.18

 -

 -

 0.37

 -
 -
 -
 11.99

 -
 -
 -
 -
 -
 -
 -
 -
 -
 0.23
 -

 -

 -
 -
 -

 -

 -

 -

Relatives 
of Key 
Management 
Personnel
-
 -
 0.28
 -
 -

 -

 -

 -
 -
 -
 -

 -
 -
 -
 -
 -
 -
 -
 -
 -
 -
 -

 -

 -
 -
 -

 -

 -

 -

Subsidiaries

Step down 
Subsidiaries

(` in crores)
Total

-
 33.81
 32.39
 8.75
 148.75

 -

 -

 -
 -
 -
 9.90

 -
 -
 0.03
 -
 69.00
 -
 -
 158.85
 44.70
 30.05
 8.92

 321.44

 21.00
 324.08
 205.51

 -

 8.46

 3.86

-
 -
 -
 -
 -

 -

 -

 -
 -
 -
 -

 -
 -
 -
 -
 -
 -
 -
 -
 -
 -
 -

 -

 -
 -
 -

 -

 -

 -

275.56
 33.81
 843.06
 8.92
 148.75

 39.74

 550.00

 -
 -
 658.93
 21.89

 16.04
 -
 0.03
 0.14
 69.08
 -
 -
 158.85
 44.74
 30.28
 8.92

 321.44

 21.00
 402.51
 207.69

 -

 8.46

 4.23

114

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The balances payable to/receivable from the related parties of the Bank as on 31 March, 2015 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of the Bank
Investment of related party in 
the Bank
Non-funded commitments
Investment  of  related  party 
in  Subordinated Debt/Hybrid 
Capital/Bonds of the Bank
Payable  under  management 
contracts
Other receivables (net)
Other payables (net)
Swaps/Forward contracts

 -
 8,347.06
 0.30
 1.02
 -

 132.42
 3.12

 3,370.00

 -
 -
 -
-

 -
 1.78
 -
 0.77
 -

 0.17
 -

 -

 0.90
 -
 -
-

Relatives 
of Key 
Management 
Personnel
 -
 4.52
 -
 0.02
 -

 -
 -

 -

 -
 -
 -
-

Subsidiaries

Step down 
Subsidiaries

(` in crores)
Total

 -
 539.69
 -
 233.28
 1,169.01

 -
 73.35

 -

 -
 88.33*
 15.14
20.34

 -
 -
 -
 -
 -

 -
 -

 -

 -
 -
 -
-

 -
 8,893.05
 0.30
 235.09
 1,169.01

 132.59
 76.47

 3,370.00

 0.90
 88.33
 15.14
20.34

The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 
2015 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of the Bank
Investment of related party in 
the Bank
Non-funded commitments
Call borrowing
Call lending
Swaps/Forward contracts
Investment  of  related  party 
in  Subordinated  Debt/Hybrid 
Capital/Bonds of the Bank
Payable  under  management 
contracts
Other receivables (net)
Other payables (net)

-
 13,937.88
 0.30
 50.43
 -

 138.78
 3.13
 -
 -
 -

 3,370.00

 -
 -
-

-
 15.50
 -
 1.61
 -

 0.17
 -
 -
 -
 -

 -

 0.90
 -
-

Relatives 
of Key 
Management 
Personnel
-
 6.61
 -
 -
 -

 -
 -
 -
 -
 -

 -

 -
 -
-

Subsidiaries

Step down 
Subsidiaries

(` in crores)
Total

-
 811.58
 -
 350.09
 1,169.01

 -
 73.35
 -
 -
 83.09

 -

 -
 160.41
20.70

-
 -
 -
 -
 -

 -
 -
 -
 -
 -

 -

 -
 -
-

-
14,771.57
 0.30
 402.13
 1,169.01

 138.95
 76.48
 -
 -
 83.09

 3,370.00

 0.90
 160.41
20.70

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The details of transactions of the Bank with its related parties during the year ended 31 March, 2014 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Relatives 
of Key 
Management 
Personnel

Subsidiaries

Step down 
Subsidiaries

(` in crores)

Total

Dividend paid

Dividend received

Interest paid

Interest received

Investment of the Bank

Investment of related party in 
the Bank

Investment  of  related  party 
in  Subordinated Debt/Hybrid 
Capital of the Bank

Redemption  of  subordinated 
debt

Purchase of investments

Sale of investments

Management contracts

Contribution 
beneﬁ t fund

to  employee 

Purchase of ﬁ xed assets

Sale of ﬁ xed assets

Non-funded 
(net)

commitments 

Call/Term borrowing

Call/Term lending

Swaps/Forward contracts

Advance granted (net)

Advance repaid

Purchase of loans

Sell down of loans

Advance 
against rendering of services

related  party 

to 

Receiving of services

Rendering of services

Purchase  of  equity  shares 
from related party

Other  reimbursements  from 
related party

reimbursements 

Other 
related party

to 

116

286.21

-

994.86

0.27

-

-

-

40.00

-

754.46

0.13

-

0.78

0.17

-

10.68

-

-

-

-

-

8.55

15.49

-

-

0.06

-

-

-

-

27.91

-

-

-

67.60

2.45

-

-

0.39

-

-

-

-

-

-

-

0.83

1.26

-

-

-

-

-

-

-

-

-

-

0.08

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

1.88

27.09

7.85

599.57

-

-

-

-

-

10.08

-

-

-

-

143.99

12.65

413.52

210.59

-

-

694.79

25.00

244.98

31.16

38.25

9.05

0.42

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

286.34

1.88

1,022.81

8.29

599.57

10.68

-

40.00

-

754.46

18.63

15.49

-

-

0.06

143.99

12.65

413.52

211.42

29.17

-

694.79

25.00

312.58

33.61

38.25

9.05

0.81

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The balances payable to/receivable from the related parties of the Bank as on 31 March, 2014 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of the Bank
Investment of related party in 
the Bank
Non-funded commitments
Investment  of  related  party 
in  Subordinated Debt/Hybrid 
Capital of the Bank
Payable  under  management 
contracts
Other receivables (net)
Other payables (net)
Swaps/Forward contracts

-
10,097.26
0.15
0.78
-

138.78
3.07

2,765.00

-
-
-
-

-
9.77
-
1.61
-

0.10
-

-

-
-
-
-

Relatives 
of Key 
Management 
Personnel
-
1.23
-
-
-

-
-

-

-
-
-
-

Subsidiaries

Step down 
Subsidiaries

(` in crores)
Total

-
414.00
-
212.16
1,020.26

-
4.35

-

-
77.52*
7.04
81.84

-
-
-
-
-

-
-

-

-
-
-
-

-
10,522.26
0.15
214.55
1,020.26

138.88
7.42

2,765.00

-
77.52
7.04
81.84

The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 
2014 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of the Bank
Investment of related party in 
the Bank
Non-funded commitments
Call borrowing
Call lending
Swaps/Forward contracts
Investment  of  related  party 
in  Subordinated Debt/Hybrid 
Capital of the Bank
Payable  under  management 
contracts
Other receivables (net)
Other payables (net)

-
10,836.28
0.16
66.57
-

169.76
3.09
-
-
-

3,817.30

-
-
-

-
12.89
-
2.04
-

0.10
-
-
-
-

-

-
-
-

Relatives 
of Key 
Management 
Personnel
-
1.76
-
-
-

-
-
-
-
-

-

-
-
-

Subsidiaries Step down 
Subsidiaries

-
519.80
-
309.78
1,020.26

-
4.35
143.99
12.65
161.62

-

-
77.52
41.15

-
-
-
-
-

-
-
-
-
-

-

-
-
-

(` in crores)
Total

-
11,370.73
0.16
378.39
1,020.26

169.86
7.44
143.99
12.65
161.62

3,817.30

-
77.52
41.15

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The transactions with Promoters and Key Management Personnel excluding those under management contracts are in 
nature of the banker-customer relationship.

Details of transactions with Axis Mutual Fund and Axis Infrastructure Fund-I, the funds ﬂ oated by Axis Asset Management 
Company Ltd. and Axis Private Equity Ltd., the Bank’s subsidiaries have not been disclosed since these entities do not 
qualify as Related Parties as deﬁ ned under the Accounting Standard 18, Related Party Disclosure, as notiﬁ ed under 
Section 2(2) and Section 133 of the Companies Act, 2013 and as per RBI guidelines.

* Upto 31 December, 2014, the Bank had entered into an arrangement with Axis Asset Management Company Ltd. 
(Axis AMC), the Bank’s subsidiary, in terms of which payment of brokerage in respect of distribution of certain schemes 
is scheduled over the period of the schemes. This arrangement, however, has no effect on the accounting policy of the 
Bank, as such brokerage income is recognised by the Bank as and when the same is due. Other receivables include such 
brokerage recoverable from Axis AMC as on the reporting date.

2.2.8  Leases

Disclosure in respect of assets taken on operating lease

This comprise of ofﬁ ce premises/ATMs, cash deposit machines, staff quarters, electronic data capturing machines and 
IT equipment.

Future lease rentals payable as at the end of the year:

-   Not later than one year

-  

-  

Later than one year and not later than ﬁ ve years

Later than ﬁ ve years

Total of minimum lease payments recognised in the Proﬁ t and Loss Account 
for the year

Total of future minimum sub-lease payments expected to be received under 
non-cancellable subleases

Sub-lease payments recognised in the Proﬁ t and Loss Account for the year

The Bank has sub-leased certain of its properties taken on lease.

There are no provisions relating to contingent rent.

(` in crores)

31 March, 2015

31 March, 2014

617.96

1,967.27

982.37

653.63

0.11

0.03

565.48

1,789.58

850.00

634.80

-

0.15

The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements. There 
are generally no undue restrictions or onerous clauses in the agreements.

2.2.9  Other Fixed Assets (including furniture & ﬁ xtures)

The movement in ﬁ xed assets capitalised as application software is given below:

Particulars

At cost at the beginning of the year

Additions during the year

Deductions during the year

Accumulated depreciation as at 31 March

Closing balance as at 31 March

Depreciation charge for the year

118

 (` in crores)

31 March, 2015

31 March, 2014

586.02

127.84

(0.09)

(461.73)

252.04

81.40

457.40

130.23

(1.61)

(380.39)

205.63

69.07

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2.2.10  The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under:

As at

 (` in crores)

31 March, 2015

31 March, 2014

Deferred tax assets on account of provisions for loan losses

1,382.83

1,197.57

Deferred tax assets on account of amortisation of HTM investments

Deferred tax assets on account of provision for employee beneﬁ ts

Deferred tax assets on account of other contingencies

Deferred tax assets

Deferred tax liabilities on account of depreciation on ﬁ xed assets

Deferred tax liabilities

Net Deferred tax assets

2.2.11  Employee Beneﬁ ts

Provident Fund

37.70

75.51

436.27

1,932.31

45.40

45.40

191.25

69.37

317.95

1,776.14

42.59

42.59

1,886.91

1,733.55

The rules of the Bank’s Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay 
interest  at  the  rate  declared  for  Employees’  Provident  Fund  by  the  Government  under  para  60  of  the  Employees’ 
Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the 
deﬁ ciency shall be made good by the Bank. Based on an actuarial valuation conducted by an independent actuary, 
there is no deﬁ ciency as at the Balance Sheet date.

The following tables summarise the components of net beneﬁ t expenses recognised in the Proﬁ t and Loss Account and 
funded status and amounts recognised in the Balance Sheet for the Provident Fund beneﬁ t plan.

Proﬁ t and Loss Account

Net employee beneﬁ t expenses (recognised in payments to and provisions for employees)

Current Service Cost
Interest on Deﬁ ned Beneﬁ t Obligation
Expected Return on Plan Assets
Net Actuarial Losses/(Gains) recognised in the year
Total included in “Employee Beneﬁ t Expense” [Schedule 16(I)]
Actual Return on Plan Assets

Balance Sheet

Details of provision for provident fund

Fair Value of Plan Assets
Present Value of Funded Obligations
Net Asset
Amounts in Balance Sheet

Liabilities
Assets
Net Asset (included under Schedule 11 – Other Assets)

31 March, 2015

(` in crores)
31 March, 2014

 67.98
 95.04
 (97.25)
 2.21
 67.98
 93.26

 95.40
 61.65
 (73.26)
 11.61
 95.40
 114.68

 (` in crores)

31 March, 2015

31 March, 2014

 1,240.83
 (1,240.83)
-

 1,013.25
 (1,013.25)
-

-
-
-

-
-
-

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Changes in the present value of the deﬁ ned beneﬁ t obligation are as follows:

Change in Deﬁ ned Beneﬁ t Obligation

Opening Deﬁ ned Beneﬁ t Obligation

Current Service Cost

Interest Cost

Actuarial Losses/(Gains)

Employees Contribution

Liability transferred from/to other companies

Beneﬁ ts Paid

Closing Deﬁ ned Beneﬁ t Obligation

Changes in the fair value of plan assets are as follows:

Change in the Fair Value of Assets

Opening Fair Value of Plan Assets

Expected Return on Plan Assets

Actuarial Gains/(Losses)

Employer contribution during the period

Employee contribution during the period

Assets transferred from/to other companies

Beneﬁ ts Paid

Closing Fair Value of Plan Assets

Experience adjustments

Deﬁ ned Beneﬁ t Obligations

Plan Assets

Surplus/(Deﬁ cit)

Experience Adjustments on Plan Liabilities

Experience Adjustments on Plan Assets

(` in crores)

31 March, 2015

31 March, 2014

 1,013.25

 67.98

 95.04

 (1.78)

 152.02

 0.71

 (86.39)

 713.56

 95.40

 61.65

 53.03

 146.75

 0.63

 (57.77)

 1,240.83

 1,013.25

(` in crores)

31 March, 2015 31 March, 2014

 1,013.25

 97.25

 (3.99)

 67.98

 152.02

0.71

 (86.39)

 1,240.83

 713.56

 73.26

 41.42

 95.40

 146.75

0.63

 (57.77)

 1,013.25

(` in crores)

31 March, 2015 31 March, 2014

1,240.83

1,240.83

-

(1.79)

(3.99)

1,013.25

1,013.25

-

53.03

41.42

Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets

Government securities

Bonds, debentures and other ﬁ xed income instruments

Equity shares

Others

31 March, 2015

31 March, 2014

%

52.84

30.13

12.15

4.88

%

54.06

27.75

14.78

3.41

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Principal acturial assumptions at the Balance Sheet date:

Discount rate for the term of the obligation

Average historic yield on the investment portfolio

Discount rate for the remaining term to maturity of the investment portfolio

Expected investment return

Guaranteed rate of return

31 March, 2015

31 March, 2014

8.00%

9.01%

7.89%

9.12%

8.75%

9.15%

8.88%

9.03%

9.00%

8.75%

The contribution to the employee’s provident fund (including Employee Pension Scheme) amounted to `107.29 crores 
(previous year `95.40 crores) for the year.

Superannuation

The Bank contributed `15.72 crores (previous year `15.22 crores) to the employees’ superannuation plan for the year.

Leave Encashment

The actuarial liability of compensated absences of accumulated privileged leave of the employees of the Bank is given 
below:

Actuarial Liability – Privilege Leave

Total Expense included in Schedule 16(I)

Assumptions

Discount rate

Salary escalation rate

Gratuity

(` in crores)

31 March, 2015

31 March, 2014

210.76

66.35

179.10

(114.72)

8.00% p.a.

7.00% p.a.

9.15% p.a.

7.00% p.a.

The following tables summarise the components of net beneﬁ t expenses recognised in the Proﬁ t and Loss Account and 
funded status and amounts recognised in the Balance Sheet for the Gratuity beneﬁ t plan:

Proﬁ t and Loss Account

Net employee beneﬁ t expenses (recognised in payments to and provisions for employees)

Current Service Cost

Interest on Deﬁ ned Beneﬁ t Obligation

Expected Return on Plan Assets

Net Actuarial Losses/(Gains) recognised in the year

Past Service Cost

Total included in “Employee Beneﬁ t Expense” [Schedule 16(I)]

Actual Return on Plan Assets

(` in crores)

31 March, 2015

31 March, 2014

24.75

15.71

(11.82)

19.45

          23.19

          12.01

        (10.68)

        (10.53)

-

               -

48.09

13.09

13.99

13.01

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Balance Sheet

Details of provision for gratuity

Fair Value of Plan Assets

Present Value of Funded Obligations

Net Asset

Amounts in Balance Sheet

Liabilities

Assets

Net Asset (included under Schedule 11 – Other Assets)

Changes in the present value of the deﬁ ned beneﬁ t obligation are as follows:

Change in Deﬁ ned Beneﬁ t Obligation

Opening Deﬁ ned Beneﬁ t Obligation

Current Service Cost

Interest Cost

Actuarial Losses/(Gains)

Past service cost

Beneﬁ ts Paid

Closing Deﬁ ned Beneﬁ t Obligation

Changes in the fair value of plan assets are as follows:

Change in the Fair Value of Assets

Opening Fair Value of Plan Assets

Expected Return on Plan Assets

Actuarial Gains/(Losses)

Contributions by Employer

Beneﬁ ts Paid

Closing Fair Value of Plan Assets

Experience adjustments

(` in crores)

31 March, 2015

31 March, 2014

209.49

(206.96)

2.53

-

2.53

2.53

163.35

(157.72)

5.63

-

5.63

5.63

(` in crores)

31 March, 2015

31 March, 2014

157.72

24.75

15.71

20.73

-

(11.95)

206.96

137.60

23.19

12.01

(8.20)

-

(6.88)

157.72

(` in crores)

31 March, 2015 31 March, 2014

163.35

11.82

1.26

45.01

(11.95)

209.49

146.22

10.68

2.33

11.00

(6.88)

163.35

(` in crores)

Deﬁ ned Beneﬁ t Obligations

Plan Assets

Surplus/(Deﬁ cit)

Experience Adjustments on Plan Liabilities

Experience Adjustments on Plan Assets

31 March, 
2015

31 March, 
2014

31 March, 
2013

31 March, 
2012

31 March, 
2011

206.96

209.49

2.53

1.06

1.27

157.72

163.35

5.63

7.67

2.33

137.60

146.22

8.62

4.58

2.07

93.40

97.91

4.51

27.08

0.48

60.65

63.43

2.78

1.40

(0.78)

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Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets

Government securities

Bonds, debentures and other ﬁ xed income instruments

Money market instruments

Equity shares

Others

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected Rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

- 21 to 30 (age in years)

- 31 to 44 (age in years)

- 45 to 59 (age in years)

31 March, 2015

31 March, 2014

%

39.17

41.35

6.37

1.18

11.93

%

41.24

48.22

7.85

2.34

0.35

31 March, 2015

31 March, 2014

8.00% p.a.

7.50% p.a.

7.00% p.a.

9.15% p.a.

7.50% p.a.

7.00% p.a.

19.00%

8.00%

4.00%

19.00%

8.00%

4.00%

The estimates of future salary increases considered in actuarial valuation take account of inﬂ ation, seniority, promotion 
and other relevant factors.

The expected rate of return on plan assets is based on the average long-term rate of return expected on investments 
of the Fund during the estimated term of the obligations.

As the contribution expected to be paid to the plan during the annual period beginning after the Balance Sheet date 
is based on various internal/external factors, a best estimate of the contribution is not determinable.

The above information is as certiﬁ ed by the actuary and relied upon by the auditors.

2.2.12  Provisions and contingencies

a) 

Movement in provision for frauds included under other liabilities is set out below:

Opening balance at the beginning of the year

Additions during the year

Reductions on account of payments during the year

Reductions on account of reversals during the year

Closing balance at the end of the year

31 March, 2015

31 March, 2014

(` in crores)

14.06

11.27

(0.23)

(0.30)

24.80

13.97

1.00

(0.41)

(0.50)

14.06

b) 

Other liabilities include provision for reward points made on actuarial basis, the movement of which is set out 
below:

31 March, 2015

31 March, 2014

(` in crores)

Opening provision at the beginning of the year

Provision made during the year

Reductions during the year

Closing provision at the end of the year

85.31

8.39

(10.51)

83.19

67.89

22.88

(5.46)

85.31

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c) 

Movement in provision for other contingencies is set out below:

Opening provision at the beginning of the year

Provision made during the year

Reductions during the year

Closing provision at the end of the year

(` in crores)

31 March, 2015

31 March, 2014

821.61

824.50

(587.43)

1,058.68

396.46

785.93

(360.78)

821.61

The  above  provision  includes  contingent  provision  for  advances/other  exposures,  legal  cases  and  other 
contingencies.

2.2.13  Unclaimed Shares:

Details of unclaimed shares as of 31 March, 2015 and 31 March, 2014 are as follows:

Aggregate number of shareholders at the beginning of the year

Total outstanding shares in Unclaimed Suspense Account at the beginning of 
the year

Number of shareholders who approached to issuer for transfer of shares from 
Unclaimed Suspense Account during the year

Number  of  shareholders    to  whom  shares  were  transferred  from  Unclaimed 
Suspense Account during the year

31 March, 2015

31 March, 2014

29

18,000

29

18,000

-

-

-

-

Aggregate number of shareholders at the end of the year

Total outstanding shares in Unclaimed Suspense Account at the end of the year

29

18,000

29

18,000

2.2.14  Small and Micro Industries

Under  the  Micro,  Small  and  Medium  Enterprises  Development  Act,  2006  which  came  into  force  from  2  October, 
2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. There have been 
no reported cases of delays in payments to micro and small enterprises or of interest payments due to delays in such 
payments. The above is based on the information available with the Bank which has been relied upon by the auditors.

2.2.15  Description of contingent liabilities:

a) 

Claims against the Bank not acknowledged as debts

These represent claims ﬁ led against the Bank in the normal course of business relating to various legal cases 
currently in progress. These also include demands raised by income tax authorities and disputed by the Bank. 
Apart  from  claims  assessed  as  possible,  the  Bank  holds  provision  of  `25.63  crores  as  on  31  March  2015 
(previous year `27.96 crores) towards claims assessed as probable.

b) 

Liability on account of forward exchange and derivative contracts

The Bank enters into foreign exchange contracts, currency options/swaps, interest rate/currency futures and 
forward rate agreements on its own account and for customers. Forward exchange contracts are commitments 
to  buy  or  sell  foreign  currency  at  a  future  date  at  the  contracted  rate.  Currency  swaps  are  commitments 
to  exchange  cash  ﬂ ows  by  way  of  interest/principal  in  two  currencies,  based  on  ruling  spot  rates.  Interest 
rate  swaps  are  commitments  to  exchange  ﬁ xed  and  ﬂ oating  interest  rate  cash  ﬂ ows.  Interest  rate  futures 
are  standardised,  exchange-traded  contracts  that  represent  a  pledge  to  undertake  a  certain  interest  rate 
transaction at a speciﬁ ed price, on a speciﬁ ed future date. Forward rate agreements are agreements to pay or 
receive a certain sum based on a differential interest rate on a notional amount for an agreed period. A foreign 
currency option is an agreement between two parties in which one grants to the other the right to buy or sell a 

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speciﬁ ed amount of currency at a speciﬁ c price within a speciﬁ ed time period or at a speciﬁ ed future time. An 
Exchange Traded Currency Option contract is a standardised foreign exchange derivative contract, which gives 
the owner the right, but not the obligation, to exchange money denominated in one currency into another 
currency at a pre-agreed exchange rate on a speciﬁ ed date on the date of expiry.  Currency Futures contract is 
a standardised, exchange-traded contract, to buy or sell a certain underlying currency at a certain date in the 
future, at a speciﬁ ed price.

c) 

Guarantees given on behalf of constituents

As a part of its banking activities, the Bank issues guarantees on behalf of its customers to enhance their credit 
standing. Guarantees represent irrevocable assurances that the Bank will make payments in the event of the 
customer failing to fulﬁ ll its ﬁ nancial or performance obligations.

d) 

Acceptances, endorsements and other obligations

These include documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank’s 
customers that are accepted or endorsed by the Bank.

e) 

Other items

Other items represent outstanding amount of bills rediscounted by the Bank, estimated amount of contracts 
remaining to be executed on capital account, notional principal on account of outstanding Tom/Spot foreign 
exchange  contracts  (with  effect  from  current  year),  commitments  towards  underwriting  and  investment  in 
equity  through  bids  under  Initial  Public  Offering  (IPO)  of  corporates  as  at  the  year  end,  demands  raised  by 
statutory authorities (other than income tax) and disputed by the Bank and amount transferred to Depositor 
Education and Awareness Fund (DEAF).

The Bank has a process whereby periodically all long term contracts (including derivative contracts) are assessed for 
material  foreseeable  losses.  At  the  year  end,  the  Bank  has  reviewed  and  recorded  adequate  provision  as  required 
under any law/accounting standards for material foreseeable losses on such long term contracts (including derivative 
contracts) in the books of account and disclosed the same under the relevant notes in the ﬁ nancial statements, where 
applicable.

2.2.16  Previous year ﬁ gures have been regrouped and reclassiﬁ ed, where necessary to conform to current year’s presentation.

For Axis Bank Ltd.

Sanjiv Misra
Chairman

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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125

 
 
 
 
 
 
 
 
 
 
AUDITORS’ CERTIFICATE

To 
The Members of Axis Bank Limited

We have examined the compliance of conditions of Corporate Governance by AXIS BANK LIMITED, for the year ended on 
31st March 2015, as stipulated in revised Clause 49 of the Listing Agreement of the said Bank with the stock exchange(s).

The  compliance  of  conditions  of  Corporate  Governance  is  the  responsibility  of  the  management.  Our  examination  was 
limited  to  procedures  and  implementation  thereof,  adopted  by  the  Bank  for  ensuring  the  compliance  of  the  conditions 
of the Corporate Governance. It is neither an audit nor an expression of opinion on the ﬁ nancial statements of the Bank.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Bank 
has complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreement. 

We further state that such compliance is neither an assurance as to the future viability of the Bank nor the efﬁ ciency or 
effectiveness with which the Management has conducted the affairs of the Bank.

For  S.R. BATLIBOI & CO. LLP
Chartered Accountants
ICAI Firm Registration Number : 301003E

per Viren H. Mehta
Partner
Membership No. : 048749

Date : 29th April 2015
Place: Mumbai

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CORPORATE GOVERNANCE
(Forming Part of the Directors’ Report for the year ended 31st March 2015)

1. 

Philosophy on Code of Governance

The Bank’s policy on Corporate Governance has been:

I. 

II. 

To enhance the long-term interest of its shareholders, provide good management, adopt prudent risk management 
techniques and comply with the required standards of capital adequacy, thereby safeguarding the interest of its 
other stakeholders such as depositors, creditors, customers, suppliers and employees.

To institutionalise accountability, transparency and equality of treatment for all its stakeholders, as central tenets 
of good corporate governance and to articulate this approach in its day-to-day functioning and in dealing with all 
its stakeholders.

2. 

Board of Directors 

I. 

II. 

III. 

The composition of the Board of Directors of the Bank is governed by the relevant provisions of the Companies 
Act, 2013, the Rules made thereunder, the Banking Regulation Act, 1949 and revised Clause 49 of the Listing 
Agreement relating to Corporate Governance.

The Bank’s Board has an optimum combination of executive and non-executive Directors. The Board presently 
comprises  of  13  Directors  and  it  provides  diverse  combination  of  professionalism,  knowledge,  expertise  and 
experience as required in the banking business. The Board has 7 Independent Directors constituting more than 
one-half of its total membership strength and three women Directors.

The composition of the Board also includes representatives of the Administrator of the Speciﬁ ed Undertaking of 
the Unit Trust of India (SUUTI) and the Life Insurance Corporation of India, the Bank’s promoters. The following 
members constitute the Board:

Sanjiv Misra
Shikha Sharma
K. N. Prithviraj
V. R. Kaundinya
Prasad R. Menon
Samir K. Barua
Som Mittal
Ireena Vittal
Rohit Bhagat
Usha Sangwan
S. Vishvanathan
V. Srinivasan
Sanjeev K. Gupta

Chairman, Promoter - Nominee of SUUTI
Managing Director & CEO
Promoter - Nominee of SUUTI
Independent
Independent
Independent
Independent
Independent
Independent
Promoter - Nominee of the Life Insurance Corporation of India
Independent
Executive Director and Head (Corporate Banking)
Executive Director (Corporate Centre) and Chief Financial Ofﬁ cer 

The role of the Board is to provide effective guidance and oversight to the management of the Bank so that it 
delivers enduring sustainable value, is fully compliant with extant laws and regulations and consistently functions 
in an ethical and efﬁ cient manner. The duties and responsibilities of the Board are as stipulated by the Companies 
Act,  2013  and  the  Rules  made  thereunder,  Banking  Regulation  Act,  1949,  the  Memorandum  and  Articles  of 
Association of the Bank, revised Clause 49 of the Listing Agreement and other applicable laws.

The  responsibilities  of  the  Board  include  overseeing  the  functioning  of  the  Bank,  monitoring  legal,  statutory 
compliance, internal controls and management of risks on the basis of information provided to it. The Board is 
responsible for approving the strategic direction, plans and priorities of the Bank, monitoring corporate performance 
against strategic business plans, including overseeing operating results on a regular basis to evaluate whether the 
business is being properly managed, overseeing the Bank’s Corporate Governance framework and supervising the 
succession planning process of the Bank for its Managing Director & CEO and Whole Time Directors etc.

In  all,  7  meetings  of  the  Board  were  held  during  the  year  2014-15,  i.e.  on  25th  April  2014,  26th  April  2014, 
27th June 2014, 22nd July 2014, 21st August 2014, 17th October 2014 and 16th January 2015.

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The details of the Board meetings attended by the Directors during the year 2014-15 are given below:

Name of Director

Sanjiv Misra($)
Shikha Sharma
K. N. Prithviraj
V. R. Kaundinya
S. B. Mathur(&)
Prasad R. Menon
R. N. Bhattacharyya(%)
Samir K. Barua
Som Mittal
Ireena Vittal
Rohit Bhagat
Usha Sangwan
S. Vishvanathan(#)
Somnath Sengupta(@)
V. Srinivasan
Sanjeev K. Gupta(*)

Scheduled number of 
meetings – 7
5/7 
7/7 
7/7 
7/7 
4/5 
7/7 
3/3 
7/7 
7/7 
5/7 
6/7 
6/7 
0/0 
5/5 
7/7 
2/2 

Attendance at 
20th AGM
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
No
Yes
Yes
N.A.
Yes
Yes
N.A.

$   Absent from two Board meetings due to ill-health
&   Stepped down from the Board on 30th September 2014
%   Stepped down from the Board on 28th June 2014
#   Joined the Board on 11th February 2015
@   Stepped down from the Board on 1st September 2014

*  

Joined the Board on 4th September 2014

The details of directorship, membership and chairmanship in other companies for each Director of the Bank as on 
31st March 2015, are as follows:

Name of Director

Number of Other directorship

Sanjiv Misra
Shikha Sharma
K. N. Prithviraj
V. R. Kaundinya
Prasad R. Menon
Samir K. Barua
Som Mittal
Ireena Vittal
Rohit Bhagat
S. Vishvanathan
Usha Sangwan
V. Srinivasan
Sanjeev K. Gupta

of other Indian Public 
Limited Companies
3
2
6
3
7
5
1
7
-
-
2
4
-

of other 
Companies(1)
-
-
2
2
2
-
3
1
1
-
2
2
1

Number of Committee 
memberships in other 
Companies(2)

2(1)
-
5(1)
-
3(1)
5(1)
1
6
-
-
-
3(1)
-

(1) 

(2) 

Includes foreign companies, private limited companies and Section 8 companies

Includes only memberships of the Audit Committee and Stakeholders Relationship Committee in public limited 
companies

Figures in brackets indicate number of Committee Chairmanships as per revised Clause 49 of the Listing Agreement.

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The Directors of the Bank have represented that they are in compliance with the norms relating to limit on number 
of independent directorships in other listed companies, as applicable.

The business of the Board is also conducted through the following Committees constituted by the Board to deal 
with speciﬁ c matters as per delegated powers for different functional areas of the Bank:

(a)  Committee of Directors

The Committee of Directors of the Board of Directors of the Bank exercises powers delegated to it by the 
Board relating to loans, credit policy, credit portfolio, monitoring of exposures (both credit and investment), 
expenditures,  investment,  branch  expansion,  compliance  with  the  statutory  and  regulatory  framework, 
proposals  relating  to  the  Bank’s  operations  covering  all  its  departments  and  business  segments,  and 
important issues relating to the day to day affairs of the Bank and to recommend such steps as may be 
deemed necessary for the smooth functioning of the Bank.

The Committee of Directors also exercises functions relating to all routine matters other than the strategic 
matters  and  review  of  all  policies  (other  than  strategic  policies),  like  Credit  Policy,  Investment  Policy  and 
other policies which the Committee of Directors may consider necessary or which the Reserve Bank of India 
(RBI) may speciﬁ cally require to be reviewed by the Board.

In all, 9 meetings of the Committee of Directors were held during the year 2014-15 on 5th June 2014, 26th 
June 2014, 5th August 2014, 23rd September 2014, 21st November 2014, 24th December 2014, 27th January 
2015, 27th February 2015 and 20th March 2015. The details of the Committee meetings attended by the 
Directors during the year 2014-15 are given below:

Committee members

K. N. Prithviraj, Chairman
Shikha Sharma
S. B. Mathur(&)
Prasad R. Menon
R. N. Bhattacharyya(%)
S. Vishvanathan(#)
Somnath Sengupta(@)
V. Srinivasan
Sanjeev K. Gupta($)

Scheduled number of meetings - 9

9/9
6/9
4/4
6/9
2/2
1/2
3/3
8/9
4/5

&  Stepped down from the Board on 30th September 2014

%   Stepped down from the Board on 28th June 2014

#   Joined the Committee on 11th February 2015

@   Stepped down from the Board on 1st September 2014

$  

Joined the Committee on 17th October 2014

(b)  Audit Committee

The Audit Committee of the Board of Directors of the Bank functions with the following main objectives:

i. 

ii. 

iii. 

To provide direction and to oversee the operation of the audit function.

To review the internal audit system with special emphasis on its quality and effectiveness.

To review internal and concurrent audit reports of large branches with a focus on all major areas of 
housekeeping, particularly inter-branch adjustment accounts, arrears in the balancing of the books, 
un-reconciled entries in inter-bank accounts and frauds.

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iv. 

v. 

vi. 

To discuss the matters related to frauds.

To discuss and follow up for the audit observations relating to Long Form Audit Report.

To discuss and follow up for the observations relating to Inspection Report/Risk Assessment Report of 
the RBI.

vii. 

To review the system of appointment of concurrent auditors and external auditors.

viii.  Oversight on the Bank’s ﬁ nancial reporting process and the disclosure of its ﬁ nancial information to 

ensure that the ﬁ nancial statement is correct, sufﬁ cient and credible.

ix. 

x. 

xi. 

xii. 

xiii. 

xiv. 

xv. 

xvi. 

To  recommend  to  the  Board,  the  appointment,  re-appointment,  remuneration  and  terms  of 
appointment of the auditors of the Bank.

To approve payments to statutory auditors for any other services rendered by them.

To review, with the management, the annual ﬁ nancial statements and auditor’s report thereon before 
submission to the Board for its approval with particular reference to:

• 

• 

• 

• 

• 

• 

• 

Matters required to be included in the Director’s Responsibility Statement in the Board’s report 
in terms of Section 134 (5) of the Companies Act, 2013.

Changes, if any, in accounting policies and practices, and reasons for the same.

Major  accounting  entries  involving  estimates  based  on  the  exercise  of  judgment  by  the 
management.

Signiﬁ cant adjustments made in the ﬁ nancial statements arising out of audit ﬁ ndings.

Compliance with listing and other legal requirements relating to ﬁ nancial statements.

Disclosure of any related party transactions.

Qualiﬁ cations in the draft audit report.

To review, with the management, the quarterly ﬁ nancial statements before submission to the Board 
for its approval.

To  review,  with  the  management,  the  statement  of  uses/application  of  funds  raised  through  an 
issue (public issue, rights issue, preferential issue, etc.), the statement of funds utilised for purposes 
other  than  those  stated  in  the  offer  document/prospectus/notice  and  the  report  submitted  by  the 
agency  monitoring  the  utilisation  of  proceeds  of  a  public  or  rights  issue  and  making  appropriate 
recommendations to the Board for taking steps in the matter.

To review with the management, performance and independence of statutory and internal auditors, 
adequacy of the internal control systems and effectiveness of audit process.

To obtain and review quarterly/half-yearly reports of the Compliance Ofﬁ cer appointed by the Bank, 
in terms of RBI instructions.

To review the adequacy of internal audit function, if any, including the structure of the internal audit 
department, stafﬁ ng, seniority of the ofﬁ cial heading the department, reporting structure, coverage 
and frequency of internal audit.

xvii.  To discuss with Chief Audit Executive/Internal Auditors any signiﬁ cant audit ﬁ ndings and follow up 

thereon.

xviii.  To review the ﬁ ndings of any internal investigations by the internal auditors into matters where there 
is  suspected  fraud  or  irregularity  or  a  failure  of  internal  control  systems  of  a  material  nature  and 
reporting the matter to the Board.

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xix. 

xx. 

To discuss with Statutory Auditors, before the commencement of audit, the nature and scope of audit 
as also conduct post-audit discussion to ascertain any area of concern.

To look into the reasons for substantial defaults in the payment to the depositors, debenture holders, 
shareholders (in case of non-payment of declared dividends) and creditors.

xxi. 

To review functioning of the Whistle Blower-cum-Vigil Mechanism.

xxii.  To  approve  the  appointment  of  the  Chief  Financial  Ofﬁ cer  before  ﬁ nalisation  of  the  same  by  the 
management. The Audit Committee, while approving the appointment, shall assess the qualiﬁ cations, 
experience and background, etc. of the candidate.

xxiii.  To review and note the appointment, removal and terms of remuneration of the Chief Audit Executive 

and/or any change in the incumbent Chief Audit Executive along with the reasons for such change.

xxiv.  Approval or any subsequent modiﬁ cation of transactions of the Bank with related parties.

xxv.  Scrutiny of inter-corporate loans and investments which are not in the ordinary course of business.

xxvi.  Evaluation of internal ﬁ nancial controls and risk management system.

xxvii.  Valuation of undertakings or assets of the company, wherever it is necessary.

xxviii.  Carrying out any other function as is mentioned in terms of reference of the Audit Committee.

The Committee discussed with the statutory auditors, the key highlights of the quarterly and annual ﬁ nancial 
results of the Bank, before recommending the same to the Board of Directors of the Bank for its approval.

In  all,  11  meetings  of  the  Audit  Committee  were  held  during  the  year  2014-15  on  4th  April  2014, 
25th April 2014, 26th June 2014, 22nd July 2014, 5th August 2014, 23rd September 2014, 17th October 2014, 
21st November 2014, 23rd December 2014, 15th January 2015 and 20th March 2015. The details of the Audit 
Committee meetings attended by the Directors during the year 2014-15, are given below:

Committee members

Samir K. Barua, Chairman

K. N. Prithviraj

S. B. Mathur(&)

V. R. Kaundinya

S. Vishvanathan(#)

Scheduled number of meetings - 11

11/11

11/11

6/6

10/11

0/1

&   Stepped down from the Board on 30th September 2014

#   Joined the Committee on 11th February 2015

Shri S. B. Mathur, then Chairman of the Audit Committee had attended the 20th Annual General Meeting 
of the shareholders of the Bank.

(c)   Risk Management Committee

The Risk Management Committee of the Board of Directors of the Bank functions with the following main 
objectives:

i. 

To  perform  the  role  of  risk  management  in  pursuance  of  the  Risk  Management  Guidelines  issued 
periodically by RBI and the Board.

ii. 

To oversee and advise to the Board on:

• 

• 

Deﬁ ning risk appetite, tolerance thereof and review the same, as appropriate.

Systems of risk management framework, internal control and compliance to identify, measure, 
aggregate, control and report key risks.

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• 

• 

Alignment of business strategy with the Board’s risk appetite; and

Maintenance  and  development  of  a  supportive  culture,  in  relation  to  the  management  of 
risk,  appropriately  embedded  through  procedures,  training  and  leadership  actions  so  that 
all  employees  are  alert  to  the  wider  impact  on  the  whole  organisation  of  their  actions  and 
decisions.

To advise the Board on all high level risk matters.

To obtain regular risk management reports from management which enable the Committee to assess 
the risks involved in the Bank’s business and how they are controlled and monitored by management, 
and give clear focus to current and forward-looking aspects of risk exposure.

To review the effectiveness of the Bank’s internal control and risk management framework, in relation 
to its core strategic objectives and to seek such assurance as may be appropriate.

iii. 

iv. 

v. 

vi. 

To review the Asset Liability Management (ALM) of the Bank on a regular basis.

vii. 

viii. 

ix. 

x. 

To consider any major regulatory issues that may have bearing on the risks and risk appetite of the 
Bank.

To provide to the Board with such additional assurance as it may require regarding the quality of risk 
information submitted to it.

To decide the policy and strategy for integrated risk management containing various risk exposures of 
the Bank including the credit, market, liquidity, operational and reputation risk; and

To  review  risk  return  proﬁ le  of  the  Bank,  capital  adequacy  based  on  the  risk  proﬁ le  of  the  Bank’s 
balance  sheet,  Basel  implementation,  assessment  of  Pillar  II  risk  under  Internal  Capital  Adequacy 
Assessment Process (ICAAP), business continuity plan and disaster recovery plan, key risk indicators 
and signiﬁ cant risk exposures.

In all, 4 meetings of the Risk Management Committee were held during the year 2014-15 on 4th April 2014, 
23rd July 2014, 18th October 2014 and 15th January 2015. The details of the Risk Management Committee 
meetings attended by the Directors during the year 2014-15, are given below:

Committee members

Samir K. Barua, Chairman

Sanjiv Misra

Shikha Sharma

K. N. Prithviraj

Ireena Vittal

Rohit Bhagat(#)

Scheduled number of meetings - 4

4/4

4/4

4/4

4/4

2/4

2/2

#   Joined the Committee on 21st August 2014

(d)   Stakeholders Relationship Committee (erstwhile Shareholders/Investors Grievance Committee)

The primary objective of the Stakeholders Relationship Committee of the Board of Directors of the Bank is 
to look into the redressal of grievances of security holders of the Bank, inter alia relating to non-receipt of 
dividend/interest, refund order/redemption, transfer/transmission, non-receipt of annual report and other 
grievances.

In  all,  4  meetings  of  the  Stakeholders  Relationship  Committee  were  held  during  the  year  2014-15  on 
5th June 2014, 5th August 2014, 21st November 2014 and 30th January 2015. The details of the Stakeholders 
Relationship Committee meetings attended by the Directors during the year 2014-15, are given below:

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Committee members

V. R. Kaundinya, Chairman(#)
S. B. Mathur(&)
R. N. Bhattacharyya(%)
Somnath Sengupta(@)
V. Srinivasan(#)
Sanjeev K. Gupta ($)

Scheduled number of meetings - 4

2/2
2/2
1/1
2/2
2/2
2/2

#   Joined the Committee on 1st October 2014

&   Stepped down from the Board on 30th September 2014

%   Stepped down from the Board on 28th June 2014

@   Stepped down from the Board on 1st September 2014

$  

Joined the Committee on 17th October 2014

The details of the status of the references/complaints received by the Bank and its redressal during the year 
2014-15, are given below:

Nature of Reference/Complaints
Change of Address
Bank Mandates
ECS
Nomination
Non-receipt of Share Certiﬁ cates
Clariﬁ cation for stock split Share Certiﬁ cate
Correction of names
Non-receipt of Annual Report
Request for phyiscal copy of Annual Report
SEBI
NSDL/CDSL
Stock Exchange
Receipt of dividend warrant for revalidation
Non-receipt of Dividend
Dividend  warrant  response  received  for  RUD/IEPF 
reminder letter
Transfer of Shares/Transmission & Deletion of Name

Received
543
78
323
24
20
176
12
45
133
11
0
8
267
291
607

Disposed Off
543
78
323
24
20
176
12
45
133
11
0
8
267
291
607

Pending
_
_
_
_
_
_
_
_
_
_
_
_
_
_
_

769

769

_

Shri Sanjeev Kapoor, Company Secretary, is the Compliance Ofﬁ cer for SEBI/Stock Exchange related issues.

(e)  Nomination and Remuneration Committee

Hitherto, the Bank had constituted separate committees addressing the HR/Remuneration and Nomination/
Governance process of the Bank. In view of provisions of the Companies Act, 2013 and revised Clause 49 of 
the Listing Agreement, which provided for a single Nomination & Remuneration Committee, it was decided 
to merge the HR and Remuneration Committee of the Board and the Nomination Committee of the Board 
into a single committee to be called as Nomination and Remuneration Committee of the Board of Directors. 
The said Committee was constituted with effect from 21st August 2014 to function with the following main 
objectives:

For Nomination/Governance matters

i. 

To review the structure, size, composition, diversity of the Board and make necessary recommendations 
to the Board with regard to any changes as necessary and formulation of policy thereon.

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ii. 

iii. 

iv. 

v. 

To evaluate the skills that exist and those that are absent but needed at the Board level and search for 
appropriate candidates who have the proﬁ le to provide such skill sets.

To  examine  vacancies  that  will  come  up  at  the  Board  on  account  of  retirement  or  otherwise  and 
suggest course of action.

To advise criteria for evaluation of Independent Directors and the Board and carry out evaluation of 
every directors’ performance.

To undertake a process of due diligence to determine the suitability of any person for appointment/
continuing to hold appointment as a Director on the Board, based upon qualiﬁ cation, expertise, track 
record, integrity other ‘ﬁ t and proper’ criteria, positive attributes and independence (if applicable) and 
formulate the criteria relating thereto.

vi. 

To review the composition of Committees of the Board and identify and recommend to the Board of 
Directors who can best serve as members of each Board Committee.

For Remuneration/HR matters

i. 

ii. 

iii. 

iv. 

v. 

To  review  and  recommend  to  the  Board  for  approval,  the  appointment  of  Managing  Director  & 
CEO  and  the  other  Whole  Time  Directors  of  the  Bank  and  the  overall  remuneration  framework 
and associated policy of the Bank (including remuneration policy for Directors and Key Managerial 
Personnel),  the  level  and  structure  of  ﬁ xed  pay,  variable  pay,  perquisites,  bonus  pool,  stock-based 
compensation and any other form of compensation as may be included from time to time to all the 
employees of the Bank including the Managing Director & Chief Executive Ofﬁ cer (MD & CEO), other 
Whole Time Directors and Senior Managers one level below the Board.

To review and recommend for the approval of the Board the total increase in manpower cost budget 
of the Bank at an aggregate level, for the next year.

To recommend to the Board the compensation payable to the Chairman of the Bank.

To review the Code of Conduct and HR strategy, policy and performance appraisal process within the 
Bank as well as any fundamental changes in organisation structure which could have wide ranging or 
high risk implications.

To review and recommend to the Board for approval, the talent management and succession policy 
and process in the Bank for ensuring business continuity, especially at the level of MD & CEO, the 
other Whole Time Directors, Senior Managers one level below the Board and other key roles and their 
progression to the Board.

vi. 

To review and recommend to the Board for approval:

• 

• 

The creation of new positions one level below MD & CEO

Appointments, promotions and exits of Senior Managers one level below the MD & CEO

vii. 

viii. 

ix. 

x. 

To set the goals, objectives and performance benchmarks for the Bank and for MD & CEO, the other 
Whole Time Directors for the ﬁ nancial year and over the medium to long term.

To review the performance of the MD & CEO and the other Whole Time Directors at the end of each 
year.

To review organisation health through feedback from employee surveys conducted on a regular basis.

To perform such other duties as may be required to be done under any law, statute, rules, regulations, 
etc. enacted by Government of India, Reserve Bank of India or by any other regulatory or statutory 
body.

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In all, 4 meetings of the Nomination and Remuneration Committee of the Board of Directors were held 
during the year 2014-15 on 17th October 2014, 24th December 2014, 15th January 2015 and 20th March 
2015. The details of the Committee meetings attended by the Directors during the year 2014-15, are given 
below:

Committee members

Prasad R. Menon, Chairman

K. N. Prithiviraj

V. R. Kaundinya

Samir K. Barua

Scheduled number of meetings - 4

4/4

4/4

4/4

4/4

In all, 4 meetings of erstwhile HR and Remuneration Committee of the Board of Directors were held during 
the year 2014-15 on 4th April 2014, 25th April 2014, 10th June 2014 and 26th June 2014. The details of the 
Committee meetings attended by the Directors during the year 2014-15, are given below:

Committee members

Prasad R. Menon, Chairman

K. N. Prithiviraj

V. R. Kaundinya

Samir K. Barua

Scheduled number of meetings - 4

4/4

4/4

4/4

3/4

In all, 4 meetings of erstwhile Nomination Committee of the Board of Directors were held during the year 
2014-15 on 25th April 2014, 27th June 2014, 6th August 2014 and 21st August 2014. The details of the 
Committee meetings attended by the Directors during the year 2014-15, are given below:

Committee members

S. B. Mathur, Chairman

V. R. Kaundinya

Samir K. Barua

Scheduled number of meetings - 4

4/4

4/4

4/4

Shri S. B. Mathur, then Chairman of the Nomination Committee attended the 20th Annual General Meeting 
of the Shareholders of the Bank.

(f)   Special Committee of the Board of Directors for Monitoring of Large Value Frauds

The  major  functions  of  the  Special  Committee  of  the  Board  of  Directors  for  Monitoring  of  Large  Value 
Frauds of the Bank are to monitor and review all the frauds of `1 crore and above, so as to:

i. 

ii. 

iii. 

iv. 

v. 

vi. 

To identify the systemic lacunae, if any, which facilitated perpetration of the fraud and put in place 
measures to plug the same.

To identify the reasons for delay, if any, in detection and reporting of frauds to top management of 
the Bank and RBI.

To monitor progress of CBI/Police investigation and recovery position.

To ensure that staff accountability is examined at all levels in all the cases of frauds and staff related 
action, if required, is completed quickly without loss of time.

To  review  the  efﬁ cacy  of  the  remedial  action  taken  to  prevent  recurrence  of  frauds,  such  as, 
strengthening of internal controls, and

To  put  in  place  other  measures  as  may  be  considered  relevant  to  strengthen  preventive  measures 
against frauds.

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In all, 4 meetings of Special Committee of the Board of Directors for Monitoring of Large Value Frauds were 
held during the year 2014-15 on 26th June 2014, 23rd September 2014, 24th December 2014 and 19th March 
2015. The details of the Committee meetings attended by the Directors during the year 2014-15, are given 
below:

Committee members

Shikha Sharma, Chairperson

V. R. Kaundinya

R. N. Bhattacharyya(&)

Samir K. Barua

Usha Sangwan(#)

Sanjeev K. Gupta($)

Scheduled number of meetings - 4

3/4

3/4

1/1

4/4

0/3

2/2

&   Stepped down from the Board on 28th June 2014

#   Joined the Committee on 21st August 2014

$   Joined the Committee on 17th October 2014

(g)   Customer Service Committee

The Customer Service Committee of the Board of Directors of the Bank functions with the following main 
objectives:

i. 

ii. 

iii. 

iv. 

v. 

vi. 

To oversee the functioning of the Bank’s internal committee set-up for customer service.

To review the level of customer service in the Bank including customer complaints and the nature of 
their resolution.

To provide guidance in improving the customer service level.

To  review  any  award  by  the  Banking  Ombudsman  to  any  customer  on  a  complaint  ﬁ led  with  the 
Ombudsman.

To ensure that the Bank provides and continues to provide, best-in-class service across all its category 
of customers which will help the Bank in protecting and growing its brand equity.

The Committee could address the formulation of a Comprehensive Deposit Policy, incorporating the 
issues such as the treatment of death of a depositor for operations of his/her account, the product 
approval process, the annual survey of depositor satisfaction and the triennial audit of such services.

vii. 

To examine any other issues having a bearing on the quality of customer service rendered.

viii. 

To  ensure  implementation  of  directives  received  from  RBI  with  respect  to  rendering  services  to 
customers of the Bank.

In all, 4 meetings of the Customer Service Committee of the Board of Directors were held during the year 
2014-15 on 26th June 2014, 22nd July 2014, 17th October 2014 and 23rd February 2015. The details of the 
Committee meetings attended by the Directors during the year 2014-15, are given below:

Committee members

Ireena Vittal, Chairperson

Sanjiv Misra(&)

Shikha Sharma

Samir K. Barua

Scheduled number of meetings - 4

3/4

3/3

4/4

4/4

&   Stepped down from the Committee on 11th February 2015

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(h)   Committee of Whole-Time Directors

The Committee of Whole-Time Directors of the Board of Directors of the Bank exercises powers delegated to 
it by the Board, for managing the affairs of the Bank, to review and exercising control of various operational 
areas such as treasury, branch banking etc., and for ensuring speedy disposal of matters requiring immediate 
approval.

The Committee comprises of all the Whole-Time Directors of the Bank.

(i)   Acquisitions, Divestments and Mergers Committee

The  main  function  of  the  Acquisitions,  Divestments  and  Mergers  Committee  of  the  Board  of  Directors 
of the Bank is to discuss and consider any idea or proposal for merger and acquisition. This Committee 
will  consider  and  give  its  in-principle  approval  for  acquisition  of  greater  than  25%  stake  in  a  company, 
acquisition of stake in a company where the proportion is 25% or lower but where the Bank intends to 
have management participation, strategic divestments - sale of an existing business of the Bank, acquisition 
of business – business takeover/acquisition as distinct from portfolio or asset purchase and sale of stake 
(including minority stake) in strategic investments/ subsidiaries.

One meeting of the Acquisitions, Divestments and Mergers Committee was held during the year 2014-15 
on 24th December 2014. The details of the Committee meeting attended by the Directors during the year 
2014-15, are given below:

Committee members

Prasad R. Menon, Chairman

Shikha Sharma

K. N. Prithviraj

Ireena Vittal

(j)  

IT Strategy Committee

Scheduled number of meetings - 1

1/1

0/1

1/1

0/1

The  IT  Strategy  Committee  of  the  Board  of  Directors  of  the  Bank  functions  with  the  following  main 
objectives:

i. 

ii. 

iii. 

iv. 

v. 

vi. 

To approve IT strategy and policies.

To ensure that management has an effective strategic planning process in place.

To ensure that the business strategy is aligned with the IT strategy.

To ensure that the IT organizational structure serves business requirements and direction.

Oversight over implementation of processes and practices that ensures IT delivers value to businesses.

To  monitor  the  method  that  management  uses  to  determine  the  IT  resources  needed  to  achieve 
strategic goals and provide high-level direction for sourcing, and use of IT resources.

vii. 

To ensure proper balance of IT investments for sustaining the Bank’s growth.

viii. 

To  assess  exposure  to  IT  risks  and  its  controls,  and  evaluating  effectiveness  of  management’s 
monitoring of IT risks.

ix. 

To assess management’s performance in implementing IT strategies.

x. 

To assess if IT architecture has been designed to derive maximum business value.

xi. 

To review IT performance measurement and contribution to businesses.

xii. 

To approve capital and revenue expenditure in respect of IT procurements.

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In all, 4 meetings of IT Strategy Committee of the Board of Directors were held during the year 2014-15 
on 10th June 2014, 16th September 2014, 22nd December 2014 and 31st March 2015. The details of the 
Committee meetings attended by the Directors during the year 2014-15, are given below:

Committee members

Som Mittal, Chairman(&)
Shikha Sharma
Prasad R. Menon
Somnath Sengupta($)
Sanjeev K. Gupta (%)

Scheduled number of meetings - 4

4/4
2/4
4/4
1/1
2/2

&   attended meeting through video conferencing

$   Stepped down from the Board on 1st September 2014

%   Joined the Committee on 17th October 2014

(k)   Corporate Social Responsibility Committee

The main functions of the Corporate Social Responsibility Committee of the Board of Directors of the Bank 
are as follows:

i. 

ii. 

iii. 

iv. 

v. 

vi. 

To formulate and recommend to the Board, the Corporate Social Responsibility (CSR) strategy of the 
Bank including the CSR Policy and its implementation such that the Bank’s social, environmental and 
economic activities are aligned.

To formulate and recommend to the Board, the CSR activities to be undertaken by the Bank either 
directly or through Axis Bank Foundation and determining the CSR projects/programmes which the 
Bank plans to undertake during the year of implementation, specifying modalities of execution in the 
areas/sectors chosen and implementation schedules for the same.

To recommend the amount of expenditure to be incurred on the CSR activities.

To  review  and  monitor  the  compliance  of  initiatives  undertaken  and  evaluate  performance  of  the 
activities against the agreed targets.

To conduct an impact-assessment of the various initiatives undertaken in terms of the CSR Policy at 
periodic intervals.

To  institute  a  transparent  monitoring  mechanism  for  ensuring  implementation  of  the  projects/
programmes/activities proposed to be undertaken by the Bank.

vii. 

To review and recommend the annual CSR report for the Board’s approval and for public disclosure.

viii. 

To perform such other duties with respect to CSR activities, as may be required to be done under any 
law, statute, rules, regulations etc. enacted by Government of India, Reserve Bank of India or by any 
other regulatory or statutory body.

The details of the CSR activities undertaken by the Bank during the year under review have been provided 
elsewhere in this Annual Report.

In all, 2 meetings of Corporate Social Responsibility Committee of the Board of Directors were held during 
the  year  2014-15  on  26th  June  2014  and  22nd  December  2014.  The  details  of  the  Committee  meetings 
attended by the Directors during the year 2014-15, are given below:

Committee members

Scheduled number of meetings - 2

Som Mittal, Chairman
Somnath Sengupta(&)
Usha Sangwan
V. Srinivasan ($)
&   Stepped down from the Board on 1st September 2014

$   Joined the Committee on 21st August 2014

2/2
1/1
1/2
0/1

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(l)   Grievance Redressal Committee

The Grievance Redressal Committee of the Board of Directors of the Bank functions with the following main 
objectives:

i. 

ii. 

To review and conﬁ rm the decisions of Committee headed by Executive Director, classifying a borrower 
as Willful Defaulter.

To review and conﬁ rm the decisions of Committee headed by Executive Director, classifying a borrower 
as Non-cooperative borrower.

The  Board  has  constituted  a  Grievance  Redressal  Committee  which  comprises  of  Smt.  Shikha  Sharma, 
Shri V. R. Kaundinya and Shri S. Vishvanathan. Smt. Shikha Sharma, MD & CEO is the Chairperson of the 
Committee.

No meeting of the Committee was held during the year.

Meeting of Independent Directors

The Independent Directors of the Bank met on 31st March 2015 without the presence of the MD & CEO, the 
Whole-time Directors, the non-independent Directors and the Management Team of the Bank. 5 out of the 7 
Independent Directors attended the said meeting in person, while two Independent Directors participated through 
video conference. The Independent Directors discussed the matters as required under the relevant provisions of 
the Companies Act, 2013 and revised Clause 49 of the Listing Agreement and conveyed their views to the Board 
of Directors of the Bank.

Remuneration Policy

The compensation philosophy of the Bank aims to attract, retain and motivate professionals in order to enable the 
Bank to attain its strategic objectives and develop a strong performance culture in the competitive environment 
in which it operates. To achieve this, the Bank follows the principles of competitiveness in the talent market, pay 
for job through ﬁ xed pay, pay for performance to drive meritocracy through variable pay, employee stock options 
for  long-term  value  creation  and  aligning  the  beneﬁ ts  and  perquisites  with  market  practices  and  affordability. 
The  compensation  structure  for  the  MD  &  CEO,  Whole-Time  Directors  (WTDs)  and  employees  at  the  level  of 
Vice President and above in Risk Control and Compliance functions of the Bank, is aligned to RBI’s guidelines for 
sound compensation practices. It addresses the general principles of effective and independent governance and 
monitoring  of  compensation,  alignment  of  compensation  with  prudence  in  risk-taking  through  well  designed 
and consistent compensation structures and clear and timely disclosure for facilitating supervisory oversight by all 
stakeholders.

Remuneration of Directors

i. 

Dr.  Sanjiv  Misra  was  appointed  as  Non-Executive  Chairman  of  the  Bank  for  a  period  of  three  years 
w.e.f. 8th March 2013. The details of remuneration of Dr. Sanjiv Misra during the year under review are:

Salary of `25 lacs per annum. The Bank has received approval of RBI and of the shareholders for payment 
of the said salary to Dr. Sanjiv Misra.

ii. 

Smt. Shikha Sharma was re-appointed as the MD & CEO of the Bank for a period of three years w.e.f. 1st June 
2012. During the year, the Bank has made an application to RBI for re-appointment of Smt. Shikha Sharma 
as MD & CEO of the Bank for a further period of three years w.e.f 1st June 2015. The said re-appointment is 
subject to the approval of RBI and shareholders of the Bank. The details of remuneration paid to Smt. Shikha 
Sharma during the year under review are given below in sub-para viii.

Smt.  Shikha  Sharma  was  granted  55,00,000  options,  under  various  tranches  under  the  Employee  Stock 
Option Plan. From the above, 32,75,000 options were vested, out of which 13,25,000 options have been 
exercised up to 31st March 2015 and balance 19,50,000 options remain unexercised. 22,25,000 options 
have not been vested as on 31st March 2015.

iii. 

Shri Somnath Sengupta was appointed as the Executive Director of the Bank and he took charge with effect 
from 15th October 2012. The term of Shri Somnath Sengupta was up to 31st May 2015, the last day of the 
month in which he would reach the age of superannuation. Shri Somnath Sengupta retired as the Executive 

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Director of the Bank with effect from 1st September 2014. The details of remuneration paid to Shri Somnath 
Sengupta during the year under review are given below in sub-para viii.

Shri Somnath Sengupta was granted 30,19,400 options, under various tranches under the Employee Stock 
Option Plan. From the above, 19,99,400 options were vested, out of which 10,79,400 options have been 
exercised up to 1st September 2014 and balance 9,20,000 options remain unexercised. 10,20,000 options 
were unvested as on 1st September 2014.

iv. 

Shri  V.  Srinivasan  was  appointed  as  the  Executive  Director  of  the  Bank  and  he  took  charge  with 
effect  from  15th  October  2012.  The  term  of  Shri  V.  Srinivasan  is  for  a  period  of  three  years  i.e.  up  to 
14th October 2015. The details of remuneration paid to Shri V. Srinivasan during the year under review are 
given below in sub-para viii.

Shri V. Srinivasan was granted 25,75,000 options, under various tranches under the Employee Stock Option 
Plan. From the above, 14,30,000 options were vested, out of which 4,87,500 options have been exercised 
up to 31st March 2015 and balance 9,42,500 options remain unexercised. 11,45,000 options have not been 
vested as on 31st March 2015.

v. 

Shri Sanjeev K. Gupta was appointed as the Executive Director of the Bank and he took charge with effect 
from  4th  September  2014.  The  term  of  Shri  Sanjeev  K.  Gupta  is  for  a  period  of  three  years  i.e.  up  to 
3rd September 2017. The details of remuneration paid to Shri Sanjeev K. Gupta during the year under review 
are given below in sub-para viii.

Shri Sanjeev K. Gupta was granted 12,40,250 options, under various tranches under the Employee Stock 
Option  Plan.  From  these  tranches,  8,55,250  options  were  vested,  out  of  which  6,05,250  options  were 
exercised up to 31st March 2015 and balance 2,50,000 options were unexercised. 3,85,000 options have 
not been vested as on 31st March 2015.

vi. 

The Bank does not grant Stock Options to its non Whole-Time Directors. Further, the Bank does not pay any 
remuneration, other than sitting fees to its non Whole-Time Directors.

vii. 

The Whole-Time Directors of the Bank are not entitled to any remuneration from its subsidiary companies.

viii. 

The details of remuneration paid to the Whole-Time Directors of the Bank during the year 2014-15 are as 
under:

(in `)

For the Period

Salary (Basic)
Fixed Allowance
Leave Fare Concession facility
House Rent Allowance
Variable pay
Medical
Utility Reimbursement
Superannuation/ Allowance

Provident Fund

Gratuity

1.4.2014 to 
31.3.2015
1,54,66,320
-
5,49,996
7,22,042
42,63,801
56,481
4,37,492

Smt. Shikha 
Sharma
1.4.2014 to 
31.3.2015
2,21,71,080
-
12,26,500
74,05,290
67,53,265
78,999
-
10% of Basic 
Pay

Shri Somnath 
Sengupta
1.4.2014 to 
1.9.2014
56,25,723
-
2,29,165
-
64,57,013
1,84,071
55,000
10% of Basic 
Pay

Shri V. Srinivasan  Shri Sanjeev K. 
Gupta
4.9.2014 to 
31.3.2015
51,37,858
27,322
3,18,950
19,55,302
-
69,637
11,230
10% of Basic 
Pay
12% of basic pay with equal contribution by the Bank or as may be 
decided upon by the Board/Trustees, from time to time
One month’s salary for each completed year of service or part thereof 
(on pro-rata basis)

15,46,632

Perquisites (evaluated as per Income Tax Rules, 1962 wherever applicable, or otherwise at actual cost to the 
Bank) such as the beneﬁ t of the Bank’s furnished accommodation, electricity, water and furnishings, club 
fees, personal accident insurance, loans, use of car and telephone at residence, leave encashment, medical 

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reimbursement, travelling and halting allowances, newspapers and periodicals, and others were provided in 
accordance with the Rules of the Bank. The Bank does not pay any severance fees to its Managing Director 
or its Whole Time Directors.

ix. 

All the non Whole-Time Directors of the Bank were paid sitting fees of `20,000 for every meeting of the 
Board and also for every meeting of the Committees of Board of Directors attended by them. However, with 
effect from 1st July 2014, the sitting fees paid to the non Whole-Time Directors for attending every meeting 
of the Board was revised to `1,00,000 and for attending every meeting of the Committees of Board of 
Directors was revised to `50,000. During the year 2014-15, an amount aggregating to `1,01,06,000 was 
paid to the non Whole-Time Directors of the Bank, towards sittings fees, detailed as under.

Name of Director

Dr. Sanjiv Misra

Shri K. N. Prithviraj

Shri V. R. Kaundinya

Shri S. B. Mathur

Shri Prasad R. Menon

Shri R N Bhattacharyya

Prof. Samir K. Barua

Shri Som Mittal

Smt. Ireena Vittal

Shri Rohit Bhagat

Smt. Usha Sangwan

Shri S. Vishvanathan

TOTAL

Sitting Fees (`)

7,10,000

18,10,000

15,60,000

8,00,000

12,30,000

1,40,000

18,30,000

7,00,000

5,60,000

4,60,000

3,10,000

50,000

1,01,60,000

None  of  the  non  Whole-Time  Directors  of  the  Bank  hold  any  equity  shares  of  the  Bank  as  on 
31st March 2015, except Shri V. R. Kaundinya, who holds 5,000 equity shares of `2 each of the Bank.

Evaluation of the Board’s Performance

Pursuant to the provisions of the Companies Act, 2013 and revised Clause 49 of the Listing Agreement, the 
Board had adopted a formal mechanism for evaluating the performance of its Committees, Independent 
Directors,  Non  Independent  Directors  including  Chairman  of  the  Board.  A  structured  questionnaire  was 
prepared  after  taking  into  consideration  inter-alia  the  inputs  received  from  the  Directors.  The  structured 
questionnaire covered various aspects of the Board’s functioning such as strategic alignment and direction, 
engagement alignment, composition and structure, dynamics and culture, ethical leadership and corporate 
citizenship, support to the Board, Committees evaluation and self-evaluation etc.

The performance evaluation of individual Directors including Chairman of the Board was done in accordance 
with the provisions of the Companies Act, 2013 and revised Clause 49 of the Listing Agreement and also 
based on the structured questionnaire mentioned above.

Familiarisation Program for Directors

The Bank has conducted the familiarisation programme for all its Directors covering the matters as speciﬁ ed 
under revised Clause 49 of the Listing Agreement, details of which has been hosted on the website of the 
Bank at http://www.axisbank.com/investor-corner/corporate-governance.aspx

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141

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disclosure in terms of The Sexual Harassment of Women at Workplace (Prevention, Prohibition 
and Redressal) Act, 2013

The Bank takes all necessary measures to ensure a harassment-free workplace and has instituted an Internal 
Complaints  Committee  for  redressal  of  complaints  and  to  prevent  sexual  harassment.  During  the  year, 
the Bank has received 34 complaints relating to sexual harassment out of which 28 complaints have been 
disposed off and balance 6 complaints are being investigated.

Whistleblower Policy & Vigil Mechanism

A central tenet in the Bank’s Policy on Corporate Governance is commitment to ethics, integrity, accountability 
and transparency. To ensure that the highest standards are maintained in these aspects on an on-going basis 
and  to  provide  safeguards  to  various  stakeholders,  the  Bank  has  formulated  a  Whistleblower  Policy  and 
Vigil Mechanism which is in compliance with the relevant provisions of Section 177 of the Companies Act, 
2013 and revised Clause 49 (II)(F) of the Listing Agreement. The Policy provides an opportunity to address 
serious concerns arising from irregularities, malpractices and other misdemeanors committed by the Bank’s 
personnel by approaching a Committee set-up for the purpose (known as the Whistleblower Committee). 
In case, Senior Management commits an offence, the Policy enables the Bank’s staff to report the concerns 
directly to the Audit Committee of the Board. The Policy is intended to encourage reporting of suspected or 
actual occurrence of illegal, unethical or inappropriate actions, behaviour or practices by staff without fear 
of retribution. This Policy can be used regularly as a tool to voice concerns on irregularities, malpractices 
and  other  misdemeanors.  To  ensure  smooth  ﬂ ow  and  management  of  complaints  under  Whistleblower 
Policy, a web-based application - ‘Corporate Whistleblower’ has been set up which also provides an option 
for  anonymous  reporting  thereby  enabling  lodging  of  complaints  online  over  a  secure  platform  without 
fear of revelation of identity. This would create a business culture of honesty, integrity and compliance and 
would encourage speaking up so that preventive action is initiated. It is hereby afﬁ rmed that the Bank has 
not denied any of its personnel access to the Audit Committee of the Board and that the Policy contains 
adequate  provisions  protecting  Whistleblowers  from  unfair  termination  and  other  unfair  prejudicial  and 
employment practices. The Audit Committee of the Board reviews, on a quarterly basis, a synopsis of the 
complaints received and the resolution thereof under the said Policy.

The  details  of  the  Whistleblower  Policy  and  Vigil  Mechanism  are  available  on  the  Bank’s  website  at 
http://www.axisbank.com/code-commitment-customers.aspx

Subsidiary Companies

The Bank does not have any unlisted Indian subsidiary company which could be deemed to be material  
subsidiaries in terms of Explanation (i) to revised Clause 49 (V) of the Listing Agreement. Further, the minutes 
of the meetings of the unlisted subsidiary companies of the Bank were tabled at the meetings of the Board 
of Directors of the Bank for its review, Statement of signiﬁ cant transactions/arrangements entered into by 
the unlisted subsidiary companies were also tabled at the meetings of the Board of Directors of the Bank for 
its review.

Policy for determining ‘Material’ Subsidiaries

As required under revised Clause 49(V)(D) of the Listing Agreement, the Bank has formulated and adopted a 
Policy for Determining ‘Material’ Subsidiaries, which has been hosted on its website at http://www.axisbank.
com/download/Policy-for-determining-material-subsidiary.pdf

Policy for Related Party Transactions

As required under revised Clause 49(VIII) of the Listing Agreement, the Bank has formulated and adopted 
a Policy on dealing with Related Party Transactions, which has been hosted on its website at http://www.
axisbank.com/download/Policy-on-Related-Party-Transactions.pdf  and  details  thereof  have  been  disclosed 
in the Annual Report.

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3.   General Body Meetings

The last three Annual General Meetings of the Members of the Bank were held as follows:

Annual General 
Meeting

Date and Day

Time

Location

18th

19th

20th

22.06.2012 - Friday

10.00 a.m.

19.07.2013 - Friday

10.00 a.m.

27.06.2014 - Friday

10.00 a.m.

J. B. Auditorium, Ahmedabad
Management Association, AMA Complex, ATIRA,
Dr. Vikram Sarabhai Marg, Ahmedabad-380 015

J. B. Auditorium, Ahmedabad
Management Association, AMA Complex, ATIRA,
Dr. Vikram Sarabhai Marg, Ahmedabad-380 015

J. B. Auditorium, Ahmedabad
Management Association, AMA Complex, ATIRA,
Dr. Vikram Sarabhai Marg, Ahmedabad-380 015

The special resolutions passed during the last three Annual General Meetings/by way of Postal Ballot were as under:

Annual General 
Meeting

Date of Annual 
General Meeting

Special Resolutions

18th

22.06.2012

• Resolution  No.  5  -  Appointment  of  Statutory  Auditors  of  the  Bank 

under Section 224A of the Companies Act, 1956.

Resolution passed 
through Postal Ballot

Date of Scrutinizer’s 
Report – 28.01.2013

• Special Resolution for alteration of Articles of Association of the Bank 
relating  to  increase  in  the  authorised  share  capital  of  the  Bank  from 
`500 crores to `850 crores.

19th

19.07.2013

• Resolution  No.  6  -  Appointment  of  Statutory  Auditors  of  the  Bank 

• Special Resolution for raising of Tier I Capital.

20th

27.06.2014

under Section 224A of the Companies Act, 1956.

• Resolution No. 14  -  Approval of the shareholders of the Bank pursuant 
to  Section  81  of  the  Companies  Act,  1956  authorising  the  Board  of 
Directors  of  the  Bank  to  issue,  offer  and  allot  equity  stock  options 
under the Employees Stock Option Scheme of the Bank.

• Resolution  No.11  -  Approval  of  the  shareholders  of  the  Bank  for 
amendment  in  the  exercise  period  from  3  years  to  5  years  from  the 
date  of  vesting  of  options,  in  respect  of  options  granted  with  effect 
from April, 2014.

• Resolution No.12 - Approval of the Shareholders of the Bank authorising 
the Board of Directors of the Bank to borrow money within the limit of 
`1,00,000 crores.

• Resolution No.13  - Special Resolution for raising Tier I and Tier II Capital 

and raising capital under MTN Programme.

• Resolution  No.16  -  Special  Resolution  for  alteration  of  Articles  of 
Association  of  the  Bank  relating  to  increase  in  the  authorised  share 
capital of the Bank and sub-division of the equity shares of the Bank.

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Resolutions passed by way of Postal Ballot

1. 

The  Bank  had  sought  the  approval  of  the  Members  through  Postal  Ballot  (which  included  electronic  voting) 
in  respect  of  the  Special  Resolution  under  Section  42  of  the  Companies  Act,  2013,  for  issue  of  Long  Term 
Bonds/Non-convertible Debentures on a private placement basis. The result of the Postal Ballot was declared on 
10th October 2014.

The  Bank  had  appointed  Shri  Atul  Mehta/Smt.  Dipti  Mehta,  Partners,  (Mehta  &  Mehta),  Company  Secretaries 
(Membership  No.  P1996MH007500)  as  the  Scrutinizers  for  conducting  the  Postal  Ballot  process  in  a  fair  and 
transparent manner. The Postal Ballot exercise was conducted in accordance with the provisions of Section 110 of 
the Companies Act, 2013 read with Rule 22 of the Companies (Management & Administration) Rules, 2014. The 
summary of the results in respect of the said Special Resolution passed by way of Postal Ballot, are as under:

No. of votes in favour

No. of votes against

% of votes in favour

% of votes against

1,55,87,92,943

23,83,457

99.85

0.15

2. 

The Bank had sought the approval of the Members through Postal Ballot (which included electronic voting) in 
respect  of  the  ordinary  resolutions  for  appointment  of  Independent  Directors  in  terms  of  Section  149  of  the 
Companies Act, 2013 and a special resolution under Section 42 of the Companies Act, 2013, for issuance of Long 
Term Bonds/Non-Convertible Debentures on a private placement basis, detailed as under:

Resolution 
No.

Resolution

Ordinary/Special

1

2

3

4

5

6

7

Appointment of Shri V. R. Kaundinya as an Independent Director

Ordinary Resolution

Appointment of Shri Prasad R. Menon as an Independent Director

Ordinary Resolution

Appointment of Prof. Samir K. Barua as an Independent Director

Ordinary Resolution

Appointment of Shri Som Mittal as an Independent Director

Ordinary Resolution

Appointment of Smt. Ireena Vittal as an Independent Director

Ordinary Resolution

Appointment of Shri Rohit Bhagat as an Independent Director

Ordinary Resolution

Issue of Long Term Bonds/Non-convertible Debentures on a private 
placement basis

Special Resolution

The  result  of  the  Postal  Ballot  was  declared  on  10th  March  2015.  The  Bank  had  appointed  Shri  Atul  Mehta/
Smt.  Dipti  Mehta/Shri  Anshul  Kumar  Jain,  Partners,  (Mehta  &  Mehta),  Company  Secretaries  (Membership  No. 
P1996MH007500) as the Scrutinizers for conducting the Postal Ballot process in a fair and transparent manner. 
The Postal Ballot exercise was conducted in accordance with the provisions of Section 110 of the Companies Act, 
2013 read with Rule 22 of the Companies (Management & Administration) Rules, 2014. The summary of results 
in respect of the said Ordinary/Special Resolutions passed by way of Postal Ballot, are as under:

Resolution No.

No. of votes in favour No. of votes against

% of votes in 
favour

% of votes 
against

1

2

3

4

5

6

7

1,61,31,39,005

1,61,31,67,565

1,61,31,68,562

1,25,15,41,846

1,60,83,69,295

1,61,31,41,445

1,61,88,25,394

76,71,525

76,71,080

76,65,753

41,25,81,151

1,23,19,401

76,70,555

25,76,343

99.53%

99.53%

99.53%

75.21%

99.24%

99.53%

99.84%

0.47%

0.47%

0.47%

24.79%

0.76%

0.47%

0.16%

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4.   Dividend History of Last Five Years

Sr. No.

Financial Year

Rate of Dividend

i.

ii.

iii.

iv.

v.

2009-10

2010-11

2011-12

2012-13

2013-14 

120% (`12.00 per share)

140% (`14.00 per share)

160% (`16.00 per share)

180% (`18.00 per share)

200% (`20.00 per share)

Date of Declaration
(AGM)

Date of Payment 
(Date of Dividend 
Warrant)

 8.6.2010

17.6.2011

22.6.2012

19.7.2013

27.6.2014

9.6.2010

18.6.2011

23.6.2012

20.7.2013

28.6.2014

The above rate of dividend was for the face value of `10 each. Pursuant to sub-division, one equity share of the Bank 
having a face value of `10 each has been sub-divided into ﬁ ve equity shares of the Bank having a face value of `2 each.

Unclaimed Dividends

All those shareholders of the Bank whose dividends are lying unclaimed have been intimated individually to claim their 
dividends.  In  terms  of  Section  205C  of  the  Companies  Act,  1956,  the  concerned  shareholder  would  not  be  able  to 
claim the dividend amount after it is transferred to the Investors’ Education & Protection Fund (IEPF) administered by the 
Central Government. Accordingly, the concerned shareholders of the Bank have been requested to claim their dividend, 
failing which no further claim shall lay against the Bank or the IEPF after the said transfer.

Transfer to Investor Education and Protection Fund

Pursuant to Section 205C of the Companies Act, 1956, dividends that are lying unclaimed for a period of seven years 
are required to be transferred to the IEPF administered by the Central Government. Listed below are the dates on which 
the dividends were declared and paid by the Bank since the ﬁ nancial year 2007-08 and the corresponding dates when 
the unclaimed dividends are due for transfer to the IEPF.

Year

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

5.   Disclosures

Dividend-Type

Date of Declaration

Due Date of Transfer

Final

Final

Final

Final

Final

Final

Final

6.6.2008

1.6.2009

8.6.2010

17.6.2011

22.6.2012

19.7.2013

27.6.2014

6.7.2015

1.7.2016

8.7.2017

17.7.2018

22.7.2019

19.8.2020

27.7.2021

• 

• 

• 

There were no transactions which were of a materially signiﬁ cant nature undertaken by the Bank with its promoters, 
directors or management, their subsidiaries or relatives that may have a potential conﬂ ict with the interests of the 
Bank.

The Members of the Senior Management of the Bank have afﬁ rmed that they have not entered into any material 
ﬁ nancial or commercial transaction where they have personal interest and which may potentially conﬂ ict with the 
interest of the Bank at large.

There are no instances of non-compliance by the Bank or penalties and strictures imposed by the Stock Exchanges 
or SEBI or other statutory authorities on any matter related to capital markets during the last three years other than 
the following:

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i. 

ii. 

iii. 

iv. 

v. 

During the ﬁ nancial year 2012-13, there were 2 instances wherein penalty of `150 and `50 was imposed by 
National Securities Depository Limited (NSDL) on the Bank for data entry errors while capturing PAN details 
in demat accounts in NSDL system.

The inspection of depository services CDSL & NSDL was conducted by Securities and Exchange Board of India 
(SEBI) in June, 2012. Subsequently, SEBI vide their letter dated 6th November 2012 had issued administrative 
warning to the Bank for delay in redressal of investor grievances and for submitting wrong information in 
reply to pre-inspection questionnaire.

SEBI  (through  its  Adjudicating  Ofﬁ cer)  vide  its  letter  reference  no.  EAD-5/PG/SPV/22106/2012  dated 
3rd  October  2012  had  issued  a  notice  to  the  Bank  informing  that  the  Adjudicating  Ofﬁ cer  had  been 
appointed to inquire into and adjudge under Sections 15G and 15HB of the SEBI Act, the alleged violation 
of various provisions of SEBI (Prohibition of Insider Trading) Regulations, 1992, SEBI (Substantial Acquisition 
of Shares and Takeovers) Regulations, 1997, the SEBI (Merchant Bankers) Regulations, 1992, while acting 
as the Manager to the open offers of KSK Energy Ventures Limited and Bombay Rayon Fashions Limited. 
The Bank had submitted its preliminary response to the Show cause Notice on 11th January 2013, wherein 
it had refuted the various violation charges levelled against it. In the personal hearing held on 5th February 
2013 before the Adjudicating Ofﬁ cer, the Bank had once again reiterated its above stand. The Adjudicating 
Ofﬁ cer,  vide  his  Order  dated  28th  March  2013,  indicated  that  no  charges  were  established  under  SEBI 
(Substantial Acquisition of Shares and Takeovers) Regulations, 1997. No penalty was levied on the Bank.

National Securities Clearing Corporation Limited (NSCCL) had levied a penalty of `40,507.81 in September 
2012 on account of short reporting of margin in currency segment of NSE.

The  inspection  of  depository  services  (CDSL  &  NSDL)  was  conducted  by  Securities  and  Exchange  Board 
of India (SEBI) in September, 2013. Subsequently, SEBI vide their letter dated 7th March 2014 had issued 
administrative warning to the Bank in respect of four instances where the date of execution of power of 
attorney (PoA) was one day prior to the account activation date as per DPM system and certain clauses of 
the PoA were not consistent with SEBI circulars on PoA.

6.  

Compliance

• 

• 

• 

The Bank has complied with the mandatory requirements regarding the Board of Directors, Audit Committee, 
other Board Committees and other provisions as prescribed under revised Clause 49 of the Listing Agreement.

The Bank has also adopted and complied with the non-mandatory requirements like maintenance of Chairman’s 
Ofﬁ ce  by  Non-executive  Chairman  at  the  Bank’s  expense  and  reimbursement  of  expenses  incurred  by  Non-
executive Chairman in performance of his duties, moving towards a regime of unqualiﬁ ed ﬁ nancial statements, 
appointing separate individuals to the post of Chairman and Managing Director, and reporting by the Internal 
Auditor directly to the Audit Committee of the Board of Directors.

The Bank has obtained a certiﬁ cate from M/s S. R. Batliboi & Co. LLP, Chartered Accountants, Mumbai (Membership 
No.  301003E)  conﬁ rming  that  the  Bank  has  complied  with  the  mandatory  requirements  as  stipulated  under 
revised Clause 49 of the Listing Agreement. The said certiﬁ cate is annexed to the Director’s Report.

7.  

Code of Conduct

• 

• 

The Board of Directors of the Bank has formulated and adopted a Code of Conduct which is applicable to all the 
Directors and Members of the Senior Management of the Bank. The said Code has been hosted on the website 
of the Bank.

A certiﬁ cate issued by the Managing Director & CEO of the Bank conﬁ rming that all the Directors and Members 
of the Senior Management of the Bank have complied with the said Code is annexed to this Report.

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8.   Means of Communication

• 

• 

• 

• 

• 

Quarterly/Half-yearly/Annual ﬁ nancial results of the Bank are communicated through newspaper advertisements, 
press releases and by posting the said information on the Bank’s web site.

The ﬁ nancial results are generally published in the Economic Times and Sandesh or Divya Bhaskar.

Address of our ofﬁ cial website is www.axisbank.com where the information is displayed.

Generally,  after  the  quarterly,  half-yearly  and  the  annual  ﬁ nancial  results  are  approved  by  the  Board,  formal 
presentations are made to analysts by the Management and the same is also hosted on the Bank’s website.

The Management’s Discussion and Analysis Report for the year 2014-15 is part of the Annual Report.

9.   General Shareholder Information

•  AGM: Date, time and venue

• 

Financial Year/Calendar 

•  Date of Book Closure

•  Dividend Payment Date

-

-

-

-

Friday, 24th July 2015 – 10.00 A.M. 
At J. B. Auditorium, Ahmedabad Management Association
AMA Complex, ATIRA, Dr. Vikram Sarabhai Marg, 
Ahmedabad – 380 015.

1st  April  2015  to  31st  March  2016.  The  meetings  of  the  Board/Audit 
Committee  of  the  Board  to  consider  and  approve  the  ﬁ nancial  results 
of the Bank for the quarter ending 30th June 2015, 30th September 2015 
and 31st December 2015 are proposed to be held during second half of 
July  2015,  October  2015  and  January  2016.  The  meeting  to  consider 
audited  annual  accounts  and  ﬁ nancial  results  for  the  quarter  ending 
31st  March  2016  is  proposed  to  be  held  during  the  second  half  of 
April 2016.

From 13th July 2015 to 24th July 2015 (both days inclusive)
The Dividend will be paid to those members whose names will appear in 
the Register of Members of the Bank as at the close of business hours on 
11th July 2015.

The despatch of the dividend warrants/ECS credit would commence on 
27th July 2015 and is expected to be completed by 6th August 2015.

• 

The Bank’s equity shares are listed and traded on the following Stock Exchanges:

•  BSE Limited, P. J. Towers, Dalal Street, Mumbai – 400 001.

• 

• 

The National Stock Exchange of India Limited, Exchange Plaza, Plot No. C/1, “G” Block, Bandra-Kurla Complex, 
Bandra (East), Mumbai – 400 051.

The  Bank’s  Global  Depositary  Receipts  (GDRs)  are  listed  and  traded  on  the  London  Stock  Exchange, 
10 Paternoster Square, London EC4M 7LS, UK.

• 

Listing of said equity shares/GDRs on the said Stock Exchanges (with stock code):

Name of Stock Exchange
BSE Limited
The National Stock Exchange of India Limited
London Stock Exchange

Stock Code
532215
AXISBANK
AXB

The annual listing fees for the ﬁ nancial year 2015-16 have been paid by the Bank to the said Stock Exchanges 
where equity shares of the Bank are listed.

ISIN for equity shares 

Name of Depositories   

:  

:  

INE238A01034

i.  National Securities Depository Limited

ii.  Central Depository Services (India) Limited

ISIN for GDRs 

:   US05462W1099

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• 

Market Price Data: The price of the Bank’s Share - High, Low during each month in the last ﬁ nancial year on the 
NSE, was as under:

HIGH (`)
1,554.80
1,928.80
1,989.60
2,043.05

MONTH
April 2014
May 2014
June 2014
July 2014
Post Sub-division of equity share of `10/- each into 5 equity shares of `2/- each 
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015

407.35
423.80
440.40
485.90
506.40
604.05
625.60
654.90

LOW (`)
1,410.10
1,516.70
1,750.00
1,823.00

369.05
370.25
372.30
437.40
464.20
487.00
540.50
 526.10

Note : The Shareholders of the Bank at the AGM held on 27th June 2014 approved the sub-division of One (1) 
equity share having a face value of `10 each into Five (5) equity shares having a face value of `2 each. The record 
date of the sub-division of equity shares was 30th July 2014.

• 

The Bank’s equity share price has moved in accordance with the movement of NIFTY. It touched a high of `2,043.05 
in July 2014 and low of `1,410.10 in April 2014 (before sub-division of equity shares having a face value of `10)
on the NSE. It touched a high of `654.90 in March 2015 and low of `369.05 in August 2014 (after sub-division 
of equity shares having a face value of `10) on the NSE.

Performance in comparison to NIFTY

Note: The Bank’s equity share price before the record date for sub-division of its equity shares (i.e. 30th July 2014) 
has been adjusted so that pre and post sub-division shares prices are comparable.

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• 

The high and low closing prices of the Bank’s GDRs traded during the last ﬁ nancial year on the LSE are given 
below:

MONTH
April 2014
May 2014
June 2014
July 2014
August 2014
September 2014
October 2014
November 2014
December 2014
January 2015
February 2015
March 2015

HIGH (USD)
26.74
33.84
34.51
34.39
33.64
35.25
36.00
39.65
40.90
49.15
50.20
52.50

LOW (USD)
22.71
25.20
28.65
30.13
30.50
30.36
30.03
35.85
35.20
38.80
43.00
43.40

• 

Registrar and Share Transfer Agent:

M/s. Karvy Computershare Private Limited
Unit: Axis Bank Limited
Karvy Selenium Tower B, Plot 31-32,
Gachibowli, Financial District,
Nanakramguda, Hyderabad – 500 032.
Phone : 040-67162222
Fax : 040-23001153
Toll Free no. : 1800-345-4001
Email : einward.ris@karvy.com
Contact Persons : M R V Subrahmanyam, GM/Ms. Varalakshmi, Sr. Manager (RIS)

• 

Share Transfer System

A Share Committee comprising the Head (Law) and the Company Secretary of the Bank has been formed to look 
after the matters relating to the transfer of equity shares, issue of duplicate share certiﬁ cates in lieu of mutilated 
share  certiﬁ cates  and  other  related  matters.  The  resolutions  passed  by  the  Share  Committee  are  conﬁ rmed  at 
subsequent Board meetings. The Bank’s Registrar and Share Transfer Agents, M/s Karvy Computershare Private 
Limited, Hyderabad looks after the work relating to transfers of equity shares.

The Bank ensures that all transfers are effected within a period of 15 days from the date of their lodgement with 
the said Registrar and Share Transfer Agent.

The equity shares of the Bank are to be compulsorily traded in Demat form by all investors. The Bank has entered 
into agreements with the NSDL and the CDSL so as to provide the members an opportunity to hold and trade 
equity shares of the Bank in electronic form.

The number of equity shares of the Bank transferred/processed during the last three years (excluding electronic 
transfer of equity shares in dematerialised form) is given below:

Number of transfer deeds
Number of equity shares transferred

2012-13
324
18,100

2013-14
282
15,78,100

2014-15
285
63,000

As required under Clause 47(c) of the Listing Agreement, Mr. Ahalada Rao. V & Associates, Practicing Company 
Secretaries have examined the records relating to share transfer deeds, memorandum of transfers, registers, ﬁ les 
and other related documents on a half-yearly basis and has certiﬁ ed compliance with the provisions of the above 
clause. The certiﬁ cates are forwarded to BSE and NSE where the Bank’s equity shares are listed and also placed 
before the Stakeholders Relationship Committee of the Board of Directors for its noting.

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As required by SEBI, a Share Capital Audit was conducted on a quarterly basis by Mr. Ahalada Rao. V & Associates, 
Practicing Company Secretaries, for the purpose of, reconcilling the total admitted equity share capital of the Bank 
with the depositories and the equity share capital in physical form with the total issued and paid-up equity capital 
of the Bank.

The said certiﬁ cates have been placed before the Stakeholders Relationship Committee of the Board of Directors 
for their noting and also forwarded to the BSE and the NSE, where the equity shares of the Bank are listed.

Shareholders of Axis Bank Limited with more than 1% holding as on 31st March 2015

Name of Shareholder
Life Insurance Corporation of India and its group entities*
Administrator of the Speciﬁ ed Undertaking of the Unit Trust of 
India (SUUTI)
Europaciﬁ c Growth Fund 
The Bank of New York Mellon 
ICICI Prudential Life Insurance Company Limited 
General Insurance Corporation of India 
Copthall Mauritius Investment Limited 
Lazard Asset Management LLC A/C Lazard Emerging Markets 
Portfolio 
Morgan Stanley Asia (Singapore) Pte. Ltd.
Goldman Sachs (Singapore) Pte. Ltd.
Centaura Investments (Mauritius) Pte Ltd. 
The New India Assurance Company Limited 
Genesis Indian Investment Company Limited-General Sub Fund 
Government Pension Fund Global

No. of Shares % to total No. of Shares
12.61%
29,89,86,182

27,48,40,905

10,41,67,415
8,80,83,025
5,37,72,825
3,93,21,498
3,90,51,613

3,32,37,161

3,11,03,634
2,78,65,388
2,68,56,320
2,66,07,567
2,52,23,650
2,45,22,713

11.59%

4.39%
3.72%
2.27%
1.66%
1.65%

1.40%

1.31%
1.18%
1.13%
1.12%
1.06%
1.03%

*Includes 29,60,75,087 equity shares, equivalent to 12.49% of the total issued and paid-up equity capital of the 
Bank, held by LIC.

(cid:129) 

Distribution of shareholding as on 31st March 2015

Total nominal value `  

Nominal value of each equity share ` 

Total number of equity shares 

Distinctive numbers (both numbers inclusive)  

:  

:  

:  

:  

Shareholding of
Nominal Value

Shareholders

`

 Up to
5,001
10,001
20,001
30,001
40,001
50,001
100,001
Total

`

Numbers

 5,000
 10,000
 20,000
 30,000
 40,000
 50,000
1,00,000
Above

3,04,449
3,669
1,518
534
295
209
433
1,267
3,12,374

% to total
Shareholders
97.46
1.17
0.49
0.17
0.09
0.07
0.14
0.41
100.00

4,74,10,44,398 

2 

2,37,05,22,199 

1 to 2,37,05,22,199

Share Amount
Nominal Value
       In ` % to total Capital

11,87,77,464
2,68,55,642
2,21,87,872
1,31,04,156
1,03,75,916
94,57,234
3,11,22,652
4,50,91,63,462
4,74,10,44,398

2.51
0.57
0.47
0.28
0.22
0.20
0.65
95.10
100.00

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• 

• 

• 

As on 31st March 2015, out of total equity shares of the Bank, 2,36,10,63,401 equity shares of `2 each representing 
99.60% of the total equity shares have been dematerialised.

The Bank has issued in the course of international offerings to overseas investors, securities linked to ordinary 
equity shares of the Bank in the form of Global Depositary Receipts (GDRs) during March/April 2005, July 2007 
and September 2009, and the said GDRs have been listed and traded on the London Stock Exchange. The Bank 
has  simultaneously  issued  the  underlying  equity  shares  of  the  Bank  in  the  form  of  Global  Depositary  Receipts 
(GDRs) to the overseas investors. The underlying equity shares have been listed and permitted to be traded on the 
NSE and BSE. The number of outstanding GDRs as on 31st March 2015 were 8,80,83,025.

Apart from the above, the Bank has not issued any ADRs/Warrants or any other convertible instruments.

Address for Correspondence:

The Company Secretary
Axis Bank Limited [CIN : L65110GJ1993PLC020769]
Registered Ofﬁ ce
‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
Law Garden, Ellisbridge,
Ahmedabad – 380 006
Phone No. : 079-66306161
: 079-26409321
Fax No. 
Email : shareholders@axisbank.com

Name  and  contact  details  of  the  Trustees  appointed  by  the  Bank  for  Unsecured  Redeemable  Non  Convertible 
Debentures issued by the Bank.

i. 

ii. 

IDBI Trusteeship Services Limited
Registered Ofﬁ ce 
Asian Building, Ground Floor, 
17, R. Kamani Marg, Ballard Estate,
Mumbai – 400001. 
Phone No. 022-4080 7000.

SBICap Trustee Company Limited
6th Floor, Apeejay House, 3,
Dinshaw Wachha Road,
Churchgate, Mumbai - 400 020
Phone No. 022-43025555.

Compliance with the Code of Conduct by the Directors & Members of the Senior Management of the 

Bank for the Financial Year 2014-15

I conﬁ rm that for the year under review all Directors and Members of the Senior Management have afﬁ rmed compliance with 
the Code of Conduct of the Bank.

Shikha Sharma
Managing Director & CE0

29th April 2015

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151

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AXIS BANK LIMITED GROUP - AUDITORS’ REPORT

INDEPENDENT AUDITORS’ REPORT

To
The Members of Axis Bank Limited

Report on the Consolidated Financial Statements

1.  We have audited the accompanying consolidated ﬁ nancial statements of Axis Bank Limited (the “Bank”) and its subsidiary 
and  its  associate  (together,  the  “Group”),  which  comprise  the  consolidated  Balance  Sheet  as  at  31  March,  2015,  the 
consolidated Proﬁ t and Loss Account and Cash Flow Statement for the year then ended, and a summary of signiﬁ cant 
accounting policies and notes forming part of the accounts. 

Management’s Responsibility for the Financial Statements

2.  The Bank’s Board of Directors is responsible for the matters stated in Section 134(5) of the Companies Act, 2013 (the 
“Act”) with respect to the preparation of these consolidated ﬁ nancial statements that give a true and fair view of the 
ﬁ nancial position, ﬁ nancial performance and cash ﬂ ows of the Group in accordance with accounting principles generally 
accepted  in  India,  including  the  Accounting  Standards  speciﬁ ed  under  Section  133  of  the  Act,  read  with  Rule  7  of 
the Companies (Accounts) Rules, 2014. This responsibility also includes maintenance of adequate accounting records in 
accordance with the provisions of the Act for safeguarding of the assets of the Group and for preventing and detecting 
frauds  and  other  irregularities;  selection  and  application  of  appropriate  accounting  policies;  making  judgments  and 
estimates  that  are  reasonable  and  prudent;  and  the  design,  implementation  and  maintenance  of  adequate  internal 
ﬁ nancial control that were operating effectively for ensuring the accuracy and completeness of the accounting records, 
relevant to the preparation and presentation of the ﬁ nancial statements that give a true and fair view and are free from 
material misstatement, whether due to fraud or error. 

Auditor’s Responsibility

3.  Our responsibility is to express an opinion on these consolidated ﬁ nancial statements based on our audit. We have taken 
into  account  the  provisions  of  the  Act,  the  accounting  and  auditing  standards  and  matters  which  are  required  to  be 
included in the audit report under the provisions of the Act and the Rules made thereunder. We conducted our audit in 
accordance with the Standards on Auditing, issued by the Institute of Chartered Accountants of India, as speciﬁ ed under 
Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the 
audit to obtain reasonable assurance about whether the ﬁ nancial statements are free from material misstatement. 

4.  An  audit  involves  performing  procedures  to  obtain  audit  evidence  about  the  amounts  and  disclosures  in  the  ﬁ nancial 
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material 
misstatement of the ﬁ nancial statements, whether due to fraud or error. In making those risk assessments, the auditor 
considers internal control relevant to the preparation of the ﬁ nancial statements that give a true and fair view in order to 
design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on 
whether the Bank has in place an adequate internal controls system over ﬁ nancial reporting and the effectiveness of such 
controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of the 
accounting estimates made by the Group’s management, as well as evaluating the overall presentation of the ﬁ nancial 
statements. We believe that the audit evidence we have obtained is sufﬁ cient and appropriate to provide a basis for our 
audit opinion on the consolidated ﬁ nancial statements.

Opinion

5. 

In  our  opinion  and  to  the  best  of  our  information  and  according  to  the  explanations  given  to  us,  based  on  the 
consideration of the reports of the other auditors on the ﬁ nancial statements/ﬁ nancial infor mation of the subsidiaries and 
the consideration of the un-audited ﬁ nancial statements of the associate referred to below in the “Other Matters”, the 
consolidated ﬁ nancial statements give the information required by the Act in the manner so required and give a true and 
fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Group as at 
31 March, 2015, its proﬁ t, and its cash ﬂ ows for the year ended on that date.

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Report on Other Legal and Regulatory Requirements

6.  As required by section 143 (3) of the Act, we report that: 

(a)  We have sought and obtained all the information and explanations which to the best of our knowledge and belief 

were necessary for the purpose of our audit;

(b) 

In  our  opinion,  the  aforesaid  consolidated  ﬁ nancial  statements  comply  with  the  Accounting  Standards  speciﬁ ed 
under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. 

Other Matters

7.  The accompanying ﬁ nancial statements include total assets of Rs. 3,326 crores as at 31 March, 2015, and total revenues 
and net cashﬂ ows of Rs. 768 crores and Rs. 25 crores for the year ended on that date, in respect of certain subsidiaries, 
which has been audited by other auditors, which ﬁ nancial statements, other ﬁ nancial information and auditor’s reports 
have been furnished to us. Our opinion, in so far as it relates amounts and disclosures included in respect of the subsidiary 
is based solely on the report of such other auditors. 

8.  The consolidated ﬁ nancial statements also include the Group’s share of net proﬁ t of Rs. 1.36 crores for the year ended 
31  March,  2015,  as  considered  in  the  consolidated  ﬁ nancial  statements,  in  respect  of  an  associates,  whose  ﬁ nancial 
statements have not been audited. 

9.  Our opinion is not modiﬁ ed in respect of these matters. 

10.  The ﬁ nancial statements for the year ended 31 March, 2014 were audited by another auditor who expressed an unmodiﬁ ed 

opinion on these ﬁ nancial statements on 25 April, 2014.

For S. R. Batliboi & Co LLP. 
Chartered Accountants 
ICAI Firm Registration Number: 301003E

Viren H. Mehta
Partner
Membership Number: 048749

Mumbai, 29 April 2015

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153

 
 
AXIS BANK LIMITED GROUP - BALANCE SHEET

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

CAPITAL AND LIABILITIES

Capital

Reserves & Surplus

Minority Interest

Deposits

Borrowings

Other Liabilities and Provisions

TOTAL

ASSETS

Cash and Balances with Reserve Bank of India

Balances with Banks and Money at Call and Short Notice

Investments

Advances

Fixed Assets

Other Assets

TOTAL

Contingent Liabilities

Bills for Collection

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

Schedule No.

1 

2 

2A

3 

4 

5 

6 

7 

8 

9 

10 

11 

 4,741,044 

 4,698,446 

 444,754,902 

 379,262,043 

 311,361 

 129,421 

 3,222,441,700 

 2,805,410,738 

 843,935,036 

 527,392,236 

 156,245,690 

 146,607,709 

 4,672,429,733 

 3,863,500,593 

 198,188,446 

 170,413,647 

 166,732,539 

 115,407,921 

 1,333,192,446 

 1,130,927,767 

 2,844,486,456 

 2,323,817,273 

 25,519,012 

 24,472,596 

 104,310,834 

 98,461,389 

 4,672,429,733 

 3,863,500,593 

12 

 5,913,342,873 

 5,950,758,615 

 490,086,861 

 366,015,787 

Signiﬁ cant Accounting Policies and Notes to Accounts

17 & 18

Schedules referred to above form an integral part of the Consolidated Balance Sheet

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

154

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AXIS BANK LIMITED GROUP - PROFIT & LOSS ACCOUNT

CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2015

 Year ended 
 31-03-2015 
(` in Thousands)

 Year ended 
 31-03-2014 
(` in Thousands)

Schedule No.

I

II

INCOME
Interest earned
Other income
TOTAL 
EXPENDITURE
Interest expended
Operating expenses
Provisions and contingencies
TOTAL 

III NET PROFIT FOR THE YEAR

Minority interest
Share in Proﬁ t/(Loss) of Associate

IV CONSOLIDATED NET PROFIT ATTRIBUTABLE TO GROUP

Balance in Proﬁ t & Loss Account brought forward from previous year

V AMOUNT AVAILABLE FOR APPROPRIATION
VI APPROPRIATIONS:

Transfer to Statutory Reserve
Transfer to Reserve Fund u/s 45 IC of RBI Act, 1934 
Transfer to Investment Reserve
Transfer to Capital Reserve
Transfer to General Reserve
Transfer to/(from) Reserve Fund 
Proposed dividend (includes tax on dividend) 
Balance in Proﬁ t & Loss Account carried forward
TOTAL

13 
14 

15 
16 
18 (2.1.1)

18 (2.1.6)

 357,274,565 
 88,381,144 
 445,655,709 

 213,412,610 
 96,099,332 
 61,658,952 
 371,170,894 
 74,484,815 
 (19,439)
 13,589 
 74,478,965 
 136,012,379 
 210,491,344 

 18,394,555 
 156,400 
 254,885 
 631,421 
 16,534 
 (12,664)
 13,152,811 
 177,897,402 
 210,491,344 

 307,359,589 
 77,662,500 
 385,022,089 

 187,029,665 
 82,095,228 
 52,805,544 
 321,930,437 
 63,091,652 
 (4,084)
 13,594 
 63,101,162 
 100,454,029 
 163,555,191 

 15,544,167 
 67,000 
 500,289 
 388,664 
 17,797 
 10,465 
 11,014,430 
 136,012,379 
 163,555,191 

VII EARNINGS PER EQUITY SHARE 
(Face value `2/- per share) (Rupees)
Basic
Diluted
Signiﬁ cant Accounting Policies and Notes to Accounts
Schedules referred to above form an integral part of the Consolidated Proﬁ t and Loss Account

18 (2.1.4)

17 & 18

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

 31.56 
 31.23 

 26.91 
 26.84 

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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155

AXIS BANK LIMITED GROUP - CASH FLOW STATEMENT

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2015

Cash ﬂ ow from operating activities

Net proﬁ t before taxes

Adjustments for:

Depreciation on ﬁ xed assets

Depreciation on investments

 Year ended 
 31-03-2015 
(` in Thousands)

 Year ended 
 31-03-2014 
(` in Thousands)

 112,812,999 

 94,790,061 

 4,196,443 

 3,754,553 

 (509,798)

 (1,002,934)

Amortisation of premium on Held to Maturity investments

 779,346 

 773,624 

Provision for Non Performing Assets (including bad debts)

 17,886,115 

 12,959,797 

Provision on standard assets

Provision for wealth tax

(Proﬁ t)/Loss on sale of ﬁ xed assets (net)

Provision for country risk

Provision for restructured assets

Provision on Unhedged Foreign Currency Exposure

Provision for other contingencies

Adjustments for:

(Increase)/Decrease in investments

(Increase)/Decrease in advances

Increase/(Decrease) in deposits

(Increase)/Decrease in other assets

Increase/(Decrease) in other liabilities & provisions

Direct taxes paid

Net cash ﬂ ow from operating activities

Cash ﬂ ow from investing activities

 2,927,507 

 2,930,732 

 9,300 

 36,500 

 -   

 4,200 

 147,378 

 -   

 (818,769)

 1,947,624 

 1,336,600 

 -

 2,480,374 

 4,263,632 

 141,136,617 

 120,568,667 

 (129,543,119)

 138,284,240 

 (536,893,261)

 (367,794,715)

 417,030,962 

 283,919,561 

 (2,011,148)

 (22,083,749)

 850,166 

 26,803,462 

 (42,195,220)

 (35,061,503)

 (151,625,003)

 144,635,963 

Purchase of ﬁ xed assets

 (5,385,634)

 (6,077,888)

(Increase)/Decrease in Held to Maturity investments

 (73,836,316)

 (136,191,642)

Proceeds from sale of ﬁ xed assets 

Net cash used in investing activities

 100,405 

 1,696,430 

 (79,121,545)

 (140,573,100)

156

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CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH, 2015

Cash ﬂ ow from ﬁ nancing activities

Proceeds  from  issue  of  subordinated  debt,  perpetual  debt  &  upper  Tier  II 
instruments (net of repayment)

 9,164,337 

 (1,341,919)

 Year ended 
 31-03-2015 
(` in Thousands)

 Year ended 
 31-03-2014 
(` in Thousands)

Increase/(Decrease) in borrowings (excluding subordinated debt, perpetual debt & 
upper Tier II instruments)

Proceeds from issue of share capital 

Proceeds from share premium (net of share issue expenses)

Payment of dividend 

Increase in minority interest

Net cash generated from ﬁ nancing activities

Effect of exchange ﬂ uctuation translation reserve

Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year

Notes to the Cash Flow Statement:

Cash and cash equivalents includes the following

 307,378,461 

 87,683,172 

 42,599 

 18,901 

 4,768,948 

 1,356,819 

 (11,088,076)

 (9,875,875)

 181,939 

 4,084 

 310,448,208 

 77,845,182 

 (602,243)

 (1,085,707)

 79,099,417 

 80,822,338 

 285,821,568 

 204,999,230 

 364,920,985 

 285,821,568 

Cash and Balances with Reserve Bank of India (Refer Schedule 6)

 198,188,446 

 170,413,647 

Balances with Banks and Money at Call and Short Notice (Refer Schedule 7)

 166,732,539 

 115,407,921 

Cash and cash equivalents at the end of the year

 364,920,985 

 285,821,568 

In terms of our report attached.

For S. R. Batliboi & Co. LLP
Chartered Accountants

For Axis Bank Ltd.

Sanjiv Misra
Chairman

Viren H. Mehta 
Partner

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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157

AXIS BANK LIMITED GROUP - SCHEDULES

SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

SCHEDULE 1 - CAPITAL

Authorised Capital 
4,250,000,000 (Previous year - 4,250,000,000) Equity Shares of  `2/- each
Issued, Subscribed and Paid-up capital
2,370,522,199 (Previous year - 2,349,222,765) Equity Shares of  `2/- each fully paid-
up [Refer Schedule 18.1] 

 8,500,000 

 8,500,000 

 4,741,044 

 4,698,446 

SCHEDULE 2 - RESERVES AND SURPLUS 

I.

II.

Statutory Reserve 
Opening Balance
Additions during the year

Share Premium Account
Opening Balance
Additions during the year
Less: Share issue expenses

III.

Investment Reserve Account
Opening Balance
Additions during the year

IV. General  Reserve 

Opening Balance
Additions during the year

V. Capital  Reserve 

Opening Balance
Additions during the year

VI. Foreign Currency Translation Reserve [Refer Schedule 17 (4.5)]

Opening Balance
Additions/(Deductions) during the year (net)

VII. Reserve Fund

Opening Balance
Additions/(Deductions) during the year (net)

VIII. Reserve Fund u/s 45 IC of RBI Act, 1934

Opening Balance
Additions during the year 

IX. Balance in Proﬁ t & Loss Account

TOTAL 

158

 66,918,613 
 18,394,555 
 85,313,168 

 51,374,446 
 15,544,167 
 66,918,613 

 159,074,088 
 4,768,948 
 -   
 163,843,036 

 157,717,269 
 1,356,819 
 -   
 159,074,088 

 1,034,860 
 254,885 
 1,289,745 

 3,724,292 
 16,534 
 3,740,826 

 9,848,828 
 631,421 
 10,480,249 

 534,571 
 500,289 
 1,034,860 

 3,706,495 
 17,797 
 3,724,292 

 9,460,164 
 388,664 
 9,848,828 

 2,464,334 
 (602,243)
 1,862,091 

 3,550,041 
 (1,085,707)
 2,464,334 

 36,549 
 (12,664)
 23,885 

 26,084 
 10,465 
 36,549 

 148,100 
 156,400 
 304,500 
 177,897,402 
 444,754,902 

 81,100 
 67,000 
 148,100 
 136,012,379 
 379,262,043 

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 2A - MINORITY INTEREST

I. Minority Interest

Opening Balance

Increase/(Decrease) during the year

Closing Minority Interest

SCHEDULE 3 - DEPOSITS

A.

I.  Demand Deposits 

(i) 

From banks

(ii)   From others

II. 

Savings Bank Deposits

III.  Term Deposits 

(i)   From banks

(ii)   From others

TOTAL 

B.

I.  Deposits of branches in India

II.  Deposits of branches/subsidiaries outside India

TOTAL 

SCHEDULE 4 - BORROWINGS

I.

Borrowings in India

(i)    Reserve Bank of India

(ii)   Other banks #

(iii)   Other institutions & agencies **

II.

Borrowings outside India $

TOTAL 

Secured borrowings included in I & II above

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

 129,421 

 181,940 

 311,361 

 125,337 

 4,084 

 129,421 

 39,561,238 

 32,988,192 

 519,809,061 

 453,304,398 

 882,921,758 

 777,760,612 

 84,010,165 

 118,566,234 

 1,696,139,478 

 1,422,791,302 

 3,222,441,700 

 2,805,410,738 

 3,166,496,390 

 2,665,048,202 

 55,945,310 

 140,362,536 

 3,222,441,700 

 2,805,410,738 

 -   

 2,790,000 

 29,093,122 

 31,257,308 

 275,579,626 

 160,702,121 

 539,262,288 

 332,642,807 

 843,935,036 

 527,392,236 

 10,799,116 

 2,764,329 

# 

Borrowings  from  other  banks  include  Subordinated  Debt  of  `377.60  crores  (previous  year  `407.60  crores)  in  the 
nature  of  Non-Convertible  Debentures,  Perpetual  Debt  of  Nil  (previous  year  Nil)  and  Upper  Tier  II  instruments  of 
`49.10 crores (previous year `59.10 crores) [Also refer Notes 18 (2.1.2) & 18 (2.1.3)]

**   Borrowings  from  other  institutions  &  agencies  include  Subordinated  Debt  of  `10,823.20  crores  (previous  year 
`9,943.20  crores)  in  the  nature  of  Non-Convertible  Debentures,  Perpetual  Debt  of  `214.00  crores  (previous  year 
`214.00  crores)  and  Upper  Tier  II  instruments  of  `258.40  crores  (previous  year  `248.40  crores)  [Also  refer  Notes 
18 (2.1.2) & 18 (2.1.3)] 

$ 

Borrowings outside India include Perpetual Debt of `287.50 crores (previous year `275.61 crores) and Upper Tier II 
instruments of `1,311.98 crores (previous year `1,257.44 crores) [Also refer Note 18 (2.1.3)]

159

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 5 - OTHER LIABILITIES AND PROVISIONS

I.

II.

III.

IV.

Bills payable

Inter-ofﬁ ce adjustments (net)

Interest accrued

Proposed dividend (includes tax on dividend)

V. Contingent provision against standard assets

VI. Others (including provisions)   

TOTAL 

SCHEDULE 6 - CASH AND BALANCES WITH RESERVE BANK OF INDIA

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

 39,372,758 

 35,778,486 

 -   

 -   

 20,682,515 

 11,523,939 

 13,055,440 

 10,990,706 

 16,010,873 

 12,999,356 

 67,124,104 

 75,315,222 

 156,245,690 

 146,607,709 

Cash in hand (including foreign currency notes)

 42,154,361 

 41,646,894 

I.

II.

Balances with Reserve Bank of India:

(i)  

in Current Account

(ii)   in Other Accounts

TOTAL 

SCHEDULE 7 - BALANCES WITH BANKS AND MONEY AT CALL AND SHORT NOTICE

I.

In India

(i)   Balance with Banks

      (a)  

in Current Accounts 

      (b)    in Other Deposit Accounts

(ii)   Money at Call and Short Notice

      (a)   With banks

      (b)    With other institutions   

TOTAL 

II. Outside India

(i)    in Current Accounts

(ii)    in Other Deposit Accounts

(iii)   Money at Call & Short Notice

TOTAL 

GRAND TOTAL (I+II)

160

 156,034,085 

 128,766,753 

 -   

 -   

 198,188,446 

 170,413,647 

 2,213,579 

 2,258,352 

 12,852,440 

 10,259,234 

 -   

 -   

 86,192,067 

 6,587,734 

 101,258,086 

 19,105,320 

 8,214,657 

 14,228,168 

 24,439,311 

 28,425,610 

 32,820,485 

 53,648,823 

 65,474,453 

 96,302,601 

 166,732,539 

 115,407,921 

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 8 - INVESTMENTS

I.

Investments in India in -

(i)     Government Securities ##  **

(ii)    Other approved securities

(iii)   Shares

(iv)   Debentures and Bonds   

(v)    Investment in Joint Ventures $

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

 812,460,111 

 690,967,197 

 -   

 -   

 7,390,249 

 6,118,086 

 252,221,297 

 237,263,911 

 -   

 380,812 

(vi)   Others (Mutual Fund units, CD/CP, Priority Sector deposits, PTC etc.) @

 241,118,129 

 183,485,029 

Total Investments in India

II.

Investments outside India in -

 1,313,189,786 

 1,118,215,035 

(i)     Government Securities (including local authorities)

 11,705,282 

 5,335,986 

(ii)    Subsidiaries and/or joint ventures abroad [Refer Schedule 17.2c]          

 -   

 29,978 

(iii)    Others (Equity Shares and Bonds)

Total Investments outside India

GRAND TOTAL (I+II)

 8,297,378 

 7,346,768 

 20,002,660 

 12,712,732 

 1,333,192,446 

 1,130,927,767 

##   Includes securities costing `11,981.89 crores (previous year `5,224.77 crores) pledged for availment of fund transfer 

facility, clearing facility and margin requirements. 

**   Inclusive of Repo Lending of Nil (previous year `2,600.00 crores) and net of Repo borrowing of `6,194.55 crores 

(previous year Nil) under the Liquidity Adjustment Facility in line with the RBI requirements. 

$    Represents  investment  accounted  as  an  Associate  in  line  with  AS-23,  Accounting  for  Investments  in  Associates 
in Consolidated Financial Statements, as notiﬁ ed under section 133 of the Companies Act, 2013 [Refer Schedule 
17.2e]. 

@    Includes Priority Sector deposits of `14,792.62 crores (previous year `11,006.97 crores) and PTC’s of `1,037.59 crores 

(previous year `2,328.21 crores) net of depreciation, if any. 

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 9 - ADVANCES

A.

(i)

Bills purchased and discounted *

 52,037,662 

 32,128,953 

(ii) Cash credits, overdrafts and loans repayable on demand @

 804,138,531 

 687,817,066 

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

(iii) Term loans #

TOTAL 

B.

(i)

Secured by tangible assets $

(ii) Covered by Bank/Government Guarantees &&

(iii) Unsecured

TOTAL  

C.

I.

Advances in India

(i)     Priority Sector

(ii)    Public Sector

(iii)   Banks

(iv)   Others

TOTAL 

II. Advances Outside India

(i)     Due from banks

(ii)    Due from others -

      (a)  Bills purchased and discounted

      (b)    Syndicated loans

      (c)    Others

TOTAL 

GRAND TOTAL (CI+CII)

 1,988,310,263 

 1,603,871,254 

 2,844,486,456 

 2,323,817,273 

 2,223,044,145 

 1,910,512,994 

 35,061,043 

 30,564,480 

 586,381,268 

 382,739,799 

 2,844,486,456 

 2,323,817,273 

 697,714,885 

 627,610,775 

 35,629,745 

 37,642,652 

 830,468 

 590,421 

 1,637,081,680 

 1,286,421,107 

 2,371,256,778 

 1,952,264,955 

 1,562,500 

 6,211,853 

 4,528,093 

 2,455,311 

 127,665,565 

 114,599,256 

 339,473,520 

 248,285,898 

 473,229,678 

 371,552,318 

 2,844,486,456 

 2,323,817,273 

*  Net of borrowings under Bills Rediscounting Scheme Nil (previous year `2,800.00 crores)

@  Net of borrowings under Inter Bank Participation Certiﬁ cate/Funded Risk Participation `1,301.43 crores (previous year 

`4,129.04 crores)

#  Net of borrowings under Inter Bank Participation Certiﬁ cate `15,317.68 crores (previous year `11,908.59 crores)

$ 

Includes advances against book debts

&&  Includes advances against L/Cs issued by banks

162

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

SCHEDULE 10 - FIXED ASSETS

I.

Premises

Gross Block

At cost at the beginning of the year

Additions during the year

Deductions during the year

TOTAL

Depreciation

As at the beginning of the year

Charge for the year

Deductions during the year

Depreciation to date

Net Block

II. Other ﬁ xed assets (including furniture & ﬁ xtures)

Gross Block

At cost at the beginning of the year

Additions during the year

Deductions during the year

TOTAL

Depreciation

As at the beginning of the year

Charge for the year

Deductions during the year

Depreciation to date

Net Block

III. CAPITAL WORK-IN-PROGRESS (including capital advances)

GRAND TOTAL (I+II+III)

SCHEDULE 11 - OTHER ASSETS

I.

II.

III.

IV.

Inter-ofﬁ ce adjustments (net)

Interest Accrued 

Tax paid in advance/tax deducted at source (net of provisions)

Stationery and stamps

V. Non banking assets acquired in satisfaction of claims

VI. Others #

TOTAL 

 9,041,075 

 9,041,075 

 465,946 

 -   

 -   

 -   

 9,507,021 

 9,041,075 

 556,787 

 151,923 

 -   

 409,511 

 147,276 

 -   

 708,710 

 556,787 

 8,798,311 

 8,484,288 

 33,180,276 

 30,785,629 

 4,884,103 

 6,485,895 

 (1,808,213)

 (4,091,248)

 36,256,166 

 33,180,276 

 18,208,169 

 16,968,110 

 4,044,520 

 3,607,277 

 (1,665,438)

 (2,367,218)

 20,587,251 

 18,208,169 

 15,668,915 

 14,972,107 

 1,051,786 

 1,016,201 

 25,519,012 

 24,472,596 

 -   

 -   

 41,799,771 

 33,982,920 

 2,611,540 

 10,081 

-

 304,981 

 12,598 

 438,108 

 59,889,442 

 63,722,782 

 104,310,834 

 98,461,389 

#   Includes deferred tax assets of `1,894.44 crores (previous year `1,741.27 crores) [Refer Schedule 18 (2.1.11)]

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SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET AS AT 31 MARCH, 2015

SCHEDULE 12 - CONTINGENT LIABILITIES

I.

II.

Claims against the Group not acknowledged as debts

Liability for partly paid investments

 As at 
 31-03-2015 
(` in Thousands)

 As at 
 31-03-2014 
(` in Thousands)

 2,755,732 

 2,394,352 

 -   

 -   

III.

Liability on account of outstanding forward exchange and derivative contracts :

(a)    Forward Contracts

 2,802,478,143 

 2,312,763,997 

(b)   Interest  Rate  Swaps,  Currency  Swaps,  Forward  Rate  Agreement 

& Interest Rate Futures

(c)   Foreign Currency Options

TOTAL (a+b+c)

IV. Guarantees given on behalf of constituents 

In India

Outside India

V. Acceptances, endorsements and other obligations

VI. Other items for which the Group is contingently liable

 1,641,749,576 

 2,299,486,452 

 238,438,623 

 202,687,973 

 4,682,666,342 

 4,814,938,422 

 582,793,361 

 529,708,072 

 137,954,192 

 133,640,480 

 315,837,757 

 238,821,561 

 191,335,489 

 231,255,728 

GRAND TOTAL (I+II+III+IV+V+VI) [Refer Schedule 18 (2.1.14)]

 5,913,342,873 

 5,950,758,615 

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SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31 MARCH, 2015

SCHEDULE 13 - INTEREST EARNED

Interest/discount on advances/bills
Income on investments 
Interest on balances with Reserve Bank of India and other inter-bank funds

I.
II.
III.
IV. Others 
TOTAL 

SCHEDULE 14 - OTHER INCOME

I.
II.
III.
IV.
V.

Commission, exchange and brokerage
Proﬁ t/(Loss) on sale of investments (net)
Proﬁ t/(Loss) on sale of ﬁ xed assets (net)
Proﬁ t on exchange/derivative transactions (net)
Income earned by way of dividends etc. from 
subsidiaries/companies and/or joint venture abroad/in India

VI. Miscellaneous Income

[including  recoveries  on  account  of  advances/investments  written-off  in  earlier 
years `169.86 crores (previous year `183.91 crores) and net proﬁ t on account of 
portfolio sell downs/securitisation `43.87 crores (previous year net loss of `16.22 
crores)]
TOTAL 

SCHEDULE 15 - INTEREST EXPENDED

Interest on deposits 
Interest on Reserve Bank of India/Inter-bank borrowings

I.
II.
III. Others
TOTAL 

SCHEDULE 16 - OPERATING EXPENSES

Payments to and provisions for employees 
I.
Rent, taxes and lighting
II.
Printing and stationery
III.
IV. Advertisement and publicity
V. Depreciation on Group’s property 
VI. Directors’ fees, allowance and expenses
VII. Auditors’ fees and expenses 
VIII. Law charges
IX. Postage, telegrams, telephones etc.
X. Repairs and maintenance
XI.
XII. Other expenditure  

Insurance

TOTAL 

 Year ended 
 31-03-2015 
(` in Thousands)

 Year ended 
 31-03-2014 
(` in Thousands)

 260,839,861 
 91,454,215 
 2,320,169 
 2,660,320 
 357,274,565 

 220,225,195 
 83,610,660 
 1,680,713 
 1,843,021 
 307,359,589 

 66,073,242 
 10,182,354 
 (36,500)
 9,842,668 

 57,476,245 
 3,414,542 
 (147,378)
 15,171,705 

 -   
 2,319,380 

 -   
 1,747,386 

 88,381,144 

 77,662,500 

 171,078,082 
 15,407,390 
 26,927,138 
 213,412,610 

 154,318,570 
 9,214,419 
 23,496,676 
 187,029,665 

 36,156,945 
 8,293,304 
 1,221,906 
 969,690 
 4,196,443 
 22,143 
 22,565 
 109,025 
 3,180,171 
 7,531,626 
 3,669,537 
 30,725,977 
 96,099,332 

 29,730,476 
 8,239,448 
 1,164,981 
 978,125 
 3,754,553 
 13,124 
 25,516 
 241,836 
 2,891,395 
 6,425,327 
 3,171,922 
 25,458,525 
 82,095,228 

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17  Signiﬁ cant accounting policies for the year ended 31 March, 2015

1 

Principles of Consolidation

The  consolidated  ﬁ nancial  statements  comprise  the  ﬁ nancial  statements  of  Axis  Bank  Limited  (‘the  Bank’)  and  its 
subsidiaries, which together constitute ‘the Group’. 

The  Bank  consolidates  its  subsidiaries  in  accordance  with  AS  21,  Consolidated  Financial  Statements  notiﬁ ed  under 
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 
on a line-by-line basis by adding together the like items of assets, liabilities, income and expenditure. All signiﬁ cant 
inter-company accounts and transactions are eliminated on consolidation. Further, the Bank accounts for investments 
in associates in accordance with AS-23, Accounting for Investments in Associates in Consolidated Financial Statements, 
notiﬁ ed under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) 
Rules, 2014 using the equity method of accounting. 

2 

Basis of preparation

a) 

The  ﬁ nancial statements have been prepared and presented under the historical cost convention on the accrual 
basis of accounting in accordance with the generally accepted accounting principles in India to comply with 
the, statutory requirements prescribed under the Banking Regulation Act, 1949, the circulars and guidelines 
issued  by  the  Reserve  Bank  of  India  (‘RBI’)  from  time  to  time  and  the  Accounting  Standards  notiﬁ ed  under 
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 
2014 to the extent applicable and practices generally prevalent in the banking industry in India.

b) 

The consolidated ﬁ nancial statements present the accounts of Axis Bank Limited with its following subsidiaries 
and associates:

Name 

Axis Capital Ltd. 
Axis Private Equity Ltd.
Axis Trustee Services Ltd.
Axis Mutual Fund Trustee Ltd.
Axis Asset Management Company Ltd.
Axis Finance Ltd.

Axis Securities Ltd.

Axis Bank UK Ltd.

Axis Securities Europe Ltd.*

Bussan Auto Finance India Private Ltd.
(see ‘e’ below)

*wholly owned subsidiary of Axis Capital Ltd.

Relation

Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary

Subsidiary

Subsidiary

Step-down 
Subsidiary 
Associate

Country of 
Incorporation
India
India
India
India
India
India

India

U.K.

U.K.

India

Ownership 
Interest
100.00%
100.00%
100.00%
75.00%
75.00%
100.00%

100.00%

100.00%

100.00%

Nil

c) 

d) 

Enam  International  Ltd.,  a  step  down  subsidiary  of  the  Bank  (incorporated  in  UAE),  has  been  voluntarily 
dissolved as on 24 August, 2014.

The audited ﬁ nancial statements of the above subsidiaries (including step down subsidiaries) have been drawn 
up to the same reporting date as that of the Bank, i.e. 31 March, 2015.

e) 

On 30 March, 2015, the Bank has sold its stake in Bussan Auto Finance India Private Limited.

3 

Use of estimates

The preparation of the ﬁ nancial statements in conformity with the generally accepted accounting principles requires the 
Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues 

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and expenses and disclosure of contingent liabilities at the date of the ﬁ nancial statements. Actual results could differ 
from those estimates. The Management believes that the estimates used in the preparation of the ﬁ nancial statements 
are prudent and reasonable. Any revisions to the accounting estimates are recognised prospectively in the current and 
future periods.

4 

Signiﬁ cant accounting policies

4.1  

Investments

Axis Bank Ltd.

Classiﬁ cation

In accordance with the RBI guidelines, investments are classiﬁ ed at the time of purchase as:

• 

• 

• 

Held for Trading (‘HFT’);

Available for Sale (‘AFS’); and

Held to Maturity (‘HTM’).

Investments that are held principally for sale within a short period are classiﬁ ed as HFT securities. As per the RBI 
guidelines, HFT securities, which remain unsold for a period of 90 days are reclassiﬁ ed as AFS securities.

Investments that the Bank intends to hold till maturity are classiﬁ ed under the HTM category. Investments in 
the equity of subsidiaries/joint ventures are categorised as HTM in accordance with the RBI guidelines.  

All other investments are classiﬁ ed as AFS securities.

However,  for  disclosure  in  the  Balance  Sheet,  investments  in  India  are  classiﬁ ed  under  six  categories  - 
Government Securities, Other approved securities, Shares, Debentures and Bonds, Investment in Subsidiaries/
Joint Ventures and Others.  

Investments made outside India are classiﬁ ed under three categories – Government Securities, Subsidiaries and/
or Joint Ventures abroad and Others.

Transfer of security between categories 

Transfer of security between categories of investments is accounted as per the RBI guidelines.

Acquisition cost

Costs  including  brokerage  and  commission  pertaining  to  investments,  paid  at  the  time  of  acquisition,  are 
charged to the Proﬁ t and Loss Account.

Broken period interest is charged to the Proﬁ t and Loss Account.

Cost of investments is computed based on the weighted average cost method.

Valuation

Investments classiﬁ ed under the HTM category are carried at acquisition cost unless it is more than the face 
value, in which case the premium is amortised over the period remaining to maturity on a constant yield to 
maturity basis. In terms of RBI guidelines, discount on securities held under HTM category is not accrued and 
such securities are held at the acquisition cost till maturity.

Investments  classiﬁ ed  under  the  AFS  and  HFT  categories  are  marked  to  market.  The  market/fair  value  of 
quoted investments included in the ‘AFS’ and ‘HFT’ categories is the market price of the scrip as available from 
the trades/quotes on the stock exchanges or prices declared by Primary Dealers Association of India (‘PDAI’) 
jointly  with  Fixed  Income  Money  Market  and  Derivatives  Association  of  India  (‘FIMMDA’),  periodically.  Net 
depreciation, if any, within each category of each investment classiﬁ cation is recognised in the Proﬁ t and Loss 
Account. The net appreciation if any, under each category of each investment classiﬁ cation is ignored. The 
book value of individual securities is not changed consequent to the periodic valuation of investments.

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Treasury  Bills,  Exchange  Funded  Bills,  Commercial  Paper  and  Certiﬁ cate  of  Deposits  being  discounted 
instruments, are valued at carrying cost.

Units of mutual funds are valued at the latest repurchase price/net asset value declared by the mutual fund.

Market  value  of  investments  where  current  quotations  are  not  available,  is  determined  as  per  the  norms 
prescribed by the RBI as under:

• 

• 

• 

• 

• 

in  case  of  unquoted  bonds,  debentures  and  preference  shares  where  interest/dividend  is  received 
regularly  (i.e.  not  overdue  beyond  90  days),  the  market  price  is  derived  based  on  the  YTM  for 
Government Securities as published by FIMMDA/PDAI and suitably marked up for credit risk applicable 
to the credit rating of the instrument. The matrix for credit risk mark-up for each categories and credit 
ratings along with residual maturity issued by FIMMDA is adopted for this purpose;

in case of bonds and debentures (including Pass Through Certiﬁ cates) where interest is not received 
regularly  (i.e.  overdue  beyond  90  days),  the  valuation  is  in  accordance  with  prudential  norms  for 
provisioning as prescribed by RBI;

equity shares, for which current quotations are not available or where the shares are not quoted on the 
stock exchanges, are valued at break-up value (without considering revaluation reserves, if any) which 
is ascertained from the company’s latest Balance Sheet. In case the latest Balance Sheet is not available, 
the shares are valued at `1 per company;

units  of  Venture  Capital  Funds  (‘VCF’)  held  under  AFS  category  where  current  quotations  are  not 
available are marked to market based on the Net Asset Value (‘NAV’) shown by VCF as per the latest 
audited ﬁ nancials of the fund. In case the audited ﬁ nancials are not available for a period beyond 18 
months, the investments are valued at `1 per VCF. Investment in unquoted VCF after 23rd August, 2006 
are categorised under HTM  category for the initial period of three years and valued at cost as per RBI 
guidelines and

security  receipts  are  valued  as  per  the  NAV  obtained  from  the  issuing  Reconstruction  Company/
Securitisation Company.

Investments in subsidiaries/joint ventures are categorised as HTM and assessed for impairment to determine 
permanent diminution, if any, in accordance with the RBI guidelines.

Realised  gains  on  investments  under  the  HTM  category  are  recognised  in  the  Proﬁ t  and  Loss  Account  and 
subsequently  appropriated  to  Capital  Reserve  account  (net  of  taxes  and  transfer  to  statutory  reserves)  in 
accordance with the RBI guidelines. Losses are recognised in the Proﬁ t and Loss Account.

All investments are accounted for on settlement date, except investments in equity shares which are accounted 
for on trade date as the corporate actions are effected in equity on the trade date.

Repurchase and reverse repurchase transactions

Repurchase  and  reverse  repurchase  transactions  in  government  securities  and  corporate  debt  securities 
[excluding those conducted under the Liquid Adjustment Facility (‘LAF’) and Marginal Standby Facility (‘MSF’) 
with RBI] are accounted as collateralised borrowing and lending respectively. Such transactions done under LAF 
and MSF are accounted as outright sale and outright purchase respectively.

Short Sales

In  accordance  with  the  RBI  guidelines,  the  Bank  undertakes  short  sale  transactions  in  Central  Government 
dated  securities.  The  short  positions  are  reﬂ ected  in  ‘Securities  Short  Sold  (‘SSS’)  A/c’,  speciﬁ cally  created 
for  this  purpose.  Such  short  positions  are  categorised  under  HFT  category.  These  positions  are  marked-to-
market along with the other securities under HFT portfolio and the resultant mark-to-market gains/losses are 
accounted for as per the relevant RBI guidelines for valuation of investments discussed earlier.

Subsidiaries

Investments which are readily realisable and intended to be held for not more than one year from the date on 
which such investments are made, are classiﬁ ed as current investments. All other investments are classiﬁ ed as 
long term investments.

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Current investments are carried in the ﬁ nancial statements at lower of cost and fair value determined on an 
individual  investment  basis.  Any  reduction  in  the  carrying  amount  and  any  reversal  of  such  reductions  are 
charged or credited to the Proﬁ t and Loss Account.

Long term investments are stated at cost. Provision is made to recognise a decline, other than temporary, in the 
value of such investments.

4.2 

Advances

Axis Bank Ltd.

Advances are classiﬁ ed into performing and non-performing advances (‘NPAs’) as per the RBI guidelines and 
are stated net of speciﬁ c provisions made towards NPAs and ﬂ oating provisions. Further, NPAs are classiﬁ ed 
into sub-standard, doubtful and loss assets based on the criteria stipulated by the RBI. Provisions for NPAs are 
made for sub-standard and doubtful assets at rates as prescribed by the RBI with the exception for agriculture 
advances and schematic retail advances. In respect of schematic retail advances, provisions are made in terms 
of a bucket-wise policy upon reaching speciﬁ ed stages of delinquency (90 days or more of delinquency) under 
each type of loan, which satisﬁ es the RBI prudential norms on provisioning. Provisions in respect of agriculture 
advances  classiﬁ ed  into  sub-standard  and  doubtful  assets  are  made  at  rates  which  are  higher  than  those 
prescribed by the RBI.

In addition to the above, the Bank on a prudential basis, makes provision for expected losses against advances 
or other exposures to speciﬁ c assets/industry/sector either on a case-by-case basis or for a group of assets, 
based on speciﬁ c information or general economic environment. These are classiﬁ ed as contingent provision 
and included under Schedule 5 - Other Liabilities in the Balance Sheet.

Loss assets and unsecured portion of doubtful assets are provided/written-off as per the extant RBI guidelines. 
NPAs are identiﬁ ed by periodic appraisals of the loan portfolio by the Management.

Amounts recovered against debts written-off are recognised in the Proﬁ t and Loss account.

For restructured/rescheduled assets, provision is made in accordance with the guidelines issued by RBI, which 
requires the diminution in the fair value of the assets to be provided at the time of restructuring.

For  entities  with  Unhedged  Foreign  Currency  Exposure  (UFCE),  provision  is  made  in  accordance  with  the 
guidelines issued by RBI, which requires to ascertain the amount of UFCE, estimate the extent of likely loss and 
estimate the riskiness of unhedged position. This provision is classiﬁ ed under Schedule 5 – Other Liabilities in 
the Balance Sheet.

The Bank maintains a general provision on standard advances at the rates prescribed by RBI. In case of overseas 
branches, general provision on standard advances is maintained at the higher of the levels stipulated by the 
respective overseas regulator or RBI.

Under its home loan portfolio, the Bank offers housing loans with certain features involving waiver of Equated 
Monthly Installments (‘EMIs’) of a speciﬁ c period subject to fulﬁ lment of a set of conditions by the borrower. 
The Bank makes provision on an estimated basis against the probable loss that could be incurred in future on 
account of waivers to eligible borrowers in respect of such loans. This provision is classiﬁ ed under Schedule 
5 – Other Liabilities in the Balance Sheet.

Axis Finance Ltd.

In accordance with the RBI guidelines, all loans are classiﬁ ed under any of four categories i.e. (i) standard assets, 
(ii) substandard assets, (iii) doubtful assets and (iv) loss assets.

Non-performing  loans  are  written-off/provided  for,  as  per  management  estimates,  subject  to  the  minimum 
provision required as per Non- Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms 
(Reserve Bank) Directions, 2007.

Provision on standard assets is made, as per notiﬁ cation DNBS.PD.CC.No.207/03.02.002/2010-11 issued by 
Reserve Bank of India, 0.25% of the outstanding standard assets.

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4.3 

Country risk

Axis Bank Ltd.

In  addition  to  the  provisions  required  to  be  held  according  to  the  asset  classiﬁ cation  status,  provisions  are 
held for individual country exposure (other than for home country as per the RBI guidelines). The countries 
are categorised into seven risk categories namely insigniﬁ cant, low, moderate, high, very high, restricted and 
off-credit and provision is made on exposures exceeding 180 days on a graded scale ranging from 0.25% to 
100%. For exposures with contractual maturity of less than 180 days, 25% of the normal provision requirement 
is held. If the country exposure (net) of the Bank in respect of each country does not exceed 1% of the total 
funded assets, no provision is maintained on such country exposure.

4.4 

Securitisation

Axis Bank Ltd.

The Bank enters into purchase/sale of corporate and retail loans through direct assignment/Special Purpose 
Vehicle (‘SPV’). In most cases, post securitisation, the Bank continues to service the loans transferred to the 
assignee/SPV. The Bank also provides credit enhancement in the form of cash collaterals and/or by subordination 
of cash ﬂ ows to Senior Pass Through Certiﬁ cate (‘PTC’) holders. In respect of credit enhancements provided 
or  recourse  obligations  (projected  delinquencies,  future  servicing  etc.)  accepted  by  the  Bank,  appropriate 
provision/disclosure is made at the time of sale in accordance with AS 29, Provisions, Contingent Liabilities and 
Contingent Assets as notiﬁ ed under Section 133 of the Companies Act, 2013 read together with paragraph 7 
of the Companies (Accounts) Rules, 2014.

In accordance with RBI guidelines of 7 May 2012 on ‘Guidelines on Securitisation of Standard Assets’, gain 
on securitisation transaction is recognised over the period of the underlying securities issued by the SPV as 
prescribed under RBI guidelines. Loss on securitisation is immediately debited to the Proﬁ t and Loss Account.

4.5 

Foreign currency transactions

Axis Bank Ltd.

In  respect  of  domestic  operations,  transactions  denominated  in  foreign  currencies  are  accounted  for  at  the 
rates prevailing on the date of the transaction. Monetary foreign currency assets and liabilities are translated at 
the Balance Sheet date at rates notiﬁ ed by Foreign Exchange Dealers Association of India (‘FEDAI’). All proﬁ ts/
losses resulting from year end revaluations are recognised in the Proﬁ t and Loss Account.

Financial statements of foreign branches classiﬁ ed as non-integral foreign operations as per the RBI guidelines 
are translated as follows:

• 

• 

• 

Assets and liabilities (both monetary and non-monetary as well as contingent liabilities) are translated 
at closing rates notiﬁ ed by FEDAI at the year end.

Income and expenses are translated at the rates prevailing on the date of the transactions.

All resulting exchange differences are accumulated in a separate ‘Foreign Currency Translation Reserve’ 
till the disposal of the net investments. Any realised gains or losses are recognised in the Proﬁ t and Loss 
Account.

Outstanding forward exchange contracts including tom/spot contracts (excluding currency swaps undertaken 
to hedge foreign currency assets/liabilities and funding swaps which are not revalued) are revalued at year end 
on PV basis by discounting the forward value till spot date and converting the FCY amount using the respective 
spot rates as notiﬁ ed by FEDAI. The resulting gains or losses on revaluation are included in the Proﬁ t and Loss 
Account in accordance with RBI/FEDAI guidelines.

Premium/discount on currency swaps undertaken to hedge foreign currency assets and liabilities and funding 
swaps is recognised as interest income/expense and is amortised on a pro-rata basis over the underlying swap 
period.

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Contingent  liabilities  on  account  of  forward  exchange  and  derivative  contracts,  guarantees,  acceptances, 
endorsements  and  other  obligations  denominated  in  foreign  currencies  are  disclosed  at  closing  rates  of 
exchange notiﬁ ed by FEDAI.

Subsidiaries

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transactions. 
Monetary assets and liabilities denominated in foreign currencies as at the Balance Sheet date are translated at 
the closing rate on that date. Non-monetary items, which are measured in terms of historical cost denominated 
in a foreign currency, are reported using the exchange rate at the date of the transaction. Non-monetary items, 
which are measured at fair value or other similar valuation denominated in a foreign currency, are translated 
using the exchange rate at the date when such value was determined. The exchange differences, if any, either 
on settlement or translation are recognised in Proﬁ t and Loss Account.

4.6 

Derivative transactions

Axis Bank Ltd.

Derivative transactions comprise of forward contracts, swaps and options which are disclosed as contingent 
liabilities. The forwards, swaps and options are categorised as trading or hedge transactions. Trading derivative 
contracts are revalued at the Balance Sheet date with the resulting unrealised gain or loss being recognised 
in the Proﬁ t and Loss Account and correspondingly in other assets or other liabilities respectively. For hedge 
transactions, the Bank identiﬁ es the hedged item (asset or liability) at the inception of transaction itself. The 
effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. Hedge swaps are 
accounted for on accrual basis except in case of swaps designated with an asset or liability that is carried at 
market value or lower of cost or market value in the ﬁ nancial statements. In such cases the swaps are marked 
to market with the resulting gain or loss recorded as an adjustment to the market value of designated asset 
or  liability.  The  premium  on  option  contracts  is  accounted  for  as  per  FEDAI  guidelines.  Pursuant  to  the  RBI 
guidelines any receivables under derivative contracts comprising of crystallised receivables as well as positive 
Mark  to  Market  (MTM)  in  respect  of  future  receivables  which  remain  overdue  for  more  than  90  days  are 
reversed through the Proﬁ t and Loss account and are held in separate Suspense Account.

Currency futures contracts are marked to market using daily settlement price on a trading day, which is the 
closing price of the respective futures contracts on that day. While the daily settlement price is computed based 
on the last half an hour weighted average price of such contract, the ﬁ nal settlement price is taken as the RBI 
reference rate on the last trading day of the futures contract or as may be speciﬁ ed by the relevant authority 
from time to time. All open positions are marked to market based on the settlement price and the resultant 
marked to market proﬁ t/loss is daily settled with the exchange.

Valuation of Exchange Traded Currency Options (ETCO) is carried out on the basis of the daily settlement price 
of each individual option provided by the exchange and valuation of Interest Rate Futures (IRF) is carried out on 
the basis of the daily settlement price of each contract provided by the exchange.

4.7 

Revenue recognition

Axis Bank Ltd.

Interest income is recognised on an accrual basis except interest income on non-performing assets, which is 
recognised on receipt in accordance with AS – 9, Revenue Recognition as notiﬁ ed under Section 133 of the 
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the RBI 
guidelines.

Fees and commission income is recognised when due, except for guarantee commission which is recognised 
on a pro-rata basis over the period of the guarantee.

Arrangership/syndication fee is accounted for on completion of the agreed service and when right to receive is 
established.

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Dividend is accounted on an accrual basis when the right to receive the dividend is established.

Gain/loss on sell down of loans and advances through direct assignment is recognised at the time of sale.

In accordance with RBI guidelines on sale of non-performing advances, if the sale is at a price below the net 
book value (i.e. book value less provisions held), the shortfall is charged to the Proﬁ t and Loss Account. If the 
sale is for a value higher than the net book value, the excess provision is credited to the Proﬁ t and Loss Account 
in the year the amounts are received.

Subsidiaries

Revenue is recognised to the extent that it is probable that the economic beneﬁ ts will ﬂ ow to the Company and 
the revenue can be reliably measured. Fee income is recognised on the basis of accrual when all the services are 
performed.

Interest income is recognised on an accrual basis.

Dividend income is recognised when the right to receive payment is established by the Balance Sheet date.

Income from sale of investments is determined on weighted average basis and recognised on the trade date 
basis.

Axis Capital Limited

Brokerage income in relation to stock broking activity is recognised as per contracted rates at the execution 
of  transactions  on  behalf  of  the  customers  on  a  trade  date  basis.  Gains/losses  on  dealing  in  securities  are 
recognised on a trade date basis.

Revenue from issue management, loan syndication, ﬁ nancial advisory services is recognised based on the stage 
of completion of assignments and terms of agreement with the client.

Selling  commissions/brokerage  generated  from  primary  market  operations  i.e.  procuring  subscriptions  from 
investors for public offerings of companies, mutual funds, etc. are recorded on determination of the amount 
due to the Company, once the allotment of securities are completed.

Axis Private Equity Limited

Management fee is recognised on accrual basis.

Axis Trustee Services Limited

Trusteeship fees are recognised, on a straight line basis, over the period when services are performed. Initial 
acceptance fee is recognised as and when the ‘Offer Letter’ for the services to be rendered is accepted by the 
customer.

Axis Asset Management Company Limited

Management  fees  are  recognised  on  accrual  basis  at  speciﬁ c  rates,  applied  on  the  average  daily  net  assets 
of  each  scheme.  The  fees  charged  are  in  accordance  with  the  terms  of  scheme  information  documents  of 
respective schemes and are in line with the provisions of SEBI (Mutual Funds) Regulations, 1996 as amended 
from time to time.

Portfolio  Management  Fees  are  recognised  on  an  accrual  basis  as  per  the  terms  of  the  contract  with  the 
customers.

Investment advisory fees-offshore are recognised on an accrual basis as per the terms of the contract.

Axis Mutual Fund Trustee Limited

Trustee fee is recognised on accrual basis, at the speciﬁ c rates/amount  approved by the Board of Directors 
of the Company, within the limits speciﬁ ed under the Deed of Trust, and is applied on the net assets of each 
scheme of Axis Mutual Fund.

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Axis Finance Limited

Interest and other dues are accounted on accrual basis except in the case of non-performing loans where it is 
recognised upon realisation, as per the income recognition and asset classiﬁ cation norms prescribed by the RBI.

Income on discounted instruments is recognised over the tenure of the instrument on a straight-line method.

Axis Securities Limited

Business  sourcing  and  resource  management  fee  is  recognised  on  accrual  basis  when  all  the  services  are 
performed.

Income  from  Super  Value  Plan  to  the  extent  of  account  opening  fees  is  recognised  upfront  and  balance  is 
amortised over the validity of plan.

Selling  commissions/brokerage  generated  from  primary  market  operations  i.e.  procuring  subscriptions  from 
investors for public offerings of companies, mutual funds etc. are recorded on determination of the amount 
due to the company, once the allotment of securities are completed.

Brokerage income on securities is recognised as per contracted rates at the execution of transactions on behalf 
of the customers on the trade date. Gains/losses on dealing in securities are recognised on trade date basis.

Depository fees are recognised on completion of the transaction.

Portfolio management fees are accounted on accrual basis as follows:

In case of fees based on ﬁ xed percentage of the corpus/ﬁ xed amount, income is accrued at the end of the 
quarter/month.

In  case  of  fees,  based  on  the  returns  of  the  portfolio,  income  is  accounted  on  each  anniversary  as  per  the 
agreement.

4.8 

Scheme expenses

Axis Asset Management Company Ltd.

Fund Expenses

Expenses of schemes of Axis Mutual Fund in excess of the stipulated limits as per SEBI (Mutual Fund) Regulations, 
1996 and expenses incurred directly (inclusive of advertisement/brokerage expenses) on behalf of schemes of 
Axis Mutual Fund are charged to the Proﬁ t and Loss Account.

New fund offer expenses

Expenses relating to new fund offer of Axis Mutual Fund are charged to the Proﬁ t and Loss Account in the year 
in which they are incurred.

Brokerage

Clawbackable  brokerages  paid  by  the  Company  in  advance  is  charged  to  the  statement  of  Proﬁ t  and 
Loss  account  over  the  claw-back  period/tenure  of  the  respective  scheme.  The  unamortized  portion  of  the 
clawbackable brokerage is carried forward as prepaid expense.

Upfront brokerage on closed ended and ﬁ xed tenure schemes is amortized over the tenure of the respective 
scheme and in case of Equity Linked Saving Scheme (ELSS), upfront brokerage is amortized over 3 years. The 
unamortized portion of the brokerage is carried forward as prepaid expense. Any other brokerage is expensed 
out in the year in which they are incurred.

4.9 

Fixed assets and depreciation/impairment

Group

Fixed  assets  are  carried  at  cost  of  acquisition  less  accumulated  depreciation  and  impairment,  if  any.    Cost 
includes freight, duties, taxes and incidental expenses related to the acquisition and installation of the asset.

Capital work-in-progress includes cost of ﬁ xed assets that are not ready for their intended use and also includes 
advances paid to acquire ﬁ xed assets.

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Depreciation is provided on the straight-line method from the date of addition. Till the year ended 31 March, 
2014, depreciation rates prescribed under Schedule XIV to the Companies Act, 1956, were treated as minimum 
rates  and  the  Group  was  not  allowed  to  charge  depreciation  at  lower  rates  even  if  such  lower  rates  were 
justiﬁ ed by the estimated useful life of the asset. Schedule II to the Companies Act, 2013, prescribes useful 
lives of ﬁ xed assets which, in many cases, are different from lives prescribed under the erstwhile Schedule XIV. 
Considering the applicability of Schedule II, the management has re-estimated useful lives and residual values 
of all its ﬁ xed assets:

Asset

Owned premises 

Computer hardware including printers

Application software

Vehicles

EPABX, telephone instruments

CCTV and video conferencing equipment

Mobile phone

Locker cabinets/cash safe/strong room door

Modem, scanner, routers, hubs, switches, racks/cabinets for IT equipment

UPS, VSAT, fax machines

Cheque book/cheque encoder, currency counting machine, fake note detector

Assets at staff residence

All other ﬁ xed assets

Estimated useful life*

60 years

3 years

5 years

4 years

8 years

3 years

2 years

10 years

5 years

5 years

5 years

3 years

10 years

* The management believes that depreciation rates currently used fairly reﬂ ect its estimate of the useful lives 
and residual values of ﬁ xed assets, though these rates in certain cases are different from lives prescribed under 
Schedule II of Companies Act, 2013.

Depreciation on assets sold during the year is recognised on a pro-rata basis to the Proﬁ t and Loss Account till 
the date of sale.

The carrying amounts of assets are reviewed at each Balance Sheet date to ascertain if there is any indication 
of  impairment  based  on  internal/external  factors.  An  impairment  loss  is  recognised  wherever  the  carrying 
amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset’s net 
selling price and value in use. In assessing value in use, the estimated future cash ﬂ ows are discounted to their 
present value at the weighted average cost of capital. After impairment, depreciation is provided on the revised 
carrying amount of the asset over its remaining useful life.

Axis Bank Ltd.

Change in estimated useful life of ﬁ xed assets

During the year, the Bank has revised the estimated useful lives of the following ﬁ xed assets:

• 

• 

Premises from 61 years to 60 years

Locker cabinets/cash safe/strong room door from 16 years to 10 years

As a result of the aforesaid revision, the net depreciation charge for the year is higher by `3.69 crores with a 
corresponding decrease in the net block of ﬁ xed assets.

Proﬁ t on sale of premises is appropriated to Capital Reserve Account in accordance with RBI instructions.

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4.10   Lease transactions

Group

Leases where the lessor effectively retains substantially all the risks and beneﬁ ts of ownership over the lease 
term are classiﬁ ed as operating lease. Lease payments for assets taken on operating lease are recognised as an 
expense in the Proﬁ t and Loss Account on a straight-line basis over the lease term.

4.11  Retirement and other employee beneﬁ ts

Provident Fund

Axis Bank Ltd.

Retirement  beneﬁ t  in  the  form  of  provident  fund  is  a  deﬁ ned  beneﬁ t  plan  wherein  the  contributions  are 
charged to the Proﬁ t and Loss Account of the year when the contributions to the fund are due and when 
services are rendered by the employees. Further, an actuarial valuation is conducted by an independent actuary 
to determine the deﬁ ciency, if any, in the interest payable on the contributions as compared to the interest 
liability as per the statutory rate.

Subsidiaries

Retirement  beneﬁ t  in  the  form  of  provident  fund  is  a  deﬁ ned  contribution  scheme.  The  Company  has  no 
obligation, other than the contribution payable to the provident fund. The Company recognises contribution 
payable to the provident fund scheme as an expenditure, when an employee renders the related service.

Gratuity

Axis Bank Ltd.

The Bank contributes towards gratuity fund (deﬁ ned beneﬁ t retirement plan) administered by various insurers 
for eligible employees. Under this scheme, the settlement obligations remain with the Bank, although various 
insurers administer the scheme and determine the contribution premium required to be paid by the Bank. The 
plan provides a lump sum payment to vested employees at retirement or termination of employment based on 
the respective employee’s salary and the years of employment with the Bank. Liability with regard to gratuity 
fund is accrued based on actuarial valuation conducted by an independent actuary using the Projected Unit 
Credit Method as at 31 March each year. In respect of employees at overseas branches (other than expatriates) 
liability with regard to gratuity is provided on the basis of a prescribed method as per local laws, wherever 
applicable.

Subsidiaries

Gratuity liability is a deﬁ ned beneﬁ t obligation and is provided for on the basis of an actuarial valuation using 
Projected Unit Credit Method made at the end of each ﬁ nancial year.

Actuarial gains/losses are immediately taken to the Proﬁ t and Loss Account and are not deferred.

Compensated Absences

Group

Short term compensated absences are provided for based on estimates of encashment/availment of leave. The 
Group provides long term compensated absences based on actuarial valuation conducted by an independent 
actuary. The actuarial valuation is carried out as per the Projected Unit Credit Method as at 31 March each year.

Actuarial gains/losses are immediately taken to the Proﬁ t and Loss Account and are not deferred.

Superannuation

Axis Bank Ltd.

Employees of the Bank are entitled to receive retirement beneﬁ ts under the Bank’s Superannuation scheme 
either  under  a  cash-out  option  through  salary  or  under  a  deﬁ ned  contribution  plan.  Through  the  deﬁ ned 
contribution plan the Bank contributes annually a speciﬁ ed sum of 10% of the employee’s eligible annual basic 

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salary to LIC, which undertakes to pay the lumpsum and annuity beneﬁ t payments pursuant to the scheme.  
Superannuation contributions are recognised in the Proﬁ t and Loss Account in the period in which they accrue.

4.12 

Long Term Incentive Plan (LTIP)

Axis Asset Management Company Ltd.

The Company has initiated Axis AMC - Long Term Incentive plan. The points granted to employees as per the 
guidelines laid down in the plan are encashable after they are held for a speciﬁ ed period as per the terms of the 
plan. The Company accounts for the liability arising on points granted proportionately over the period from the 
date of grant till the end of the exercise window. The liability is assessed and provided on the basis of valuation 
carried out by an independent valuer.

4.13  Reward points

Axis Bank Ltd.

The Bank runs a loyalty program which seeks to recognize and reward customers based on their relationship 
with the Bank. Under the program, eligible customers are granted loyalty points redeemable in future, subject 
to certain conditions. In addition, the Bank continues to grant reward points in respect of certain credit cards 
(not covered under the loyalty program). The Bank estimates the probable redemption of such loyalty/reward 
points using an actuarial method at the Balance Sheet date by employing an independent actuary. Provision 
for  the  said  reward  points  is  then  made  based  on  the  actuarial  valuation  report  as  furnished  by  the  said 
independent actuary.

4.14 

Taxation

Group

Income tax expense is the aggregate amount of current tax and deferred tax charge. Current year taxes are 
determined in accordance with the Income tax Act, 1961. Deferred income taxes reﬂ ects the impact of current 
year timing differences between taxable income and accounting income for the year and reversal of timing 
differences of earlier years.

Deferred  tax  is  measured  based  on  the  tax  rates  and  the  tax  laws  enacted  or  substantively  enacted  at  the 
Balance Sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists 
to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities 
relate to the taxes on income levied by same governing taxation laws.

Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufﬁ cient future 
taxable income will be available against which such deferred tax assets can be realised. The impact of changes 
in the deferred tax assets and liabilities is recognised in the Proﬁ t and Loss Account.

Deferred  tax  assets  are  recognised  and  reassessed  at  each  reporting  date,  based  upon  the  Management’s 
judgement as to whether realisation is considered as reasonably certain. Deferred tax assets are recognised 
on  carry  forward  of  unabsorbed  depreciation  and  tax  losses  only  if  there  is  virtual  certainty  supported  by 
convincing evidence that such deferred tax asset can be realised against future proﬁ ts.

4.15 

Share issue expenses

Axis Bank Ltd.

Share issue expenses are adjusted from Share Premium Account in terms of Section 52 of the Companies Act, 
2013.

4.16 

Earnings per share

Group

The Bank reports basic and diluted earnings per share in accordance with AS 20, Earnings per Share, as notiﬁ ed 
under Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) 

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Rules, 2014. Basic earnings per share is computed by dividing the net proﬁ t after tax by the weighted average 
number of equity shares outstanding for the year.

Diluted earnings per share reﬂ ect the potential dilution that could occur if securities or other contracts to issue 
equity shares were exercised or converted during the year. Diluted earnings per share is computed using the 
weighted average number of equity shares and dilutive potential equity shares outstanding at the year end.

4.17 

Employee stock option scheme

Axis Bank Ltd.

The 2001 Employee Stock Option Scheme (‘the Scheme’) provides for grant of stock options on equity shares 
of the Bank to employees and Directors of the Bank and its subsidiaries. The Scheme is in accordance with 
the  Securities  and  Exchange  Board  of  India  (SEBI)  (Employees  Stock  Option  Scheme  and  Employee  Stock 
Purchase Scheme) Guidelines, 1999 (‘the Guidelines’). These Guidelines have been repealed in the month of 
October, 2014 and were substituted by Securities and Exchange Board of India (Share Based Employee Beneﬁ ts) 
Regulations,  2014.  The  Scheme  is  in  compliance  with  the  said  regulations.  The  Bank  follows  the  intrinsic 
value method to account for its stock based employee compensation plans as per the Guidelines. Options are 
granted at an exercise price, which is equal to/less than the fair market price of the underlying equity shares.  
The excess of such fair market price over the exercise price of the options as at the grant date is recognised as 
a deferred compensation cost and amortised on a straight-line basis over the vesting period of such options.

The fair market price is the latest available closing price, prior to the date of grant, on the stock exchange on 
which the shares of the Bank are listed. If the shares are listed on more than one stock exchange, then the stock 
exchange where there is highest trading volume on the said date is considered.

4.18 

Provisions, contingent liabilities and contingent assets

Group

A provision is recognised when the Group has a present obligation as a result of past event where it is probable 
that an outﬂ ow of resources will be required to settle the obligation, in respect of which a reliable estimate can 
be made. Provisions are not discounted to its present value and are determined based on best estimate required 
to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted 
to reﬂ ect the current best estimates.

A disclosure of contingent liability is made when there is:

• 

• 

a possible obligation arising from a past event, the existence of which will be conﬁ rmed  by occurrence 
or non-occurrence of one or more uncertain future events not within the control of the Group; or

a  present  obligation  arising  from  a  past  event  which  is  not  recognised  as  it  is  not  probable  that  an 
outﬂ ow of resources will be required to settle the obligation or a reliable estimate of the amount of the 
obligation cannot be made.

When there is a possible obligation or a present obligation in respect of which the likelihood of outﬂ ow of 
resources is remote, no provision or disclosure is made.

Contingent  assets  are  not  recognised  in  the  ﬁ nancial  statements.  However,  contingent  assets  are  assessed 
continually  and  if  it  is  virtually  certain  that  an  inﬂ ow  of  economic  beneﬁ ts  will  arise,  the  asset  and  related 
income are recognised in the period in which the change occurs.

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177

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
18  Notes forming part of the consolidated ﬁ nancial statements for the year ended 

31 March, 2015 
(Currency: In Indian Rupees)

1 

The shareholders of the Bank at the 20th Annual General Meeting held on 27 June 2014, approved the sub-division 
(split) of one equity share of the Bank from nominal value of `10/- each into ﬁ ve equity shares of nominal value of `2/- 
each. The record date for the sub-division was 30 July, 2014. All shares, stock options and per share information in the 
ﬁ nancial statements reﬂ ect the effect of sub-division (split) retrospectively for the earlier reporting periods.

2 

Other Disclosures

2.1.1 

‘Provisions and contingencies’ recognised in the Proﬁ t and Loss Account comprise of:

For the year ended

Provision for income tax

-  Current tax for the year

-  Deferred tax (Refer 2.1.11)

Provision for wealth tax

Provision for non-performing assets
(including bad debts written-off and write-backs)

Provision for restructured assets

Provision towards standard assets

Provision for depreciation in value of investments

Provision for unhedged foreign currency exposure

Provision for country risk

Provision for other contingencies

Total

(` in crores)  

31 March, 2015

31 March, 2014

3,987.93

(153.17)

3,834.76

0.93

3,533.43

(363.18)

3,170.25

0.42

1,788.61

1,295.98

(81.88)

292.75

(50.98)

133.66

-

248.05

6,165.90

194.76

293.07

(100.29)

-

-

426.36

5,280.55

2.1.2 

 During the year ended 31 March, 2015, the Bank has raised subordinated debt of `850 crores, the details of which are 
set out below:

Date of maturity

12 February, 2025

Period

120 months

Coupon

8.45%

Amount
`850 crores

The Bank has not raised subordinated debt during the year ended 31 March, 2014.

The Bank has not redeemed subordinated debt during the year ended 31 March, 2015. 

During the year ended 31 March, 2014, the Bank redeemed subordinated debt of `278.50 crores, the details of which 
are set out below:

Date of maturity

26 April, 2013 

22 June, 2013

22 June, 2013

28 September, 2013

15 October, 2013

178

Period

117 months

87 months

87 months

87 months

117 months

Coupon

7.00%

8.50%

8.32%

8.95%

6.50%

Amount
  `65.00 crores
`125.00 crores
`5.00 crores
  `33.50 crores
`50.00 crores

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2.1.3  The Bank has not raised any hybrid capital during the year ended 31 March, 2015 and year ended 31 March, 2014.

2.1.4  Earnings Per Share (‘EPS’)

The details of EPS computation is set out below:

As at 

31 March, 2015

31 March, 2014

Basic and Diluted earnings for the year (Net proﬁ t after tax) 
(` in crores)
Basic weighted average no. of shares (in crores)

Add:  Equity  shares  for  no  consideration  arising  on  grant  of  stock  options 
under ESOP (in crores)

Diluted weighted average no. of shares (in crores)
Basic EPS (`)
Diluted EPS (`)
Nominal value of shares (`)

7,447.90

235.98

6,310.12

234.52

2.53

238.51

31.56

31.23

2.00

0.58

235.10

26.91

 26.84 

2.00

Dilution of equity is on account of 25,286,978 (previous year 5,847,940) stock options. 

2.1.5  Employee Stock Options Scheme (‘the Scheme’)

In  February  2001,  pursuant  to  the  approval  of  the  shareholders  at  the  Extraordinary  General  Meeting,  the  Bank 
approved an Employee Stock Option Scheme. Under the Scheme, the Bank is authorised to issue upto 65,000,000 
equity shares to eligible employees. Eligible employees are granted an option to purchase shares subject to vesting 
conditions. Further, over the period June 2004 to July 2013, pursuant to the approval of the shareholders at Annual 
General Meetings, the Bank approved an ESOP scheme for additional options aggregating 175,087,000. The options 
vest in a graded manner over 3 years. The options can be exercised within three/ﬁ ve years from the date of the vesting 
as the case may be. Within the overall ceiling of 240,087,000 stock options approved for grant by the shareholders as 
stated earlier, the Bank is also authorised to issue options to employees and directors of the subsidiary companies.

222,052,950 options have been granted under the Scheme till the previous year ended 31 March, 2014.

On 26 April, 2014, the Bank granted 9,922,500 stock options (each option representing entitlement to one equity 
share of the Bank) to its employees including the MD & CEO and employees of certain subsidiaries of the Bank at a 
price of `306.54 per option.

The  Shareholders  of  the  Bank  at  the  Twentieth  Annual  General  Meeting  held  on  27  June,  2014,  approved  the 
amendment to the exercise period from 3 years to 5 years from the date of vesting of options, in respect of the options 
granted with effect from April 2014 onwards.

Stock option activity under the Scheme for the year ended 31 March, 2015 is set out below: 

Options 
outstanding

Range of exercise 
prices (`)

Weighted 
average 
exercise 
price (`)

Weighted average 
remaining 
contractual life 
(Years)

Outstanding at the beginning of the year

54,227,780

100.65 to 289.51

Granted during the year

Forfeited during the year

Expired during the year

Exercised during the year

9,922,500

306.54

(293,290)

100.65 to 306.54

(727,765)

100.65 to 242.96

(21,299,434)

100.65 to 289.51

Outstanding at the end of the year

41,829,791

100.65 to 306.54

Exercisable at the end of the year

21,204,291

100.65 to 289.51

244.45

306.54

253.57

209.14

225.90

269.17

256.34

The weighted average share price in respect of options exercised during the year was `444.13.

2.44

-

-

-

-

3.13

1.57

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Stock option activity under the Scheme for the year ended 31 March, 2014 is set out below: 

Options 
outstanding

Range of exercise 
prices (`)

Outstanding at the beginning of the year

54,325,125

93.78 to 289.51

Granted during the year

Forfeited during the year

Expired during the year

Exercised during the year

10,015,000

(300,020)

(361,900)

288.96

93.78 to 289.51

93.78 to 164.88

(9,450,425)

93.78 to 289.51

Outstanding at the end of the year

54,227,780

100.65 to 289.51

Exercisable at the end of the year

30,212,130

100.65 to 289.51

Weighted 
average 
exercise 
price (`)
218.09

288.96

230.43

112.57

145.57

244.45

228.69

Weighted average 
remaining 
contractual life 
(Years)

2.69

-

-

-

-

2.44

1.42

The weighted average share price in respect of options exercised during the year was `262.80.

Fair Value Methodology

On applying the fair value based method in Guidance Note on ‘Accounting for Employee Share-based Payments’ the 
impact on reported net proﬁ t and EPS would be as follows:

Net Proﬁ t (as reported) (` in crores)
Add:   Stock  based  employee  compensation  expense  included  in  net 
income (` in crores)
Less: Stock based employee compensation expense determined under fair 
value based method (proforma) (` in crores)
Net Proﬁ t (Proforma) (` in crores)
Earnings per share: Basic (in `)
As reported 
Proforma
Earnings per share: Diluted (in `)
As reported
Proforma

31 March, 2015
7,447.90

31 March, 2014
6,310.12

-

-

(90.26)
7,357.64

(103.48)
6,206.64

31.56
31.18

31.23
30.87

 26.91
26.47

26.84
26.41

The fair value of the options is estimated on the date of the grant using the Black-Scholes options pricing model, with 
the following assumptions:

Dividend yield

Expected life

Risk free interest rate

Volatility

31 March, 2015

31 March, 2014

1.32%

2.57-4.57 years

1.36%

2-4 years

8.62% to 8.78% 7.45% to 7.57%

35.77% to 38.01% 33.86% to 36.93%

Volatility is the measure of the amount by which a price has ﬂ uctuated or is expected to ﬂ uctuate during a period. 
The measure of volatility used in the Black-Scholes options pricing model is the capitalize standard deviation of the 
continuously compounded rates of return on the stock over a period of time. For calculating volatility, the daily volatility 
of the stock prices on the National Stock Exchange, over a period prior to the date of grant, corresponding with the 
expected life of the options has been considered.

The weighted average fair value of options granted during the year ended 31 March, 2015 is `109.72 (previous year 
`87.77).

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2.1.6  Dividend paid on shares issued on exercise of stock options

The Bank may allot shares between the Balance Sheet date and record date for the declaration of   dividend pursuant to 
the exercise of any employee stock options. These shares will be eligible for full dividend for the year ended 31 March, 
2015, if approved at the ensuing Annual General Meeting.  Dividend relating to these shares has not been recorded in 
the current year.

Appropriation to proposed dividend during the year ended 31 March, 2015 includes dividend of `3.41 crores (previous 
year `2.05 crores) paid pursuant to exercise of employee stock options after the previous year end but before the record 
date for declaration of dividend for the year ended 31 March, 2014.

2.1.7  Segmental reporting

The business of the Bank is divided into four segments: Treasury, Retail Banking, Corporate/Wholesale Banking, and 
Other  Banking  Business.  These  segments  have  been  identiﬁ ed  and  based  on  RBI’s  revised  guidelines  on  Segment 
Reporting issued on 18 April 2007 vide Circular No. DBOD.No.BP.BC.81/21.04.018/2006-07. The principal activities of 
these segments are as under.

Segment 

Treasury

Retail Banking

Principal Activities

Treasury  operations  include  investments  in  sovereign  and  corporate  debt,  equity  and 
mutual funds, trading operations, derivative trading and foreign exchange operations on 
the proprietary account and for customers. The Treasury segment also includes the central 
funding unit.

Constitutes lending to individuals/small businesses through the branch network and other 
delivery channels subject to the orientation, nature of product, granularity of the exposure 
and  the  quantum  thereof.  Retail  Banking  activities  also  include  liability  products,  card 
services,  internet  banking,  mobile  banking,  ATM  services,  depository,  ﬁ nancial  advisory 
services and NRI services.

Corporate/Wholesale 
Banking

Includes  corporate  relationships  not  included  under  Retail  Banking,  corporate  advisory 
services, placements and syndication, project appraisals, capital market related services and 
cash management services.

Other Banking Business

Includes  para  banking  activities  like  third  party  product  distribution  and    other  banking 
transactions not covered under any of the above three segments. 

Business segments in respect of operations of the subsidiaries (including step down subsidiaries) have been identiﬁ ed 
and  reported  taking  into  account  the  customer  proﬁ le,  the  nature  of  product  and  services  and  the  organisation 
structure.

Revenues of the Treasury segment primarily consist of fees and gains or losses from trading operations and interest 
income  on  the  investment  portfolio.  The  principal  expenses  of  the  segment  consist  of  interest  expense  on  funds 
borrowed  from  external  sources  and  other  internal  segments,  premises  expenses,  personnel  costs,  other  direct 
overheads and allocated expenses.

Revenues of the Corporate/Wholesale Banking segment consist of interest and fees earned on loans given to customers 
falling under this segment and fees arising from transaction services and merchant banking activities such as syndication 
and debenture trusteeship. Revenues of the Retail Banking segment are derived from interest earned on loans classiﬁ ed 
under this segment and fees for banking and advisory services, ATM interchange fees and cards products. Expenses of 
the Corporate/Wholesale Banking and Retail Banking segments primarily comprise interest expense on deposits and 
funds borrowed from other internal segments, infrastructure and premises expenses for operating the branch network 
and other delivery channels, personnel costs, other direct overheads and allocated expenses.

Segment income includes earnings from external customers and from funds transferred to the other segments. Segment 
result includes revenue as reduced by interest expense and operating expenses and provisions, if any, for that segment. 
Segment-wise income and expenses include certain allocations.  Inter segment interest income and interest expense 
represent the transfer price received from and paid to the Central Funding Unit (CFU) respectively. For this purpose, 

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the funds transfer pricing mechanism presently followed by the Bank, which is based on historical matched maturity 
and internal benchmarks, has been used. Operating expenses other than those directly attributable to segments are 
allocated to the segments based on an activity-based costing methodology. All activities in the Bank are segregated 
segment-wise and allocated to the respective segment.   

Segmental results are set out below:

(` in crores)

31 March, 2015

Treasury Corporate/
Wholesale 
Banking

Retail 
Banking

Other 
Banking 
Business

Total

Segment Revenue

Gross interest income (external customers)

9,631.37

14,021.28

12,074.81

-

35,727.46

Other income

2,236.04

3,469.30

2,247.82

884.95

8,838.11

Total income as per Proﬁ t and Loss Account

11,867.41

17,490.58

14,322.63

884.95

44,565.57

Add/(less) inter segment interest income 

39,936.35

4,209.43

14,070.80

-

58,216.58

Total segment revenue

51,803.76

21,700.01

28,393.43

884.95 102,782.15

Less: Interest expense (external customers)

10,296.55

545.78

10,498.93

Less: Inter segment interest expense

38,016.17

10,505.60

9,694.81

-

-

21,341.26

58,216.58

Less: Operating expenses

Operating proﬁ t

393.23

2,447.12

6,536.18

233.40

9,609.93

3,097.81

8,201.51

1,663.51

651.55

13,614.38

Less: Provision for non-performing assets/others* 

13.36

1,861.60

455.25

0.93

2,331.14

Segment result

Less: Provision for tax

Net Proﬁ t before minority interest and 
earnings from Associate

Less: Minority Interest

Add: Share of Proﬁ t in Associate

Extraordinary proﬁ t/loss

Net Proﬁ t

Segment assets

Unallocated assets

Total assets

Segment liabilities

Unallocated liabilities(1) 

Total liabilities

Net assets

Capital Expenditure for the year

Depreciation on ﬁ xed assets for the year

(1) Includes minority interest of `31.14 crores

182

3,084.45

6,339.91

1,208.26

650.62

11,283.24

3,834.76

7,448.48

1.94

1.36

                -   

7,447.90

170,594.43 165,774.84 127,984.63

655.52 465,009.42

2,233.55

467,242.97

155,708.13

80,846.22 184,273.04

98.02 420,925.41

1,367.97

422,293.38

14,886.30

84,928.62 (56,288.41)

557.50

44,949.59

13.31

11.30

161.16

127.77

350.08

273.28

10.45

7.29

535.00

419.64

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(` in crores)

31 March, 2014

Treasury Corporate/
Wholesale 
Banking

Retail 
Banking

Other 
Banking 
Business

Total

Segment Revenue

Gross interest income (external customers)

8,703.49  12,687.69 

9,344.78 

-    30,735.96 

Other income

 2,102.41 

 3,251.37 

 1,669.57 

 742.90 

 7,766.25 

Total income as per Proﬁ t and Loss Account

 10,805.90 

 15,939.06 

 11,014.35 

 742.90   38,502.21 

Add/(less) inter segment interest income 

 35,545.78 

 3,802.28 

 11,355.87

 -     50,703.93 

Total segment revenue

46,351.68  19,741.34 

 22,370.22 

 742.90   89,206.14 

Less: Interest expense (external customers)

 9,897.99 

 405.49 

 8,399.49 

 -     18,702.97 

Less: Inter segment interest expense

 33,763.53 

 9,370.03 

 7,570.37 

 -     50,703.93 

Less: Operating expenses

Operating proﬁ t

 389.48 

 2,188.10 

 5,464.07 

 167.87 

 8,209.52 

2,300.68 

 7,777.72 

936.29

 575.03   11,589.72 

Less: Provision for non-performing assets/others* 

 11.34 

 1,768.25 

 330.29 

 0.42 

 2,110.30 

Segment result

Less: Provision for tax

Net Proﬁ t before minority interest and earnings 
from Associate

Less: Minority Interest

Add: Share of Proﬁ t in Associate

Extraordinary proﬁ t/loss

Net Proﬁ t

Segment assets

Unallocated assets

Total assets

Segment liabilities

Unallocated liabilities(1)

Total liabilities

Net assets

 2,289.34 

 6,009.47 

 606.00 

 574.61 

 9,479.42 

3,170.25

6,309.17

0.41

1.36

-   

6,310.12

 143,030.97   135,293.22   105,686.95 

 441.62  384,452.76

1,897.30

386,350.06

 125,146.04 

 71,134.16   150,401.40 

 54.47  346,736.07 

 17,884.93 

 64,159.06  (44,714.45)

 387.15   38,396.05

1,217.94

 347,954.01 

Capital Expenditure for the year

 23.64 

 173.86 

 443.49 

 7.60 

 648.59 

Depreciation on ﬁ xed assets for the year

 12.93 

 97.74 

 260.62 

 4.17 

 375.46 

(1) Includes minority interest of `12.94 crores

*represents material non-cash items other than depreciation 

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Geographic Segments

Revenue

Assets

Capital Expenditure for 
the year

Depreciation on ﬁ xed 
assets for the year

2.1.8  Related party disclosure

(` in crores)

Domestic

International

Total

31 March, 
2015

31 March, 
2014

31 March, 
2015

31 March, 
2014

31 March, 
2015

31 March, 
2014

41,868.17

36,132.99

2,697.40

2,369.22

44,565.57

38,502.21

415,884.38

341,431.89

51,358.59

44,918.17

467,242.97

386,350.06

532.65

622.68

411.61

368.38

2.35

8.03

25.91

535.00

648.59

7.08

419.64

375.46

The related parties of the Group are broadly classiﬁ ed as:

a) 

Promoters

The Bank has identiﬁ ed the following entities as its Promoters.

• 

• 

• 

Administrator of the Speciﬁ ed Undertaking of the Unit Trust of India (SUUTI)

Life Insurance Corporation of India (LIC)

General Insurance Corporation and four Government-owned general insurance companies – New India 
Assurance  Co.  Limited,  National  Insurance  Co.  Limited,  United  India  Insurance  Co.  Limited  and  The 
Oriental Insurance Co. Limited.

b) 

Key Management Personnel

• 

• 

• 

• 

Mrs. Shikha Sharma (Managing Director & Chief Executive Ofﬁ cer)

Mr. Somnath Sengupta [Executive Director & Head (Corporate Centre)] upto 31 August, 2014

Mr. V. Srinivasan [Executive Director & Head (Corporate Banking)]

Mr. Sanjeev K. Gupta [Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer] with effect from 
4 September, 2014

c) 

Relatives of Key Management Personnel

Mr.  Sanjaya  Sharma,  Mrs.  Usha  Bharadwaj,  Mr.  Tilak  Sharma,  Ms.  Tvisha  Sharma,  Dr.  Sanjiv  Bharadwaj, 
Dr. Prashant Bharadwaj, Dr. Brevis Bharadwaj, Dr. Reena Bharadwaj, Mrs. Chaitaly Sengupta, Mrs. Renukona 
Sengupta,  Mr.  Niloy  Sengupta,  Mrs.  Gayathri  Srinivasan,  Mrs.  Vanjulam  Varadarajan,  Mr.  V.  Satish,  Mrs. 
Camy Satish, Ms. Ananya Srinivasan, Ms. Anagha Srinivasan, Ms. Geetha N., Ms. Chitra R., Ms. Sumathi N., 
Mr. S. Ranganathan, Mr. R. Narayan, Mrs. Poonam Gupta, Mr. Somya Gupta, Mr. Shubham Gupta, Mr. Rajeev 
Agarwal and Mr. Deepak Kumar Gupta.

d) 

Associate

• 

Bussan Auto Finance India Private Limited (upto 30 March, 2015)

Based on RBI guidelines, details of transactions with Associates are not disclosed since there is only one 
entity/party in this category. [Refer Schedule 17(2)(e)]

The  signiﬁ cant  transactions  between  the  Bank  and  related  parties  during  the  year  ended  31  March,  2015  and 
31 March, 2014 are given below. A speciﬁ c related party transaction is disclosed as a signiﬁ cant related party transaction 
wherever it exceeds 10% of the aggregate value of all related party transactions in that category:

• 

Dividend paid: Administrator of The Speciﬁ ed Undertaking of the Unit Trust of India `109.94 crores 
(previous year `175.00 crores), Life Insurance Corporation of India `127.35 crores (previous year `78.77 
crores)

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• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

• 

Interest paid: Life Insurance Corporation of India `744.04 crores (previous year `928.77 crores)

Interest received: Life Insurance Corporation of India `0.04 crores (previous year `0.16 crores), New 
India Assurance Company Ltd. `0.01 crores (previous year `0.09 crores) and Mr. Somnath Sengupta 
`0.10 crores (previous year `0.17 crores)

Investment of related party in bonds of the Bank: Life Insurance Corporation of India `500.00 crores 
(previous year Nil)

Investment of related party in the Bank: Mrs. Shikha Sharma `22.65 crores (previous year `7.35 crores), 
Mr.  V.  Srinivasan  `6.81  crores  (previous  year  `2.43  crores)  and  Mr.  Somnath  Sengupta  `7.04  crores 
(previous year `0.89 crores)

Redemption of subordinated debt: Life Insurance Corporation of India Nil (previous year `25.00 crores) 
and General Insurance Corporation of India Nil (previous year `15.00 crores)

Sale  of  Investments:  Life  Insurance  Corporation  of  India  Nil  (previous  year  `221.71  crores),  General 
Insurance  Corporation  of  India  `211.06  crores  (previous  year  `181.37  crores),  New  India  Assurance 
Company Ltd. `50 crores (previous year `147.51 crores), National Insurance Company Ltd. `222.34 
crores (previous year `109.97 crores), United India Insurance Company Ltd. `120.02 crores (previous 
year `79.12 crores)

Management Contracts: Mrs. Shikha Sharma `4.18 crores (previous year `4.07 crores), Mr. Somnath 
Sengupta `4.51 crores (previous year `2.30 crores) and Mr. V. Srinivasan `2.46 crores (previous year 
`2.18 crores)

Contribution to employee beneﬁ t fund: Life Insurance Corporation of India `16.04 crores (previous year 
`15.49 crores)

Placement of Deposit by the Bank: Life Insurance Corporation of India `0.14 crores (previous year Nil)

Non-funded commitments (net): Life Insurance Corporation of India `0.01 crores (previous year `0.02 
crores),  New  India  Assurance  Company  Ltd.  `0.06  crores  (previous  year  Nil)  and  Oriental  Insurance 
Company Ltd. `0.01 crores (previous year `0.04 crores)

Advance  granted  (net):  Life  Insurance  Corporation  of  India  Ltd.  `0.04  crores  (previous  year  Nil)  and 
Mr. Somnath Sengupta Nil (previous year `0.83 crores)

Advance  repaid:  Life  Insurance  Corporation  of  India  Nil  (previous  year  `27.91  crores),  Mrs.  Shikha 
Sharma `0.04 crores (previous year `0.03 crores), Mr. Somnath Sengupta `0.17 crores (previous year 
`1.22 crores) and Mr. Sanjeev K. Gupta `0.03 crores (previous year Nil)

Receiving  of  services:  Oriental  Insurance  Company  Ltd.  `61.47  crores  (previous  year  `51.20  crores), 
New India Assurance Company Ltd. `8.28 crores (previous year `6.23 crores)

Rendering of services: Life Insurance Corporation of India `1.81 crores (previous year `1.93 crores) and 
New India Assurance Company Ltd. `0.31 crores (previous year `0.28 crores)

Other reimbursement to related party: Life Insurance Corporation of India `0.37 crores (previous year 
`0.39 crores) 

The details of transactions of the Bank with its related parties during the year ended 31 March, 2015 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Relatives of Key 
Management 
Personnel

(` in crores)

Total

Dividend paid

Interest paid

Interest received

 275.28 

 810.09 

 0.05 

 0.28 

 0.30 

 0.12 

 -   

 0.28 

 -   

 275.56 

 810.67 

 0.17 

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Items/Related Party

Promoters

Key 
Management 
Personnel

Relatives of Key 
Management 
Personnel

(` in crores)

Total

Investment of related party in the Bank

 -   

 39.74 

Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital/Bonds of the Bank

Redemption of Subordinated Debt

Purchase of investments

Sale of investments

Management contracts 

Contribution to employee beneﬁ t fund

Purchase of ﬁ xed assets

Sale of ﬁ xed assets

Placement of Deposits

Non-funded commitments (net)

Advance granted (net)

Advance repaid

Receiving of services

Rendering of services

Other reimbursements from related party

Other reimbursements to related party

 550.00 

 -   

 -   

 658.93 

 -   

 16.04 

 -   

 -   

 0.14 

 0.08 

 0.04 

 -   

 78.43 

 2.18 

 -   

 0.37 

 -   

 -   

 -   

 -   

 11.99 

 -   

 -   

 -   

 -   

 -   

 -   

 0.23 

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 -   

 39.74 

 550.00 

 -   

 -   

 658.93 

 11.99 

 16.04 

 -   

 -   

 0.14 

 0.08 

 0.04 

 0.23 

 78.43 

 2.18 

 -   

 0.37 

The balances payable to/receivable from the related parties of the Bank as on 31 March, 2015 are given below: 

Items/Related Party

Promoters

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of related party in the Bank
Non-funded commitments
Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital/Bonds of the Bank
Payable under management contracts
Other receivables (net)
Other payables (net)

 -   
 8,347.06 
 0.30 
 1.02 
 132.42 
 3.12 

 3,370.00 
 -   
 -   
 -   

Key 
Management 
Personnel
 -   
 1.78 
 -   
 0.77 
 0.17 
 -   

Relatives of Key 
Management 
Personnel
 -   
 4.52 
 -   
 0.02 
 -   
 -   

 -   
 0.90 
 -   
 -   

 -   
 -   
 -   
 -   

(` in crores)

Total

 -   
 8,353.36 
 0.30 
 1.81 
 132.59 
 3.12 

 3,370.00 
 0.90 
 -   
 -   

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The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 
2015 are given below:

Items/Related Party

Promoters

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of related party in the Bank
Non-funded commitments
Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital/Bonds of the Bank
Payable under management contracts
Other receivables (net)
Other payables (net)

-
 13,937.88 
 0.30 
 50.43 
 138.78 
 3.13 

 3,370.00 
 -   
-
-

Key 
Management 
Personnel
-
 15.50 
 -   
 1.61 
 0.17 
 -   

Relatives of Key 
Management 
Personnel
-
 6.61 
 -   
 -   
 -   
 -   

(` in crores)

Total

-
 13,959.99 
 0.30 
 52.04 
 138.95 
 3.13 

 -   
 0.90 
-
-

 -   
 -   
-
-

 3,370.00 
 0.90 
-
-

The details of transactions of the Bank with its related parties during the year ended 31 March, 2014 are given below:

Items/Related Party

Promoters

Key 
Management 
Personnel

Relatives of Key 
Management 
Personnel

(` in crores)

Total

Dividend paid

Interest paid

Interest received

        286.21 

                 0.13 

                      -   

        286.34 

        994.86 

                 0.78 

                  0.08 

        995.72 

            0.27 

                 0.17 

                      -   

            0.44 

Investment of related party in the Bank

                -   

               10.68 

                      -   

          10.68 

Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital of the Bank

                -   

                     -   

                      -   

                -   

Redemption of Subordinated Debt

          40.00 

                     -   

                      -   

          40.00 

Purchase of investments

Sale of investments

Management contracts 

                -   

                     -   

                      -   

                -   

        754.46 

                     -   

                      -   

        754.46 

                -   

                 8.55 

                      -   

            8.55 

Contribution to employee beneﬁ t fund

          15.49 

                     -   

                      -   

          15.49 

Purchase of ﬁ xed assets

Sale of ﬁ xed assets

                -   

                     -   

                      -   

                -   

                -   

                     -   

                      -   

                -   

Non-funded commitments (net)

            0.06 

                     -   

                      -   

            0.06 

Advance granted (net)

Advance repaid

Receiving of services

Rendering of services

                -   

                 0.83 

                      -   

            0.83 

          27.91 

                 1.26 

                      -   

          29.17 

          67.60 

                     -   

                      -   

          67.60 

            2.45 

                     -   

                      -   

            2.45 

Other reimbursements from related party

                -   

                     -   

                      -   

                -   

Other reimbursements to related party

            0.39 

                     -   

                      -   

            0.39 

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The balances payable to/receivable from the related parties of the Bank as on 31 March, 2014 are given below: 

Items/Related Party

Promoters

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of related party in the Bank
Non-funded commitments
Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital of the Bank
Payable under management contracts
Other receivables (net)
Other payables (net)

Borrowings from the Bank
Deposits with the Bank
Placement of deposits
Advances
Investment of related party in the Bank
Non-funded commitments
Investment  of  related  party  in  Subordinated 
Debt/Hybrid Capital of the Bank
Payable under management contracts
Other receivables (net)
Other payables (net)

Key 
Management 
Personnel
                     -   
                 9.77 
                     -   
                 1.61 
                 0.10 
                     -   

Relatives of Key 
Management 
Personnel
                      -   
                  1.23 
                      -   
                      -   
                      -   
                      -   

(` in crores)

Total

                -   
   10,108.26 
            0.15 
            2.39 
        138.88 
            3.07 

                -   
   10,097.26 
            0.15 
            0.78 
        138.78 
            3.07 

     2,765.00 
-
-
-

                     -   
-
-
-

                      -   
-
-
-

     2,765.00 
-
-
-

Key 
Management 
Personnel
                     -   
               12.89 
                     -   
                 2.04 
                 0.10 
                     -   

Relatives of Key 
Management 
Personnel
                      -   
                  1.76 
                      -   
                      -   
                      -   
                      -   

(` in crores)

Total

                -   
   10,850.93 
            0.16 
          68.61 
        169.86 
            3.09 

                -   
   10,836.28 
            0.16 
          66.57 
        169.76 
            3.09 

     3,817.30 
-
-
-

                     -   
-
-
-

                      -   
-
-
-

     3,817.30 
-
-
-

The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 
2014 are given below:

Items/Related Party

Promoters

2.1.9  Leases

Disclosure in respect of assets taken on operating lease

This comprise of ofﬁ ce premises/ATMs, cash deposit machines, electronic data capturing machines and IT equipment.

Future lease rentals payable as at the end of the year:
- Not later than one year
- Later than one year and not later than ﬁ ve years
- Later than ﬁ ve years
Total of minimum lease payments recognised in the Proﬁ t and Loss Account 
for the year 

There are no provisions relating to contingent rent.

188

(` in crores)

31 March, 2015

31 March, 2014

630.57
2,003.87
997.41

578.38
1,828.59
860.94

667.43

647.81

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The terms of renewal/purchase options and escalation clauses are those normally prevalent in similar agreements. 

There are generally no undue restrictions or onerous clauses in the agreements.

2.1.10  Other Fixed Assets (including furniture & ﬁ xtures)

The movement in ﬁ xed assets capitalised as application software is given below:

Particulars

At cost at the beginning of the year

Additions during the year

Deductions during the year

Accumulated depreciation as at 31 March

Closing balance as at 31 March

Depreciation charge for the year

(` in crores)

31 March, 2015

31 March, 2014

610.08

132.03

(0.16)

(478.13)

263.82

86.47

470.90

141.03

(1.85)

(391.76)

218.32

73.41

2.1.11 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under:

(` in crores)

As at

31 March, 2015

31 March, 2014

Deferred tax assets on account of provisions for doubtful debts

1,385.48

1,198.60

Deferred tax assets on account of amortization of HTM investments

Deferred tax assets on account of provision for employee beneﬁ ts

Other deferred tax assets

Deferred tax assets 

Deferred tax liability on account of depreciation on ﬁ xed assets

Other deferred tax liabilities 

Deferred tax liabilities

Net deferred tax asset

2.1.12  Employee Beneﬁ ts

Group 

Provident Fund

37.70

75.99

441.19

1,940.36

45.90

0.02

45.92

191.25

69.83

   325.17

1,784.85

   43.58

-

43.58

1,894.44

1,741.27

The contribution to the employee’s provident fund (including Employee Pension Scheme) of the Group amounted to 
`118.57 crores for the year ended 31 March, 2015 (previous year `104.43 crores).

Axis Bank Ltd.

The rules of the Bank’s Provident Fund administered by a Trust require that if the Board of Trustees are unable to pay 
interest  at  the  rate  declared  for  Employees’  Provident  Fund  by  the  Government  under  para  60  of  the  Employees’ 
Provident Fund Scheme, 1952 for the reason that the return on investment is less or for any other reason, then the 
deﬁ ciency shall be made good by the Bank. Based on an actuarial valuation conducted by an independent actuary, 
there is no deﬁ ciency as at the Balance Sheet date for the Bank. 

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The following tables summarise the components of net beneﬁ t expenses recognised in the Proﬁ t and Loss Account and 
funded status and amounts recognised in the Balance Sheet for the Provident Fund beneﬁ t plan.

Proﬁ t and Loss Account

Net employee beneﬁ t expenses (recognised in payments to and provisions for employees)

Current Service Cost

Interest on Deﬁ ned Beneﬁ t Obligation

Expected Return on Plan Assets

Net Actuarial Losses/(Gains) recognised in the year 

Total included in “Employee Beneﬁ t Expense” [Schedule 16(I)]

Actual Return on Plan Assets

Balance Sheet

Details of provision for provident fund

Fair Value of Plan Assets

Present Value of Funded Obligations

Net Asset

Amounts in Balance Sheet

Liabilities

Assets

Net Asset (included under Schedule 11 – Other Assets)

Changes in the present value of the deﬁ ned beneﬁ t obligation are as follows:

Change in Deﬁ ned Beneﬁ t Obligation

Opening Deﬁ ned Beneﬁ t Obligation

Current Service Cost

Interest Cost

Actuarial Losses/(Gains)

Employees Contribution

Liability transferred from/to other companies 

Beneﬁ ts Paid

(` in crores)

31 March, 2015

31 March, 2014

 67.98 

 95.04 

 (97.25)

 2.21 

 67.98 

 93.26 

 95.40 

 61.65 

 (73.26)

 11.61 

 95.40 

 114.68 

(` in crores)

31 March, 2015

31 March, 2014

 1,240.83 

 1,013.25 

 (1,240.83)

 (1,013.25)

-

-

-

-

-

-

-

-

(` in crores)

31 March, 2015

31 March, 2014

 1,013.25 

 67.98 

 95.04 

 (1.78)

 152.02 

 0.71 

 (86.39)

 713.56 

 95.40 

 61.65 

 53.03 

 146.75 

 0.63 

 (57.77)

Closing Deﬁ ned Beneﬁ t Obligation

 1,240.83 

 1,013.25 

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Changes in the fair value of plan assets are as follows:

Change in the Fair Value of Assets

Opening Fair Value of Plan Assets

Expected Return on Plan Assets

Actuarial Gains/(Losses)

Employer contribution during the period

Employee contribution during the period

Assets transferred from/to other companies

Beneﬁ ts Paid

Closing Fair Value of Plan Assets

Experience adjustments

Deﬁ ned Beneﬁ t Obligations

Plan Assets

Surplus/(Deﬁ cit)

Experience Adjustments on Plan Liabilities

Experience Adjustments on Plan Assets

(` in crores)

31 March, 2015

31 March, 2014

 1,013.25 

 97.25 

 (3.99)

 67.98 

 152.02 

0.71

 (86.39)

 713.56 

 73.26 

 41.42 

 95.40 

 146.75 

0.63

 (57.77)

 1,240.83 

 1,013.25 

(` in crores)

31 March, 2015

31 March, 2014

1,240.83

1,240.83

-

(1.79)

(3.99)

1,013.25

1,013.25

-

53.03

41.42

(` in crores)

Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets

Government securities

Bonds, debentures and other ﬁ xed income instruments

Equity shares

Others

Principal acturial assumptions as at the Balance Sheet date:

Discount rate for the term of the obligation

Average historic yield on the investment portfolio

Discount rate for the remaining term to maturity of the investment portfolio

Expected investment return

Guaranteed rate of return

Superannuation

31 March, 2015 
%

31 March, 2014
%

52.84

30.13

12.15

4.88

54.06

27.75

14.78

3.41

31 March, 2015

31 March, 2014

8.00%

9.01%

7.89%

9.12%

8.75%

9.15%

8.88%

9.03%

9.00%

8.75%

The  Bank  contributed  `15.99  crores  to  the  employee’s  superannuation  plan  for  the  year  ended  31  March,  2015 
(previous year `15.49 crores).

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Group

Leave Encashment

The actuarial liability of compensated absences of accumulated privileged leave of the employees of the Group is given 
below.   

As at 31 March, 2015

Axis Bank Ltd. Axis Capital Ltd. Axis Securities Ltd.

(` in crores)

Axis Asset 
Management 
Company Ltd.

Actuarial liability – Privilege Leave

    210.76

        0.11

        0.09

       0.31

included  under 

Total  Expense 
Schedule 16(I)

Assumptions

Discount rate

Salary escalation rate

*less than `50,000

66.35

-*

0.61

0.31

8.00% p.a.

7.00% p.a.

7.92% p.a.

7.00% p.a.

8.25% p.a.

7.00% p.a.

7.76% p.a.

9.00% p.a.

As at 31 March, 2014

Axis Bank Ltd.

Axis Capital Ltd. Axis Securities Ltd.

(` in crores)

Actuarial liability – Privilege Leave

Total Expense included under Schedule 16(I)

    179.10

(114.72)

        0.11

0.05

        0.06

0.03

Assumptions

Discount rate

Salary escalation rate

Group

Gratuity

9.15% p.a.

7.00% p.a.

9.02% p.a.

7.00% p.a.

8.70% p.a.

7.00% p.a.

The following tables summarize the components of net beneﬁ t expenses recognised in the Proﬁ t and Loss Account and 
the funded status and amounts recognised in the Balance Sheet for the Gratuity beneﬁ t plan.

Proﬁ t and Loss Account

Net employee beneﬁ t expenses (recognised in payments to and provisions for employees)

Current Service Cost

Interest on Deﬁ ned Beneﬁ t Obligation

Expected Return on Plan Assets

Net Actuarial Losses/(Gains) recognised in the year 

Past Service Cost

Total included in “Employee Beneﬁ t Expense” [Schedule 16(I)]

Actual Return on Plan Assets

(` in crores)

31 March, 2015

31 March, 2014

26.19

16.69

(12.56)

20.56

-

50.88

13.87

24.68

12.81

(11.14)

(11.17)

-

15.18

13.49

192

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Balance Sheet

Details of provision for gratuity

Present Value of Funded Obligations

Present Value of un-funded Obligations

Fair Value of Plan Assets

Net (Liability)/Asset

Amounts in Balance Sheet

Liabilities (included under Schedule 5 – Other Liabilities)

Assets (included under Schedule 11 – Other Assets)

Net (Liability)/Asset 

Changes in the present value of the deﬁ ned beneﬁ t obligation are as follows:

Change in Deﬁ ned Beneﬁ t Obligation

Opening Deﬁ ned Beneﬁ t Obligation

Current Service Cost

Interest Cost

Actuarial Losses/(Gains)

Past Service Cost

Liabilities transferred in

Beneﬁ ts Paid

Closing Deﬁ ned Beneﬁ t Obligation

Changes in the fair value of plan assets are as follows:

Opening Fair Value of Plan Assets

Expected Return on Plan Assets

Actuarial Gains/(Losses)

Contributions by Employer

Beneﬁ ts Paid

Closing Fair Value of Plan Assets

(` in crores)

31 March, 2015

31 March, 2014

(218.42)

(1.53)

219.26

     (0.69)

(3.22)

2.53

(0.69)

(167.93)

(1.06)

171.76

     2.77

(2.86)

5.63

2.77

(` in crores)

31 March, 2015

31 March, 2014

168.99

26.19

16.69

21.17

-

-

(13.09)

219.95

147.25

24.68

12.81

(8.71)

-

0.22

(7.26)

168.99

(` in crores)

31 March, 2015

31 March, 2014

171.76

12.56

0.61

47.31

(12.98)

219.26

152.17

11.14

2.46

13.25

(7.26)

171.76

193

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Experience adjustments

Deﬁ ned Beneﬁ t Obligations

Plan Assets

Surplus/(Deﬁ cit)

Experience Adjustments on Plan 
Liabilities

Experience Adjustments on Plan Assets

Axis Bank Ltd.

(` in crores)

31 March, 
2015

31 March, 
2014

31 March, 
2013

31 March, 
2012

31 March, 
2011

219.95

219.26

(0.69)

0.76

1.39

168.99

171.76

2.77

7.45

2.30

147.25

152.17

4.92

4.66

2.07

94.82 

98.21 

3.39 

27.31 

0.48 

61.43

63.62

2.19

1.55

(0.78)

Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets

Government securities

Bonds, debentures and other ﬁ xed income instruments

Money market instruments

Equity shares

Others

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

- 21 to 30 (age in years)

- 31 to 44 (age in years)

- 45 to 59 (age in years)

31 March, 2015

31 March, 2014

%

39.17

41.35

6.37

1.18

11.93

%

41.24

48.22

7.85

2.34

0.35

31 March, 2015

31 March, 2014

8.00% p.a.

7.50% p.a.

7.00% p.a.

19.00%

8.00%

4.00%

9.15% p.a.

7.50% p.a.

7.00% p.a.

19.00%

8.00%

4.00%

The  estimates  of  future  salary  increases  considered  take  into  account  the  inﬂ ation,  seniority,  promotion  and  other 
relevant factors.

The expected rate of return on plan assets is based on the average long-term rate of return expected on investments 
of the Fund during the estimated term of the obligations. 

As the contribution expected to be paid to the plan during the annual period beginning after the Balance Sheet date 
is based on various internal/external factors, a best estimate of the contribution is not determinable.

            The above information is as certiﬁ ed by the actuary and relied upon by the auditors.

Axis Capital Ltd. 

The major categories of plan assets* as a percentage of fair value of total 
plan assets – Insurer Managed Funds

100.00

100.00

*composition of plan assets is not available

31 March, 2015

31 March, 2014

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Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover 

31 March, 2015

31 March, 2014

7.92% p.a.

7.92% p.a.

7.00% p.a.

7.00%

9.38% p.a.

9.38% p.a.

7.00% p.a.

7.00%

The estimates of future salary increases, considered in actuarial valuation, take account of inﬂ ation, seniority, promotion 
and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable 
to the period over which the obligation is to be settled.

The Company expects to contribute `0.89 crores as gratuity in the year 2015-16.

Axis Asset Management Company Ltd.

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

31 March, 2015

31 March, 2014

7.76% p.a.

8.98% p.a.

N.A.

N.A.

9.00% p.a.

9.00% p.a.

10.00% 

10.00% 

The estimates of future salary increases, considered in actuarial valuation, take account of inﬂ ation, seniority, promotion 
and other relevant factors, such as supply and demand in the employment market.

Axis Securities Ltd.

The major categories of plan assets* as a percentage of fair value of total 
plan assets – Insurer Managed Funds  

100.00

100.00

*composition of plan assets is not available

31 March, 2015

31 March, 2014

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

31 March, 2015

31 March, 2014

8.25% p.a.

7.50% p.a.

7.00% p.a.

7.00%

8.70% p.a.

7.50% p.a.

7.00% p.a.

7.00%

The  estimates  of  future  salary  increases  considered  in  actuarial  valuation,  take  into  account  the  inﬂ ation,  seniority, 
promotion and other relevant factors.

The expected rate of return on plan assets is based on the average long-term rate of return expected on investments 
of the Fund during the estimated term of the obligations. 

The Company expects to contribute `1 crore as gratuity in the year 2015-16.

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Axis Finance Ltd.

The major categories of plan assets* as a percentage of fair value of total 
plan assets – Insurer Managed Funds 

100.00

100.00

*composition of plan assets is not available

31 March, 2015

31 March, 2014

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

31 March, 2015

31 March, 2014

7.97% p.a.

7.97% p.a.

7.00% p.a.

5.00%

9.38% p.a.

9.38% p.a.

7.00% p.a.

2.00%

The estimates of future salary increases, considered in actuarial valuation, take account of inﬂ ation, seniority, promotion 
and other relevant factors, such as supply and demand in the employment market.
The Company expects to contribute `0.09 crores as gratuity in the year 2015-16.

Axis Trustee Services Ltd.

Principal actuarial assumptions at the Balance Sheet date:

Discount Rate

Expected rate of Return on Plan Assets

Salary Escalation Rate

Employee Turnover

31 March, 2015

7.90% p.a.

N.A.

15.00% p.a.

20.00% 

The estimates of future salary increases, considered in actuarial valuation, take account of inﬂ ation, seniority, promotion 
and other relevant factors, such as supply and demand in the employment market.

2.1.13  Provisions and contingencies

a) 

Movement in provision for frauds included under other liabilities is set out below:

Opening balance at the beginning of the year

Additions during the year

Reductions on account of payments during the year

Reductions on account of reversals during the year

Closing balance at the end of the year

(` in crores)

 31 March, 2015

31 March, 2014

14.06

11.27

(0.23)

(0.30)

24.80

13.97

1.00

(0.41)

(0.50)

14.06

b) 

Other liabilities include provision for reward points made on actuarial basis, the movement of which is set out 
below:

Opening provision at the beginning of the year

Provision made during the year

Reductions during the year

Closing provision at the end of the year

196

(` in crores)

 31 March, 2015

31 March, 2014

85.31

8.39

(10.51)

83.19

67.89

22.88

(5.46)

85.31

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c) 

Movement in provision for other contingencies is set out below:

Opening provision at the beginning of the year

Provision made during the year

Reductions during the year

Closing provision at the end of the year

(` in crores)

 31 March, 2015

31 March, 2014

821.61

824.50

(587.43)

1,058.68

396.46

785.93

(360.78)

821.61

The  above  provision  includes  contingent  provision  for  advances/other  exposures,  legal  cases  and  other 
contingencies.

2.1.14  Description of contingent liabilities:

a) 

Claims against the Group not acknowledged as debts

These represent claims ﬁ led against the Group in the normal course of business relating to various legal cases 
currently in progress. These also include demands raised by income tax authorities and disputed by the Group.

b)    

Liability on account of forward exchange and derivative contracts 

The Bank enters into foreign exchange contracts, currency options/swaps, interest rate/currency futures and 
forward rate agreements on its own account and for customers. Forward exchange contracts are commitments 
to  buy  or  sell  foreign  currency  at  a  future  date  at  the  contracted  rate.  Currency  swaps  are  commitments 
to  exchange  cash  ﬂ ows  by  way  of  interest/principal  in  two  currencies,  based  on  ruling  spot  rates.  Interest 
rate  swaps  are  commitments  to  exchange  ﬁ xed  and  ﬂ oating  interest  rate  cash  ﬂ ows.  Interest  rate  futures 
are  standardised,  exchange-traded  contracts  that  represent  a  pledge  to  undertake  a  certain  interest  rate 
transaction at a speciﬁ ed price, on a speciﬁ ed future date. Forward rate agreements are agreements to pay or 
receive a certain sum based on a differential interest rate on a notional amount for an agreed period. A foreign 
currency option is an agreement between two parties in which one grants to the other the right to buy or sell a 
speciﬁ ed amount of currency at a speciﬁ c price within a speciﬁ ed time period or at a speciﬁ ed future time. An 
Exchange Traded Currency Option contract is a standardised foreign exchange derivative contract, which gives 
the owner the right, but not the obligation, to exchange money denominated in one currency into another 
currency at a pre-agreed exchange rate on a speciﬁ ed date on the date of expiry.  Currency Futures contract is 
a standardised, exchange-traded contract, to buy or sell a certain underlying currency at a certain date in the 
future, at a speciﬁ ed price.  

c) 

Guarantees given on behalf of constituents 

As a part of its banking activities, the Bank issues guarantees on behalf of its customers to enhance their credit 
standing. Guarantees represent irrevocable assurances that the Bank will make payments in the event of the 
customer failing to fulﬁ ll its ﬁ nancial or performance obligations. 

d) 

Acceptances, endorsements and other obligations

These include documentary credit issued by the Bank on behalf of its customers and bills drawn by the Bank’s 
customers that are accepted or endorsed by the Bank. 

e) 

Other items for which the Group is contingently liable 

Other items represent outstanding amount of bills rediscounted by the Bank, estimated amount of contracts 
remaining to be executed on capital account, notional principal on account of outstanding Tom/Spot foreign 
exchange  contracts  (with  effect  from  current  year),  commitments  towards  underwriting  and  investment 
in  equity  through  bids  under  Initial  Public  Offering  (IPO)  of  corporates  as  at  the  year  end,  demands  raised 
by statutory authorities (other than income tax) and disputed by the Group and the amount transferred to 
Depositor Education and Awareness Fund.

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197

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.1.15  Statement pursuant to ﬁ rst proviso to sub-section (3) of section 129 read with rule 5 of Companies (Accounts) Rules, 

2014

Statement containing salient features of the ﬁ nancial statements of subsidiaries/associate companies/joint 
ventures

Part “A”: Subsidiaries

As on/For the year ended 31 March, 2015

 (` in crores)

 Axis 
Capital Ltd.  

Axis 
Private 
Equity Ltd.

Axis 
Trustee 
Services 
Ltd.

Axis 
Mutual 
Fund 
Trustee Ltd.

Axis 
Asset 
Management 
Company Ltd.

Axis Bank 
UK Ltd.@

Axis Finance 
Ltd.  

Axis 
Securities 
Ltd.

Axis 
Securities 
Europe 
Ltd.#^

N.A.

73.50

158.72

N.A.

15.00

4.60

N.A.

1.50

33.08

N.A.

0.05

0.14

N.A.

210.11

(85.75)

USD
(US$ 1 = 
`62.50)

343.75

35.36

N.A.

318.25

271.91

N.A.

144.50

34.36

GBP
(GBP 1 = 
`92.47)

9.25

8.01

679.01

19.89

57.66

0.23

312.71

2,694.34

3,471.63

282.43

17.36

446.79

8.61

319.31

163.83

55.93

107.90

61.92

100%

0.29

12.00

4.49

3.19

1.05

2.14

-

100%

23.08

-

32.04

25.14

8.61

16.53

13.54

100%

0.04

0.16

0.28

0.08

0.03

0.05

-

75%

188.35

2,315.23

2,881.47

103.57

0.10

2.75

787.08

1,353.92

205.69

8.54

0.57

7.97

-

75%

96.33

28.69

7.46

21.23

-

100%

224.26

117.38

39.22

78.16

1.50

454.94

66.93

22.86

44.07

-

-

(0.12)

-

(0.12)

-

-

-

100%

100%

100%

currency 

Reporting 
and 
Exchange  rate  as  on  the  last 
date  of  the  relevant  Financial 
year  in  the  case  of  foreign 
subsidiaries

Share capital

Reserves & surplus

Total  assets  (Fixed  Assets  + 
Investments + Other Assets)

liabilities 

Total 
(Deposits  + 
Borrowings + Other Liabilities 
+ Provision)

Investments

Turnover (Total Income)

Proﬁ t/(Loss) before taxation

Provision for taxation

Proﬁ t/(Loss) after taxation

Proposed  Dividend  and  Tax 
(including cess thereon)

% of shareholding

The audited ﬁ nancial statements of the above subsidiaries (including step down subsidiaries) have been drawn up to the same 
reporting date as that of the Bank, i.e. 31 March, 2015. 

Asset/Liability items are stated in INR equivalent of USD ($1 = `62.50 as on 31 March, 2015). Proﬁ t and loss items 
reported in INR based on rates prevailing on the date of transactions.

Amount in INR equivalent of GBP (£1 = `92.47 as on 31 March, 2015)

Axis Securities Europe Ltd. is a wholly owned subsidiary of Axis Capital Ltd. (a wholly owned subsidiary of Axis Bank 
Ltd.)

 Names of subsidiaries which are yet to commence operations: Not Applicable

Names of subsidiaries which have been liquidated or sold during the year: Enam International Ltd., a wholly-owned 
subsidiary of Axis Capital Ltd. was voluntarily dissolved on 24 August, 2014.

@  

#  

^  

1. 

2.  

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Part “B”: Associates and Joint Ventures

1.

2.

Name of Associate/Joint Venture

Latest audited Balance Sheet Date

Shares of Associate/Joint Ventures held by the company on the year end

No.

Amount of Investment in Associates/Joint Venture

Extend of Holding %

3. Description of how there is signiﬁ cant inﬂ uence

4.

Reason why the associate/joint venture is not Consolidated

5. Networth attributable to Shareholding as per latest audited Balance Sheet

6.

 Proﬁ t / Loss for the year

i.   Considered in Consolidation

ii.   Not Considered in Consolidation

*represents share in proﬁ t upto the date of sale

(` in crores)

Bussan Auto Finance 
India Private Ltd.

-

-

-

-

-

-

-

1.36*

-

1.  

2.  

Names of associates or joint ventures which are yet to commence operations: Not Applicable

Names  of  associates  or  joint  ventures  which  have  been  liquidated  or  sold  during  the  year:  Bussan  Auto 
Finance India Private Ltd.

2.1.16  Comparative ﬁ gures.

Previous year ﬁ gures have been regrouped and reclassiﬁ ed, where necessary to conform to current year’s presentation.

For Axis Bank Ltd.

Sanjiv Misra
Chairman

K. N. Prithviraj 
Director

V. R. Kaundinya
Director

Samir K. Barua
Director

S. Vishvanathan
Director

Shikha Sharma
Managing Director & CEO

Date  :  29 April, 2015
Place  :  Mumbai

Sanjeev Kapoor
Company Secretary

V. Srinivasan
Executive Director
& Head (Corporate Banking)

Sanjeev K. Gupta
Executive Director (Corporate Centre) 
& Chief Financial Ofﬁ cer

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199

 
 
 
 
 
DISCLOSURES UNDER BASEL III CAPITAL REGULATIONS 
(CONSOLIDATED) FOR THE YEAR ENDED 31ST MARCH 2015
I. 

SCOPE OF APPLICATION AND CAPITAL ADEQUACY

Name of the head of the banking group to which the framework applies: Axis Bank Limited

Axis Bank Limited (the ‘Bank’) is a commercial bank, which was incorporated on the 3rd December, 1993. The Bank is the 
controlling entity for all group entities. The consolidated ﬁ nancial statements  of the Bank comprise the ﬁ nancial statements 
of Axis Bank Limited and its subsidiaries (including step-down subsidiaries) that together constitute the ‘Group’. The Bank 
consolidates  its  subsidiaries  in  accordance  with  Accounting  Standard  21  (AS-21)  ‘Consolidated  Financial  Statements’ 
issued by the Institute of Chartered Accountants of India on a line-by-line basis by adding together the like items of assets, 
liabilities, income and expenditure.

(i)   Qualitative Disclosures

The list of group entities considered for consolidation is given below:

Name of 
the Entity/
Country of 
Incorporation

Included 
under 
Accounting 
Scope of 
Consolidation

Method of 
Consolidation

Included 
under 
Regulatory 
Scope of 
Consolidation

Method of 
Consolidation

Reasons for 
difference in 
the Method of 
Consolidation

Reasons, if 
Consolidated 
under only 
one of the 
Scopes of 
Consolidation

Yes

Axis Asset 
Management 
Company 
Limited/India

Axis Bank UK 
Limited/UK

Yes

Axis Capital 
Limited/India

Yes

Axis Finance 
Limited/India

Yes

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Yes

Yes

Yes

Yes

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

NA

NA

NA

NA

NA

NA

NA

NA

* NA – Not Applicable

200

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Name of 
the Entity/
Country of 
Incorporation

Included 
under 
Accounting 
Scope of 
Consolidation

Method of 
Consolidation

Included 
under 
Regulatory 
Scope of 
Consolidation

Method of 
Consolidation

Reasons for 
difference in 
the Method of 
Consolidation

Reasons, if 
Consolidated 
under only 
one of the 
Scopes of 
Consolidation

Axis Mutual 
Fund Trustee 
Limited/India

Axis Private 
Equity Limited/
India

Yes

Yes

Axis Securities 
Limited/India

Yes

Axis Trustee 
Services 
Limited/India

Axis Securities 
Europe 
Limited/UK (1)

Yes

Yes

* NA – Not Applicable

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21-
Consolidated 
Financial 
Statements

Yes

Yes

Yes

Yes

Yes

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

Consolidated 
in accordance 
with AS-21 – 
Consolidated 
Financial 
Statements

NA

NA

NA

NA

NA

NA

NA

NA

NA

NA

(1)   Step-down subsidiary. 100% of its share capital is owned by Axis Capital Limited, a wholly owned subsidiary of 

the Bank.

 There are no group entities that are not considered for consolidation under both the accounting scope of consolidation 
and regulatory scope of consolidation.

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201

 
 
 
 
 
 
(ii)   Quantitative Disclosures

The list of group entities considered for consolidation as on 31st March 2015 is given below:

Name of the 
Entity/Country of 
Incorporation

Principal Activity of the Entity

Axis Asset Management 
Company Limited/India

Asset Management company for Axis 
Mutual Fund

Axis Bank UK Limited/UK

Retail Banking, Corporate Banking, 
Commercial Banking and Treasury Services

Axis Capital Limited/India Merchant Banking, Institutional Broking and 

Investment Banking Business

Axis Finance Limited/India

Non-Banking Financial activities

Axis Mutual Fund Trustee 
Limited/India

Trustee company for Axis Mutual Fund

Axis Private Equity Limited/
India

Managing investments, venture capital 
funds and off-shore funds

Axis Securities Limited/
India

Marketing of Retail Asset Products, Credit 
Cards and Retail Broking

Axis Trustee Services 
Limited/India

Trusteeship services

Axis Securities Europe 
Limited/UK

To advise and arranging deals in 
investments.

* Paid-up Equity Capital

 (Amt. in millions)

Total Balance 
Sheet Equity*

Total Balance 
Sheet Assets

`2,101

`3,127

`3,437
(USD 55)
`735

`3,183
`1

`150

`26,943
(USD 431)
`6,790

`34,716
`2

`199

`1,445

`2,824

`15

`92
(GBP 1)

`577

`174
(GBP 2)

Note –  There is no capital deﬁ ciency in any subsidiary, which is not included in the regulatory scope of consolidation.

As on 31st March 2015, the Bank does not have controlling interest in any insurance entity.

There are no restrictions or impediments on transfer of funds or regulatory capital within the banking group.

II.   CAPITAL ADEQUACY

The Bank is subject to the capital adequacy guidelines stipulated by RBI, which are based on the framework of the Basel 
Committee on Banking Supervision. As per Basel III guidelines, the Bank is required to maintain a minimum Capital to Risk 
Weighted Assets Ratio (CRAR) of 9% {11.5% including Capital Conservation Buffer (CCB)}, with minimum Common Equity 
Tier I (CET1) of 5.5% (8% including CCB) as on 31st March 2019. These guidelines on Basel III have been implemented 
on 1st April 2013 in a phased manner. The minimum capital required to be maintained by the Bank for the year ended 
31st March 2015 is 9% with minimum Common Equity Tier 1 (CET1) of 5.5%.

An assessment of the capital requirement of the Bank is carried out through a comprehensive projection of future businesses 
that  takes  cognizance  of  the  strategic  intent  of  the  Bank,  proﬁ tability  of  particular  businesses  and  opportunities  for 
growth. The proper mapping of credit, operational and market risks to this projected business growth enables assignment 
of  capital  that  not  only  adequately  covers  the  minimum  regulatory  capital  requirement  but  also  provides  headroom 
for  growth.  The  calibration  of  risk  to  business  is  enabled  by  a  strong  risk  culture  in  the  Bank  aided  by  appropriate, 
technology-based risk management systems. As part of the Internal Capital Adequacy Assessment Process (ICAAP), the 
Bank also assesses the adequacy of capital under stress. A summary of the Bank’s capital requirement for credit, market 
and operational risk and the capital adequacy ratio as on 31st March 2015 is presented below:

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Capital Requirements for various Risks

CREDIT RISK

Portfolios subject to standardised approach
Securitisation exposures

Capital requirements for Credit Risk
– 
– 
MARKET RISK
Capital requirements for Market Risk
Standardised duration approach
– 
– 
– 
– 

Interest rate risk
Foreign exchange risk (including gold)
Equity risk

OPERATIONAL RISK
Capital requirements for Operational risk
 –  Basic indicator approach

Capital Adequacy Ratios
Common Equity Tier – 1 CRAR
Tier – 1 CRAR
Total CRAR

(`` in millions)

Amount

268,331
-

25,109
21,125
270
3,714

24,320

Consolidated
12.14%
12.14%
15.20%

Standalone
12.07%
12.07%
15.09%

III.   RISK MANAGEMENT: OBJECTIVES AND ORGANISATION STRUCTURE

The wide variety of businesses undertaken by the Bank requires it to identify, measure, control, monitor and report risks 
effectively. The key components of the Bank’s risk management rely on the risk governance architecture, comprehensive 
processes and internal control mechanism based on approved policies and guidelines. The Bank’s risk governance architecture 
focuses on the key areas of risk such as credit, market (including liquidity) and operational risk and quantiﬁ cation of these 
risks, wherever possible, for effective and continuous monitoring and control.

Objectives and Policies

The  Bank’s  risk  management  processes  are  guided  by  well-deﬁ ned  policies  appropriate  for  various  risk  categories, 
independent risk oversight and periodic monitoring through the sub-committees of the Board of Directors. The Board sets 
the overall risk appetite and philosophy for the Bank. The Committee of Directors, the Risk Management Committee and 
the Audit Committee of the Board, which are sub-committees of the Board, review various aspects of risk arising from the 
businesses of the Bank. Various senior management committees operate within the broad policy framework as illustrated 
below:

Credit 
Committees &
Investment 
Committees

ALCO

Reputational 
Risk 
Management 
Committee

Subsidiary 
Risk 
Management 
Committee

Operational 
Risk 
Management 
Committee

Credit 
Risk 
Management 
Committee

Committee 
of 
Executives

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The Bank has put in place policies relating to management of credit risk, market risk, operational risk, reputation risk, 
subsidiary risk and asset-liability both for the domestic as well as overseas operations along with overseas subsidiaries as 
per the respective host regulatory requirements and business needs. The overseas policies are drawn based on the risk 
perceptions of these economies and the Bank’s risk appetite.

The  Bank  has  formulated  a  comprehensive  Stress  Testing  Policy  to  measure  impact  of  adverse  stress  scenarios  on  the 
adequacy of capital. The stress scenarios are idiosyncratic, market wide and a combination of both.

Structure and Organisation

The Chief Risk Ofﬁ cer reports to the Managing Director and CEO and the Risk Management Committee of the Board 
oversees  the  functioning  of  the  Department.  The  Department  has  four  separate  teams  for  Credit  Risk,  Market  Risk 
(including Treasury Mid Ofﬁ ce), Enterprise and Operational Risk and Enterprise Governance Risk and Compliance (EGRC) 
and the head of each team reports to the Chief Risk Ofﬁ cer.

Chief Risk Officer  

Credit Risk

Market Risk

Enterprise & 
Operational Risk

EGRC

IV.   CREDIT RISK

Treasury Mid Office

Credit risk refers to the deterioration in the credit quality of the borrower or the counter-party adversely impacting the 
ﬁ nancial performance of the Bank. The losses incurred by the Bank in a credit transaction could be due to inability or wilful 
default of the borrower in honouring the ﬁ nancial commitments to the Bank. The Bank is exposed to credit risk through 
lending and capital market activities.

Credit Risk Management Policy

The Board of Directors establishes parameters for risk appetite which are deﬁ ned through strategic businesses plan as 
well as the Corporate Credit Policy. Credit Risk Management Policy lays down the roles and responsibilities, risk appetite, 
key processes and reporting framework. Corporate credit is managed through rating of borrowers and the transaction, 
thorough  due  diligence  through  an  appraisal  process  alongside  risk  vetting  of  individual  exposures  at  origination  and 
thorough periodic review (including portfolio review) after sanctioning. Retail credit to individuals and small business is 
managed through deﬁ nition of product criteria, appropriate credit ﬁ lters and subsequent portfolio monitoring. 

Credit Rating System

The foundation of credit risk management rests on the internal rating system. Rating linked single borrower exposure 
norms, delegation of powers and review frequency have been adopted by the Bank. The Bank has developed rating tools 
speciﬁ c to market segments such as large and mid-corporates, SME, ﬁ nancial companies, microﬁ nance companies and 
project ﬁ nance to objectively assess underlying risk associated with such exposures. 

The credit rating model uses a combination of quantitative and qualitative inputs to arrive at a ‘point-in-time’ view of 
the risk proﬁ le of counterparty. Each internal rating grade corresponds to a distinct probability of default over one year. 
Expert scorecards are used for various SME schematic products and retail agriculture schemes. Statistical application and 
behavioural scorecards have been developed for all major retail portfolios. 

The Bank recognises cash, central/state government, bank and corporate guarantees, exclusive mortgage of properties 
and lease rental securitisation for the purpose of credit enhancement to arrive at a facility rating. 

  Model validation is carried out annually by objectively assessing the discriminatory power, calibration accuracy and stability 
of ratings.The Bank has completed the estimation and validation of PD, LGD and CCF models for corporate and retail 
portfolios.

204

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Credit Sanction and Related Processes

The guiding principles behind the credit sanction process are as under :

(cid:2) 

(cid:2) 

 ‘Know Your Customer’ is a leading principle for all activities.

The  acceptability  of  credit  exposure  is  primarily  based  on  the  sustainability  and  adequacy  of  borrower’s  normal 
business operations and not based solely on the availability of security.

The Bank has put in place a hierarchical committee structure based on the size and rating of the exposures for credit 
sanction and review; with sanctioning authority rested with higher level committees for larger and lesser rated exposures. 
Committee of Directors (COD) is the topmost committee in the hierarchy which is a sub-committee of the Board.

All management level sanctioning committees require mandatory presence of a representative from Risk Department for 
quorum.

Review and Monitoring

(cid:2)  All credit exposures, once approved, are monitored and reviewed periodically against the approved limits. Borrowers 

with lower credit rating are subject to more frequent reviews.

  (cid:2)  Credit audit involves independent review of credit risk assessment, compliance with internal policies of the Bank and 
with the regulatory framework, compliance of sanction terms and conditions and effectiveness of loan administration.

  (cid:2)  Customers with emerging credit problems are identiﬁ ed early and classiﬁ ed accordingly. Remedial action is initiated 

promptly to minimize the potential loss to the Bank.

Concentration Risk

The Bank manages concentration risk by means of appropriate structural limits and borrower-wise limits based on credit-
worthiness. Credit concentration in the Bank’s portfolios is monitored for the following:

(cid:2) 

 Large exposures to the individual clients or group: The Bank has individual borrower-wise exposure ceilings based 
on the internal rating of the borrower as well as group-wise borrowing limits which are continuously tracked and 
monitored.

  (cid:2)  Geographic concentration for real estate exposures. 

  (cid:2)  Concentration of unsecured loans to total loans and advances.

  (cid:2)  Concentration by Industry: Industry analysis plays an important part in assessing the concentration risk within the 
loan portfolio. Industries are classiﬁ ed into various categories based on factors such as demand-supply, input related 
risks, government policy stance towards the sector and ﬁ nancial strength of the sector in general. Such categorization 
is used in determining the expansion strategy for the particular industry.

Portfolio Management

Portfolio level risk analytics and reporting to senior management examines optimal spread of risk across various rating 
classes, undue risk concentration across any particular industry segments and delinquencies. Borrowers or portfolios are 
marked for early warning when signs of weakness or ﬁ nancial deterioration are envisaged in order that timely remedial 
actions may be initiated. In-depth sector speciﬁ c studies are undertaken on portfolios vulnerable to extraneous shocks 
and the results are shared with the business departments. The Bank has a well-deﬁ ned stress testing policy in place and 
at least on a quarterly basis, stress testing is undertaken on various portfolios to gauge the impact of stress situations on 
the health of portfolio, proﬁ tability and capital adequacy. 

Retail lending portfolio is the blended mix of Consumer lending and Retail Rural lending portfolios. Secured products (like 
mortgage, wheels business) still commands a major share of the consumer lending portfolio, with prudent underwriting 
for unsecured lending (personal loans and credit card business) continuing during the current year. The Bank has developed 
a robust risk management framework at each stage of retail loan cycle i.e.  loan acquisition, underwriting and collections.

205

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Underwriting strategy relies on extensive usage of analytical scoring models which also takes inputs from bureau. The Bank 
uses ‘Rules Engine’ which helps customise business rules thereby aiding in faster decision making without compromising 
on the underlying risks. Senior Management takes note of movement and direction of risk reported through information 
published on structured dashboards.

Deﬁ nitions and Classiﬁ cation of Non-Performing Assets

Advances are classiﬁ ed into performing and non-performing asset (NPAs) as per RBI guidelines. 

A non-performing asset (NPA) is a loan or an advance where;

(cid:2) 

interest and/or installment of principal remains overdue for a period of more than 90 days in respect of a term loan,

  (cid:2) 

the account remains ‘out-of-order’ for a period of more than 90 days in respect of an Overdraft or Cash Credit (OD/
CC),

  (cid:2) 

the bill remains overdue for a period of more than 90 days in case of bills purchased and discounted,

  (cid:2) 

a loan granted for short duration crops will be treated as an NPA if the installments of principal or interest thereon 
remain overdue for two crop seasons,

  (cid:2) 

a loan granted for long duration crops will be treated as an NPA if the installments of principal or interest thereon 
remain overdue for one crop season,

  (cid:2) 

in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative 
contract, if these remain unpaid for a period of 90 days from the speciﬁ ed due date for payment.

  (cid:2) 

the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction 
undertaken in terms of guidelines on securitisation dated February 1, 2006.

NPAs  are  further  classiﬁ ed  into  sub-standard,  doubtful  and  loss  assets  based  on  the  criteria  stipulated  by  RBI.  A  sub-
standard asset is one, which has remained a NPA for a period less than or equal to 12 months. An asset is classiﬁ ed as 
doubtful if it has remained in the sub-standard category for more than 12 months. A loss asset is one where loss has been 
identiﬁ ed by the Bank or internal or external auditors or during RBI inspection but the amount has not been written-off 
fully.

Deﬁ nition of Impairment

At each balance sheet date, the Bank ascertains if there is any impairment in its assets. If such impairment is detected, the 
Bank estimates the recoverable amount of the asset. If the recoverable amount of the asset or the cash-generating unit to 
which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The 
reduction is treated as an impairment loss and is recognised in the proﬁ t and loss account.

CREDIT RISK EXPOSURES

Total  Gross  Credit  Risk  Exposure  Including  Geographic  Distribution  of  Exposure  –  Position  as  on  31st  March 
2015 

Fund Based

Non Fund Based *

Total

Domestic 
(Outstanding)

Overseas 
(Outstanding)

3,621,156

884,095

4,505,251

529,234

153,809

683,043

(` in millions)

Total

4,150,390

1,037,904

5,188,294

* Non-fund based exposures are bank guarantees issued on behalf of constituents and acceptances and endorsements.

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Distribution of Credit Risk Exposure by Industry Sector – Position as on 31st March 2015

Industry Classiﬁ cation

of which Electronics

of which Roads and Ports
of which Telecommunications

Banking and Finance
Beverage and Tobacco
Cement and Cement Products
Chemicals and Chemical products
of which Petro Chemicals
- 
- 
of which Drugs and Pharmaceuticals
Commercial Real Estate
Computer Software
Construction
Cotton Textiles
Edible Oils and Vanaspati
Engineering
- 
Entertainment & Media
Food Processing
Gems and Jewellery
Glass and Glassware
Infrastructure (excluding Power)
- 
- 
Iron and Steel
Jute Textiles
Leather and Leather Products
Metal and Metal Products
Mining and Quarrying (incl. Coal)
NBFCs
Other Textiles
Paper and Paper Products
Petroleum,Coal Products and Nuclear Fuels
Power Generation & Distribution
Professional Services
Rubber, Plastic and their Products
Shipping Transportation & Logistics
Sugar
Tea
Trade
Vehicles, Vehicle Parts and Transport Equipments
Wood and Wood Products
Other Industries
Residual Exposures
- 
- 
- 
Total

of which Other Assets
of which Banking Book Investments
of which Retail, Agriculture & Others

Amount

Fund Based 
(Outstanding)
344,446
5,743
31,004
74,951
6,994
30,324
112,570
22,763
20,455
50,941
6,364
71,884
5,196
11,838
69,260
19,790
4,488
213,862
79,222
15,439
95,294
265
1,706
65,620
31,240
39,006
21,138
15,640
16,300
169,095
51,350
18,705
38,584
7,769
6,748
144,465
27,954
2,686
176,540
2,159,926
111,215
651,501
1,397,210
4,150,390

(` in millions)

Non-Fund Based 
(Outstanding)
118,825
9,279
9,121
84,542
40,481
11,499
20,850
16,968
28,276
2,771
15,845
110,773
1,320
11,404
2,009
2,987
2,667
190,459
15,383
84,976
35,080
9
48
28,695
5,644
11,001
2,664
6,477
26,843
83,056
3,429
4,430
6,303
3,233
1,463
67,948
3,528
1,558
72,134
47,585
-
-
47,585
1,037,904

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As on 31st March 2015, the Bank’s exposure to the industries stated below was more than 5% of the total gross credit 
exposure (outstanding):

Sr. No.

Industry Classiﬁ cation

Percentage of the total gross credit exposure

1.

2.

Banking & Finance

Infrastructure

9%

8%

Residual Contractual Maturity Breakdown of Assets – Position as on 31st March 2015*

Maturity Bucket

1 day

2 to 7 days

8 to 14 days

15 to 28 days

29 days to 3 months

Over 3 months and upto 6 months

Over 6 months and upto 12 months

Over 1 year and upto 3 years

Over 3 years and upto 5 years

Over 5 years

Total

Cash

Balances 
with RBI

Balances 
with other 
banks#

Investments

Advances

42,154

35,395

16,975

141,743

33,838

-

-

-

112,108

28,720

16,465

2,667

14,669

26,451

14,098

14,431

46,110

15,398

1,198

122,173

164,558

10,378

5,014

96,250

126,924

15,440

15,411

172,886

209,723

24,078

3,985

196,448

589,954

7,654

445

109,581

342,570

-

-

-

-

-

-

-

-

-

(` in millions)

Fixed 
Assets

Other 
assets

-

-

-

-

-

-

-

6

-

1,929

11,577

10,079

24,513

3,156

7,221

8,237

4,450

123

47,691

-

448,063

1,290,192

25,545

35,998

42,154

156,034

171,901

1,344,964

2,846,785

25,551

107,283

* Intra-group adjustments are excluded

# including money at call and short notice

  Movement of NPAs and Provision for NPAs (including NPIs) – Position as on 31st March 2015

Particulars

A.

Amount of NPAs (Gross)

- Substandard

- Doubtful 1

- Doubtful 2

- Doubtful 3

- Loss

B.

Net NPAs

208

(` in millions)

Amount

41,102

10,584

8,968

5,958

451

15,141

13,167

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Particulars

C.

NPA Ratios

- Gross NPAs (including NPIs) to gross advances (%)

- Net NPAs (including NPIs) to net advances (%)

D. Movement of NPAs (Gross)

- Opening balance as on 1st April 2014

- Additions

- Reductions

- Closing balance as on 31st March 2015

E. Movement of Provision for NPAs

- Opening balance as on 1st April 2014

- Provision made in 2014-15 #

- Transfer from restructuring provision

- Write-offs/Write-back of excess provision

- Closing balance as on 31st March 2015

(` in millions)

Amount

1.43%

0.46%

31,464

28,544

18,906

41,102

20,863

18,125

200

(12,265)

26,923

#includes `109 million due to effect of exchange rate ﬂ uctuation.

NPIs and Movement of Provision for Depreciation on Investments – Position as on 31st March 2015

A.

B.

Amount of Non-Performing Investments

Amount of Provision held for Non-performing investments

C. Movement of provision for depreciation on investments

- Opening balance as on 1st April 2014

- Provision made in 2014-15

- Write-offs/Write-back of excess provision

- Closing balance as on 31st March 2015

(` in millions)

Amount

2,433

2,105

1,233

522

(1,032)

723

Credit Risk: Use of Rating Agency under the Standardised Approach 

The  RBI  guidelines  on  capital  adequacy  require  banks  to  use  ratings  assigned  by  speciﬁ ed  External  Credit  Assessment 
Agencies  (ECAIs)  namely  Brickworks,  CARE,  CRISIL,  ICRA,  India  Ratings  and  SMERA  for  domestic  counterparties  and 
Standard & Poor’s, Moody’s and Fitch for foreign counterparties.

The Bank is using issuer ratings and short-term and long-term instrument/bank facilities’ ratings which are assigned by 
the accredited rating agencies viz. Brickworks, CARE, CRISIL, ICRA, India Ratings and SMERA and published in the public 
domain  to  assign  risk-weights  in  terms  of  RBI  guidelines.  In  respect  of  claims  on  non-resident  corporates  and  foreign 

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banks, ratings assigned by international rating agencies i.e. Standard & Poor’s, Moody’s and Fitch is used. For exposures 
with contractual maturity of less than one year, a short-term rating is used. For cash credit facilities and exposures with 
contractual maturity of more than one year, long-term rating is used.

Issue ratings would be used if the Bank has an exposure in the rated issue and this would include fund-based and non-
fund based working capital facilities as well as loans and investments.  In case the Bank does not have exposure in a rated 
issue, the Bank would use the issue rating for its comparable unrated exposures to the same borrower, provided that 
the Bank’s exposures are pari-passu or senior and of similar or lesser maturity as compared to the rated issue. Structured 
Obligation (SO) ratings are not used unless the Bank has a direct exposure in the ‘SO’ rated issue. If an issuer has a long-
term or short-term exposure with an external rating that warrants a risk weight of 150%, all unrated claims on the same 
counterparty, whether short-term or long-term, also receive 150% risk weight, unless the Bank uses recognised credit risk 
mitigation techniques for such claims.

Issuer ratings provide an opinion on the general credit worthiness of the rated entities in relation to their senior unsecured 
obligations.  Therefore,  issuer  ratings  would  be  directly  used  to  assign  risk-weight  to  unrated  exposures  of  the  same 
borrower.

Details of Gross Credit Risk Exposure (Fund based and Non-fund based) based on Risk-Weight – Position as on 
31st March 2015 

Below 100% risk weight

100% risk weight

More than 100% risk weight

Deduction from capital funds

V.  CREDIT RISK MITIGATION

(` in millions)

Amount

3,202,021

1,326,267

660,006

-

The Bank uses various collaterals both ﬁ nancial as well as non-ﬁ nancial, guarantees and credit insurance as credit risk 
mitigants. The main ﬁ nancial collaterals include bank deposits, National Savings Certiﬁ cate/Kisan Vikas Patra/Life Insurance 
Policy  and  gold,  while  main  non-ﬁ nancial  collaterals  include  land  and  building,  plant  and  machinery,  residential  and 
commercial mortgages. The guarantees include guarantees given by corporate, bank and personal guarantees. This also 
includes loans and advances guaranteed by Export Credit & Guarantee Corporation Limited (ECGC), Credit Guarantee 
Fund Trust for Small Industries (CGTSI), Central Government and State Government.

The  Bank  has  in  place  a  collateral  management  policy,  which  underlines  the  eligibility  requirements  for  Credit  Risk 
Mitigants (CRM) for capital computation as per Basel III guidelines. The Bank reduces its credit exposure to counterparty 
with  the  value  of  eligible  ﬁ nancial  collateral  to  take  account  of  the  risk  mitigating  effect  of  the  collateral.  To  account 
for the volatility in the value of collateral, haircut is applied based on the type, issuer, maturity, rating and re-margining/
revaluation frequency of the collateral. The Bank revalues various ﬁ nancial collaterals at varied frequency depending on 
the type of collateral. The Bank has a valuation policy that covers processes for collateral valuation and empanelment of 
valuers.

Details of Total Credit Exposure (after on or off Balance Sheet Netting) as on 31st March 2015

Covered by :

- Eligible ﬁ nancial collaterals after application of haircuts

- Guarantees/credit derivatives

210

(` in millions)

Amount

224,138

73,260

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VI.  SECURITISATION

The primary objectives for undertaking securitisation activity by the Bank are enhancing liquidity, optimisation of usage of 
capital and churning of the assets as part of risk management strategy.

The securitisation of assets generally being undertaken by the Bank is on the basis of ‘True Sale’, which provides 100% 
protection to the Bank from default. The Bank has not sponsored any special purpose vehicle which is required to be 
consolidated in the consolidated ﬁ nancial statements as per accounting norms.

The  Bank  may  also  invest  in  securitised  instruments  which  offer  attractive  risk  adjusted  returns.  The  Bank  enters  into 
purchase/sale of corporate and retail loans through direct assignment/SPV. In most cases, post securitisation, the Bank 
continues to service the loans transferred to the assignee/SPV. The Bank however does not follow the originate to distribute 
model and pipeline and warehousing risk is not material to the Bank.

Valuation  of  securitised  exposures  is  carried  out  in  accordance  with  the  Fixed  Income  Money  Market  and  Derivatives 
Association  (FIMMDA)/RBI  guidelines.  Gain  on  securitisation  is  recognised  over  the  period  of  the  underlying  securities 
issued by the SPV. Loss on securitisation is immediately debited to proﬁ t and loss account. In respect of credit enhancements 
provided  or  recourse  obligations  (projected  delinquencies,  future  servicing  etc.)  accepted  by  the  Bank,  appropriate 
provision/disclosure is made at the time of sale in accordance with AS-29 ‘Provisions, contingent liabilities and contingent 
assets’. 

The  Bank  follows  the  standardized  approach  prescribed  by  the  RBI  for  the  securitisation  activities.  The  Bank  uses  the 
ratings assigned by various external credit rating agencies viz. Brickworks, CARE, CRISIL, ICRA, India Ratings and SMERA 
for its securitisation exposures. 

All transfers of assets under securitisation were effected on true sale basis.  However, in the ﬁ nancial year ended 31st March 
2015, the Bank has not securitised any asset.

A.  Banking Book

Details of Exposure Securitised by the Bank and subject to Securitisation Framework

Sr. No. Type of Securitisation

i

ii

iii

iv

v

Total amount of exposures securitised

Losses recognised by the Bank during the current period

Amount of assets intended to be securitised within a year

Of which

- 

Amount of assets originated within a year before securitisation

Amount of exposures securitised

- 

Corporate Loans

Unrecognised gain or losses on sale

- 

Corporate Loans

(` in millions)

Amount

-

-

-

-

-

-

Aggregate amount of Securitisation Exposures Retained or Purchased as on 31st March 2015 is given below

Sr. No. Type of Securitisation

On Balance Sheet

Off Balance Sheet

(` in millions)

i

ii

iii

iv

v

Retained

Securities purchased

Liquidity facility

Credit enhancement (cash collateral)

Other commitments

-

-

-

-

-

-

-

-

-

-

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Risk-weight wise Bucket Details of the Securitisation Exposures on the Basis of Book-Value

(` in millions)

Amount

Capital charge

Below 100% risk weight

100% risk weight

More than 100% risk weight

Deductions

- 

- 

- 

Entirely from Tier I capital

Credit enhancing I/Os deducted from Total Capital

Credit enhancement (cash collateral)

-

-

-

-

-

-

B.  Trading Book

Details of Exposure Securitised by the Bank and subject to Securitisation Framework

Sr. No. Type of Securitisation

i

Aggregate amount of exposures securitised by the Bank for which the Bank has 
retained some exposures and which is subject to the market risk approach

-

-

-

-

-

-

(` in millions)

Amount

-

Aggregate amount of Securitisation Exposures Retained or Purchased as on 31st March 2015 is given below

Sr. No. Type of Securitisation

On Balance Sheet*

Off Balance Sheet

(` in millions)

i

ii

iii

iv

v

Retained

Securities purchased

- Corporate Loans

- Lease Rental

- Priority Sector (auto pool & micro ﬁ nance)

Liquidity facility

Credit enhancement (cash collateral)

Other commitments

* includes outstanding balance of PTCs purchased in earlier years also

-

1

2,234

8,258

-

-

-

-

-

-

-

-

-

-

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Risk-weight wise Bucket Details of the Securitisation Exposures on the Basis of Book-Value

i

ii

Exposures subject to Comprehensive Risk Measure for 
speciﬁ c risk

- 

- 

Retained

Securities purchased

Exposures  subject  to  the  securitisation  framework  for 
speciﬁ c risk

Below 100% risk weight

100% risk weight

More than 100% risk weight

iii

Deductions

- 

- 

- 

Entirely from Tier I capital

Credit enhancing I/Os deducted from Total Capital

Credit enhancement (cash collateral)

(` in millions)

Amount

Capital charge

-

-

-

-

10,493

345

-

-

-

-

-

-

-

-

-

-

VII.  MARKET RISK IN TRADING BOOK

  Market risk is the risk of loss to the Bank’s earnings and capital due to changes in the market level of interest rates, price 
of securities, foreign exchange rates and equities’ price, as well as the volatilities of those changes. The Bank is exposed 
to market risk through its investment activities and also trading activities, which are undertaken for customers as well as 
on a proprietary basis. The Bank adopts a comprehensive approach to market risk management for its trading, investment 
and asset/liability portfolios. For market risk management, the Bank has:

(cid:2) 

Board  approved  market  risk  policies  and  guidelines  which  are  aligned  to  the  regulatory  guidelines  and  based  on 
experiences gained over the years. The policies are reviewed periodically keeping in view regulatory changes, business 
requirements and market developments.

  (cid:2) 

Process manual which are updated regularly to incorporate and document the best practices.

  (cid:2)  Market risk identiﬁ cation through elaborate mapping of the Bank’s main businesses to various market risks.   

  (cid:2) 

Statistical measures like Value at Risk (VaR), supplemented by stress tests, back tests and scenario analysis.

  (cid:2)  Non-statistical  measures  like  position  limits,  marked-to-market  (MTM),  gaps  and  sensitivities  (mark-to-market, 

position limits, duration, PVBP, option Greeks).

  (cid:2)  Management Information System (MIS) for timely market risk reporting to senior management functionaries. Key risk 

metrics are presented to the Risk Management Committee of the Board through Risk Dash-Boards.

Risk limits such as position limits, stop-loss limits, alarm limits, gaps and sensitivities (duration, PVBP, option Greeks) are 
set up and reviewed periodically, based on a number of criteria including regulatory guidelines, relevant market analysis, 
business  strategy,  size  of  the  investment  and  trading  portfolio,  management  experience  and  the  Bank’s  risk  appetite. 
These limits are monitored on an intra-day/daily basis by the Treasury Mid-ofﬁ ce and the exceptions are put up to ALCO 
and Risk Management Committee of the Board. 

The  Bank  uses  Historical  Simulation  and  its  variants  for  computing  VaR  for  its  trading  portfolio.  VaR  is  calculated  and 
reported on a daily basis for the trading portfolios at a 99% conﬁ dence level for a one-day holding period, using 250 
days of historical data or one year of relative changes in historical rates and prices. The model assumes that the risk factor 
changes observed in the past are a good estimate of those likely to occur in the future and is, therefore, limited by the 

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relevance of the historical data used. The method, however, does not make any assumption about the nature or type of 
the loss distribution. The VaR models for different portfolios are back-tested at regular intervals and the results are used 
to maintain and improve the efﬁ cacy of the model. 

The VaR measure is supplemented by a series of stress tests and sensitivity analysis that estimates the likely behaviour of a 
portfolio under extreme but plausible conditions and its impact on earnings and capital. The Bank undertakes stress tests 
for market risks for its trading book, IRS, forex open position and forex gaps on a monthly basis as well as for liquidity 
risk at the end of each quarter. The Bank has built its capabilities to migrate to advanced approach i.e. Internal Models 
Approach for assessment of market risk capital.

Concentration Risk

The  Bank  has  allocated  the  internal  risk  limits  in  order  to  avoid  concentrations,  wherever  relevant.  For  example,  the 
Aggregate  Gap  Limit,  Net  Open  Position  and  daylight  limits  are  allocated  to  various  currencies  and  maturities  into 
Individual Gap Limits to monitor concentrations. Similarly, stop-loss limits and duration limits have been set up for different 
categories within a portfolio. Within the overall PV01 limit, a sub-limit is set up which is not expected to be breached by 
trades linked to any individual benchmark. Some of the limits like currency wise net open position, stop loss limits and 
PV01 limits are allocated dealer-wise also, based on their skill and experience, to avoid build up of positions in a single 
dealer’s book.

Liquidity Risk

Liquidity Risk is the current and prospective risk to earnings or capital arising from a Bank’s inability to meet its current or 
future obligations on the due date. Liquidity risk is two-dimensional viz., risk of being unable to fund portfolio of assets at 
appropriate maturity and rates (liability dimension) and the risk of being unable to liquidate an asset in a timely manner at 
a reasonable price (asset dimension). 

The  goal  of  Liquidity  Risk  Management  is  to  meet  all  commitments  on  the  due  date  and  also  be  able  to  fund  new 
investment opportunities by raising sufﬁ cient funds in the form of increasing fresh liabilities or by expeditious asset sell-off 
without incurring unacceptable losses, both under normal and adverse conditions. These objectives are ensured by setting 
up policies, operational level committees, measurement tools and monitoring and reporting mechanism using effective 
use of IT systems for availability of quality data.

The Bank manages its liquidity on a static as well as dynamic basis using various tools such as gap analysis, ratio analysis, 
dynamic  liquidity  statements,  intraday  liquidity  monitoring  tools  and  scenario  analysis.  The  Bank’s  ALM  policy  deﬁ nes 
the tolerance limits for its structural liquidity position. The Liquidity Policy for the domestic operations as well as for the 
overseas branches lay down the operational framework for prudent risk management in the Bank. The liquidity proﬁ le of 
the Bank is analysed on a static basis by tracking all cash inﬂ ows and outﬂ ows in the maturity ladder based on the actual 
maturity and expected occurrence (for non-maturity items) of cash ﬂ ows. The liquidity proﬁ le of the Bank is also estimated 
on a dynamic basis by considering the growth in deposits and loans, investment obligations, etc. for a short-term period 
of three months. The Bank undertakes behavioral analysis of the non-maturity products viz. savings and current deposits 
and cash credit/overdraft accounts on a periodic basis, to ascertain the volatility of residual balances in those accounts. The 
renewal pattern and premature withdrawals of term deposits and drawdown of unavailed credit limits are also captured 
through behavioral studies. The concentration of large deposits is monitored on a periodic basis. 

The Bank’s ability to meet its obligations and fund itself in a crisis scenario is critical and accordingly, liquidity stress tests 
are  conducted  under  different  scenarios  at  periodical  intervals  to  assess  the  impact  on  liquidity  to  withstand  stressed 
conditions. The liquidity positions of overseas branches are managed in line with the Bank’s internal policies and host 
country regulations. Such positions are also reviewed centrally by the Bank’s ALCO along with domestic positions.

The Bank has adopted the Basel III framework on liquidity standards as prescribed by RBI and has put in place requisite 
systems and processes to enable periodical computation and reporting of the Liquidity Coverage Ratio (LCR).

Counterparty Risk

The Bank has a Counterparty Risk Management Policy incorporating well laid-down guidelines, processes and measures 
for  counterparty  risk  management.  The  policy  includes  separate  counterparty  rating  models  for  commercial  banks, 

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foreign banks and co-operative banks for determining maximum permissible exposure limits for counterparties. The key 
ﬁ nancials, quality of management and the level of corporate governance are captured in the counterparty rating model. 
Counterparty  limits  are  monitored  and  reported  daily  and  internal  triggers  have  been  put  in  place  to  guard  against 
breach in limits. Credit exposures to issuer of bonds, advances etc. are monitored separately under the prudential norms 
for exposure to a single borrower as per the Bank’s Corporate Credit Risk Policy or Investment Policy, as applicable. The 
counterparty  exposure  limits  are  reviewed  at  periodic  intervals  based  on  the  ﬁ nancials  of  the  counterparties,  business 
need, past transaction experiences and market conditions.The Bank has also put in place the ‘Derivatives and Suitability 
& Appropriateness Policy’ and Loan Equivalent Risk (LER) Policy to evaluate counterparty risk arising out of all customer 
derivatives contracts.

Country Risk

The Bank has a country risk management policy containing the guidelines, systems and processes to effectively identify, 
assess, monitor and control its country risk exposures. Based on the risk proﬁ ling, countries are classiﬁ ed under seven 
categories i.e. insigniﬁ cant, low, moderate, high, very high, restricted and off-credit. Risk proﬁ ling is based on the ratings 
provided  by  Export  Credit  Guarantee  Corporation  of  India  Ltd.  (ECGC),  Dun  &  Bradstreet,  Standard  &  Poor’s  Banking 
Industry Country Risk Assessment (BICRA), inputs received from overseas branches/business departments, reports published 
by various agencies viz. Moody’s, Standard & Poor’s, Fitch and other publications of repute. The categorisation of countries 
is reviewed at quarterly intervals or at more frequent intervals if situations so warrant. An exposure to a country comprises 
all assets, both funded and non-funded, that represents claims on residents of another country. The Bank has in place both 
category wise and country wise exposure limits. The Bank monitors country risk exposures through a process of trigger 
limits as well as prior approval system for select categories viz. high, very high, restricted and off-credit to ensure effective 
monitoring and management of exposures. As a proactive measure of country risk management, Risk department issues 
‘Rating Watch’ from time to time. Further, based on country-speciﬁ c developments, the concerned business departments 
are provided updates on countries which have high probability of a rating downgrade.

Risk Management Framework for Overseas Operations

The Bank has put in place separate risk management policies for each of its overseas branches in Singapore, Hong Kong, 
Dubai, Colombo and Shanghai. These country-speciﬁ c risk policies are based on the host country regulators’ guidelines 
and in line with the practices followed for the Indian operations. The Asset Liability Management and all the risk exposures 
for the overseas operations are monitored centrally at the Central Ofﬁ ce.

Capital Requirement for Market Risk – Position as on 31st March 2015

Type

Interest rate risk

Equity position risk

Foreign exchange risk (including gold)

VIII. OPERATIONAL RISK

Strategies and Processes

(` in millions)

Amount of Capital Required

21,125

3,714

270

Operational  Risk  (OR)  is  the  risk  of  loss  resulting  from  inadequate  or  failed  internal  processes,  people  or  systems,  or 
from  external  events.  The  operational  risk  management  policy  documents  the  Bank’s  approach  towards  management 
of operational risk and deﬁ nes the roles and responsibilities of the various stakeholders within the Bank. The policy also 
comprises the detailed framework for operational risk loss data collection, risk and control self-assessment and key risk 
indicator framework.

Based  on  the  above  policy  the  Bank  has  initiated  several  measures  to  manage  operational  risk.  The  Bank  has  put  in 
place a hierarchical structure to effectively manage operational risk through the formation of several internal committees 
viz.,  Operational  Risk  Management  Committee,  Product  Management  Committee,  Change  Management  Committee, 
Outsourcing Committee, Business Continuity Management Committee (BCMC), and IT Security Committee.

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Structure and Organisation

The Risk Management Committee (RMC) of the Board at the apex level is the policy making body. The RMC is supported by 
the Operational Risk Management Committee (ORMC), consisting of Senior Management personnel, which is responsible 
for implementation of the Operational Risk policies of the Bank. This internal committee oversees the implementation of 
the OR framework and oversees the management of operational risks across the Bank. A sub-committee of ORMC (Sub-
ORMC) has been constituted to assist the ORMC in discharging its functions by deliberating the operational risk issues in 
detail and escalating the critical issues to ORMC. A dedicated operational risk management unit ensures management of 
operational risk. A representative of the Risk department is also a permanent member of control committees on product 
management  covering  approval  of  new  products,  change  management  of  processes,  outsourcing,  business  continuity 
management and IT Security.

Scope and Nature of Operational Risk Reporting and Measurement Systems

A systematic process for reporting risks, losses and non-compliance issues relating to operational risks has been developed 
and implemented. The information gathered is being used to develop triggers to initiate corrective actions to improve 
controls. Critical risks and major loss events are reported to the Senior Management/ORMC.

The Bank has further enhanced its capability for effective management of operational risk with the implementation of 
an  Enterprise  Governance  Risk  and  Compliance  platform  (SAS-EGRC).The  IT  platform  acts  as  the  single  repository  of 
processes  and  operational,  compliance  and  ﬁ nancial  reporting  risks.  It  facilitates  capturing  of  individual  risks  and  the 
effectiveness of their controls, tagging of identiﬁ ed risks to processes and products, originates action plans and acts as a 
repository of all operational risk events. The roll out of the SAS-EGRC system has been completed.

Policies for Hedging and Mitigating Operational risk

An Operational Risk Management Policy approved by the Risk Management Committee of the Board details the framework 
for managing and monitoring operational risk in the Bank. Business units put in place basic internal controls as approved 
by the Product Management Committee to ensure appropriate controls in the operating environment throughout the 
Bank. As per the policy, all new products are being vetted by the Product Management Committee to identify and assess 
potential  operational  risks  involved  and  suggest  control  measures  to  mitigate  the  risks.    Each  new  product  or  service 
introduced is subject to a risk review and sign off process. Similarly, any changes to the existing products/processes are 
being vetted by the Change Management Committee.

Key Risk Indicators (KRIs) have been developed for various Business Units for the Bank for effective monitoring of key 
operational risks. KRIs for the branches have also been launched as a new initiative to help branches to manage operational 
risk better. The Bank wide trainings are being periodically conducted by the Operational Risk Department.

The Bank has adopted BCP and IT Disaster Recovery Policy wherein critical activities and system applications have been 
deﬁ ned, recovery plan is in place for these critical activities and system applications to ensure timely recovery of the Bank’s 
critical products and services in the event of an emergency.

Regular tests have been carried out to ascertain BCP preparedness. The test reports are shared with senior management 
on  a  regular  frequency.  Business  Continuity  Management  Committee  (BCMC)  has  been  formed  comprising  of  senior 
functionaries of the Bank, which monitors BCM framework implementation in the Bank. A sub-committee of the BCMC 
(sub-BCMC) has been also formed to review and recommend measures to strengthen BCM framework in the Bank.

Approach for Operational Risk Capital Assessment

As per the RBI guidelines, the Bank has followed the Basic Indicator Approach for computing the capital for operational 
risk for the year ending 31st March 2015. Based on the measures outlined above, the Bank is preparing itself for migration 
to the Advanced Measurement Approach of capital computation for operational risk under Basel III.

IX.  INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)

Interest Rate Risk in the Banking Book is measured and monitored according to the guidelines laid out in the Bank’s Asset 
Liability Management (ALM) Policy based on the guidelines of RBI’s presented in the document “Guidelines on Banks’ 
Asset Liability Management Framework – Interest Rate Risk” dated 4th November 2010. Interest Rate Risk is measured for 

216

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the (a) entire balance sheet and (b) banking book only through Earnings at Risk and Market Value of Equity Approach as 
described below.

The Bank employs Earnings at Risk (EaR) measures to assess the sensitivity of its net interest income to parallel movement 
in interest rates over the 1 year horizon. The Bank measures the level of its exposure of the present value of all assets 
and liabilities to interest rate risk in terms of sensitivity of Market Value of its Equity (MVE) to interest rate movements as 
stipulated in the relevant RBI guidelines. Computation of EaR and MVE is done through the ALM software used by the 
Bank. The Bank prepares Structural Liquidity reports and Interest Rate Sensitivity reports for domestic operations on the 
daily basis which are reviewed against Regulatory and Internal limits. Internal limits have been established for (a) Earnings 
at Risk for a 1% parallel shift in interest rates over the horizon of 1 year, and (b) 2% parallel shift in interest rates for 
Market Value of Equity impact which are reported monthly to ALCO. Any review of the internal interest rate risk limits is 
approved by the ALCO and is ratiﬁ ed by the Risk Management Committee of the Board.

Interest Rate Risk for Banking Book from both Earnings at Risk perspective as well as Market Value of Equity perspective is 
computed and reported quarterly in the Stress Testing results of the Bank. Stress testing results are submitted to the Risk 
Management Committee of the Board as well as the senior management of the Bank for their review.

Interest Rate Risk bucketing of non-maturity based Liability items is based on the Behavioral Analysis policy approved by the 
ALCO for identiﬁ cation of core and non-core components. Behavioral Analysis is conducted annually by the Bank as well 
as back tested subsequently. Historical trends in (product-wise) daily / monthly aggregate balances and their associated 
volatilities in non-maturity based items over a time period of past 3/5 years are used to estimate the likelihood of the drop 
in balances over speciﬁ ed time intervals. The conﬁ dence level for the analysis is considered at 85%, which corresponds to 
one standard deviation over the mean. 85% conﬁ dence level is considered adequate as the structural liquidity analysis is 
done on a daily basis. Bucketing rules of core and non-core portions in the interest rate sensitivity statements are laid out 
in the ALM policy. The Bank does not use any assumptions for prepayment of loans for preparation of interest rate risk 
sensitivity reports.

The  ﬁ ndings  of  the  various  IRRBB  measures  are  submitted  to  the  ALCO,  which  is  the  apex  committee  for  providing 
strategic guidance and direction for the ALM measures.

Details of increase (decrease) in earnings and economic value for upward and downward rate shocks based on Balance 
Sheet as on 31st March 2015 are given below:

Earnings Perspective

Currency

INR

USD

Residual

Total

Economic Value Perspective

Currency

INR

USD

Residual

Total

(` in millions)

Interest Rate Shock

+200bps

19,183

1,207

(288)

20,102

-200bps

(19,183)

(1,207)

288

(20,102)

(` in millions)

Interest Rate Shock

+200bps

37,842

1,903

1,041

40,786

-200bps

(37,842)

(1,903)

(1,041)

(40,786)

Note:  Interest  Rate  Risk  in  Banking  Book  is  computed  only  for  banks/bank  like  entities  where  the  inherent  business  is 
maturity transformation of assets and liabilities, thereby resulting in interest rate mismatch. Other subsidiaries whose core 
business is not banking activity, IRRBB need not be computed.

217

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X.  EXPOSURES RELATED TO COUNTERPARTY CREDIT RISK

Counterparty  credit  limits  and  exposures  are  monitored  daily  and  internal  triggers  are  put  in  place  to  guard  against 
breach in limits. Credit exposures to issuer of bonds, advances etc. are monitored separately under the prudential norms 
for exposure to a single borrower as per the Bank’s Corporate Credit Risk Policy or Investment Policy, as applicable. The 
counterparty exposure limits are reviewed at periodic intervals.

  Methodology used to assign economic capital and credit limits for counterparty credit exposures

The  Bank  currently  does  not  assign  economic  capital  for  its  counterparty  credit  exposures.  The  Bank  has  adopted  a 
methodology  of  computing  economic  capital  within  the  framework  of  Internal  Capital  Adequacy  Assessment  Process 
(ICAAP) and assesses the economic capital requirement within this framework. The Bank is adequately capitalized in terms 
of projected growth for the next three years and has sufﬁ cient capital buffer to account for Pillar II risks. 

Policies for securing collateral and establishing credit reserves

The Bank has a policy framework through its Credit Risk Management policy and Collateral Management Policy which 
stipulates the eligible credit risk mitigants and management thereof. The Bank has adopted the Comprehensive Approach 
as  suggested  by  RBI,  which  allows  fuller  offset  of  collateral  against  exposures,  by  effectively  reducing  the  exposure 
amount  by  the  value  ascribed  to  the  collateral.  Under  this  approach,  the  Bank  takes  eligible  ﬁ nancial  collateral  (e.g., 
cash or securities) on an account-by-account basis, to reduce the credit exposure to counterparty while calculating the 
capital requirements to take account of the risk mitigating effect of the collateral.  The Bank also has a well-deﬁ ned NPA 
management & recovery policy for establishing credit reserves on a prudential basis apart from being in consonance with 
the regulatory guidelines.

Policies with respect to wrong-way risk exposures

  Wrong  way  risk  associated  with  counterparty  credit  exposures  can  be  of  two  types  –  General  i.e.  when  the  PD  of 
counterparties is positively correlated with general market risk factors and Speciﬁ c i.e. when the exposure to a particular 
counterparty and the PD of the counterparty providing credit risk mitigation for the exposure are highly correlated. The 
Bank currently does not have a complete policy framework to address the wrong way risk. In the interim, the general 
wrong  way  risk  is  taken  care  of  through  monitoring  of  concentration  of  counterparty  credit  exposures  on  account  of 
derivatives. Also as per the credit risk management policy, collaterals whose values have a material positive correlation 
with the credit quality of the borrower is likely to provide little or no credit protection during stress, are not recognized for 
credit enhancement, thus mitigating any speciﬁ c wrong way risk. 

Impact of the amount of collateral the Bank would have to provide given a credit rating downgrade

The Bank currently assesses the liquidity impact and related costs of a possible downgrade as part of the bank-wide stress 
testing exercise. The Bank has already adopted Credit Value Adjustment (CVA) based on the regulatory guidelines on the 
asset side for capital computation purposes. The current regulatory guidelines do not require estimation of changes in 
collateral requirement in case of a likely rating downgrade of a Bank and the Bank also does not make such an assessment 
currently. However, the Bank is in the process of developing an internal methodology to estimate the changes in liabilities 
to counterparties in the event of its rating downgrade.

Quantitative Disclosures

Particulars

Gross Positive Fair Value of Contracts

Netting Beneﬁ ts

Netted Current Credit Exposure

Collateral held (e.g. Cash, G-sec, etc.)

Net Derivatives Credit Exposure

Exposure amount (under CEM)

Notional value of Credit Derivative hedges

Credit derivative transactions that create exposures to CCR

218

IRS/CCS/FRA

(` in millions)
OPTIONS

49,462

-

49,462

-

49,462

164,772

-

-

4,533

-

4,533

-

4,533

8,651

-

-

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1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

(` in millions)

Reference No.

A1+A2

B1+B2+B3+
B4+B5

XI.  COMPOSITION OF CAPITAL

Sr. 
No.

Particulars

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

Common Equity Tier 1 capital: instruments and reserves

Directly  issued  qualifying  common  share  capital  plus  related 
stock surplus (share premium)

Retained earnings

Accumulated other comprehensive income (and other reserves)

Directly  issued  capital  subject  to  phase  out  from  CET1  (only 
applicable to non-joint stock companies)

Public  sector  capital  injections  grandfathered  until  1 
January 2018

Common share capital issued by subsidiaries and held by third 
parties (amount allowed in group CET1)

168,584

277,760

-

-

-

-

Common   Equity   Tier   1    capital   before   regulatory 
adjustments

446,344

Common Equity Tier 1 capital: regulatory adjustments

Prudential valuation adjustments

Goodwill (net of related tax liability)

Intangibles    other  than    mortgage-servicing    rights    (net    of 
related tax liability)

1,608

-

-

Deferred tax assets

Cash-ﬂ ow hedge reserve

Shortfall of provisions to expected losses

Securitisation gain on sale

Gains  and  losses  due  to  changes  in  own  credit  risk  on  fair 
valued liabilities

Deﬁ ned-beneﬁ t pension fund net assets

Investments  in  own  shares  (if  not  already  netted  off  paid-in 
capital on reported balance sheet)

11,366

7,578

D1-D2

-

-

-

-

-

-

Reciprocal cross-holdings in common equity

395

263

Investments in the capital of banking, ﬁ nancial and insurance 
entities    that    are    outside    the    scope    of    regulatory 
consolidation,  net  of  eligible  short  positions,  where  the  bank 
does  not  own  more  than  10%  of  the  issued  common  share 
capital (amount above 10% threshold)

Signiﬁ cant  investments  in  the  common  stock  of  banking, 
ﬁ nancial  and  insurance  entities  that  are  outside  the  scope  of 
regulatory  consolidation,   net   of  eligible   short   positions 
(amount above 10% threshold)

20 Mortgage servicing rights (amount above 10% threshold)

-

-

-

219

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Sr. 
No.

Particulars

21

22

23

24

25

Deferred tax assets arising from  temporary differences (amount 
above 10% threshold, net of related tax liability)

Amount exceeding the 15% threshold

of which: signiﬁ cant investments in the common stock of 

ﬁ nancial entities

of which: mortgage servicing rights

of  which:  deferred  tax  assets  arising  from    temporary 

differences

26

National speciﬁ c regulatory adjustments (26a+26b+26c+26d)

26a of which: Investments in the equity capital of the unconsolidated 

insurance subsidiaries

26b of which: Investments in the equity capital of unconsolidated 

non-ﬁ nancial subsidiaries

26c of  which:  Shortfall  in  the  equity  capital  of  majority  owned 
ﬁ nancial  entities  which  have  not  been  consolidated  with  the 
bank

26d of which: Unamortised pension funds expenditures

Regulatory  Adjustments  Applied  to  Common  Equity  Tier  1  in 
respect of Amounts Subject to Pre-Basel III Treatment

of which: [INSERT TYPE OF ADJUSTMENT]

For  example:  ﬁ ltering  out  of  unrealised  losses  on  AFS  debt 
securities (not relevant in Indian context)

of which: [INSERT TYPE OF ADJUSTMENT]

of which: [INSERT TYPE OF ADJUSTMENT]

(` in millions)

Reference No.

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

-

-

-

-

-

-

-

-

-

-

-

-

-

-

27

28

29

30

31

32

33

34

35

Regulatory adjustments applied to Common Equity Tier 1 due 
to insufﬁ cient Additional Tier 1 and Tier 2 to cover deductions

Total regulatory adjustments to Common equity Tier 1

Common Equity Tier 1 capital (CET 1)

4,309

17,678

428,666

Additional Tier 1 capital: instruments

Directly  issued  qualifying  Additional  Tier  1  instruments  plus 
related stock surplus (31+32)

of which: classiﬁ ed as equity under applicable accounting 

standards (Perpetual Non-Cumulative Preference Shares)

of which: classiﬁ ed as liabilities under applicable accounting 

standards (Perpetual debt Instruments)

Directly  issued  capital  instruments  subject  to  phase  out  from 
Additional Tier 1

Additional  Tier  1  instruments  (and  CET1  instruments  not 
included  in  row  5)  issued  by  subsidiaries  and  held  by  third 
parties (amount allowed in group AT1)

of  which:  instruments  issued  by  subsidiaries  subject  to 

phase out

-

-

-

3,269

C1

-

-

36

Additional Tier 1 capital before regulatory adjustments

3,269

220

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Sr. 
No.

Particulars

Additional Tier 1 capital: regulatory adjustments

37

38

39

40

41

41a

Investments in own Additional Tier 1 instruments

Reciprocal cross-holdings in Additional Tier 1 instruments

Investments in the capital of banking, ﬁ nancial and insurance 
entities that are outside the scope of regulatory consolidation, 
net of eligible short positions, where the bank does not own 
more  than  10%  of  the  issued  common  share  capital  of  the 
entity (amount above 10% threshold)

Signiﬁ cant investments in the capital of banking, ﬁ nancial and   
insurance   entities  that   are   outside  the  scope   of regulatory 
consolidation (net of eligible short positions)

National speciﬁ c regulatory adjustments (41a+41b)

Investments in the Additional Tier 1 capital of unconsolidated 
insurance subsidiaries

41b Shortfall  in  the  Additional  Tier  1  capital  of  majority  owned 
ﬁ nancial  entities  which  have  not  been  consolidated  with  the 
bank

Regulatory Adjustments Applied to Additional Tier 1 in respect 
of Amounts Subject to Pre-Basel III Treatment

of which: DTA

of  which:  [INSERT  TYPE  OF  ADJUSTMENT  e.g.  existing 

adjustments which are deducted from Tier 1 at 50%]

of which: [INSERT TYPE OF ADJUSTMENT]

Regulatory  adjustments  applied  to  Additional  Tier  1  due  to 
insufﬁ cient Tier 2 to cover deductions

Total regulatory adjustments to Additional Tier 1 capital

Additional Tier 1 capital (AT1)

42

43

44

44a Additional Tier 1 capital reckoned for capital adequacy

45

Tier 1 capital (T1 = CET1 + AT1) (29 + 44a)

Tier 2 capital: instruments and provisions

Directly issued qualifying Tier 2 instruments plus related stock 
surplus

Directly  issued  capital  instruments  subject  to  phase  out  from 
Tier 2

Tier 2 instruments (and CET1 and AT1 instruments not included 
in rows 5 or 34) issued by subsidiaries and held by third parties 
(amount allowed in group Tier 2)

of  which:  instruments  issued  by  subsidiaries  subject  to 

phase out

Provisions

Tier 2 capital before regulatory adjustments

46

47

48

49

50

51

(` in millions)

Reference No.

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

-

-

-

-

-

-

-

7,578

7,578

-

-

-

7,578

(4,309)

-

428,666

8,500

81,004

-

-

18,670

108,174

C1

C1

E1+E2+E3+E4

221

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Sr. 
No.

Particulars

(` in millions)

Reference No.

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

Tier 2 capital: regulatory adjustments

Investments in own Tier 2 instruments

Reciprocal cross-holdings in Tier 2 instruments

-

293

195

52

53

54

55

Investments in the capital of banking, ﬁ nancial and insurance 
entities    that    are    outside    the    scope    of    regulatory 
consolidation,  net  of  eligible  short  positions,  where  the  bank 
does  not  own  more  than  10%  of  the  issued  common  share 
capital of the entity (amount above the 10% threshold)

Signiﬁ cant  investments  in  the  capital  banking,  ﬁ nancial  and 
insurance  entities  that  are  outside  the  scope  of  regulatory 
consolidation (net of eligible short positions)

56

National speciﬁ c regulatory adjustments (56a+56b)

56a of  which:  Investments  in  the  Tier  2  capital  of  unconsolidated 

subsidiaries

56b of  which:  Shortfall  in  the  Tier  2  capital  of  majority  owned 
ﬁ nancial  entities  which  have  not  been  consolidated  with  the 
bank

Regulatory Adjustments Applied To Tier 2 in respect of Amounts 
Subject to Pre-Basel III Treatment

of  which:  [INSERT  TYPE  OF  ADJUSTMENT  e.g.  existing 

adjustments which are deducted from Tier 2 at 50%]

of which: [INSERT TYPE OF ADJUSTMENT]

Total regulatory adjustments to Tier 2 capital

Tier 2 capital (T2)

57

58

58a Tier 2 capital reckoned for capital adequacy

58b Excess Additional Tier 1 capital reckoned as Tier 2 capital

-

-

-

-

-

-

-

-

293

107,881

107,881

-

58c Total  Tier  2  capital  admissible  for  capital  adequacy 

107,881

(58a + 58b)

59

Total capital (TC = T1 + T2) (45 + 58c)

Risk  Weighted  Assets  in  respect  of  Amounts  Subject  to  Pre-
Basel III Treatment

of which: [INSERT TYPE OF ADJUSTMENT]

of which: …

60

Total risk weighted assets (60a + 60b + 60c)

60a of which: total credit risk weighted assets

60b of which: total market risk weighted assets

60c of which: total operational risk weighted assets

Capital ratios

Common Equity Tier 1 (as a percentage of risk weighted assets)

Tier 1 (as a percentage of risk weighted assets)

61

62

222

536,547

1,098

-

-

3,530,668

2,981,451

278,992

270,225

12.14%

12.14%

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(` in millions)

Reference No.

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

15.20%

5.50%

Sr. 
No.

Particulars

63

64

65

66

67

68

69

70

71

72

73

Total capital (as a percentage of risk weighted assets)

Institution   speciﬁ c   buffer   requirement   (minimum   CET1 
requirement plus capital conservation and countercyclical buffer 
requirements,    expressed    as  a  percentage  of  risk  weighted 
assets)

of which: capital conservation buffer requirement

0.00%

of which: bank speciﬁ c countercyclical buffer requirement

of which: G-SIB buffer requirement

Common Equity Tier 1 available to meet buffers (as a percentage 
of risk weighted assets)

National minima (if different from Basel III)

National  Common  Equity  Tier  1  minimum  ratio  (if  different 
from Basel III minimum)

National  Tier  1  minimum  ratio  (if  different  from  Basel  III 
minimum)

National total capital minimum ratio (if different from Basel III 
minimum)

-

-

-

5.50%

7.00%

9.00%

Amounts below the thresholds for deduction (before risk weighting)

Non-signiﬁ cant  investments  in  the  capital  of  other  ﬁ nancial 
entities

26,288

Signiﬁ cant  investments  in  the  common  stock  of  ﬁ nancial 
entities

74 Mortgage servicing rights (net of related tax liability)

75

76

77

78

79

80

81

Deferred tax assets arising from temporary differences (net of 
related tax liability)

Applicable caps on the inclusion of provisions in Tier 2

Provisions eligible for inclusion in Tier 2 in respect of exposures 
subject to standardised approach (prior to application of cap)

Cap  on  inclusion  of  provisions  in  Tier  2  under  standardised 
approach

Provisions eligible for inclusion in Tier 2 in respect of exposures 
subject to internal ratings-based approach (prior to application 
of cap)

Cap for inclusion of provisions in Tier 2 under internal ratings-
based approach

Capital instruments subject to phase-out arrangement
(only applicable between March 31, 2017 and March 31, 2022)

Current  cap  on  CET1  instruments  subject  to  phase  out 
arrangements

Amount excluded from CET1 due to cap (excess over cap after 
redemptions and maturities)

-

NA

NA

18,670

37,268

NA

NA

NA

NA

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223

Sr. 
No.

Particulars

(` in millions)

Reference No.

Amount 

Amounts 
Subject to 
Pre-Basel III 
Treatment

82

83

84

85

Current  cap  on  AT1  instruments  subject  to  phase  out 
arrangements

Amount excluded from AT1 due to cap (excess over cap after 
redemptions and maturities)

Current  cap  on  T2 
arrangements

instruments  subject  to  phase  out 

Amount  excluded  from  T2  due  to  cap  (excess  over  cap  after 
redemptions and maturities)

* NA – Not Applicable

NA

NA

NA

NA

XII.  THE RECONCILIATION OF REGULATORY CAPITAL ITEMS AS ON 31st MARCH 2015 IS GIVEN BELOW:

Step 1

Sr. No. Particulars

A

I

Capital & Liabilities

Paid-up Capital

Reserves & Surplus

Minority Interest

Total Capital

II

Deposits

of which: Deposits from banks

of which: Customer deposits

III

Borrowings

i. 

Borrowings in India

(a)   From RBI

(b)   From banks

(c)   From other institutions & agencies

ii.   Borrowings Outside India

 of which: Capital Instruments

IV

Other liabilities & provisions

Total

Balance sheet as in 
ﬁ nancial statements

(` in millions)

Balance sheet under 
regulatory scope of 
consolidation

4,741

444,755

312

449,808

3,222,442

123,571

3,098,871

843,935

304,673

-

29,093

275,580

539,262

133,218

156,245

4,741

444,755

312

449,808

3,222,442

123,571

3,098,871

843,935

304,673

-

29,093

275,580

539,262

133,218

156,245

4,672,430

4,672,430

224

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Step 1

Sr. No. Particulars

Balance sheet as in 
ﬁ nancial statements

(` in millions)

Balance sheet under 
regulatory scope of 
consolidation

B

I

II

III

IV

V

VI

VII

Step 2

Sr. No.

A

I

Assets

Cash and balances with Reserve Bank of India

Balance with banks and money at call and short notice

Investments

of which: Government securities

of which: Shares

of which: Debentures & Bonds

of which: Subsidiaries/Joint Ventures/Associates

of which: Others (Commercial Papers, Mutual Funds etc.)

Loans and advances

Fixed assets

Other assets

of which: Goodwill and intangible assets

of which: Deferred tax assets (Net)

Goodwill on consolidation

Debit balance in Proﬁ t & Loss account

Total Assets

198,188

166,733

1,333,192

824,165

8,121

259,788

-

241,118

2,844,487

25,519

104,311

-

18,944

-

-

198,188

166,733

1,333,192

824,165

8,121

259,788

-

241,118

2,844,487

25,519

104,311

-

18,944

-

-

4,672,430

4,672,430

Particulars

Balance sheet 
as in ﬁ nancial 
statements

Balance sheet 
under regulatory 
scope of 
consolidation

(` in millions)

Reference No.

Capital and Liabilities

Paid-up Capital

Reserves & Surplus

of which:

Statutory Reserve

Share Premium

Investment Reserve Account

General Reserve

Capital Reserve

Foreign Currency Translation Reserve

Reserve Fund

Balance in Proﬁ t/Loss A/c

Minority Interest

of  which:  considered  under  capital 
funds

4,741

444,755

85,313

163,843

1,290

3,741

10,480

1,862

328

4,741

444,755

85,313

163,843

1,290

3,741

10,480

1,862

328

177,898

177,898

312

-

312

-

Total Capital

449,808

449,808

A1

-

B1

A2

E1

B2

B3

- 

B4

B5

-

-

-

225

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Step 2

Sr. No.

Particulars

II

Deposits

Balance sheet 
as in ﬁ nancial 
statements

Balance sheet 
under regulatory 
scope of 
consolidation

3,222,442

3,222,442

of which: Deposits from banks

123,571

123,571

of which: Customer deposits

3,098,871

3,098,871

III

Borrowings

i.   Borrowings in India

(a)  From RBI

(b)  From banks

(c)  From other institutions & agencies

ii.  Borrowings Outside India

of which: Capital Instruments

IV

Other liabilities & provisions

of  which:  Provision 
Advances

for  Standard 

of  which:  Provision  for  Unhedged 
Foreign Currency Exposure

of which: Deferred Tax Liability

843,935

304,673

-

29,093

275,580

539,262

133,218

156,245

16,010

1,337

459

843,935

304,673

-

29,093

275,580

539,262

133,218

156,245

16,010

1,337

459

B

I

Total

Assets

4,672,430

4,672,430

Cash  and  balances  with  Reserve  Bank  of 
India

Balance with banks and money at call and 
short notice

198,188

198,188

166,733

166,733

II

Investments

1,333,192

1,333,192

of which: Government securities

of which: Shares

of which: Debentures & Bonds

of  which:  Subsidiaries/Joint  Ventures/ 
Associates

of which: Others (Commercial Papers, 
Mutual Funds etc.)

824,165

8,121

259,788

-

824,165

8,121

259,788

-

241,118

241,118

(` in millions)

Reference No.

-

-

-

 -

 -

 -

 -

 -

 -

C1

 -

E2

E3

D2

-

-

-

-

-

-

-

-

226

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Step 2

Sr. No.

Particulars

Balance sheet 
as in ﬁ nancial 
statements

Balance sheet 
under regulatory 
scope of 
consolidation

(` in millions)

Reference No.

III

Loans and advances

2,844,487

2,844,487

ﬂ oating  provision  adjusted  in  loans  & 
advances

33

33

IV

V

VI

VII

Fixed assets

Other assets

of  which:  Goodwill  and  intangible 
assets

25,519

104,311

-

25,519

104,311

-

of which: Deferred tax assets

19,403

19,403

Goodwill on consolidation

Debit balance in Proﬁ t & Loss account

-

-

-

-

Total Assets

4,672,430

4,672,430

-

E4

-

-

-

D1

-

-

-

DF XIII, XIV & XV

Disclosures pertaining to main features of equity and debt instruments, terms and conditions of equity and debt instruments 
and remuneration of Key Management Personnel have been disclosed separately on the Bank’s website under the ‘Regulatory 
Disclosure Section’. The link to this section is as follows:

http://www.axisbank.com/investor-corner/baselIII-disclosures.aspx.

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227

 
 
 
NOTES

228

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NOTES

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229

NOTES

230

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NOTES

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231

NOTES

232

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UNIT:

Twenty First Annual Report 2014-15

AXIS BANK LIMITED 
NOTICE

NOTICE is hereby given that the Twenty First Annual General Meeting of the Members of Axis Bank Limited will be held at 
10.00 A.M. on Friday, 24th July 2015 at J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA, 
Dr. Vikram Sarabhai Marg, Ahmedabad 380 015, to transact the following businesses:

ORDINARY BUSINESS:

1. 

To receive, consider and adopt

a. 

b. 

the audited ﬁ nancial statements of the Bank for the ﬁ nancial year ended 31st March 2015 and the Reports of the 
Directors and the Auditors thereon; and

the audited consolidated ﬁ nancial statements for the ﬁ nancial year ended 31st March 2015 and the Report of the 
Auditors thereon.

To declare dividend on Equity Shares of the Bank.

To appoint a Director in place of Smt. Usha Sangwan (DIN 02609263), who retires by rotation and, being eligible, offers 
herself for re-appointment.

2. 

3. 

4. 

To consider and pass with or without modiﬁ cation(s), the following Resolution as an Ordinary Resolution:

“RESOLVED THAT pursuant to the provisions of Section 139 and all other applicable provisions of the Companies Act, 
2013 read with Rule 3(3) of the Companies (Audit and Auditors) Rules, 2014, (including any amendment, modiﬁ cation, 
variation  or  re-enactment  thereof),  the  Bank  hereby  ratiﬁ es  the  appointment  of  S.  R.  Batliboi  &  Co  LLP,  Chartered 
Accountants, Mumbai, having Registration Number 301003E issued by the Institute of Chartered Accountants of India, 
as the Statutory Auditors of the Bank and to hold ofﬁ ce as such from the conclusion of this Annual General Meeting 
until the conclusion of the 22nd Annual General Meeting, subject to the approval of the Reserve Bank of India, and on 
such remuneration as may be determined by the Audit Committee of the Board of Directors of the Bank.”

SPECIAL BUSINESS:

5. 

To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED THAT Shri S. Vishvanathan (DIN 02255828), who was appointed as an Additional Director of the Bank, 
with effect from 11th February, 2015 and who holds ofﬁ ce as such upto the date of this Annual General Meeting and 
in  respect  of  whom  a  notice  under  Section  160  of  the  Companies  Act,  2013  read  with  Rule  13  of  the  Companies 
(Appointment  of  Directors)  Rules,  2014  has  been  received  from  a  Member  signifying  his  intention  to  propose 
Shri S. Vishvanathan as a candidate for the ofﬁ ce of Director of the Bank, be and is hereby appointed as an Independent 
Director of the Bank, who shall not be liable to retire by rotation and to hold ofﬁ ce as such for a period of ﬁ ve years from 
the said date viz. upto 10th February, 2020.”

6. 

To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED  THAT  pursuant  to  the  approval  obtained  from  the  Reserve  Bank  of  India,  the  remuneration  payable  to 
Dr. Sanjiv Misra (DIN 03075797) Chairman of the Bank, be revised as under, with effect from 8th March 2015:

Particulars

Remuneration

Company Car

Touring

Sitting fees

Amount
`27.5 lacs p.a.

Free use of Bank’s car for ofﬁ cial and private purposes

Travelling and ofﬁ cial expenses to be borne by the Bank for Board functions as a Chairman

:

:

:

: As payable to other Non-executive Directors

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1

 
 
 
 
 
Twenty First Annual Report 2014-15

7. 

To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED  THAT  pursuant  to  the  relevant  provisions  of  the  Companies  Act,  2013,  the  Rules  made  thereunder, 
(including any amendment, modiﬁ cation, variation or re-enactment thereof) and subject to the relevant provisions of the 
Banking Regulation Act, 1949 and the Articles of Association of the Bank, approval of the Members of the Bank, be and 
is hereby accorded for re-appointment of Smt. Shikha Sharma (DIN 00043265) as the Managing Director & CEO of the 
Bank, for a further period of 3 years, with effect from 1st June 2015.”

“RESOLVED  FURTHER  THAT  subject  to  the  approval  by  the  Reserve  Bank  of  India,  Smt.  Shikha  Sharma  be  paid 
remuneration by way of salary, allowances and perquisites as Managing Director & CEO of the Bank, with effect from 
1st June 2015, on the following terms and conditions:

Particulars
Term

Salary
Leave Fare Concession
Perquisites
Utility Bills
Furnishing Allowance
Provident Fund

: Amount
:

From the date of appointment i.e. 1st June 2015 as Managing Director & CEO 
of the Bank till 31st May 2018.
`2,56,32,213 p.a.
`13,86,000 p.a.

:
:

To be reimbursed at actuals upto a limit of `3,75,000 p.a.
:
: At actuals upto a limit of `20 lacs once in a period of 3 years.
: 12% of basic pay with equal contribution by the Bank or as may be decided 

upon by the Board/Trustees from time to time.

Gratuity

: One month’s salary for each completed year of service or part thereof (On 

Superannuation
Travelling Allowances

Medical beneﬁ ts

Club fees

House Rent Allowance

Residence
Conveyance & Telephone

Personal Insurance

pro-rata basis).

: 10% of basic pay p.a.
: As per Bank’s Policy.

:

(i)  Group mediclaim facility as available to other employees of the Bank.
(ii)  Reimbursement of full medical expenses for self and family.

: Membership  of  two  clubs  (excluding  life  membership  fees).  All  ofﬁ cial 
expenses in connection with such membership incurred would be reimbursed 
by the Bank.
`85,56,000 p.a. (in lieu of Bank’s owned /leased accommodation).

:

Leased Accomodation to be provided by the Bank.

: As per Bank’s Policy.

:

Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) 
and the Personal Accident Policy as per the Bank’s rules.

Newspapers & Periodical

: As per requirement.

Leave

Entertainment

Employees Stock Options (ESOP)

: As per the Bank’s rules.

:

:

Expenditure on ofﬁ cial entertainment would be on the Bank’s account.

Stock  Options  as  may  be  decided  by  the  Nomination  and  Remuneration 
Committee/Board from time to time, subject to approval of Reserve Bank of 
India (RBI).

Variable Pay

: As approved by the Nomination and Remuneration Committee/Board subject 

to approval of RBI.

Loans

:

Loan facilities to be provided as per the Bank’s Policy, at the rate of interest 
applicable to other employees.

Other terms

: As per the Bank’s staff rules and as may be agreed by the Board, from time 

to time.

2

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Twenty First Annual Report 2014-15

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to execute any agreements, 
documents, instruments and writings etc. and to do all such acts, deeds, matters and things as may be required to give 
effect to this resolution.”

8. 

To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED THAT subject to approval of the Reserve Bank of India, approval of the Members of the Bank, be and is 
hereby accorded for revising the remuneration by way of salary, allowances and perquisites payable to Shri V. Srinivasan 
(DIN 00033882), Whole-Time Director designated as ‘Executive Director & Head (Corporate Banking)’ of the Bank, with 
effect from 1st June 2015, on the following terms and conditions:

Particulars

Salary

Leave Fare Concession
Perquisites
House Rent Allowance
Residence
Provident Fund

Amount
`1,76,04,840 p.a.
`5,50,000 p.a.

:

:

`44,00,000 p.a. (in lieu of Bank’s owned/leased accommodation).
Leased accommodation to be provided by the Bank.

:
:
: 12% of basic pay with equal contribution by the Bank or as may be decided 

upon by the Board/Trustees from time to time.

Gratuity

: One  month’s  salary  for  each  completed  year  of  service  or  part  thereof  (On 

Superannuation
Travelling Allowances
Medical beneﬁ ts

Club fees

Conveyance & Telephone
Personal Insurance

Newspapers & Periodical
Entertainment
Utility Bills
Furnishing Allowance
Leave

pro-rata basis).

: 10% of basic pay p.a.
: As per Bank’s Policy.
:

(i)  Group mediclaim facility as available to other employees of the Bank.
(ii)  Reimbursement of full medical expenses for self and family.

: Membership  of  two  clubs  (excluding  life  membership  fees).  All  ofﬁ cial 
expenses in connection with such membership incurred would be reimbursed 
by the Bank.

: As per Bank’s Policy.
:

Shall  be  covered  under  the  Group  Savings  Linked  Insurance  Scheme  (GSLI) 
and the Personal Accident Policy as per the Bank’s rules.

Expenditure on ofﬁ cial entertainment would be on the Bank’s account.
To be reimbursed at actuals upto a limit of `1,32,000 p.a.

: As per requirement.
:
:
: At actuals upto a limit of `12 lacs during his tenure as Whole-Time Director.
: As per the Bank’s rules.

Employees Stock Options (ESOP)

:

Stock  Options  as  may  be  decided  by  the  Nomination  and  Remuneration 
Committee/Board from time to time, subject to approval of Reserve Bank of 
India (RBI).

Variable Pay

: As approved by the Nomination and Remuneration Committee/Board subject 

to approval of RBI.

Loans

:

Loan facilities to be provided as per the Bank’s policy, at the rate of interest 
applicable to other employees.

Other terms

: As per the Bank’s staff rules and as may be agreed by the Board, from time 

to time.

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Twenty First Annual Report 2014-15

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to execute any agreements, 
documents, instruments and writings etc.  and to do all such acts, deeds, matters and things as may be required to give 
effect to this resolution.”

9. 

To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED THAT Shri Sanjeev Kumar Gupta (DIN 00237353), who was appointed as an Additional Director of the 
Bank and has taken charge as such with effect from 4th September 2014 pursuant to receipt of requisite approval from 
the  Reserve  Bank  of  India  and  who  holds  ofﬁ ce  as  an  Additional  Director  of  the  Bank  upto  the  date  of  this  Annual 
General Meeting and in respect of whom a notice under Section 160 of the Companies Act, 2013 read with Rule 13 
of the Companies (Appointment of Directors) Rules, 2014 has been received from a Member signifying his intention to 
propose Shri Sanjeev Kumar Gupta as a candidate for the ofﬁ ce of Director of the Bank, be and is hereby appointed as a 
Director of the Bank, liable to retire by rotation in accordance with the provisions of Section 152 of the Companies Act, 
2013 and the Articles of Association of the Bank.”

10.  To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED  THAT  pursuant  to  the  relevant  provisions  of  the  Companies  Act,  2013,  the  Rules  made  thereunder, 
(including  any  amendment,  modiﬁ cation,  variation  or  re-enactment  thereof)  and  pursuant  to  the  approval  granted 
by the Reserve Bank of India (RBI) under the relevant provisions of the Banking Regulation Act, 1949 and the Articles 
of  Association  of  the  Bank,  approval  of  the  Members  of  the  Bank  be  and  is  hereby  accorded  for  appointment  of 
Shri Sanjeev Kumar Gupta (DIN 00237353) as the Whole-Time Director designated as ‘Executive Director (Corporate 
Centre) & Chief Financial Ofﬁ cer’ of the Bank for a period of 3 years, with effect from 4th September 2014”.

“RESOLVED  FURTHER  THAT  Shri  Sanjeev  Kumar  Gupta  be  paid  remuneration  by  way  of  salary,  allowances  and 
perquisites as the Whole-Time Director designated as ‘Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer’ of 
the Bank on the following terms and conditions, with effect from 4th September 2014”.

Particulars
Salary

Leave Fare Concession

Perquisites
House Rent Allowance
Free furnished house
Free use of Bank’s car for ofﬁ cial 
purpose.

:
:

:
:
:

Amount
`90,00,000 p.a.
`5,50,000 p.a.

`34,00,000 p.a. (in lieu of company leased accommodation).
Leased accommodation to be provided by the Bank.

Free use of Bank’s car with driver.

Provident Fund

Gratuity

Superannuation
Travelling & Halting Allowances

Medical beneﬁ ts

Club fees

Telephone

Personal Insurance

: 12% of basic pay with equal contribution by the Bank or as may be decided 

upon by the Board/Trustees from time to time.

: One month’s salary for each completed year of service or part thereof (On pro-

rata basis)

: 10% of basic pay p.a.
: As per Bank’s Policy.
:

(i)  Group mediclaim facility as available to other employees of the Bank.
(ii)  Reimbursement of full medical expenses for self and family.

: Membership of two clubs (excluding life membership fees). All ofﬁ cial expenses 
in connection with such membership incurred would be reimbursed by the Bank.
Telephone Facilities.

:

:

Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and 
the Personal Accident Policy as per the Bank’s rules.

Newspapers & Periodicals

: As per requirement.

Entertainment

Expenditure on ofﬁ cial entertainment would be on the Bank’s account.

4

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Twenty First Annual Report 2014-15

Particulars
Utility Bills

Furnishing Allowances

Amount
To be reimbursed at actuals upto a limit of `1,32,000 p.a.

:
: At actuals upto a limit of `10 lacs during his tenure as Whole-Time Director.

Leave

: As per the Bank’s rules.

Employees Stock Options (ESOP)

Variable Pay

Loans

Other terms

Stock  Options  as  may  be  decided  by  the  Nomination  and  Remuneration 
Committee/Board  from  time  to  time,  subject  to  the  approval  of  the  Reserve 
Bank of India (RBI).

As  may  be  decided  by  the  Nomination  and  Remuneration  Committee/Board 
subject to approval of RBI.

Loan  facilities  to  be  provided  as  per  the  existing  limits,  at  the  rate  of  interest 
applicable to other employees of the Bank subject to approval of RBI.

As per the Bank’s staff rules and as may be agreed by the Board, from time to 
time.

:

:

:

:

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to execute any agreements, 
documents, instruments and writings etc.  and to do all such acts, deeds, matters and things as may be required to give 
effect to this resolution.”

11.  To consider and pass with or without modiﬁ cation(s), the following Resolution, as an Ordinary Resolution:

“RESOLVED THAT subject to approval of the Reserve Bank of India, approval of the Members of the Bank be and is 
hereby  accorded  for  revising  the  remuneration  by  way  of  salary,  allowances  and  perquisites  payable  to  Shri  Sanjeev 
Kumar Gupta (DIN 00237353), as the Whole-Time Director designated as ‘Executive Director (Corporate Centre) & Chief 
Financial Ofﬁ cer’ of the Bank, with effect from 1st June, 2015, on the following terms and conditions:

Particulars

Salary

Leave Fare Concession
Perquisites
House Rent Allowance
Residence
Provident Fund

: Amount
: `1,12,05,069 p.a.
: `5,50,000 p.a.

: `44,00,000 p.a. (in lieu of accommodation provided by the Bank).
:
: 12%  of  basic  pay  with  equal  contribution  by  the  Bank  or  as  may  be  decided 

Leased accommodation to be provided by the Bank.

upon by the Board/Trustees from time to time.

Gratuity

: One month’s salary for each completed year of service or part thereof (On pro-

Superannuation
Travelling Allowances
Medical beneﬁ ts

Club fees

rata basis).

: 10% of basic pay p.a.
: As per Bank’s Policy
:

(i)  Group mediclaim facility as available to other employees of the Bank.
(ii)  Reimbursement of full medical expenses for self and family.

: Membership of two clubs (excluding life membership fees). All ofﬁ cial expenses 
in connection with such membership incurred would be reimbursed by the Bank.

Conveyance & Telephone
Personal Insurance

: As per Bank’s Policy.
: Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and 

the Personal Accident Policy as per the Bank’s rules.

Newspapers & Periodical
Entertainment
Utility Bills
Furnishing Allowance

: As per requirement.
: Expenditure on ofﬁ cial entertainment would be on the Bank’s account.
: To be reimbursed at actuals upto a limit of `1,32,000 p.a.
: At actuals upto a limit of `12 lacs during his tenure as Whole-Time Director.

5

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Twenty First Annual Report 2014-15

Particulars

Leave

: Amount

: As per the Bank’s rules.

Employees Stock Options (ESOP)

: Stock  Options  as  may  be  decided  by  the  Nomination  and  Remuneration 
Committee/Board  from  time  to  time,  subject  to  the  approval  of  Reserve  Bank 
of India (RBI).

Variable Pay

: As approved by the Nomination and Remuneration Committee/Board subject to 

approval of RBI.

Loans

:

Loan  facilities  to  be  provided  as  per  the  Bank’s  policy,  at  the  rate  of  interest 
applicable to other employees.

Other terms

: As per the Bank’s staff rules and as may be agreed by the Board, from time to 

time.

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to execute any agreements, 
documents, instruments and writings etc. and to do all such acts, deeds, matters and things as may be required to give 
effect to this resolution.”

12.  To consider and pass with or without modiﬁ cation(s), the following resolution, as a Special Resolution:

“RESOLVED THAT in supersession of the resolution passed by the Members of the Bank at the 20th Annual General 
Meeting held on 27th June, 2014, consent of the Members of the Bank under the provisions of Section 180(1)(c) and 
other applicable provisions, if any, of the Companies Act, 2013 and Rules made thereunder, (including any amendment, 
modiﬁ cation, variation or re-enactment thereof) and the relevant provisions of the Articles of Association of the Bank, be 
and is hereby accorded to the borrowings by the Bank from time to time, of all money deemed by them to be requisite 
or proper for the purpose of carrying on the business of the Bank, so however, that apart from deposits accepted in the 
ordinary course of business, temporary loans repayable on demand or within six months from the date of the loan or 
temporary loans, if any, obtained from the Bank’s bankers, the total amount of such borrowings outstanding at any time 
shall not exceed `1,50,000 crores (Rupees One Hundred and Fifty Thousand Crores) notwithstanding that the money 
to be borrowed together with the money already borrowed by the Bank will exceed the aggregate of its paid-up share 
capital and free reserves.”

“RESOLVED  FURTHER  THAT  the  Board  of  Directors  of  the  Bank  be  and  is  hereby  authorised  to  execute  all  such 
agreements, documents, instruments and writings, to settle, questions, difﬁ culties or doubts that may arise with regard 
to the said matter as it may in its sole and absolute discretion deem appropriate and to do all such acts, deeds, matters 
and things as may be required to give effect to this resolution.“

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to delegate all or any of its 
powers herein conferred to any Committee of the Board of Directors of the Bank or any one or more of the Directors of 
the Bank, for giving effect to this resolution.”

13.  To consider and pass with or without modiﬁ cation(s), the following resolution, as a Special Resolution:

“RESOLVED  THAT  pursuant  to  provisions  of  Section  42  of  the  Companies  Act,  2013,  Rule  14  of  the  Companies 
(Prospectus  and  Allotment  of  Securities)  Rules,  2014,  the  Securities  and  Exchange  Board  of  India  (Issue  and  Listing 
of Debt Securities) Regulations, 2008, the Simpliﬁ ed Listing Agreement for Debt Securities, as amended from time to 
time and other applicable laws, if any, the provisions of the Memorandum and Articles of Association of the Bank and 
subject to receipt of such approval(s), consent(s), permission(s) and sanction(s) as may be necessary from the concerned 
statutory or regulatory authority(ies), the approval of the Members of the Bank be and is hereby accorded for borrowing/
raising funds in Indian currency/foreign currency by issue of debt instruments including but not limited to bonds and 
non-convertible debentures upto `35,000 crores (Rupees Thirty Five Thousand crores only) in domestic and/or overseas 
market, under one or more shelf disclosure document and/or under one or more letter of offers as may be issued by the 
Bank and in one or more tranches, on a private placement basis during a period of one year from the date of passing 
of this Resolution, within the overall borrowing limits of the Bank, on such terms and conditions as may be approved by 
the Board of Directors of the Bank, from time to time.”

6

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Twenty First Annual Report 2014-15

“RESOLVED  FURTHER  THAT  the  Board  of  Directors  of  the  Bank  be  and  is  hereby  authorised  to  execute  all  such 
agreements, documents, instruments and writings, to settle, questions, difﬁ culties or doubts that may arise with regard 
to the said matter as it may in its sole and absolute discretion deem appropriate and to do all such acts, deeds, matters 
and things as may be required to give effect to this resolution. “

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to delegate all or any of 
its powers herein conferred to any Committee of Board of Directors of the Bank or any one or more of the Directors or 
Executives of the Bank, for giving effect to this resolution.”

14.  To consider and pass with or without modiﬁ cation(s), the following Resolution, as a Special Resolution:

“RESOLVED THAT subject to the relevant laws, rules and regulations as applicable from time to time and subject to 
receipt of such consents, sanctions and permissions as may be required, approval of the Members of the Bank be and is 
hereby accorded for acquiring and holding equity shares of the Bank, by the Foreign Institutional Investors (FIIs)/Foreign 
Portfolio Investors (FPIs)/Non-resident Indians (NRIs), Foreign Direct Investment covering ADRs/GDRs and indirect foreign 
investment in any combination thereof upto an aggregate limit of 74% of the paid up equity share capital of the Bank 
or individually upto such limit as may be permitted by applicable laws, rules and regulations and approved by the Board 
of Directors of the Bank, from time to time.

“RESOLVED  FURTHER  THAT  the  Board  of  Directors  of  the  Bank  be  and  is  hereby  authorised  to  execute  all  such 
agreements, documents, instruments and writings, to settle, questions, difﬁ culties or doubts that may arise with regard 
to the said matter as it may in its sole and absolute discretion deem appropriate and to do all such acts, deeds, matters 
and things as may be required to give effect to this resolution.”

“RESOLVED FURTHER THAT the Board of Directors of the Bank be and is hereby authorised to delegate all or any of its 
powers herein conferred to any Committee of Board of Directors of the Bank or any one or more of the Directors of the 
Bank, for giving effect to this resolution.”

Place: Mumbai 
Date: 29th April 2015 

Notes:

By Order of the Board

Sanjeev K. Gupta
Executive Director (Corporate Centre)
& Chief Financial Ofﬁ cer

1. 

2. 

3. 

4. 

5. 

6. 

7. 

A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING (MEETING) IS ENTITLED TO 
APPOINT A PROXY TO ATTEND AND VOTE INSTEAD OF HIMSELF AND A PROXY NEED NOT BE A MEMBER OF 
THE BANK. PROXIES IN ORDER TO BE VALID AND EFFECTIVE MUST BE DELIVERED AT THE REGISTERED OFFICE 
OF THE BANK NOT LATER THAN FORTY-EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

Corporate Members intending to send their authorised representatives to attend the Meeting are requested to send to 
the Registered Ofﬁ ce of the Bank a certiﬁ ed copy of the Board Resolution authorising their representative to attend and 
vote at the Meeting on their behalf.

Proxy shall not have a right to speak at the Meeting and shall not be entitled to vote except on a poll.

A person appointed as Proxy shall act on behalf of not more than 50 Members and holding not more than 10% of the 
total share capital of the Bank carrying voting rights. However, a Member holding more than 10% of the total share 
capital of the Bank carrying voting rights may appoint a single person as a Proxy and such Person shall not act as a Proxy 
for any other Person or Member.

Proxy in prescribed Form No. MGT-11 is enclosed herewith.

The  Attendance  at  the  meeting  will  be  regulated  through  the  Attendance  Slip  and  its  veriﬁ cation  with  the  records 
maintained with the Bank.

The relevant explanatory statement pursuant to the provisions of Section 102 of the Companies Act, 2013 in respect 
of item Nos. 5 to 14, is annexed herewith. Pursuant to the provisions of Section 91 of the Companies Act, 2013, the 
Register of Members and the Share Transfer Books of the Bank will remain closed from Monday, 13th July 2015 to Friday, 
24th July 2015 (both days inclusive), for the purpose of payment of dividend.

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8. 

9. 

In  accordance  with  the  provisions  of  Section  123  of  the  Companies  Act,  2013,  the  dividend  on  equity  shares  as 
recommended  by  the  Board  of  Directors  of  the  Bank,  if  declared  at  the  meeting,  would  be  paid  to  those  Members 
whose names appear in the Register of Members of the Bank/ the statement of beneﬁ cial ownership maintained by the 
Depositories as at the close of business hours on Saturday, 11th July 2015. ECS credit/dispatch of the dividend warrants 
would commence on Monday, 27th July 2015 and is expected to be completed on or before Thursday, 6th August 2015.

Shareholders holding shares in physical form are requested to immediately notify change in their address, if any, to the 
Registrar and Share Transfer Agents, Karvy Computershare Private Limited, Hyderabad or to the Registered Ofﬁ ce of the 
Bank, quoting their Folio number(s).

In order to avoid fraudulent encashment of dividend warrants, the details of your Bank Account will be printed on the 
dividend warrants. We, therefore, request you to send to our Registrar and Share Transfer Agents, Karvy Computershare 
Private  Limited,  Hyderabad  or  to  the  Registered  Ofﬁ ce  of  the  Bank,  on  or  before  Saturday,  11th  July,  2015,  a  Bank 
Mandate (providing details of name of the Bank, branch and place with PIN code No., where the account is maintained 
and the Bank Account No) or changes therein, if not provided earlier, under the signature of the Sole/First holder quoting 
their Folio number.

The Bank is offering the facility of ECS/NECS in centres wherever available. The ECS Mandate Form is annexed. This 
facility could also be used by the shareholders instead of the Bank Mandate System, for receiving the credit of dividends.

10.  Shareholders  holding  shares  in  dematerialised  mode  are  requested  to  intimate  all  changes  pertaining  to  their  Bank 
details, ECS mandates, email addresses, nominations, power of attorney, change of address/name etc. to their Depository 
Participant (DP) only and not to the Bank or its Registrar and Share Transfer Agents. Any such changes effected by the 
DPs will be automatically reﬂ ected in the records of the Bank subsequently.

11.  Shareholders may avail of the Nomination Facility under Section 72 of the Companies Act, 2013. The relevant Nomination 
Form is available on the website of the Bank and the Shareholders may download the same or write to the Bank at its 
Registered Ofﬁ ce for the same.

12.  Shareholders seeking any information with regard to the ﬁ nancial statements of the Bank are requested to write to the 

Bank at its Registered Ofﬁ ce at an early date to enable the Management to keep the information ready.

13.  SEBI has made it mandatory for every participant in the securities/capital market to furnish the details of Income tax 
Permanent Account Number (PAN). Accordingly, all the shareholders holding shares in physical form are requested to 
submit their details of PAN along with a photocopy of both sides of the PAN card, duly attested, to the Registrar and 
Share Transfer Agents of the Bank.

14. 

In accordance with Section 101 of the Companies Act, 2013 read with Rule 18 of the Companies (Management and 
Administration) Rules, 2014, this Notice and the Annual Report of the Bank is being sent by e-mail to those Members 
who have registered their email address with their Depository Participant (in case of electronic shareholding)/the Bank’s 
Registrar and Share Transfer Agents (in case of physical shareholding).

We, therefore request you to consider registering your email ID in the records of your Depository Participant (in case of 
electronic holding)/the Bank’s Registrar and Share Transfer Agents (in case of physical shareholding) mentioning your 
demat account details / folio no.

However,  in  case  you  wish  to  receive  the  above  documents  in  physical  form,  you  may  write  to  the  Bank’s  Registrar 
and  Share  Transfer  Agents,  Karvy  Computershare  Private  Limited,  Unit:  Axis  Bank  Limited,  Karvy  Selenium  Tower  B, 
Plot  31-32,  Gachibowli,  Financial  District,  Nanakramguda,  Hyderabad  –  500032,  Phone  No.  :  040  -  67162222
Fax No. : 040 - 23001153 or send an email at axisgogreen@karvy.com, mentioning your demat account details / folio no.

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Twenty First Annual Report 2014-15

The  Shareholders  are  requested  to  write  to  the  Company  Secretary  at  the  Registered  Ofﬁ ce  of  the  Bank  or  to  the 
Registrar and Share Transfer Agents regarding transfer of shares and for resolving their grievances at below mentioned 
addresses:

The Company Secretary,

Axis Bank Limited [CIN: L65110GJ1993PLC020769]

Registered Ofﬁ ce:

‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,

Law Garden, Ellisbridge, Ahmedabad – 380 006.

Website : www.axisbank.com

Phone No. : 079 - 66306161

Fax No. : 079 - 26409321

Email : shareholders@axisbank.com

Karvy Computershare Private Limited

Unit: Axis Bank Limited

Karvy Selenium Tower B, Plot 31-32, Gachibowli,

Financial District, Nanakramguda, Hyderabad – 500 032.

Phone No. : 1800-345-4001 and 040 - 67162222

Fax No. : 040 - 23001153

Email: einward.ris@karvy.com

Contact Persons: Shri M R V Subrahmanyam, GM (RIS) / Smt. Varalakshmi, Sr. Manager (RIS)

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9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.  Remote E-Voting:

Twenty First Annual Report 2014-15

I. 

II. 

III. 

In compliance with the provisions of Clause 35B of the Listing Agreement and Section 108 of the Companies Act, 
2013 read with Rule 20 of the Companies (Management and Administration) Amendment Rules, 2015, the Bank 
is pleased to provide remote e-voting facility through Karvy Computershare Private Limited, to enable its Members 
to cast their votes electronically on the items mentioned in this Notice.

Further, in terms of Clause 35B of the Listing Agreement, those Members who do not have access to remote 
e-voting facility, may convey their assent or dissent in writing in respect of the resolutions as set out in this Notice, 
by using the enclosed Ballot Form sent along with this Notice. A Member desiring to exercise his vote by way of 
Ballot Form can do so by recording his assent or dissent thereof and sending it to the Scrutinizer in the enclosed 
self-addressed pre-paid postage Business Reply Envelope. Postage charges will be borne and paid by the Bank. 
Please note that the said pre-paid postage Business Reply Envelope should reach the Scrutinizer before the close 
of business hours on 20th July 2015.

The  Bank  has  appointed  Shri  Nimai  G.  Shah,  Chartered  Accountant  (Membership  No.  100932)  and  Partner, 
Chandabhoy & Jassoobhoy, Chartered Accountants or failing him Shri Gautam N. Shah, Chartered Accountant 
(Membership No. 012679) and Partner, Chandabhoy & Jassoobhoy, Chartered Accountants as the Scrutinizer for 
conducting the remote e-voting process in a fair and transparent manner. Remote e-voting is optional. The voting 
rights of shareholders shall be in proportion of their shares to the paid up equity share capital of the Bank, subject 
to the provisions of the Banking Regulation Act, 1949, as on the cut-off date of 17th July 2015.

IV. 

The instructions for remote e-voting are as under:
(cid:2) 

In case of Members receiving Notice by e-mail:

(i) 

Open e-mail and the PDF File viz. “DPIDCLIENTID.pdf” with your client ID or folio No. as password. 
The  said  PDF  File  contains  your  user  ID  and  password  for  remote  e-voting.  Please  note  that  the 
password is an initial password.

(ii) 

To use the following URL for remote e-voting:

From Karvy website: http://evoting.karvy.com

(iii) 

(iv) 

(v) 

Shareholders of the Bank holding shares either in physical form or in dematerialized form, as on the 
cut-off date, may cast their vote electronically.

Enter the login credentials. Your Folio No/DP ID Client ID will be your user ID.

After entering the details appropriately, click on LOGIN.

(vi)  You  will  reach  the  Password  change  menu  wherein  you  are  required  to  mandatorily  change  your 
password. The new password shall comprise of minimum 8 characters with at least one upper case 
(A-Z), one lower case (a-z), one numeric value (0-9) and a special character. The system will prompt 
you to change your password and update any contact details like mobile, email etc., on ﬁ rst login. 
You may also enter the secret question and answer of your choice to retrieve your password in case 
you forget it. It is strongly recommended not to share your password with any other person and take 
utmost care to keep your password conﬁ dential.

(vii)  You need to login again with the new credentials.

(viii)  On successful login, the system will prompt you to select the EVENT i.e., Axis Bank Limited.

(ix)  On the voting page, enter the number of shares as on the said cut-off date under FOR/AGAINST or 
alternately you may enter partially any number in FOR and partially any number in AGAINST but the 
total number in FOR/AGAINST taken together should not exceed your total shareholding. You may 
also choose the option ABSTAIN.

(x) 

Shareholders  holding  multiple  folios/demat  account  shall  choose  the  voting  process  separately  for 
each folios/demat account.

(xi)  Cast your vote by selecting an appropriate option and click on SUBMIT. A conﬁ rmation box will be 
displayed. Click OK to conﬁ rm else CANCEL to modify. Once you conﬁ rm, you will not be allowed to 
modify your vote. During the voting period, shareholders can login any number of times till they have 
voted on the Resolution.

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Twenty First Annual Report 2014-15

(xii)  Once  the  vote  on  the  Resolution  is  cast  by  the  shareholder,  he  shall  not  be  allowed  to  change  it 

subsequently.

(xiii) 

Institutional  shareholders  (i.e.  other  than  individuals,  HUF,  NRI  etc.)  are  required  to  send  scanned 
copy (PDF/JPG Format) of the relevant Board Resolution/ Authority letter etc. together with attested 
specimen signature of the duly authorized signatory(ies) who are authorized to vote, to the Scrutinizer 
through e-mail to cnjabd@vsnl.net with a copy marked to evoting@karvy.com.

(xiv)  The remote e-voting period commences on 21st July 2015 (9:00 A.M.) and ends on 23rd July 2015 
(5:00 P.M.). During this period shareholders’ of the Bank, holding shares either in physical form or 
in dematerialized form, as on the cut-off date of 17th July 2015, may cast their vote electronically. 
The  remote  e-voting  module  shall  be  disabled  by  Karvy  Computershare  Private  Limited  for  voting 
thereafter.  Once  the  vote  on  a  Resolution  is  cast  by  the  shareholder,  the  shareholder  shall  not  be 
allowed to change it subsequently. Further, the shareholders who have cast their vote electronically 
may also attend the Meeting, however they shall not be able to vote at the Meeting.

(xv) 

In  case  of  any  queries,  you  may  refer  the  Frequently  Asked  Questions  (FAQs)  for  shareholders 
and  remote  e-voting  User  Manual  for  shareholders  available  at  the  download  section  of 
http://evoting.karvy.com or contact Karvy Computershare Private Limited at Tel No. 1800 345 4001 
(toll free).

(cid:2) 

In case of Members receiving Notice by Post/Courier:

(i) 

Initial password is provided, as below, in the attendance slip of the Meeting.

EVEN (E Voting Event 
Number)

USER ID

PASSWORD/PIN

(ii) 

V. 

VI. 

Please follow the steps stated at serial Nos. IV (II) to IV (XV) above, to cast your vote by electronic 
means.

The Scrutinizer shall, immediately after the conclusion of voting at the Meeting, ﬁ rst count the votes 
cast at the Meeting, thereafter unblock the votes cast through remote e-voting and by way of Ballot 
Form in the presence of at least two witnesses not in employment of the Bank and make not later 
than three days of conclusion of the meeting, a Consolidated Scrutinizer’s Report of the total votes 
cast in favour and against, if any to the Chairman or a person authorised in writing by him who shall 
countersign the same.

The Results in respect of the Resolutions stated in this Notice shall be declared after the Meeting and 
shall be deemed to have been passed on the date of the declaration. The Results declared along with 
the Scrutinizer’s Report shall be placed on the Bank’s website www.axisbank.com and on the website 
of Karvy Computershare Private Limited, immediately after the results are declared by the Chairman 
of the Bank and will be simultaneously communicated to the Stock Exchanges.

VII.  Voting will also be conducted at the Meeting by way of Poll in accordance with Rule 20 of Companies 
(Management and Administration) Amendment Rules, 2015 and any Shareholder who has not cast his 
vote through remote e-voting or Ballot Form, may attend the Meeting and cast his vote accordingly.

16.  All documents referred to in this Notice and Statement setting out material facts and other statutory registers are open 
for inspection by the Members at the Registered Ofﬁ ce of the Bank during its business hours on all working days except 
Saturdays, Sundays and national holidays, from the date hereof upto the date of this Meeting.

Place: Mumbai 
Date: 29th April 2015 

By Order of the Board

Sanjeev K. Gupta
Executive Director (Corporate Centre)
& Chief Financial Ofﬁ cer

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Twenty First Annual Report 2014-15

ANNEXURE TO NOTICE - EXPLANATORY STATEMENT U/S 102 OF THE COMPANIES ACT, 2013

Item No. 5:

Shri S. Vishvanathan was appointed as an Additional Director of the Bank w.e.f. 11th February 2015. Under Section 161 of the 
Companies Act, 2013, read with Article 91 of the Articles of Association of the Bank, he continues to hold ofﬁ ce as a Director 
of the Bank until the conclusion of the ensuing Annual General Meeting. As required under Section 160 of the Companies Act, 
2013, the Bank has received a notice from a member signifying his intention to propose Shri S. Vishvanathan as a candidate for 
the ofﬁ ce of Director of the Bank and the requisite deposit of ` 1,00,000 has also been received by the Bank along with such 
notice. The Board of Directors at its Meeting held on 29th April 2015 considered the proposal on appointment/reappointment 
of Directors at ensuing Annual General Meeting and pursuant to RBI guidelines determined that Shri S. Vishvanathan is ﬁ t and 
proper person to be appointed as a Director on the Board of the Bank. The Board also determined that Shri S. Vishvanathan 
fulﬁ ls the conditions as speciﬁ ed in the proviso to Section 152(5) of the Companies Act, 2013 and the applicable provisions 
of  the  listing  agreement  with  respect  to  his  appointment  as  an  Independent  Director  and  that  he  is  independent  of  the 
management.  Shri  S.  Vishvanathan  could  not  attend  the  meeting  of  Committee  of  Directors  and  Audit  Committee  held 
on  20th  March  2015  on  account  of  advice  received  from  Government  of  India  for  attending  the  meetings  conveyed  by  it. 
Shri  S.  Vishvanathan  does  not  hold  any  equity  share  of  the  Bank.  Draft  Letter  of  Appointment  of  Shri  S.  Vishvanathan  is 
available for inspection by the Members at the Registered Ofﬁ ce of the Bank during business hours.

Brief proﬁ le of Shri S. Vishvanathan in terms of Clause 49 VIII E of the Listing Agreement has been provided after this Notice.

The Board recommends approval of the resolution.

Shri S. Vishvanathan is not related to any other Director of the Bank.

Except for Shri S. Vishvanathan, no other Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially or 
otherwise concerned with or interested in the resolution at item No. 5 of the Notice.

Item No. 6:

Dr. Sanjiv Misra was appointed as the Chairman of the Bank for a period of three years from 8th March 2013. The Bank has 
grown and progressed under the guidance of Dr. Sanjiv Misra. In view of this, the Nomination and Remuneration Committee 
of  the  Board,  which  met  on  15th  January  2015,  examined  the  remuneration  of  Dr.  Sanjiv  Misra,  in  comparison  with  the 
remuneration of the Chairmen of the other peer group Banks and recommended a revision in the remuneration to be paid to 
Dr. Sanjiv Misra. The revision in remuneration payable to Dr. Sanjiv Misra was approved by the Reserve Bank of India vide its 
letter DBR.Apptt. No. 16252/08.86.001/2014-15 dated 27th April 2015.

The Board of Directors of the Bank at its meeting held on 16th January 2015 has approved the revision in remuneration payable 
to Dr. Sanjiv Misra with effect from 8th March 2015.

The Board recommends approval of the resolution.

Except  for  Dr.  Sanjiv  Misra,  no  other  Director,  Key  Managerial  Personnel  of  the  Bank  and  their  relatives  are  ﬁ nancially  or 
otherwise concerned with or interested in the resolution at item No. 6 of the Notice.

Item No. 7:

The Board of Directors at their meeting held on 20th April 2012 had re-appointed Smt. Shikha Sharma as the Managing Director 
& CEO of the Bank for a period of three years with effect from 1st June 2012. The term of Smt. Shikha Sharma will therefore end on 
31st May 2015. In view of the above, the Nomination and Remuneration Committee of the Board which met on 15th January 
2015 and the Board of Directors at their meeting held on 16th January 2015 considered the re-appointment of Smt. Shikha 
Sharma and had recommended her re-appointment for a further period of three years with effect from 1st June 2015. The Bank 
had made an application to Reserve Bank of India for its approval to the above re-appointment which was approved vide its letter 
DBR.Apptt. No. 16253/08.86.001/2014-15 dated 27th April 2015. Further, the Nomination and Remuneration Committee of 
the Board and the Board of Directors at its respective meeting held on 28th April 2015 and 29th April 2015, approved the revised 
remuneration payable to Smt. Shikha Sharma effective from 1st June 2015. The Bank has approached RBI for its approval for 
payment of revised remuneration.

During the tenure of Smt. Shikha Sharma, the Bank has shown all-round progress in terms of business growth, proﬁ tability, 
branch expansion, ATM network expansion and improved brand equity.

The Bank has in the three years of her current tenure, been able to consistently deliver proﬁ tability as well as returns to its 

12

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Twenty First Annual Report 2014-15

shareholders  under  her  leadership  in  the  challenging  economic  and  macro  environment.  The  NPAs  and  restructured  assets 
have  been  kept  in  control,  with  strong  focus  on  guardrails.  The  desired  shift  that  the  Bank  had  envisaged  in  its  advances 
portfolio also has been moving in the right direction. She has also spearheaded the formulation of Vision 2020 for the Bank, 
thus ensuring long term sustenance of business strategy while keeping in mind customer ethos as well as employee growth 
and well-being. Simultaneously, she has guided the organisation towards strengthening the core back-end capabilities which 
has  led  to  a  dependable  and  agile  IT,  operational  excellence,  extensive  use  of  analytics  across  the  enterprise  and  a  robust 
enterprise risk management framework. She has ensured that cross functional movements are actively encouraged and that 
a  framework  for  competency  building  of  employees  is  put  in  place.  She  has  also  promoted  meritocracy  and  focused  on 
increasing transparency for employees of the Bank.

Key highlights during her tenure in the last 3 ﬁ nancial years are as below:
Total deposits have increased from `2,20,104.30 crores at 31st March 2012 to `3,22,441.94 crores at 31st March 2015. Total 
advances have also increased from `1,69,759.54 crores at 31st March 2012 to `2,81,083.03 crores at 31st March 2015. Net 
proﬁ t of the Bank for the year ended 31st March 2015 was `7,448.48 crores, as against `4,242.21 crores for the year ended 
31st March 2012. The branch network (branches and extension counters) of the Bank increased from 1,622 at 31st March 2012 
to 2,589 at 31st March 2015.

Brief proﬁ le of Smt. Shikha Sharma in terms of Clause 49 VIII E of the Listing Agreement has been provided after this Notice.

The Board recommends approval of the Resolution for reappointment of Smt. Shikha Sharma as the Managing Director & 
CEO of the Bank for a period of three years with effect from 1st June 2015 and revision in remuneration by way of salary and 
perquisites payable to Smt. Shikha Sharma with effect from 1st June 2015.

Smt. Shikha Sharma is not related to any other Director of the Bank.

Except for Smt. Shikha Sharma, no other Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially or 
otherwise concerned with or interested in the resolution at item No. 7 of the Notice.

Item No. 8:

The Board of Directors of the Bank at its meeting held on 29th April 2015 have approved the revision in remuneration by way 
of salary and perquisites payable to Shri V. Srinivasan with effect from 1st June 2015.

The year ended 31st March 2015 witnessed challenging economic environment in which Shri V. Srinivasan has been instrumental 
in protecting and growing the proﬁ t pool of the Bank. In spite of the stress that has been seen across different sectors and 
corporates, the Bank has been able to stay on course and contain the asset quality within deﬁ ned limits under his leadership. 
The synergies between Retail and Corporate Banking have been ingrained as a core activity for Corporate Banking Relationship 
Managers. This year the focus was to ensure that a complete solution is offered to clients by integrating the Investment Banking 
closely as well and the same was achieved by the year end. The Bank continued to grow at the desired pace in the SME space. 
The Bank also successfully completed one of the largest Infrastructure Bond Issues. Under his leadership, this year has also seen 
the foundation being laid for formation of a Transaction Banking group within the Bank which will aim to bring all transaction 
products for Corporate and SME clients under one umbrella. In view of this, the Nomination and Remuneration Committee of 
the Board, which met on 28th April 2015, reviewed the remuneration being paid to Shri V. Srinivasan in comparison with the 
remuneration of Executive Directors of peer group banks and recommended a revision in the emoluments to be paid to him.

The Board recommends approval of the resolution.

Except  for  Shri  V.  Srinivasan,  no  other  Director,  Key  Managerial  Personnel  of  the  Bank  and  their  relatives  are  ﬁ nancially  or 
otherwise concerned with or interested in the resolution at item No. 8 of the Notice.

Item No. 9 and 10:

The  Board  of  Directors  of  the  Bank  at  its  meeting  held  on  27th  June  2014  had  approved  the  proposal  for  appointment  of 
Shri Sanjeev Kumar Gupta as a Whole-Time Director of the Bank for a period of three years, effective from the date from 
which his appointment as Whole-Time Director would be approved by Reserve Bank of India. RBI vide its letter no. DBOD.
Appt.No.3380/08.86.001/2014-15 dated 4th September 2014 accorded its approval to the appointment of Shri Sanjeev Kumar 
Gupta as Whole-Time Director of the Bank, accordingly he took charge, with effect from 4th September 2014.

The Bank has received a notice under Section 160 of the Companies Act, 2013 from a member signifying his intention to 
propose Shri Sanjeev Kumar Gupta as a candidate for the ofﬁ ce of Director of the Bank and the requisite deposit of `1,00,000 

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Twenty First Annual Report 2014-15

has also been received by the Bank along with such notice. It is proposed that Shri Sanjeev Kumar Gupta will liable to retire 
by rotation.

Brief proﬁ le of Shri Sanjeev Kumar Gupta in terms of Clause 49 VIII E of the Listing Agreement has been provided after this 
Notice.

The Board recommends approval of the Resolutions for appointment of Shri Sanjeev Kumar Gupta as the Executive Director 
(Corporate Centre) & Chief Financial Ofﬁ cer of the Bank for a period of three years, with effect from 4th September 2014.

Shri Sanjeev Kumar Gupta is not related to any other Director of the Bank.

Except for Shri Sanjeev Kumar Gupta, no other Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially 
or otherwise concerned with or interested in the resolution at item Nos. 9 and 10 of the Notice.

Item No. 11:

The  Board  of  Directors  of  the  Bank  at  its  meeting  held  on  29th  April  2015  approved  the  revision  in  remuneration  by  way 
of  salary,  allowances  and  perquisites  payable  to  Shri  Sanjeev  Kumar  Gupta,  Executive  Director  (Corporate  Centre)  &  Chief 
Financial Ofﬁ cer of the Bank, with effect from 1st June 2015.

During the year ended 31st March 2015, Shri Sanjeev Kumar Gupta effectively managed the broader role of the Corporate 
Centre Head & CFO and the set of diverse portfolios which included Finance, Information Technology and Law. The EGRC 
framework is now ingrained across the Bank, giving a strong foundation with regards to risk management capability across 
business functions. The strategy and execution areas of IT function have been strengthened. The subsidiary governance function 
has been streamlined and all the key policies are aligned across group subsidiaries and all monitoring mechanisms are in place. 
Under his leadership, the Bank has in place a deﬁ ned coverage plan for key stakeholders (both external and internal). In view 
of this, the Nomination and Remuneration Committee of the Board, which met on 28th April 2015, reviewed the remuneration 
being paid to Shri Sanjeev Kumar Gupta in comparison with the remuneration of Executive Directors of peer group Banks and 
recommended a revision in the remuneration to be paid to him.

The Board recommends approval of the resolution.

Except for Shri Sanjeev Kumar Gupta, no other Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially 
or otherwise concerned with or interested in the resolution at item No. 11 of the Notice.

Item No. 12:

The Members at the Seventeenth Annual General Meeting held on 17th June 2011 had approved the borrowing of sums not 
exceeding `1,00,000 crores under Section 293(1)(d) of the erstwhile Companies Act, 1956. In accordance with the General 
Circular no. 04/2014 dated 25th March 2014 issued by the Ministry of Corporate Affairs, the same was reconﬁ rmed by the 
Members under Section 180(1)(c) of the Companies Act, 2013 at the Twentieth Annual General Meeting of the Members held 
on 27th June 2014.

The balance sheet size and net worth of the Bank have increased signiﬁ cantly since the last revision of the borrowing limit on 
27th June 2014. Considering the substantial growth in business and operations of the Bank, present and future requirements, 
the approval is being sought to increase the borrowing limits from `1,00,000 crores to `1,50,000 crores under Section 180(1)
(c) of the Companies Act, 2013.

The Board of Directors of the Bank at its meeting held on 29th April 2015 has approved obtaining the consent of the Members 
of the Bank by way of a special resolution under Section 180(1)(c) of the Companies Act, 2013.

The Board recommends approval of the special resolution.

No Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially or otherwise concerned with or interested 
in the resolution at item No. 12 of the Notice.

Item No. 13:

Section 42 of the Companies Act, 2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities) Rules, 
2014 provides that a company can make private placement of securities subject to the condition that the proposed offer of 
securities or invitation to subscribe to securities has been previously approved by the shareholders of the company, by means 
of a Special Resolution, for each of the offers or invitations. In case of offer or invitation for non-convertible debentures, it shall 
be sufﬁ cient if the company passes special resolution only once in a year for all the offers or invitation for such debentures on 
a private placement basis during the year.

14

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Twenty First Annual Report 2014-15

Keeping in view the Bank’s projections in domestic and overseas operations, the Bank may need to raise additional funds in 
one or more tranches in Indian as well as overseas market in the form of capital to maintain the desired capital to risk weighted 
assets ratio (CRAR) by issuing tier I and tier II debt instruments and/or other debt instruments.

Considering  the  above,  the  Board  of  Directors  of  the  Bank  at  its  meeting  held  on  29th  April  2015  has  proposed  to  obtain 
the consent of the Members of the Bank for borrowing/raising funds in Indian currency/ foreign currency by issue of debt 
instruments in domestic and/or overseas market, in one or more tranches as per the structure and within the limits permitted 
by Reserve Bank of India and other regulatory authorities to eligible investors of an amount not exceeding `35,000 crores. The 
debt instruments would be issued by the Bank in accordance with the applicable statutory guidelines, for cash either at par or 
premium or at a discount to face value depending upon the prevailing market conditions.

The Board recommends approval of the special resolution.

No Director, Key Managerial Personnel of the Bank and their relatives are ﬁ nancially or otherwise concerned with or interested 
in the resolution at item No. 13 of the Notice.

Item No. 14:

The present consolidated FDI policy issued by the Government of India / Foreign Exchange Management Act, 1999 and various 
regulations framed thereunder permits the total foreign investment in a private sector bank upto 74% of its paid up share 
capital. Within the cap of 74%, Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) can invest upto 49% of 
the paid up share capital of private sector banks, subject to the approval of its shareholders by means of a special resolution.

Presently, Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs) can invest upto 49% of the paid up share capital 
of the Bank in accordance with the approval granted by the shareholders by means of a special resolution. Further, the Bank 
has made GDR issue(s) which have been approved by means of resolutions of the shareholders passed before such issue(s) from 
time to time. These issues are classiﬁ ed as Foreign Direct Investments (FDIs).

The  Hon’ble  Finance  Minister,  during  the  Union  Budget  speech,  2015,  proposed  to  remove  distinction  between  different 
types  of  foreign  investments,  especially  between  foreign  portfolio  investments  and  foreign  direct  investments  and  replace 
it with composite cap of 74%. Presently, the Bank holds approval of Foreign Investment Promotion Board (FIPB) for foreign 
investment upto 62% of the paid up share capital of the Bank. It is proposed to pass an enabling resolution to increase the 
cap of foreign investment in the Bank from 62% to 74% of its paid up share capital. The said cap would be fungible between 
the various types of foreign investments i.e. Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs)/Non-resident 
Indians  (NRIs),  Foreign  Direct  Investment  covering  ADRs/GDRs  and  indirect  foreign  investment  as  proposed  by  the  Hon’ble 
Finance Minister in the said Budget speech.

The Board recommends approval of the special resolution.

None of the Directors, Key Managerial Personnel and their relatives are concerned or interested in the resolution at Item No. 
14 of this Notice, except to the extent of equity shares held by him/her or their relatives and equity shares held by ﬁ nancial 
institutions/company/body corporate in which the Directors, Key Managerial Personnel and their relatives may be directly or 
indirectly interested.

Place: Mumbai 
Date: 29th April 2015 

Axis Bank Limited [CIN: L65110GJ1993PLC020769]
Registered Ofﬁ ce:
‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
Law Garden, Ellisbridge, Ahmedabad – 380 006.
Website : www.axisbank.com
Phone No. : 079 - 66306161
Fax No. : 079 - 26409321
Email : shareholders@axisbank.com

By Order of the Board

Sanjeev K. Gupta
Executive Director (Corporate Centre)
& Chief Financial Ofﬁ cer

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Twenty First Annual Report 2014-15

BRIEF  PROFILE  OF  DIRECTORS  BEING  APPOINTED/  RE-APPOINTED  AS  SET  OUT  IN  THIS  NOTICE  IN  TERMS  OF  REVISED 
CLAUSE 49 VIII E OF THE LISTING AGREEMENT RELATING TO CORPORATE GOVERNANCE.
Smt. Usha Sangwan: Smt. Usha Sangwan, Managing Director of Life Insurance Corporation (LIC) holds a Master’s Degree in Economics 
and  a  Post  Graduate  Diploma  in  Human  Resource  Management.  She  joined  LIC  as  Direct  Recruit  Ofﬁ cer  in  1981.  She  has  worked  in 
almost  all  core  areas  of  life  insurance  including  Marketing,  Personnel,  Operations,  Housing  Finance,  Group  Business,  Direct  Marketing, 
International Operations and Corporate Communications. She has held various important positions, such as Divisional Manager-Incharge 
of  Delhi  Division,  Regional  Manager  (Personnel  &  Industrial  Relations),  Regional  Manager  and  General  Manager  (LIC  Housing  Finance), 
Executive  Director  (Direct  Marketing  &  International  Operations)  and  Executive  Director  (Corporate  Communications).  Her  expertise  lies 
in analytics, strategy, execution, people skill, use of technology particularly in marketing and servicing and setting up of systems. She has 
been awarded the “Women Leadership Award” in BFSI sector by Institute of Public Enterprise and “Brand Slam Leadership Award” by CMO 
Asia. She has also been awarded “Women Leadership Role Model” by Top Rankers Management Consultants and “Corporate Leadership 
Award  for  2014”  by  Colour  TV.  She  was  also  felicitated  by  Free  Press  Journal  and  Doordarshan  for  Women  in  Leadership  Role.  As  on 
31st March 2015, she was the member of Corporate Social Responsibility Committee and Special Committee of the Board of Directors for 
Monitoring of Large Value Frauds. She does not hold any equity share of the Bank.
The details of other directorship, membership and chairmanship in other companies of Smt. Usha Sangwan are as follows:

Sr. No. Name of the Company

1.
2.
3.
4.
5.

Life Insurance Corporation of India
Ambuja Cement Limited
LIC HFL Care Homes Ltd.
Life Insurance Corporation (Singapore) PTE Ltd.
Life Insurance Corporation (Lanka) Limited

Nature of Interest
Managing Director
Director
Chairperson
Director
Director

Shri S. Vishvanathan: Shri S. Vishvanathan has done his M.Sc. in Physics and has completed MBA and CAIIB. He has over 37 years of Banking 
experience with State Bank of India (SBI). Shri S Vishvanathan retired as Managing Director & GE (Associates & Subsidiaries) of SBI. Earlier, he 
was Dy. Managing Director (Mid Corporate), SBI.
Prior to that, he was Managing Director & CEO of SBI Capital Markets Limited (SBICAP) for more than three years from June 2009 to August 
2012. Earlier, he was Chief General Manager of State Bank of India’s North Eastern operations. He has served in several important capacities 
which include an assignment in New York Branch and stints as Regional Manager and Deputy General Manager in Delhi Circle and as General 
Manager (Global Markets).
As on 31st March 2015, Shri S. Vishvanathan is a member of the Audit Committee, Committee of Directors and Grievance Redressal Committee. 
He is not a member of Board in any other Company. He does not hold any equity share of the Bank.
Smt. Shikha Sharma: Smt. Shikha Sharma has done her B.A. (Hons.) in Economics and completed her PGDBM from the Indian Institute 
of  Management,  Ahmedabad  in  1980.  She  has  a  Post  Graduate  Diploma  in  Software  Technology,  from  the  National  Centre  for  Software 
Technology, Mumbai.
Smt. Sharma began her career with the ICICI group where she has worked across various verticals like Project Finance, Retail Banking and 
Investment Banking. Her last assignment was as Managing Director & CEO of ICICI Prudential Life Insurance Company, a leading life insurance 
company in the private sector.
Smt. Sharma’s achievements in the ﬁ nancial sector have received wide recognition. She is a recipient of many business awards notably; AIMA 
- JRD Tata Corporate Leadership Award for the Year 2014, India’s Most Valuable CEOs by Businessworld-2013, India’s Best Women CEO by 
Business Today- 2013, Ranked second in Fortune India’s Most Powerful women in Business-2013, ‘Transformational Business Leader of the 
Year’ at AIMA’s Managing India Awards - 2012, ‘Woman Leader of the year’ at Bloomberg-UTV Financial Leadership Awards – 2012 etc. She 
has also been listed in prominent publications such as Forbes List of Asia’s 50 Power Business Women-2013 & 2012, Indian Express Most 
Powerful Indians - 2012, India Today Power List of 25 Most Inﬂ uential Women- 2012, Fortune Global list of 50 Most Powerful Women in 
Business- 2011.
As on 31st March 2015, Smt. Sharma is the Chairperson of the Special Committee of the Board of Directors for Monitoring of Large Value 
Frauds, Committee of Whole-time Directors and Grievance Redressal Committee. She is also a member of the Committee of Directors, Risk 
Management Committee, Customer Service Committee, Acquisitions, Divestments & Mergers Committee and IT Strategy Committee of the 
Bank. She is the Chairperson of Axis Asset Management Company Limited and Axis Capital Limited, the subsidiaries of the Bank. As on 31st 
March 2015, she holds 3,50,000 equity shares of `2/- each of the Bank allotted to her under ESOP scheme of the Bank.
Shri Sanjeev Kumar Gupta: Shri Sanjeev Kumar Gupta holds an MBA degree from the Faculty of Management Studies, University of Delhi 
besides an M.Com degree from the University of Rajasthan. He is a Certiﬁ ed Associate of the Indian Institute of Bankers (CAIIB), Fellow of the 
Association of Chartered Certiﬁ ed Accountants (FCCA), UK and a Chartered Professional Accountant & Certiﬁ ed General Accountant from 
Canada. He also holds an Advanced Diploma in Taxation from Punjab University.
Shri Sanjeev Kumar Gupta is the Executive Director (Corporate Centre) and Chief Financial Ofﬁ cer of the Bank. He has served the Bank for 
20 years in various managerial and leadership roles, Shri Gupta was elevated to the current position in September 2014. He is, inter alia, 
responsible for establishing the ﬁ nancial strategy of the Bank, maximizing proﬁ tability through ﬁ nancial management, capital management, 
internal controls and operational enhancements.
Shri Sanjeev Kumar Gupta is a Director of Axis Bank U.K. Limited, a subsidiary of the Bank. He is a member of the Committee of Directors, 
Stakeholders  Relationship  Committee,  Special  Committee  of  the  Board  of  Directors  for  Monitoring  of  Large  Value  Frauds,  Committee  of 
Whole-Time Directors and IT Strategy Committee of the Bank. As on 31st March 2015, he holds 75,565 equity shares of the Bank allotted to 
him under ESOP scheme of the Bank.

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AXIS BANK LIMITED

Registered Office: ‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
Law Garden, Ellisbridge, Ahmedabad – 380 006
CIN - L65110GJ1993PLC020769
Tel No. : 079 – 66306161, Fax No. : 079 – 26409321
Email - shareholders@axisbank.com, Website - www.axisbank.com

ATTENDANCE SLIP

PLEASE BRING THIS ATTENDANCE SLIP TO THE MEETING HALL AND HAND IT OVER AT THE ENTRANCE

I/We  hereby  record  my/our  presence  at  the  21st  Annual  General  Meeting  of  Axis  Bank  Limited  held  at  J.  B.  Auditorium, 
Ahmedabad Management Association, AMA Complex, ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad 380 015 on Friday, the 
24th July 2015, at 10.00 A.M. or at any adjournment(s) thereof.

Name of the Shareholder 

Registered Address of the Shareholder 

Folio No./Client ID/DP ID No.  

Number of shares held 

Name of the Proxy/Representative, if any  

Signature of the Member/s/Proxy 

Signature of the Proxy/Representative 

:

:

 :

:

:

 :

 :

……………………………………………………………………….......................................……………………………….

FOR IMMEDIATE ATTENTION OF THE SHAREHOLDERS

Shareholders may please note the user ID and password are given below for the purpose of remote e-voting in terms of Section 
108 of the Companies Act, 2013, read with Rule 20 of the Companies (Management and Administration) Amendment Rules, 
2015. Detailed instructions for remote e-voting are given in the Notice convening the 21st Annual General Meeting.

E-VOTING EVENT NUMBER

USER ID

PASSWORD

Form No. MGT-11

PROXY FORM

[Pursuant to Section 105(6) of the Companies Act, 2013 and Rule 19(3) of the Companies (Management and Administration) Rules, 2014]

CIN :

L65110GJ1993PLC020769

Name of the Company :

Axis Bank Limited

Registered Ofﬁ ce :

‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006
Phone No. : 079 - 66306161; Fax No. : 079 - 26409321
Email  : shareholders@axisbank.com; Website : www.axisbank.com

Name of the member (s) :

Registered address :

E-mail Id :

Folio No./ Client Id :

DP ID :

I/We, being the member (s)  of .............................................. shares of the above named Bank, hereby appoint

1. Name

Address

E-mail Id

Signature

2. Name

Address

E-mail Id

Signature

3. Name

Address

E-mail Id

or failing 
him / her

or failing 
him / her

Signature

as  my/our  proxy  to  attend  and  vote  (on  a  poll)  for  me/us  and  on  my/our  behalf  at  the  21st  Annual  General  Meeting  of  the  Bank,  to  be 
held on the 24th July 2015 at 10.00 a.m. at J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA, Dr. Vikram Sarabhai 
Marg, Ahmedabad 380 015 and at any adjournment(s) thereof in respect of the resolution(s), as enumerated below:

S. No.

1.

3.

5.

7.

9.

11.

13.

Particulars of Resolution

S. No.

Particulars of Resolution

2.

Declaration of dividend on Equity Shares of the Bank.

To receive, consider and adopt :
(a) 

the audited ﬁ nancial statements of the Bank for the ﬁ nancial year ended 31st March 2015 and the 
Reports of the Directors and Auditors thereon; and
the audited consolidated ﬁ nancial statements for the ﬁ nancial year ended 31st March 2015 and the 
Report of the Auditors thereon.

(b) 

Appointment of a Director in place of Smt. Usha Sangwan (DIN 02609263), who retires by rotation and 
being eligible, offers herself for re-appointment.

Appointment of Shri S. Vishvanathan (DIN 02255828) as an Independent Director of the Bank.

Re-appointment of Smt. Shikha Sharma (DIN 00043265) as the Managing Director & CEO of the Bank.

Appointment of Shri Sanjeev Kumar Gupta (DIN 00237353) as a Director of the Bank.

Revision in the remuneration payable to Shri Sanjeev Kumar Gupta (DIN 00237353), as the Whole-Time 
Director designated as ‘Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer’ of the Bank.
Borrowing/Raising funds in Indian Currency/Foreign Currency by issue of debt Instruments including but 
not limited to bonds and non-convertible debentures for an amount upto `35,000 crores.

4.

6.

8.

10.

12.

14.

Appointment of S. R. Batliboi & Co LLP, Chartered Accountants, Mumbai, having registration number 
301003E issued by the Institute of Chartered Accountants of India, as the Statutory Auditors of the 
Bank to hold ofﬁ ce as such from the conclusion of this Annual General Meeting until the conclusion 
of next Annual General Meeting and ﬁ x their remuneration.
Revision in the remuneration payable to Dr. Sanjiv Misra (DIN 03075797) Chairman of the Bank.

Revision  in  the  remuneration  payable  to  Shri  V.  Srinivasan  (DIN  00033882)  Whole-Time  Director 
designated as ‘Executive Director & Head (Corporate Banking)’ of the Bank.
Appointment of Shri Sanjeev Kumar Gupta (DIN 00237353) as the Whole-Time Director designated as 
‘Executive Director (Corporate Centre) & Chief Financial Ofﬁ cer’ of the Bank.
Increase  in  Borrowing  limits  of  the  Bank  upto  `1,50,000  crores  under  Section  180  (1)(c)  of  the 
Companies Act, 2013.
Acquiring and holding equity shares of the Bank, by the Foreign Institutional Investors (FIIs) / Foreign 
Portfolio Investors (FPIs) / Non-resident Indians (NRIs), Foreign Direct Investment covering ADRs / 
GDRs and indirect foreign investment in any combination thereof, upto 74% of the paid up share 
capital of the Bank.

Signed this .................. day of ......................... 2015.

Signature of shareholder 

: 

Signature of Proxy holder(s) 

: 

Afﬁ x 
Revenue 
Stamp
of Re.1/-

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Ofﬁ ce of the Bank, not less 
than 48 hours before the commencement of the Meeting.

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Form No. MGT-12

Polling Paper
[Pursuant to Section 109(5) of the Companies Act, 2013 and Rule 21 (1) (c) of the Companies 
(Management and Administration) Rules 2014]

Name of the Company 

:  Axis Bank Limited

CIN 

:  L65110GJ1993PLC020769

Registered Ofﬁ ce 

: 

‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006,

Phone No. 

Fax No. 

Email 

Website 

:  079 - 66306161

:  079 - 26409321

:  shareholders@axisbank.com

:  www.axisbank.com

S. No. Particulars

Details

1

2

3

4

Name of the First Named Shareholder
(In block letters)

Postal Address

Registered Folio No./DP ID No./ Client ID No.* 
(*Applicable to Shareholders holding share(s) in 
Demat form)

Class of Share

I hereby exercise my vote in respect of Ordinary/Special Resolution(s) enumerated below, by recording my assent or dissent to 
the said Resolution(s) in the following manner:

No. of Shares 
held by me

I assent to the
Resolution

I dissent to the 
Resolution

Item
No.

1.

Particulars of the Resolution

 Ordinary Resolution:
 To receive, consider and adopt :

2.

3.

4.

(a)  the audited ﬁ nancial statements of the Bank for the ﬁ nancial year 
ended 31st March 2015 and the Reports of the Board of Directors 
and the Auditors thereon; and

(b)  the  audited  consolidated  ﬁ nancial  statements  for  the  ﬁ nancial 
year  ended  31st  March  2015  and  the  Report  of  the  Auditors 
thereon.

Ordinary Resolution:
 Declaration of dividend on Equity Shares of the Bank.

Ordinary Resolution:

Appointment  of  a  Director  in  place  of  Smt.  Usha  Sangwan 
(DIN 02609263), who retires by rotation and, being eligible, offers 
herself for re-appointment.

Ordinary Resolution:
Appointment  of  S.  R.  Batliboi  &  Co  LLP,  Chartered  Accountants, 
Mumbai, having registration number 301003E issued by the Institute 
of Chartered Accountants of India as the Statutory Auditors of the 
Bank and to hold ofﬁ ce as such from the conclusion of this Annual 
General  Meeting  until  the  conclusion  of  next  Annual  General 
Meeting and ﬁ x their remuneration.

1

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Particulars of the Resolution

No. of Shares 
held by me

I assent to the
Resolution

I dissent to the 
Resolution

Ordinary Resolution:
Appointment  of  Shri  S.  Vishvanathan  (DIN  02255828)  as  an 
Independent Director of the Bank.

Ordinary Resolution:
Revision 
(DIN 03075797) Chairman of the Bank.

in  the  remuneration  payable  to  Dr.  Sanjiv  Misra 

Ordinary Resolution:
Re-appointment  of  Smt.  Shikha  Sharma  (DIN  00043265)  as  the 
Managing Director & CEO of the Bank for a period of 3 years w.e.f. 
1st June 2015.

Ordinary Resolution:
Revision 
in  the  remuneration  payable  to  Shri  V.  Srinivasan 
(DIN  00033882)  Whole-Time  Director  designated  as  ‘Executive 
Director & Head (Corporate Banking)’ of the Bank.

Ordinary Resolution:
Appointment  of  Shri  Sanjeev  Kumar  Gupta  (DIN  00237353)  as  a 
Director  of  the  Bank  for  a  period  of  3  years  w.e.f.  4th  September 
2014.

Ordinary Resolution:
Appointment of Shri Sanjeev Kumar Gupta (DIN 00237353) as the 
Whole-Time  Director  designated  as  ‘Executive  Director  (Corporate 
Centre) & Chief Financial Ofﬁ cer’ of the Bank.

Ordinary Resolution:
Revision in the remuneration payable to Shri Sanjeev Kumar Gupta 
(DIN 00237353), as the Whole-Time Director designated as ‘Executive 
Director (Corporate Centre) & Chief Financial Ofﬁ cer’ of the Bank.

Special Resolution:
Increase in Borrowing limits of the Bank upto `1,50,000 crores under 
Section 180 (1)(c) of the Companies Act, 2013.

Special Resolution:
Borrowing/Raising  funds  in  Indian  Currency/Foreign  Currency  by 
issue  of  debt  Instruments  including  but  not  limited  to  bonds  and 
non-convertible debentures for an amount of upto `35,000 crores.
Special Resolution:
Acquiring  and  holding  equity  shares  of  the  Bank,  by  the  Foreign 
Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs) / Non-
resident  Indians  (NRIs),  Foreign  Direct  Investment  covering  ADRs  / 
GDRs  and  indirect  foreign  investment  in  any  combination  thereof, 
upto 74% of the paid up share capital of the Bank.

Item
No.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

Place :

Date :

_________________________
Signature of the Shareholder

2

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INSTRUCTIONS

1.  A shareholder desiring to exercise  vote  by  Ballot Form may complete this  Ballot  Form  and  send it to the 
Scrutinizer in the attached self-addressed business reply envelope. Postage will be borne and paid by the 
Bank. However, envelopes containing Ballot Form, if sent by courier or by registered post at the expense of 
the shareholder will also be accepted.

2. 

3. 

4. 

5. 

The self-addressed business reply envelope bears the address of the Scrutinizer appointed by the Board of 
Directors of the Bank.

This Ballot Form should be completed and signed by the shareholder as per the specimen signature registered 
with the Bank or the Depository Participant. In case of joint holding, this Ballot Form should be completed 
and signed by the ﬁ rst named shareholder and in his absence, by the next named joint shareholder.

There will be only one Ballot Form for every Folio / Client ID irrespective of number of joint holders.
The votes should be casted either in favour or against by putting the tick (√) mark in the column provided 
for assent or dissent. Ballot Form bearing tick marks in both the columns for the same shares will render the 
Ballot Form invalid.

6.  Unsigned, incorrectly signed or incomplete Ballot Forms will be rejected.

7.  Duly  completed  Ballot  Form  should  reach  the  Scrutinizer  not  later  than  17:00  hours  (IST)  on  Monday, 
20th July 2015. Ballot Forms received after this date and time will be treated as if the reply from the shareholder 
has not been received.

8. 

9. 

Voting rights shall be reckoned on the number of shares registered in the name of the shareholders as on 
Friday,  17th  July  2015  in  terms  of  the  Companies  (Management  and  Administration)  Amendment  Rules, 
2015.

Ballot Forms signed in the representative capacity must be accompanied by the requisite certiﬁ ed true copy 
of power of attorney / resolution of board of directors of the corporate shareholder being represented. If the 
same is / are already registered with the Bank, please quote the registration no. beneath the signature.

10.  Shareholders are requested not to send any other paper along with the Ballot Form. They are also requested 

not to write anything on the Ballot Form except giving their assent or dissent and putting their signature.

11.  Remote e-Voting: The Bank is pleased to offer the remote e-voting facility. The process to be followed is 

explained in the notice convening the 21st Annual General Meeting.

12.  The consolidated results of voting electronically, through Ballot Form and by way of Poll at the meeting will 
be published in the newspapers at the place where the Registered Ofﬁ ce of the Bank is situated, for the 
information of the shareholders, uploaded on the Bank’s website www.axisbank.com and communicated 
to the stock exchanges where the Bank’s shares are listed.

13.  The  Scrutinizer’s  decision  on  the  validity  of  a  ballot  shall  be  ﬁ nal  and  binding  on  the  Bank  and  all  the 

shareholders.

3

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4

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Twenty First Annual Report 2014-15

ECS MANDATE FORM

To
Karvy Computershare Private Limited
Unit : Axis Bank Limited
Karvy Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda, Hyderabad – 500 032.

FOR SHARES HELD IN PHYSICAL MODE
Please complete this form and send it to
Karvy Computershare Private Limited, Hyderabad

FOR SHARES HELD IN DEMAT MODE
Shareholders should inform their DPs directly

I hereby consent to have the amount of dividend on my equity shares credited through the National Electronic Clearing Service 
(Credit Clearing) - (NECS). The particulars are:

1. 

Folio No. 

________________________________________________________________________________

2.  Name of 1st Registered holder 

________________________________________________________________________________

3.  Bank Details 

________________________________________________________________________________

(cid:129)  Name of Bank 

________________________________________________________________________________

(cid:129) 

Full address of the Branch 

________________________________________________________________________________

(cid:129)  Account Number 

________________________________________________________________________________

(cid:129)   Bank Ledger No. 

________________________________________________________________________________

(cid:129)  Account Type : (Please tick the relevant box for Savings Bank Account or Current Account or Cash Credit Account)

10 - Savings

11 - Current

12 - Cash Credit

(cid:129) 

9 Digit Code number of the Bank and branch appearing on the MICR cheque issued by the Bank (Please attach a 
photocopy of a cheque for verifying the accuracy of the code number):

I hereby declare that the particulars given above are correct and complete. If the transaction is delayed because of incomplete 
or incorrect information, I will not hold the Bank responsible.

(Signature of the 1st Registered holder as per

the specimen signature with the Bank)

Name 

:  _________________________________________

Address  :  _________________________________________

  _________________________________________

Date : _______ / _______ /2015 

  _________________________________________

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