Annual Report For The Year 2017 2018 PDF

Annual Report 2017-18

Contents Axis Bank

Delivers Value
Axis Bank is India’s third largest
01-29 private sector bank, offering a
business review
wide spectrum of financial products
and services to customer segments
02 Building on a strong foundation
03 Expanding our reach spanning retail, Small and Medium
04 Revisiting 2017-18 Enterprises (SMEs) and corporate
06 Measuring our progress
08 A closer look at our business segments businesses. The Bank has a strong
10 Message from the Managing Director & CEO team of over 59,600 employees
14 Addressing national priorities
18 Enriching customer experiences and is present across 2,163 cities
22 Nurturing future achievers and towns across India.
25 Purpose beyond profit
27 Awards and recognition It also has 11 overseas offices with branches
28 Board of Directors in Singapore, Hong Kong, Dubai (at the DIFC),
29 Core management team Shanghai and Colombo; an offshore banking unit
at International Financial Service Centre (IFSC),
30-128 Gujarat International Finance Tec-City (GIFT City),
Gandhinagar; representative offices in Dubai,
statutory reports Abu Dhabi, Sharjah and Dhaka; and an overseas
subsidiary in London, UK.
30 Directors’ Report
41 Management discussion and analysis
62 Corporate governance
104 Other reports Progress in 2017-18
129-262 K691,330 crores

total assets
financial statements 15% y-o-y growth
130 Independent Auditor’s Report - Standalone
Financial Statements K453,623 crores
134 Standalone Financial Statements
total deposits
214 Independent Auditor’s Report - Consolidated
9% y-o-y growth
Financial Statements
218 Consolidated Financial Statements
262 Form AOC 1 K439,650 crores
total advances
263-290 18% y-o-y growth
BASEL III DISclosures
K56,747 crores
total income
1% y-o-y growth
K18,618 crores
EXPLORE ONLINE net interest income
www.axisbank.com 3% y-o-y growth
WE LIVE IN A WORLD WHERE TODAY’S WOW
QUICKLY BECOMES TOMORROW’S ORDINARY,
AND THE RULES OF BUSINESS LEADERSHIP
TRANSFORM IN THE BLINK OF AN EYE AND
WHERE FABULOUS INNOVATION IS THE NEW
NORMAL AND ENCOURAGINGLY, CUSTOMERS
ARE ALWAYS SEEKING A BETTER WAY.
They are rightfully demanding that we not just serve Beyond business, we are reaching out to
their current financial requirements efficiently, but create tangible impact in the lives of those who
also anticipate their future ones. We are happy to are marginalised. Our sustainable livelihood
start our day at Axis Bank with unrelenting customer programmes aim to strengthen farm productivity,
obsession, ingenuity and commitment to operational improve natural resource management, provide
excellence. alternative income-generating options and increase
employability and entrepreneurial skills.
We are catering to the requirements of small and
medium businesses and helping build national India’s banking industry is constantly evolving and
infrastructure. We are expanding and deepening our our objective is to be at the vanguard of this change
footprint across India’s vast terrain, transcending the through consistent innovation and stakeholder
digital divide in the urban and semi-urban growth outreach. We will continue to innovate around the
centres and in the under-banked rural areas. aspirations of our customers and stakeholders and
go the extra mile to partner their progress and usher
At the same time, we continue to reinforce our in real impact in their lives.
infrastructure, investing in ahead-of-the-curve
technology, strengthening governance and control
framework and nurturing future leadership.
As we continue our journey, we renew ourselves

to embrace new opportunities to learn, grow and
deliver – for our greatest accomplishments lie
ahead of us.
Annual Report 2017 -18
BUILDING ON A STRONG
FOUNDATION
Our journey began in 1994. Over the years, we have
steadily grown the scale and scope of the business, offering
a comprehensive suite of financial products and services
and emerging as India’s third largest private sector bank.
We leverage technology and our deep understanding of
India’s financial markets to make banking for our customers
faster, simpler and more secure.
The trust and confidence of our customers remain
our strongest anchor, encouraging us to consistently
K691,330 CRORES
improve our products and service propositions. BALANCE SHEET SIZE
We are reaching out to millions of customers in
India, enriching their lives through our products and
services. We have 3,703 branches in India and
we are planning to further strengthen our physical
presence. At the same time, our digital outreach K131,022 CRORES
continues to grow significantly. MARKET CAPITALISATION
Our customer centricity has enabled us to achieve
consistent growth with a five-year CAGR (2013-14 to
2017-18) of 15% in total assets, 12% in total deposits
and 17% in total advances. 22.34 MILLION
DEBIT CARD BASE
4.48 MILLION
VISION CREDIT CARD BASE
To be the preferred financial solutions provider
excelling in customer delivery through insight,
empowered employees and smart use
of technology. 16.57%
CAPITAL ADEQUACY RATIO
13.04%
CORE VALUES
TIER - I CAPITAL
Customer Centricity ADEQUACY RATIO
Ethics
Transparency
Teamwork
Ownership
STANDALONE FIGURES AS ON/FOR THE YEAR ENDED 31 MARCH 2018
2
BUSINESS REVIEW STATUTORY REPORTS FINANCIAL STATEMENTS BASEL III DISCLOSURES
EXPANDING REACHING MORE

OUR REACH CUSTOMERS THROUGH
13,814 2,263 3,703* 66 DIGITAL CHANNELS
Our digital journey started more than a
ATMS CASH DEPOSIT BRANCHES SME decade ago. Ever since inception, the digital
& WITHDRAWAL CENTRES paradigm has always been the force
MACHINES multiplier for us in the competitive banking
landscape. We realised that digital was
*DOMESTIC BRANCHES, INCLUDING EXTENSION COUNTERS | AS ON 31 MARCH 2018
going to radically change India’s entire
banking landscape and when the ecosystem
REGION-WISE BRANCHES (%)
moved to digital, we made a conscious call
to grow our prominence in the space.
6.8 MILLION
31 AXIS MOBILE
APP USERS
23
22 3.7 MILLION
FREECHARGE
MONTHLY
ACTIVE USERS
24
K192,735
CRORES*
VALUE OF MOBILE
TRANSACTIONS*
BRANCH CLASSIFICATION (%)
K429,700
4 CRORES
13 VALUE OF DIGITAL
30 CHANNEL
Classification Branches
TRANSACTIONS
Metro 1,113
Semi urban 1,109
Urban 869
23
Rural unbanked 476 5+ LAKHS
Rural banked 136 EDC MACHINES
NETWORK
30
As on 31 March 2018 * Including UPI/BHIM transactions

Figures are as on/for the year ended 31 March 2018
3
REVISITING 2017-18
RETAIL TECHNOLOGY AND DIGITAL

BANKING BANKING
Savings bank deposits grew by 18% Built a strong technology platform
y-o-y and stood at I148,202 crores and developer-friendly APIs that allow
partners/start-ups to plug-and-play
Launched dedicated inward remittance
Axis UPI on their mobile applications;
rates for NRI customers on wire
the platform is available to Google
transfers, simplifying banking; we also
Tez, Uber, Samsung Pay, LIC, IRCTC
launched the new digital remittance
and Big Bazaar
platform - remitmoney.com - to
enhance customer convenience Onboarded over 11.5 million UPI IDs
of which 64% were non-Axis Bank
Tied up with the Indian Health
customers, which led to the Bank’s
Organisation (IHO) for discounted
share of 17% in UPI transactions
health services for family members of
NRI customers Launched Axis Aha! Chatbot on the
website, a conversational assistant
Launched ‘Experience Axis campaign’,
powered by Artificial Intelligence
converging all offerings across
shopping, dining and travel 20,000 biometric readers deployed
to leverage electronic Know Your
Mortgage loans crossed the I1 lakh
Customer (e-KYC) for account opening
crores mark during 2017-18 and stood
and other Aadhaar-based services
at I100,012 crores
Launched Shubh Aarambh Home
Loans that allow four EMIs to be
waived off every four years for home
loans of up to I30 lakh - to fortify our
footprint in the affordable housing
segment
INTERNATIONAL
Launched Axis ASAP (savings account BANKING
that can be instantly opened online
Opened International Finance
with just PAN and Aadhaar details)
branch, an offshore banking unit at
- offers industry-first feature where
International Financial Service Centre
savings balances over I10,000 are
(IFSC), Gujarat International Finance
automatically treated as fixed deposit
Tec-City (GIFT City), Gandhinagar
and customers earn 6.75% interest
Opened representative office in
Sharjah, UAE
LAUNCHED
‘EXPERIENCE AXIS’,
CAMPAIGN CONVERGING ALL
OFFERINGS ACROSS SHOPPING,
DINING AND TRAVEL
4
CORPORATE CAPITAL RAISE AND CORPORATE SOCIAL

BANKING BUSINESS ACQUISITION RESPONSIBILITY (CSR) & PEOPLE
Lending focus continues to remain on Raised H8,680 crores of capital from a Spent I133.77 crores towards various
better rated corporates and ~86% of consortium of investors (Bain Capital, CSR initiatives in 2017-18
new sanctions in the corporate book Life Insurance Corporation of India and
Under our overarching theme of
were to companies rated ‘A’ and other marquee investors). Also allotted
‘Sustainable Livelihoods’, Axis Bank
above 4.54 crores share warrants exercisable
Foundation’s (ABF) current programmes
within a period of 18 months, which
Currently, 77% of outstanding are aimed towards strengthening and
upon conversion into shares will add
standard corporate loans are to increasing farm productivity, improving
H2,563 crores to the CET-1 capital of
companies rated ‘A’ and above natural resource management, providing
the Bank
alternate income-generating options
Launched instant international
Acquired FreeCharge, one of the and increasing employability and
payment services using Ripple’s
leading payment fintechs in India in entrepreneurial skills
enterprise blockchain technology
October 2017, through acquisition of
solution Axis Dil Se is aimed at transforming
two legal entities - Accelyst Solutions
over 100 village schools in Leh and
Continued to remain a dominant Private Limited and FreeCharge
Kargil districts by creating physical and
player in the Debt Capital Market Payment Technologies Private Limited
educational infrastructure. This initiative
segment by arranging H184,104 crores
is aligned with the Government of India’s
of bonds and debentures for various
Border Area Development Programme
PSUs and corporates in 2017-18
(BADP)
RAISED I8,680 CRORES
Solarised Axis House, Noida, reducing
FROM A CONSORTIUM carbon emissions by 12.70 lakh kg
OF INVESTORS annually
PAYMENTS (BAIN CAPITAL, Pledged support towards the Government
of Maharashtra’s ‘Village Social
Substantial increase in credit card LIFE INSURANCE Transformation Mission’ aiming to
spends by 54% to I44,328 crores in
2017-18 from I28,740 crores last year
CORPORATION OF address adverse conditions in 1,000
villages plagued by drought, low human
Axis Bank and Kochi Metro joined
INDIA AND OTHER development index and various other
hands to launch India’s first MARQUEE INVESTORS) social challenges to transform them into
single-wallet contactless, ‘model villages’
open-loop metro card, enabling
During the year, over 24,600 employees
cashless commuting along with an
underwent a two-day behavioural
enhanced shopping experience 4TH training programme customised to their
Our merchant acquiring business LARGEST CREDIT CARD grade and their role challenges
continues to be among India’s largest, ISSUER IN INDIA
with over 5.02 lakh base of installed THROUGH VARIOUS
terminals, of which 2.26 lakh terminals
are enabled for accepting contactless
INITIATIVES ACROSS 21
payments 7% STATES AND 178 DISTRICTS,
MARKET SHARE IN DEBIT
ABF HAS HELPED IMPACT
CARDS BASED ON SPENDS AT AND IMPROVE A MILLION
POS TERMINALS LIVELIHOODS
STANDALONE FIGURES AS ON/FOR THE YEAR ENDED 31 MARCH 2018
5
MEASURING OUR PROGRESS

TOTAL DEPOSITS (I IN CRORES) TOTAL ADVANCES (I IN CRORES) RETAIL ADVANCES (I IN CRORES)
453,623 439,650 206,465

17-18 17-18 17-18
414,379 373,069 167,993
16-17 16-17 16-17
357,968 338,774 138,521
15-16 15-16 15-16
322,442 281,083 111,932
14-15 14-15 14-15
280,945 230,067 88,028
13-14 13-14 13-14
5-year CAGR 12% y-o-y growth 9% 5-year CAGR 17% y-o-y growth 18% 5-year CAGR 26% y-o-y growth 23%
Deposit franchise delivers yet another Loan growth continues to remain strong Loan portfolio of the Bank is now
strong year dominated by Retail, representing 47% of
total advances
CASA (I IN CRORES) SAVINGS BANK DEPOSITS (I IN CRORES) CURRENT ACCOUNT DEPOSITS (I IN CRORES)
243,852 148,202 95,650
17-18 17-18 17-18

213,050 126,048 87,002
16-17 16-17 16-17
169,445 105,793 63,652
15-16 15-16 15-16
144,400 88,292 56,108
14-15 14-15 14-15
126,462 77,776 48,686
13-14 13-14 13-14
5-year CAGR 17% y-o-y growth 14% 5-year CAGR 18% y-o-y growth 18% 5-year CAGR 15% y-o-y growth 10%
Low cost deposits continue to report healthy growth
TOTAL ASSETS/LIABILITIES (I IN CRORES) NET INTEREST INCOME (I IN CRORES) OTHER INCOME (I IN CRORES)
691,330 18,618 10,967

17-18 17-18 17-18
601,468 18,093 11,691
16-17 16-17 16-17
539,821 16,833 9,371
15-16 15-16 15-16
461,932 14,224 8,365
14-15 14-15 14-15
383,245 11,952 7,405
13-14 13-14 13-14
5-year CAGR 15% y-o-y growth 15% 5-year CAGR 14% y-o-y growth 3% 5-year CAGR 11% y-o-y growth (6%)
Overall balance sheet growth remains NII grew 3% y-o-y impacted mainly by Other income declined y-o-y on account
healthy high slippages of lower trading gains
6
OPERATING REVENUE (I IN CRORES) OPERATING PROFIT (I IN CRORES) NET PROFIT (I IN CRORES)
29,585 15,594 276
17-18 17-18 17-18

29,784 17,585 3,679
16-17 16-17 16-17
26,204 16,104 8,224
15-16 15-16 15-16

22,589 13,385 7,358
14-15 14-15 14-15
19,357 11,456 6,218
13-14 13-14 13-14
5-year CAGR 13% y-o-y growth (1%) 5-year CAGR 11% y-o-y growth (11%) y-o-y growth (93%)
Operating revenue impacted by lower Operating profit declined on account Earnings impacted by provisioning on
growth in NII and lower trading gains of higher growth in operating expenses NPAs
compared to growth in operating revenue
BOOK VALUE PER SHARE* (I) DIVIDEND PER SHARE* (I) GROSS NPA/NET NPA (%)
247.20 3.40 6.77

NIL
17-18 17-18 17-18
232.83 5.00 2.11 5.04
16-17 16-17 16-17
223.12 5.00 0.70 1.67
15-16 15-16 15-16
188.47 4.60 0.44 1.34
14-15 14-15 14-15
162.69 4.00 0.40 1.22
13-14 13-14 13-14
5-year CAGR 12% y-o-y growth 6% NET NPA GROSS NPA
Previous year figures have been adjusted to reflect the effect of sub-division of one equity share of the Bank having nominal value of H10 each into
*
five equity shares of nominal value of H2 each.
LOANS & ADVANCES MIX IN 2017-18 (%) FEE INCOME MIX IN 2017-18 (%) FINANCIAL RATIOS (%)
0.53
7.22
5 2 Return on Equity
13
18
0.65
0.04
Return on Assets
47 48
Capital Adequacy
14.95
16.57
Ratio
40
27 Tier - I Capital
13.04
11.87
Adequacy Ratio
Retail SME Retail Banking SME 2016-17 2017-18
Corporate Transaction Banking Treasury and DCM
Corporate Credit
Previous year figures have been re-grouped wherever necessary. All above figures are standalone.
7
A CLOSER LOOK AT OUR

BUSINESS SEGMENTS
Our corporate banking and retail banking segments cater to diverse
customer requirements and enable them to achieve their aspirations.
Retail Banking
At Axis Bank, our retail banking segment offers
end-to-end banking solutions to our retail customers through
multiple channels. Our wide range of products and services
include term deposits, loans, investments and payment solutions.
CUSTOMER
D D
SAVE WITH CONVENIENT AND SUPPORT TO CREATE INSURANCE TO INVEST FOR

SECURITY FAST PAYMENT ASSETS AS PER ENSURE SUSTENANCE RETURNS
SOLUTIONS ASPIRATIONS FOR DEAR ONES
Savings Debit, Credit and Home, Vehicle and Life and General Mutual Funds
Account Prepaid cards Personal Loans Insurance and Structured
Investments
ATMs, Mobile Fixed Deposits,
banking and Retail Broking
Remittances
RETAIL DEPOSITS INVESTMENT PRODUCTS

Our retail deposits include savings accounts, time We distribute market investment products such as
deposits and tailor-made products for a few target mutual funds and bancassurance products (such as
groups, such as high net-worth individuals, senior Life and General Insurance) through our branches.
citizens, working mothers, armed forces personnel, We further provide a simplified online trading
students and salaried employees. platform – Axis Direct – to customers in association
with Axis Securities Limited (a 100% subsidiary
company of the Bank).
K148,202 CRORES
RETAIL LENDING
SAVING BANK DEPOSITS IN 2017-18
18% y-o-y GROWTH We offer a wide range of retail asset products
including personal loans, auto loans, consumer
loans, loans against gold and education loans,
K 95,650 CRORES along with different types of secured loans.
Our payment products and services comprise
RETAIL TERM DEPOSITS IN 2017-18 debit cards, credit cards, travel currency cards
11% y-o-y GROWTH and Point-of-Sale (PoS) terminals.
8
Corporate Banking
Our corporate banking solutions comprise credit,
transaction banking, treasury, syndication,
investment banking and trustee services.
CREDIT TREASURY
Our loan and fee-based products and services The Treasury supervises our funding position and
are tailored to meet the financial requirements maintains our regulatory reserve requirements.
of large and medium-sized corporate clients and It invests in sovereign and corporate debt
SMEs. Our products and services include cash instruments and engages in proprietary trading
credit facilities, demand and short-term loans, in equity and fixed income securities, foreign
project finance, export credit, factoring, channel exchange, currency futures and options.
financing, structured products, discounting of The division further governs our investments
bills, documentary credits, guarantees, foreign in commercial paper, mutual funds and floating
exchange and derivative products. Our liability rate instruments as part of the management
products for large and mid-corporate segments of short-term surplus liquidity. Moreover, it offers
comprise current accounts, certificates a wide range of treasury products and
of deposits and time deposits. services to corporate customers.
SYNDICATION
K233,186 CRORES We also offer services of placement and

syndication in the form of local currency bonds,
NON-RETAIL ADVANCES IN 2017-18 rupee and foreign term loans, along with external
14% y-o-y GROWTH commercial borrowings to corporate customers.
INVESTMENT BANKING
TRANSACTION AND TRUSTEE SERVICES
BANKING
We cater to investment banking and trusteeship
Our Transaction Banking group (TxB) offers services requirements of our corporate clients
integrated products and services in the through our wholly-owned subsidiaries.
realms of current accounts, cash management Axis Capital Limited offers investment banking
services, capital market services, trade, foreign services relating to equity capital markets,
exchange and derivatives, cross-border trade institutional stockbroking and M&A advisory.
and correspondent banking services; and tax Axis Trustee Services Limited is engaged in
collections on behalf of the Government trusteeship activities, acting as debenture trustee
of India and various State Governments. and as trustee to various securitisation trusts.
K 95,650 CRORES
CURRENT ACCOUNT DEPOSITS IN 2017-18
10% y-o-y GROWTH
9
MESSAGE FROM THE

MANAGING DIRECTOR
& CEO
Dear Shareholders,
As we enter our 25th year of operations, it gives me

immense satisfaction to share that the Bank over
all these years has not only helped businesses and
individuals make real progress in their lives, but
our contribution towards society has had a deeper
impact beyond the economic growth of the nation.
I would like to share with you all one such real-life
story, which I experienced during one of our visits to
a rural branch.
‘Pramila, a housewife from a small village near

Indore had taken a microfinance loan from us some
18 months back for setting up her grocery shop.
The remarkable part is that she has not only repaid
that loan but has also used her income to set up few
other businesses like tailoring and a beauty parlour.
This has earned her huge respect in her household,
and made her a role model in the community and an
inspiration for women across nearby villages.’
India’s banks have evolved tremendously over the last

25 years – from providing basic banking services
with little effective competition in the pre-liberalisation
era, to becoming market-driven universal banks. The
combination and contribution of the public sector and
private sector banks over all these years, and more
recently with the introduction of small finance and
payment banks, has made tremendous positive impact
on the society and economy.
The branch network of all scheduled commercial

banks in India has more than doubled from nearly
60,000 in 1991 to over 138,000 in 2017, offering
direct employment to 1.35 million people; total bank
credit and deposits have grown nearly 70 times
and 55 times, respectively. The banks have not only
aided economic expansion by meeting the credit
requirements of businesses and individuals, but
have also been the core facilitator of infrastructure
development and have driven growth in priority
sectors such as MSME and agriculture. The banks
have also played a key role in extending the
Shikha Sharma 25 YEARS OF PROGRESS

Managing Director & CEO
AND MAKING A DIFFERENCE
10
Government’s social benefit schemes and driving the mechanism, but is also likely to inculcate a stronger
financial inclusion agenda. corporate credit culture, going forward.
India’s macroeconomic fundamentals continued to During this fiscal year, the Bank undertook accelerated
improve last year on the back of significant policy Non-Performing Asset (NPA) recognition in line with
initiatives by the Government aided by a stable its desire to get past the asset quality issues of the last
monetary policy. The country saw a sovereign cycle. With the aggressive recognition we undertook
rating upgrade and also climbed up the charts in during the fiscal year, we believe the NPA recognition
ease of doing business. Both these developments phase of this credit cycle is now nearly complete.
should result in higher foreign investments in the
medium term. The implementation of the Goods and The Axis franchise continued to deliver steady
Service Tax (GST) regime in 2017 has been one operating performance with core operating revenue
of the biggest structural economic reforms, benefits growth of 6% and moderation in operating expenses
of which will continue to accrue in the years to growth. The Bank’s retail franchise remains robust
come. GST reform along with demonetisation and with strong growth in loans, fees and low-cost
digitisation efforts will significantly benefit towards deposits. The Bank’s SME loan growth improved
formalisation of the economy. considerably in the later part of the year with risk
parameters under control. The quality of corporate
From the perspective of the Indian banking industry, book too has been steadily improving with higher
the fiscal year 2018 was a mixed one. Apart from incremental sanctions to better rated corporates,
the lingering asset quality problems, there were significant reduction in concentration risk and
some serious issues around fraud and operational increase in the share of working capital loans.
misses that came to the fore towards later part Despite the pain on asset quality front, the Bank
of the year. The regulator has initiated measures continues to have a strong balance sheet with one of
and issued guidelines to ensure that the systems, the best provision coverage and capital adequacy
business practices, operational processes and risk ratios of 65% and 16.57%, respectively. During the
management for the sector are robust and safe. course of the year, the Bank raised capital from a
While these challenges are real, it is important to few marquee investors that further augmented the
acknowledge that at this stage in the development capital adequacy position with Tier-I ratio of 13.04%
of our country, the banking sector in India remains at the end of fiscal year 2018. Our subsidiaries had
a force of good, moving our inclusive growth another good year as they continued to gain scale
agenda forward. and market share in their respective segments.
The resolution process for large stressed accounts In the corporate segment, our learnings from
referred by the Reserve Bank of India (RBI) under the the last cycle have helped us to calibrate our
new Insolvency and Bankruptcy code (IBC) has largely portfolio concentration a lot more tightly than in
been on track. On the credit growth side, the situation the previous years. In the last few years, we have
seems to be improving. The credit growth continued significantly strengthened credit underwriting and risk
to pick up through the year, partially led by the base management practices at the Bank. We continue to
effect, and tighter liquidity conditions helped shift focus on targeting the pool of better rated corporates
credit demand back to banks from bond markets. and re-orienting the corporate franchise towards a
more flow-led transaction banking-oriented business.
Moving on to the financial performance of the Bank,
Axis Bank had a second challenging year in a row The Bank continues to remain the leading player in
this year. Our historical focus on project finance in the Debt Capital Market segment. Our top position
infrastructure sectors, steel and power continued to in the leader board over the last 10 years positions
create significant headwinds for us this year. The the Bank very well to benefit from the growth in the
asset quality issues thus continued to be a pain corporate bonds market.
point for the second year. The recent guidelines on
stressed asset recognition and resolution along with We believe that demonetisation and the
fully functioning bankruptcy infrastructure would implementation of GST are likely to result in faster
not only expedite the recognition and resolution shift from informal to formal sector, and that is perhaps
11
being reflected in the SME growth. With significant government in 2010 has maintained its leadership position on equity league
policy initiatives such as ‘Skill India’ and ‘Make in India’ directed tables over the last decade. The subsidiaries have helped the
around this sector, we expect SME growth to come back into Bank to offer strong proposition to our corporate and retail
higher trajectory than witnessed in the recent past. From a risk customers and played a meaningful role in building the Axis
perspective, the SME book has held up well and we intend to Bank franchise.
use more of data that is now available post GST to automate
underwriting and risk management for smaller ticket-size SME Digital payments and online consumption of financial services are
loans as well. growing on the back of ‘Digital India’ initiatives. Today, there is
an opportunity to ride on the digital infrastructure to strengthen
The Retail franchise remains robust as we continue to gain payments, trade and information flow to aid sustainable and
market share in both retail deposits and loans. We reaffirmed inclusive growth. The Bank has always been at the forefront of
our strong positioning in low-cost deposits with a CASA ratio digitisation, contributing actively to the Government’s vision of a
of 54%. During the year, we added 400 branches to our ‘less cash’ economy. We have the country’s second largest PoS
distribution strength; however, the branch formats have been network, a strong cards franchise and in the mobile banking
smaller with improving employee productivity led by automation space, the Bank ranks among the top in terms of market share by
and centralisation of back office operations. transaction value and volumes.
We believe deposit mobilisation in fiscal year 2019 could pose The Bank continues to be the leader in partnership-driven
some challenge. We expect branches to continue playing a innovation and has redefined digital payments in India
crucial role in deposit mobilisation, customer acquisition and by providing its customers with a differentiated payments
providing localised services. Hence, we would continue to make experience. During the year, the Bank, in association with Kochi
adequate investments in our branch network. Metro Rail Limited (KMRL), launched India’s first open-loop
transit EMV contactless metro card. The Bank also partnered
The overarching theme for us in Retail Banking has been with marquee names such as Google, IRCTC, LIC, Uber, Ola
to service and deepen relationships with existing internal and others to drive the acceptance of payments on the
customers for growth. Over the last few years, we have made UPI platform.
significant investments in technology and processes and further
strengthened our risk management architecture. We have one of The acquisition of FreeCharge earlier this year re-affirms the
the best digital capabilities in India and have been increasingly Bank’s determination to lead the journey of digitisation of
using digital analytics to identify potential customers, optimise financial services. We believe that FreeCharge’s unique value
branch locations and provide customised solutions through proposition in the digital payments space and the strength of its
AI-backed chatbot and mobile app. acquisition engine would help to build the Axis franchise further
and create significant value for the Bank. The post-acquisition
Our retail loan book continues to grow strongly with significant activities at FreeCharge remain on track and all key top-line
diversification in portfolio mix. We believe there is considerable metrics have shown considerable improvement.
scope to cross-sell and grow the unsecured side of our retail
loan book, as we look to onboard granular retail risk while During the year, the Bank also launched instant international
reducing concentration risk on the corporate side. payment services using Ripple’s enterprise blockchain technology
solution. The Bank has been the first financial institution in India
The Bank’s strong distribution capabilities, brand and ability to offer a Ripple-enabled, frictionless payments experience that
to constantly innovate and offer right product proposition to would make international remittances faster.
customers has helped us build and gain significant market
share in most of the retail businesses in quick time. We have Over the last 24 years, the foundation of the Bank has been
the market leadership in Forex cards and in the credit cards built on our core values – to do the right thing for our 20+
business. Despite being a late entrant, we are currently ranked million customers. Though we have progressed a lot in terms of
fourth in terms of market share. The Bank is today among the technology, what hasn’t changed is our legacy customer service
top five players in the home loan market. We have also built ‘The Axis Experience’ – which is service in a digital world but
one of the best wealth management franchises among banks in with an old world charm. During the year, Axis Bank very aptly
the country - our Burgundy proposition is now among our fastest won the NASSCOM Customer Service Excellence Award - 2017
growing business lines. under the ‘Transformation’ category.
Similarly, within the Axis family, our subsidiaries in institutional Core to our approach is the belief that our long-term success
equity business, broking, asset management and non-banking depends on the progress of the communities and the people
finance arm have scaled up well. Axis AMC that was set up in we serve. Axis Bank Foundation has been relentlessly working
2009 is now among the top 10 mutual fund houses in India; over the last decade to help provide sustainable livelihoods and
Axis Direct, the broking business that was launched in 2011, create value for the communities through its various integrated
ranks among the top three brokerage firms in terms of active rural skill development and educational programmes. It is a
client base. Our institutional equities business that we acquired matter of great satisfaction for us that the Axis Bank Foundation
12
has achieved the target it had set for itself of achieving a million diversification in balance sheet with the share of Retail loans in
sustainable livelihoods by 2017. During the year, the Bank also our loan book rising from 20% to 47%. Most notably, we have
launched ‘Axis Dil Se’ – a CSR initiative in partnership with filled up strategic product gaps and developed key subsidiary
17000 ft Foundation – that saw 108 schools across the remotest businesses to become a full service bank. The Bank now has
parts of Kargil and Ladakh being adopted by 20 senior Axis strong capabilities across retail, corporate and SME segments
Bank leaders for a period of three years. and offers strong proposition to its customers with subsidiaries
complementing the strategy. The retailisation of the Axis franchise
The Bank deservingly was included in FTSE4Good Emerging has been the bedrock of the Bank’s financial performance, thus
Index in recognition of its Environmental, Social and improving the quality and sustainability of its earnings.
Governance (ESG) practices. And as we move ahead, we
continue to remain conscious of our deep commitment to our Earlier this year, I had requested the Board to reconsider my
environment and the underprivileged. The Axis Bank Foundation re-appointment till 31 December 2018, which has been
now aims to create two million sustainable livelihoods over the accepted and is subject to shareholder approval. Axis is a
next eight years. great institution with a very promising future and I am confident
that our Board will find the right person to lead this institution
Going forward, I continue to believe that the Indian banking in its next phase. While we go through that process, I am fully
sector is well placed to benefit from the informal to formal shift committed to maintain high performance levels at the Bank.
that is currently underway. Also, private banks in the country
will continue to gain significant part of the incremental market The Bank has taken significant steps in fiscal year 2018 to get
share. We believe that with our strong financial and market past the asset quality issues of this cycle and the top priority for
position backed by our core capabilities, we would certainly be us in fiscal year 2019 will be to achieve normalisation of credit
among the top few banks in the country. risk. The second focus area would be to deliver profitable growth.
The third area of delivery would be to enhance capabilities
I am extremely proud of the great franchise we have built and to strengthen operational risk management and re-invent our
that is reflected in the way in which customers and shareholders corporate bank driven by technology. The fourth deliverable for
have reposed faith in us. Over the last nine years, we have fiscal year 2019 is to continue investing in digital capabilities,
successfully built a strong CASA franchise on back of continued analytics and our subsidiaries to drive future growth.
investments in branch infrastructure. Our market share in
deposits has grown from 2.6% in 2008-09 to 3.6% at the end I have thoroughly enjoyed my nine-year long association with
of 2017-18, with branch network increasing from 835 branches this great Bank. I have given it my best and have been rewarded
to over 3,700 branches over this period. On the lending by the support and association of all our internal and external
side, we have grown our lending book from nearly `80,000 partners. The future of Axis Bank remains extremely bright and I
crores to around `440,000 crores over these nine years, at a wish it and all its stakeholders the very best.
CAGR of 21%. At the same time, we have achieved significant
STRATEGIES FOR 2018-19

NORMALISE DELIVER ENHANCE INVEST IN
CREDIT RISK PROFITABLE CAPABILITIES THE FUTURE
GROWTH
Continue to move Expect high-quality Focus on enhancing Maintain leadership

corporate lending deposit franchise to operational risk and further invest
business towards continue delivering management and in digital
better rated customers strong growth compliance
Leverage analytics
and working capital
Continue Re-invent the and newer
loans
outperforming the corporate bank technologies
industry loan growth by strengthening to automate and
technology, product digitalise processes
Prioritise growth in
and talent capabilities
segments with better Scale up and
risk adjusted returns diversification of
subsidiaries
Achieve cost
efficiencies
13
CREATING REAL IMPACT
Addressing
national priorities
India continues to progress with wide-ranging
policy reforms and initiatives. The result is that
the country today presents unprecedented
opportunities for global and domestic businesses.
The government is putting more emphasis on
infrastructure development, entrepreneurship
and investment, improving the business climate,
enhancing productivity and fostering strong and
sustainable growth.
SUPPORTING
BRAVEHEARTS To support the nation’s strong growth appetite,
Power Salute is designed for there is more focus on increasing access to banking
defence personnel and their
families. It provides customised
and other facilities to energise the economy and
banking services such as empower the disadvantaged.
enhanced coverage,
long-term investment planning
and banking privileges
We are helping strengthen India’s national priorities
post-retirement, among others. to enhance the country’s global competitiveness
and build a strong, stable and inclusive society.
14
ENCOURAGING
ENTREPRENEURSHIP
We delivered a million micro loans (average ticket
size of H18,000) to women through our micro-lending
programme on a joint-lending model. The loans were
given for various purposes such as entrepreneurship
and children’s education. Besides, we are financing
Lakmé Salon franchisees (75% of the Lakmé
franchisees are women entrepreneurs).
15
RAISING SAFE BANKING

AWARENESS
We launched #MuhPeTaala, a
campaign to promote safe banking
in association with Mumbai Police
during the International Fraud
Awareness week. The campaign
created awareness to prevent
cyber banking crimes, especially
through fraudulent calls phishing for
information such as ATM pins, CVVs
and OTPs, among others.
16
CONVENIENCE FOR ALL EMPOWERING AGRARIAN SECTOR

We launched the Axis ‘Republic’ Salary Account to cater
Advancing dairy industry: India’s diary industry is
exclusively to Public Sector Undertakings (PSUs) and
slated to reach H9.4 trillion by 2020 (Source: Edelweiss
government sector employees. It offers higher returns on
Securities Report). Yet the industry is primarily based on
deposits of over H50,000 and many other benefits.
a ‘cash-and-carry’ model. At Axis Bank, we provided the
Our Kisan credit cards provide farmers round-the-clock industry a customised dual-pronged solution for its digital
availability of funds. Over 2+ lakh farmers have so far transformation.
benefitted (withdrawal limit of up to H1 lakh per day).
ayment solutions for procurements: Designed
P
We introduced Aadhaar-enabled banking for pensioners, as
a gateway to simplify and accelerate payments
key banking partner of the Government in the Direct Benefit
computation in dairies, reducing working capital cycle.
Transfer process of pension payments. Now, pensioners can
get in touch with our business correspondents and receive
ollection solutions for deliveries: Developed an
C
their pension without travelling to bank branches.
app to enable distributors and retailers to concurrently
order milk and make payments.
NURTURING START-UPS
Our Innovation Lab (Thought Factory) has so far mentored Digitising mandis: We are helping develop e-National
six start-ups in their evolution. We are shortlisting start-ups Agriculture Market (eNAM), a pan-India electronic trading
for the second cohort of the Accelerator and building an API portal to digitally connect mandis by offering end-to-end
Sandbox environment for a quick plug-n-play, enabling faster transaction solutions that provide:
product test/adoption.
Integrated ordering platform: Offers real-time

We started Axis Start-up Social to provide a platform for
information on funds and order fulfilment.
start-ups to network and share knowledge. This initiative
underlines our commitment towards providing multiple
implified funds collection: Leverages branch
S
opportunities for start-ups.
network and Cash Deposit Machines (CDMs) to collect
funds from buyers.
ENABLING AFFORDABLE HOUSING
We provide home loans to customers in the low-income
segment through our special Asha Home Loans. We offer
loans of up to 85% of property market value, along with
floating and fixed interest options; 31,000+ customers gained
access to their homes through this product.
In the affordable housing segment, we are attracting more
customers through our home loan offering (Shubh Aarambh).
DRIVING
Maximum loan amount of up to H30 lakh can be availed RENEWABLE
under the scheme. Part pre-payments are also allowed ENERGY
with complete flexibility. Up to 12 EMIs can be waived off
at no extra cost in case of on-time payment and there are WE ARE COLLABORATING WITH FERYR
many other added benefits to make the experience of home
ownership a memorable one.
ENERGY TO OFFER TERM LOANS FOR ROOFTOP
INSTALLATION OF SOLAR POWER PROJECTS
PARTNERING NATION-BUILDING IN TELANGANA AND ANDHRA PRADESH. THE
We are one of the leading banks in the Electronic Toll LOANS ARE MEANT FOR INDUSTRIAL AND
Collection Project proposed by National Highways COMMERCIAL PURPOSES AND ARE PROVIDED
Authority of India (NHAI) and guided by National Payments TO MICRO- SMALL AND MEDIUM ENTERPRISES
Corporation of India (NPCI). Total automation of toll (MSMEs) AND SELF-EMPLOYED INDIVIDUALS TO
collection across the country is expected to reduce average
ENCOURAGE GRASSROOTS ENTREPRENEURSHIP
waiting time at toll plazas by 10 minutes.
AND USHER IN REAL IMPACT.
17
Enriching customer
experiences
We are encouraged by the fact that customer
expectations are never static. They continue to
evolve and challenge us to think better and work
O
smarter. We depend on deep data 6.75%analytics to
AUTOMATIC
gain insights into emerging trends and
interest
Automatic
aspirations
FIXED DEPOSIT
6.75%
and accordingly tailor bespoke solutions.
FD
INTEREST
The Bank launched Axis ASAP (savings account

that can be instantly opened online with just
PAN and Aadhaar details) which offers
AXIS ASAP industry-first feature where savings balances
We initiated the first online over `10,000 are automatically treated as fixed
eKYC-based account ‘Axis ASAP’,
which offers customers the opportunity
deposits and customers earn 6.75% interest.
to open bank accounts instantly. Early adoption of advanced technology and its
proper implementation also plays a very big role
FREECHARGE in delivering on customer expectations.
We acquired the payments wallet
FreeCharge (first such acquisition of a We realised that digital was going to radically
digital payments company by a bank in
India) to strengthen our digital offerings.
change India’s entire banking landscape and we
were adequately equipped to emerge among the
O EASY
leaders in digital banking. Our experience and
B I L L PAY
expertise have enabled us to continue to grow
our digital footprint.
ASAP ACCOUNT KHOLO
ASAP FEATURES PAO
I N S TA N T B A N K AC C O U N T
18
TRAVEL IN STYLE
We were India’s first bank to launch a Forex card
for international travellers in 2002. We are now
the market leader with over 45% market share. We
also launched India travel card - India’s first and
only Indian currency prepaid travel card for foreign
nationals.
Multi-Currency Forex Card

16 currencies on one card | Reload on the go | Accepted Worldwide
HolidayMoreCashless
19
India’s first bills discounting platform that promises to revolutionize the way businesses get paid.
Upload invoices for the orders you have delivered, choose the best bid and receive payments within 48
hours to help businesses grow faster. Visit www.invoicemart.com
20
GROWING OUR DIGITAL FOOTPRINT transactions and use of blockchain for verification in USA, real-time chat
remittances. facilities and 24x7 customer service for
We acquired the payments fintech
convenient cross-border fund transfers.
company FreeCharge (first such We enable our customers to make
acquisition of a digital payments informed decisions on mutual fund We introduced ‘E-softex’, a software
company by a bank in India) to schemes with Mutual Funds Screener that provides data pertaining to Softex
strengthen our digital offerings. on the Axis Bank website. The platform forms, invoices and remittances to
FreeCharge is a leading pan-India provides fund comparisons and details software companies through an online
digital payments company with over such as risk category, fund performance, portal. The Softex forms are matched
five crores registered customers and peer comparison, asset allocation and with remittances and export data
200,000+ merchants. portfolio details, among others. processing and the monitoring system
is updated automatically.
We launched Axis ASAP – a savings
DELIGHTING CORPORATE
account that can be instantly opened
CUSTOMERS ENHANCING OUR CUSTOMER
online with just PAN and Aadhaar
VALUE PROPOSITION
details – it has industry-first feature We enriched our Corporate Internet
where savings balances over H10,000 Banking (CIB) experience by migrating We partnered with leading health and
are automatically treated as fixed customers to a single portal for all medical services providers (Apollo
deposits and customers earn an interest corporate digital offerings, along and Max Healthcare) to provide our
of 6.75%. with a one-view dashboard for all customers with exclusive health and
corporate relationships. This allows wellness services at discounted prices.
We launched ASAP loans to address
corporate borrowers to submit
finance needs of small businesses We implemented Straight Through
various documents/declarations
faster, through small ticket Processing (STP) in areas of loans,
online. The Trade Connect platform
pre-approved e-loans for pre-qualified general insurance, health insurance
is also integrated with CIB for trade
customers. ASAP loans eliminate the and credit card space, reducing
transactions by corporate customers.
hassles of documentation, physical turnaround time.
visits and negotiations and complete We launched a bulk bill payment
the disbursement process in less than solution for corporates that helps
10 minutes. In its first year of launch, settle various bills such as utility and
we disbursed more than H20 crores telecom, among others. Corporates
through this platform and going have access to various payment
forward, expect to scale it. options using this platform.
We launched India’s first open-loop
smart card, in association with the
We are engaging with e-commerce
companies, fintech companies and
HASSLE-FREE
city transportation body, enabling
commuters in Bengaluru and Kochi
start-ups for our investment banking
solutions and banking products.
PROPOSITION
to travel cashless and hassle-free in WE INTRODUCED
public transport. SIMPLIFYING OVERSEAS
TRANSACTIONS
AN INDUSTRY-FIRST
We introduced Axis OK, an app that
empowers feature phone users to We partnered with Earthport to
SCHEME, WHICH
avail basic banking facilities digitally provide a unique remittance solution OFFERS ABSOLUTE
without internet. with guaranteed turnaround time and
fixed charges for remittances to
LIQUIDITY WITH OUR
We launched instant international
payment services using Ripple’s
60+ countries. TERM DEPOSIT PLANS.
enterprise blockchain technology We developed an online platform OUR CUSTOMERS NEED
solution. Ripple connects banks, for remitting funds overseas to cater
payment providers, digital asset to customers who do not maintain
NOT WORRY ABOUT
exchanges and corporates to provide accounts with Axis Bank. The platform PREMATURE CLOSURE
frictionless experience to send money allows online transactions after
globally. The transactions reach their completing a one-time KYC.
PENALTY FOR THE FIRST
destination account in minutes, with
We launched Remit Money with
PARTIAL WITHDRAWAL
certainty of settlement, and provide
complete transparency.
customer-centric features such as OF UP TO 25% FOR
instant/near-instant money transfer and
We introduced AI in chatbots for integration with payment gateways.
THE TERM DEPOSITS’
interactive interface mutual funds The portal provides instant account PRINCIPAL VALUE.
21
Nurturing future
achievers
To drive our future transformation, our people will
require new skills and capabilities to reflect the
changing needs of the business. Therefore, we
continue to devise solutions to attract, develop
and retain these skills and capabilities, while
fostering a culture that reinforces our core values.
BEING LEARNING AGILE HOLISTIC DEVELOPMENT PROGRAMMES
Through our online learning and testing The Axis Learning Achievers programme
platform - Axis Competency Profiler - we and the Axis Business Clinics use
assess functional competence and create ‘storytelling’ as a powerful medium of
AXIS a pool of dependable talent. The platform learning. Using the cascade format of
also serves as a tool for employee career facilitation, the Banking on Compliance
CHAMPIONS management, while providing deep insights programme drives ethical decision making,
into the productivity and performance of KYC/AML knowledge and the importance
Our annual recognition programme
their respective business units. of compliance in every transaction the
- Axis Champions - fosters cultural
Bank undertakes.
alignment across the organisation
Our HR tool ‘twin-tracking’ helps build
and recognises champions for
core traditional banking capabilities, HIGH-PERFORMANCE CULTURE
their efforts. During 2017-18,
while focussing on new-age skills for the
the programme received 15,000 Our integrated Performance Management &
future. It has been the bedrock for the
nominations from across the country. Capability Development system - ACElerate
Bank’s Academies.
- helps in fostering high performance
and capability building. Capability
Collaboration with experts helps the
development interventions are provided to
Academies provide our people an
high-performing employees to hone their
opportunity to master core banking
skills further and help them perform better.
functional areas. It also helps in
During 2017-18, over 24,600 employees
developing new-age skills such as
underwent a two-day behavioural training
analytics and digital. Micro certifications
programme, customised to their grade and
that lead to ‘Axis Bank Power Profiles’ is
their role challenges.
among the Bank’s core focus areas for
building future capabilities.
A young and engaged workforce with an
average age of 29.5 years continues to
drive the Axis Bank brand forward.
22
ACElerate
We integrated Performance Management
and Capability Development system for fostering
high performance and capability building.
23
EMPOWERING LIVELIHOODS
Under our overarching theme of
‘Sustainable Livelihoods’, Axis Bank
Foundation’s current programmes are
aimed towards strengthening and
increasing farm productivity, improving
natural resource management, providing
alternate income-generating options
and increasing employability and
entrepreneurial skills. Through our
various initiatives across 21 states
and 178 districts, Axis Bank
Foundation has helped impact and
improve a million livelihoods.
24
Purpose beyond
profit
At Axis Bank, we look at ourselves as a catalyst
for progress. Axis Bank Foundation (ABF) furthers
this by enabling opportunities that enhance
incomes for those who are economically and
socially backward or disadvantaged through its
Sustainable Livelihood programme.
LIVELIHOOD PROMOTION
INCREASED EMPLOYABILITY
THROUGH SKILLING
ENHANCING RURAL LIVELIHOOD IMPROVED
The skilling programme imparts knowledge
The Rural Livelihood programme focusses
on activities such as: FARMER RETURNS
in trades such as hospitality, retail, nursing,
a) N
atural Resource Management One of the key outcomes of the Rural
beautician, tailoring, electrical and so on
resulting in improved access to water Livelihood programme is higher returns
in conjunction with basic English and life
and enhanced soil productivity for farmers. A higher return, along
skills with linkages for employment and
with conducive ecosystem that includes
entrepreneurship. It focusses on skilling the b) F
arm-Based Activities resulting
access to finance and markets, ensures
able and disabled youth. in increase in income and food
long-term sustainability.
security through enhanced agricultural
productivity
NUMBER OF c) N
on-Farm-Based Activities such
as dairy, goatery, piggery, poultry and
PROJECTS so on, resulting in additional income
18 and risk mitigation
d) C
ollectives, which includes formation
of Self-Help Groups (SHGs), producer
NUMBER OF groups and so on, resulting in a
STATES platform for cohesiveness, stronger
voice and camaraderie
21
NUMBER OF
NUMBER OF
BENEFICIARIES
VILLAGES
10,293 1 MILLION+
25
LIVELIHOOD PROMOTING GREEN INCREASING

PROMOTION DEVELOPMENT FINANCIAL LITERACY
SUCCESS STORIES We have actively CELEBRATING DIGITAL FINANCIAL
LITERACY WEEK
ABF in partnership with Self Reliant funded projects in
Initiatives through Joint Action We continue our ‘Digi-Prayas’ initiative
(SRIJAN) tapped livelihood potential
the realms of clean to impart financial literacy to 80,000
in Bali block - one of the most technology, renewable people across India. It will help residents
backward regions of Rajasthan - in 24 selected villages to be financially
though collection and processing
energy, energy-efficient literate, digitally aware and proactively
of custard apples. To realise the products and sustainable adopt various modes of digital banking
potential, a Farmer Producer such as mobile and UPI-based banking,
Organisation (FPO), Ghummar Mahila
infrastructure. Besides, we among others. We are setting up digital
Samiti, was formed and a value have 3MW total installed banking ecosystems in these villages to
chain around the commodity was encourage the use of technology-based
developed. Currently, over 1,000
capacity of solar energy banking activities.
women participate in this programme. for our operations.
A net income enhancement of VILLAGE SOCIAL
H12,500 for each participant has TRANSFORMATION MISSION
BIO-DEGRADABLE CARD
been witnessed through the custard
ABF joined hands with the Government
apple value chain. We launched a bio-degradable card
of Maharashtra to transform adverse
offering customers a unique way to
conditions in 1,000 villages plagued by

ABF and Youth4Jobs (Y4J) partnership contribute towards eco-friendly payment
drought, low human development index
is committed to train 8,000 physically solutions. These are recyclable cards that
and other social challenges. ABF will
challenged individuals across multiple do not release carbon, methane or other
help in transforming them into ‘model
states. Kavitha (28) from Warangal, harmful pollutants. Available on select
villages’ and will implement its flagship
Telangana is the sole bread-earner gift card products and acceptable at all
financial inclusion and financial literacy
of her family. She enrolled herself domestic merchant outlets and online
programmes to introduce banking in
for the training programme and post portals, these serve as an electronic
these villages.
completion, was able to secure a gifting option.
job in the insurance sector, earning
H10,000 per month. She is now ENVIRONMENT SUSTAINABILITY
catering to her family’s daily expenses MANAGEMENT GROUP (ESMG)
CONTRIBUTION TO SUSTAINABLE
and repaying a loan her family
ESMG under Corporate Banking executes DEVELOPMENT GOALS
borrowed from a local moneylender
sustainable lending policy. Through this,
to build their house. The outcomes of ABF programmes
we aim to integrate environmental and
are contributing to some of the
social due diligence into the internal risk
Sustainable Development Goals
management framework and remain
(SDGs) set by United Nations in
committed to support sustainable sectors
2015. The goals are:
that combat climatic changes.
K3,492 CRORES
CREDIT OUTSTANDING FOR
SUSTAINABLE SECTORS LIKE
RENEWABLE ENERGY, WASTE
PROCESSING AND MASS
RAPID TRANSPORT
26
AWARDS AND RECOGNITION
IDC I.C.O.N.I.C Insight Awards 2017 for Excellence in Operations rand Jury Award – Institutional at the UTI Mutual Fund and
G
CNBC TV18 Financial Advisor Awards 2016-17
est Use of Digital and Channels Technology at

B X Innovator Best Omnichannel Customer Success Story at the
C
the IBA Banking Technology Awards 2018 2017 Genesys Customer Innovation Awards 2017
FICCI CSR Award 2016-17 in the Women Empowerment category Dale Carnegie Global Leadership Award for 2017
27
BOARD OF DIRECTORS
AS ON 16 MAY 2018
Dr. Sanjiv Misra Shikha Sharma P

rasad Menon P
rof. Samir Barua
Chairman Managing Director & CEO Director Director
Som Mittal Rohit Bhagat U

sha Sangwan S. Vishvanathan
Director Director Director Director
Rakesh Makhija Ketaki Bhagwati B. Babu Rao Stephen Pagliuca

Director Director Director Director
V. Srinivasan Rajiv Anand R

ajesh Dahiya
Deputy Managing Director Executive Director Executive Director
(Retail Banking) (Corporate Centre)
28
CORE MANAGEMENT TEAM

AS ON 16 MAY 2018
Jairam Sridharan Statutory Auditors

Group Executive and Chief Financial Officer M/s S. R. Batliboi & Co. LLP
Chartered Accountants
Sundaresan Mahadevan
Group Executive - Corporate Relationship Group & Secretarial Auditors
Transaction Banking M/s BNP & Associates
Company Secretaries
Sidharth Rath
Group Executive Registrar and Share Transfer Agent
M/s Karvy Computershare Private Limited
Rajendra Adsul Unit: Axis Bank Limited
President - International Banking Karvy Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda, Hyderabad – 500 032
J.P. Singh Tel. No: 040-67162222 Fax No: 040-23001153
President - SME
Registered Office
Cyril Anand ‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
President and Chief Risk Officer Law Garden, Ellisbridge, Ahmedabad – 380 006
Tel. No.: 079-66306161 Fax No.:079-26409321
Himadri Chatterjee
President - Retail & Wholesale Banking Operations Corporate Office
‘Axis House’, C-2, Wadia International Centre,
Rudrapriyo Ray Pandurang Budhkar Marg, Worli, Mumbai – 400 025
President - Structured Finance Group Tel. No.: 022-24252525/43252525 Fax No.:022-24251800
Sanjay Silas
President - Branch Banking
Akshaya Kumar Panda

President - Corporate Client Coverage Group Email: [email protected]
Prashant Joshi Website: www.axisbank.com

President - Corporate Credit Department
Girish V. Koliyote
Company Secretary
29
DIRECTORS’ REPORT
The Board of Directors have the pleasure of presenting the 24th Annual Report of the Bank together with the Audited Statement of
Accounts, Auditors’ Report and the Report on the business and operations of the Bank, for the financial year ended 31st March 2018.
FINANCIAL PERFORMANCE
The financial highlights for the year under review, are presented below:
(` in crore)
Particulars 2017-18 2016-17 Growth

Deposits 453,622.72 414,378.79 9.47%
Savings Bank Deposits 148,202.05 126,048.29 17.58%
Current Account Deposits 95,649.55 87,001.75 9.94%
Advances 439,650.31 373,069.35 17.85%
Retail Advances 206,464.62 167,992.95 22.90%
Non-retail Advances 233,185.69 205,076.40 13.71%
Total Assets/Liabilities 691,329.58 601,467.67 14.94%
Net Interest Income 18,617.73 18,093.12 2.90%
Other Income 10,967.09 11,691.31 (6.91%)
Fee Income 8,866.97 7,882.01 12.50%
Trading Profit(1) 1,616.76 3,400.34 (52.45%)
Misc. Income 483.36 408.96 18.19%
Operating Expenses 13,990.34 12,199.91 14.68%
Operating Profit 15,594.48 17,584.52 (11.32%)
Provision for Tax (154.11) 1,788.28 -
Other Provisions and Write offs 15,472.91 12,116.96 27.70%
Net Profit 275.68 3,679.28 (92.51%)
Balance in Profit and Loss account brought forward from previous year 24,448.33 23,766.46 -
Amount Available For Appropriation 24,724.01 27,445.74 -
Appropriations
Transfer to Statutory Reserve 68.92 919.82 (92.51%)
Transfer (from)/to Investment Reserve 103.49 (87.16) -
Transfer to Capital Reserve 101.65 755.57 (86.55%)
Transfer to Reserve Fund 1.62 1.75 (7.43%)
Dividend paid (includes tax on dividend) 1,405.28 1,407.43 (0.15%)
Surplus carried over to Balance Sheet 23,043.05 24,448.33 -
(1)
Excluding Merchant Exchange Profit
KEY PERFORMANCE INDICATORS

Key Performance Indicators 2017-18 2016-17
Interest Income as a percentage of working funds* 7.15% 7.88%

Non-interest Income as a percentage of working funds* 1.71% 2.07%
Net Interest Margin 3.44% 3.67%
Return on Average Net Worth 0.53% 7.22%
Operating Profit as a percentage of working funds* 2.43% 3.11%
Return on Average Assets 0.04% 0.65%
Profit per Employee** `0.47 lakhs `6.68 lakhs
Business (Deposits less inter-bank deposits + Advances) per employee** `14.84 crore `14.00 crore
Net non-performing assets as a percentage of net customer assets*** 3.40% 2.11%
* Working funds represent average total assets
** Productivity ratios are based on average number of employees for the year
*** Customer assets include advances and credit substitutes
Previous year figures have been re-grouped wherever necessary
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CAPITAL & RESERVES

During the year, the Bank raised additional equity capital through preferential allotment of 16,53,28,892 equity shares of `2 each of
the Bank at a price of `525.00 per equity share. Consequently, the total issued and paid-up equity share capital of the Bank increased
by `33.07 crore and the Reserves of the Bank increased by `8,620.95 crore after charging of issue related expenses.
Further, the Bank also issued, 4,53,57,385 convertible warrants, convertible into 4,53,57,385 equity shares of ` 2 each of the Bank at a
price of `565.00 per warrant on a preferential basis. The said convertible warrants are exercisable within a period of 18 months from
the date of its allotment. The said equity shares and convertible warrants were allotted to a consortium of investors (Bain Capital, Life
Insurance Corporation of India and other marquee investors).
During the year, the Bank also allotted 61,73,935 equity shares of `2 each of the Bank pursuant to exercise of options under the
various Employee Stock Option Scheme(s) of the Bank by some of its Whole Time Directors / Employees and that of its subsidiary
companies.
Pursuant to the said allotments, the total issued and paid-up equity share capital of the Bank, as on 31st March 2018 increased to
`513.31 crore, as compared to `479.01 crore, as on 31st March 2017.
The category wise shareholding pattern of the Bank, as on 31st March 2018, was as under:
Sr. No. Category / Shareholder No. of Shares held % of paid-up

Capital
PROMOTERS
1 Life Insurance Corporation of India (LIC) 34,94,51,108 13.62
2 Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) 25,32,70,690 9.87
3 General Insurance Corporation of India 3,72,50,000 1.45
4 The New India Assurance Company Limited 2,54,03,585 0.99
5 National Insurance Company Limited 21,34,681 0.08
6 The Oriental Insurance Company Limited 63,30,020 0.25
7 United India Insurance Company Limited 26,26,337 0.10
FOREIGN INVESTORS
8 Overseas Investors (including FIIs/OCBs/NRIs) 1,31,64,80,211 51.29
9 Foreign Direct Investment (GDR) 11,53,42,680 4.49
DOMESTIC FINANCIAL INSTITUTIONS
10 Financial Institutions / Mutual Funds / Banks / NBFC 24,27,74,995 9.46
11 Others 21,54,74,629 8.40
Total 2,56,65,38,936 100.00
The said equity shares of the Bank are listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The Unsecured,
Redeemable, Non-Convertible, Subordinated, Perpetual Debentures issued by the Bank on a private placement basis are listed on
NSE and BSE. The Bonds issued by the Bank under the MTN programme are listed on Singapore Stock Exchange and the Green
Bonds issued by the Bank are listed on London Stock Exchange. The Global Depository Receipts (GDR) issued by the Bank are listed
on London Stock Exchange.
The Bank has paid the listing fees to the said Stock Exchanges for the financial year 2017-18.
DIVIDEND
In terms of Regulation 43A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations,
2015 (Listing Regulations) the Bank has formulated and adopted a Dividend Distribution Policy with the objective of providing clarity to
its stakeholders on the profit distribution strategies of the Bank. The said Policy has been hosted on the website of the Bank at https://
www.axisbank.com/shareholders-corner/corporate-governance/Compliance-Report.
The Diluted Earnings Per Share (EPS) of the Bank for the financial year 2017-18 stood at `1.12 per equity share of `2/- each as
compared to `15.34 per equity share of `2/- each in the previous financial year. After making mandatory appropriations to Statutory
Reserve, Investment Reserve, Reserve Fund and Capital Reserve, no profits are available for distribution as dividend for the financial
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year ended 31st March 2018. Accordingly, no dividend has been recommended by the Board of Directors of the Bank for the financial
year ended 31st March 2018.
CLOSURE OF SHARE TRANSFER BOOKS

The Register of Members and the Share Transfer Books of the Bank will be closed from Saturday, 2nd June 2018 to Wednesday, 20th
June 2018 (both days inclusive) for the purpose of the 24th Annual General Meeting of the Shareholders of the Bank to be held on
20th June 2018.
RATINGS OF VARIOUS DEBT INSTRUMENTS

The Unsecured Redeemable Non-Convertible Subordinated Debentures issued by the Bank, on a private placement basis, during the
financial year 2017-18, were rated “CRISIL AAA/Stable” by CRISIL Ltd, “ICRA AAA hyb” by ICRA Limited and “IND AAA” by India
Ratings and Research Private Limited.
The Unsecured, Subordinated, Perpetual, Additional Tier 1, Basel III Compliant Non-Convertible Debentures issued by the Bank on
a private placement basis, during the financial year 2017-18, were rated “CRISIL AA+/Stable” by CRISIL Ltd, “ICRA AA+ (hyb)” by
ICRA Limited and “IND AA+” by India Ratings & Research Private Ltd.
The Bonds issued by the Bank under the MTN programme on a private placement basis, during the financial year 2017-18, were rated
“Baa3” by Moodys, “BBB-” by S&P and Fitch.
BOARD OF DIRECTORS
During the year, the following changes took place in the composition of the Board of Directors of the Bank:
Shri V. R. Kaundinya ceased to hold office as an Independent Director of the Bank, with effect from the close of business hours on
Wednesday, 11th October 2017, upon completion of the maximum permissible tenure of 8 continuous years, under Section 10A (2A)
of the Banking Regulation Act, 1949. The Board acknowledges the invaluable contributions rendered by Shri V. R. Kaundinya during
his tenure as an Independent Director of the Bank and places on record its deep appreciation for the insightful perspectives and
suggestions provided by him at the meetings of the Board/Committees.
Shri Stephen Pagliuca (Nominee of entities affiliated to BAIN Capital) was appointed as an Additional Non-Executive (Nominee)
Director of the Bank, for a period of 4 consecutive years, with effect from 19th December 2017, subject to approval of the Shareholders
of the Bank. Shri Stephen Pagliuca shall not be liable to retire by rotation during the said period.
The current term of Smt. Shikha Sharma, Managing Director & CEO of the Bank is due to expire on 31st May 2018. The Board of
Directors at its meeting held on 7th December 2017 had re-appointed Smt. Shikha Sharma as the Managing Director & CEO of
the Bank for a further period of three years w.e.f. 1st June 2018. At the meeting of the Board of Directors held on 9th April 2018,
Smt. Shikha Sharma requested the Board that the period of her re-appointment as the Managing Director & CEO of the Bank be revised
from 1st June 2018 up to 31st December 2018. The Board considered her request and approved her re-appointment as the Managing
Director & CEO of the Bank from 1st June 2018 up to 31st December 2018 (both days inclusive) and the terms and conditions relating
to the said re-appointment, including remuneration, subject to the approval of the RBI and the Shareholders of the Bank, which would
also enable the Bank to manage the transition period and ensure orderly succession for the said post. The RBI has granted its approval
to the said re-appointment and the terms and conditions, including remuneration thereof.
During the year, no other changes took place in the composition of the Board of Directors of the Bank. The composition of the Board
of Directors of the Bank is in compliance with the applicable norms.
SELECTION AND APPOINTMENT OF DIRECTORS

The selection and appointment of Directors of the Bank is done in accordance with the relevant provisions of the Companies Act, 2013,
the relevant Rules made thereunder, the Banking Regulation Act, 1949, the Guidelines issued by the RBI and the relevant provisions of
the Listing Regulations relating to Corporate Governance.
The Bank has a formal succession planning process in place, pursuant to which it periodically reviews its in-house talent across all
levels and benchmarks it with the talent available in the banking industry. In terms of the succession planning/ talent review process,
the Bank proactively takes steps to review the existing talent at the senior management level of the Bank and also engages the services
of an external consultant to assess the suitability of potential candidates both from inside and outside the Bank taking into account the
contemporary skills sets required for the said post and their ability to manage challenges faced by the Bank.
The Bank adheres to the process and methodology prescribed by the RBI in respect of ‘Fit & Proper’ criteria as applicable to Private Sector
Banks, signing of deed of covenants which binds the Directors to discharge their responsibilities to the best of their abilities, individually
and collectively in order to be eligible to be appointed as a Director of the Bank. The prescribed declarations given by the Directors
other than that of the Members of the Nomination & Remuneration Committee (NRC) are placed before the NRC and the declarations
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given by the Members of the NRC are placed before the Board, for its review and noting. The said declarations are obtained from all the
Directors on an annual basis and also at the time of their appointment / re-appointment, in compliance with the said laws. An assessment
on whether the Directors fulfil the said criteria is also carried out by the NRC and the Board on an annual basis, before considering their
candidature for re-appointment.
The NRC also reviews the structure, size, composition of the Board, the regional and industry experience, track record, expertise and
other relevant information and documents of the Directors before making appropriate recommendations to the Board with regard to their
appointment, re-appointment and remuneration designed to enhance the Board’s effectiveness.
The NRC on an ongoing basis also identifies potential candidates from diverse backgrounds including but not limited to accountancy,
agriculture and rural economy, banking, co-operation, economics, finance, law, small-scale industry, information technology, core
industries, infrastructure sector, payment and settlement systems, human resource, risk management and business management, thus
providing the Board with members who have special knowledge, practical experience and diverse set of skills, who could serve the
diverse business interests of the Bank.
DECLARATION OF INDEPENDENCE
All the Independent Directors of the Bank have given their respective declarations stating that they meet the criteria prescribed for
independence under the applicable laws and in the opinion of the Board, all the Independent Directors of the Bank meet the said criteria.
KEY MANAGERIAL PERSONNEL

Smt. Shikha Sharma, Managing Director & CEO, Shri Jairam Sridharan, Chief Financial Officer and Shri Girish V. Koliyote, Company
Secretary are the Key Managerial Personnel of the Bank, in terms of Section 2(51) read with Section 203(1) of the Companies Act, 2013.
During the year, there were no changes in the composition of the Key Managerial Personnel of the Bank.
BOARD PERFORMANCE EVALUATION

The Companies Act, 2013 and the Listing Regulations relating to Corporate Governance contains provisions on evaluation of the
performance of the Board as a whole, Individual Directors including Independent Directors, Non-Independent Directors, Chairperson and
the Board Committees.
The Bank had engaged the services of an external consultant to help it conduct an impartial and independent Board performance
evaluation, as aforesaid. On the basis of their findings, a process of evaluation was recommended to the NRC for adoption. The manner
in which the evaluation has been conducted is explained in the Report on Corporate Governance, which forms part of this report.
MEETINGS
The schedule of the meetings of the Board and the Board Committees for the ensuing financial year is circulated in advance to the
Members of the Board, for their consideration and approval. During the year, 9 meetings of the Board of Directors of the Bank were
held and the gap between the said meetings did not exceed the limit of 120 days, as prescribed under the relevant provisions of the
Companies Act, 2013, the relevant Rules made thereunder and the Listing Regulations relating to Corporate Governance.
AUDIT COMMITTEE
The composition, role and functions of the Audit Committee of the Board of Directors of the Bank is disclosed in the Report on Corporate
Governance, which forms part of this report.
REMUNERATION POLICY
The Bank has formulated and adopted a Comprehensive Remuneration Policy for its Directors, Key Managerial Personnel and other
Employees, in terms of the relevant provisions of Section 178 of the Companies Act, 2013, the relevant Rules made thereunder and the
Listing Regulations relating to Corporate Governance. The details of the said Remuneration Policy have been disclosed in the Report on
Corporate Governance, which forms part of this report. The said Policy has been hosted on the website of the Bank at https://www.
axisbank.com/shareholders-corner/corporate-governance/Compliance-Report.
WHISTLE BLOWER POLICY AND VIGIL MECHANISM

The details of the Whistle Blower Policy and Vigil Mechanism have been disclosed in the Report on Corporate Governance, which forms
part of this report.
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SUBSIDIARIES
As on 31st March 2018, the Bank has the following eleven unlisted subsidiary companies and one step down subsidiary;
i) Axis Asset Management Company Ltd. undertakes the activities of managing the mutual fund business.
ii) Axis Bank UK Ltd. is the banking subsidiary of the Bank in the United Kingdom and undertakes the activities of banking.
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 financing, 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.
ix) A.TREDS Ltd. is engaged in the business of discounting trade receivables.
x) Freecharge Payment Technologies Private Ltd. which was acquired on 6th October 2017 is in the business of providing digital
payments services through web & mobile-based platforms and payment gateways.
xi) Accelyst Solutions Private Ltd. which was acquired on 6th October 2017 is in the business of providing digital payments services
through web- & mobile-based platforms.
xii) Axis Capital USA, LLC. is a wholly owned subsidiary of Axis Capital Limited incorporated in USA and provides financial services
relating to equity capital market, institutional stock broking to institutional investors in USA.
During the Financial Year 2017-18, Axis Securities Europe Ltd. engaged in the business of financial advisory services was wound up
with effect from 16th May 2017.
During the year, the Bank acquired 100% equity capital of Accelyst Solutions Private Ltd. and Freecharge Payment Technologies
Private Ltd. Both the companies have become wholly owned subsidiaries of the Bank. Freecharge Payment Technologies Private Ltd.
is engaged in the business of operating payment system for semi-closed prepaid payment instruments and gift vouchers under the
license issued by the Reserve Bank of India, card processing services, payment aggregation services, merchant acquisition services
and payment support services. Accelyst Solutions Private Ltd. is engaged in the business of providing and facilitating online recharge
/ bill payment / coupon services, marketing platform for third parties, distribution of mutual funds and insurance products through the
mobile application /website / mobile site.
During the year, Axis Capital Ltd. incorporated Axis Capital USA, LLC on 2nd August 2017, as its wholly owned subsidiary in USA
to provide financial services relating to equity capital market, institution stock broking to institutional investors in USA. It will be
operational after completion of registration formalities with Financial Industry Regulatory Authority, Inc. (FINRA) and Securities and
Exchange Commission, USA.
In accordance with the provisions of Section 129(3) of the Companies Act, 2013 read with Rule 8 of the Companies (Accounts) Rules,
2014, as amended, the Bank has prepared its consolidated financial statements including that of all its subsidiary companies, which
forms part of this report. The financial position and performance of each of the said subsidiary companies are given in the statement
containing the salient features of the financial statements of the said subsidiary companies of the Bank, which is annexed to this report.
In accordance with the third proviso to Section 136(1) of the Companies Act, 2013, the Annual Report of the Bank, containing therein
its standalone financial statements and the consolidated financial statements and all other documents required to be attached thereto
has been hosted on its website www.axisbank.com.
Further, in accordance with the fourth proviso to the said section, the audited annual accounts of each of the said subsidiary companies
of the Bank have been hosted on the Bank’s website https://www.axisbank.com/shareholders-corner/shareholder’s-information/
annual-reports#/.
34
Any shareholder interested in obtaining a physical copy of the aforesaid financial statements may write to the Company Secretary at
the Registered Office of the Bank. Further, please note that the said financial statements will also be available for inspection by the
Members of the Bank and Trustees of Debenture holders at the Registered Office of the Bank during business hours from 11.00 a.m.
to 1.00 p.m. on all working days except Saturdays, Sundays, Bank Holidays and National Holidays.
RELATED PARTY TRANSACTIONS

During the year, the Bank has not entered into any materially significant transactions with its Promoters, Directors, Management,
Subsidiaries or Relatives of the Directors/Management, which could lead to potential conflict of interest between the Bank and these
parties, other than transactions entered into in the ordinary course of its business.
Transactions entered into by the Bank with related parties in the normal course of its business were placed before the Audit Committee
of the Board (ACB). There were no material individual transactions with related parties, which were not in the normal course of the
business of the Bank, nor were there any material transactions with related parties or others, which were not on arm’s length basis.
Accordingly, AOC-2 is not applicable to the Bank. A statement giving details of all related party transactions, entered pursuant to the
omnibus approval so granted, is placed before the ACB for their review, on a quarterly basis. The Bank has developed a Standard
Operating Procedure for the purpose of identifying and monitoring such transactions. The policy on Related Party Transactions has
been hosted on the Bank’s website at https://www.axisbank.com/docs/default-source/quarterly-reports/6policy-on-related-party
transactions.pdf?sfvrsn=2, in terms of the Listing Regulations relating to Corporate Governance.
EMPLOYEE STOCK OPTION PLAN (ESOP)

Since the financial year 2000-01, the Bank has formulated and adopted several Employee Stock Option Schemes (ESOS) for the
benefit of the eligible Directors / Employees of the Bank and some of its subsidiary companies, in terms of 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 Benefits) Regulations, 2014, as amended, from time to time. The objective of the said ESOS is
to enhance employee motivation, enable employees to participate, directly or indirectly, in the long-term growth and financial success
of the Bank, to act as a retention mechanism by enabling employee participation in the business of the Bank as its active stakeholder
and to usher an ‘owner-manager’ culture.
In terms of the said ESOS, as on date, up to 24,00,87,000 options can be granted by the Bank to the eligible Directors / Employees
of the Bank and some of its Subsidiary Companies. The eligibility and number of options to be granted to such eligible Directors /
Employees is determined on the basis of their performance and such other criteria as reviewed and approved by the NRC / Board of
Directors of the Bank, as the case may be, from time to time.
During the period from February 2001 to July 2013, the Shareholders of the Bank had approved the grant of stock options, as
aforesaid, on six occasions. Under the first two ESOS of the Bank and in respect of the grant of stock options made by the Bank upto
29th April 2004, the option conversion price was set at the average of the daily high-low price of the Bank’s equity shares traded
during the 52 weeks preceding the date of approval of grant by the Board of Directors of the Bank / NRC, prevailing on the Stock
Exchange which had the maximum trading volume of the Bank’s equity share during the said period. Thereafter, under the third and
subsequent ESOS of the Bank and with effect from the said grants made by the Bank on or after 10th June 2005, the option conversion
price was changed to the latest available closing price of the equity shares prevailing on the Stock Exchange which recorded higher
trading volume, on the day prior to the date of approval of grant by the NRC.
Pursuant to the sub-division of the equity shares of the Bank, the Shareholders of the Bank at the 20th Annual General Meeting held on
27th June 2014, also approved the consequent adjustments to the stock options granted to the eligible Directors / Employees of the
Bank and that of its Subsidiary Companies, under the various ESOS of the Bank, such that all stock options available for grant (including
lapsed and forfeited options available for reissue) and those already granted but not vested and those vested but not exercised, as
on the record date fixed for the purpose of sub-division, were proportionately converted into options bearing equity shares of the face
value of `2 each of the Bank and the grant price of all the outstanding stock options (unvested, vested and unexercised) as on the said
record date for the purpose of sub-division were proportionately adjusted by dividing the existing grant price by 5. The record date
for the said sub-division was 30th July 2014.
Since 24th February 2001 up to 15th May 2017, the NRC / Board had out of the said 24,00,87,000 options, approved the grant
of 25,31,58,700 options (including 2,62,12,797 options which were lapsed and forfeited) to the eligible Directors / Employees
of the Bank and some of its Subsidiary Companies, in terms of the various ESOS of the Bank. The said options are non-transferable
and vest at rates of 30%, 30% and 40% on each of three successive anniversaries following the date of respective grant, subject to
standard vesting and other conditions as set out in the respective ESOS of the Bank. The said options are required to be exercised by
the concerned Directors / Employees of the Bank and some of its Subsidiary Companies, within a period of three / five years, from
the date of its respective vesting, in terms of the respective ESOS of the Bank.
35
As of 31st March 2018, out of the said 25,31,58,700 options so granted 21,34,53,153 options have been vested, out of which
19,73,90,994 options have been exercised and the balance 1,60,62,159 options remain unexercised. Further 1,34,92,750 options
remained unvested and 2,62,12,797 options had been treated as lapsed and forfeited.
There were no material changes in the ESOS of the Bank during the financial year 2017-18 and the same is in compliance with the
relevant provisions of the SEBI (Share Based Employee Benefits) Regulations, 2014.
Statutory disclosures as mandated under Regulation 14 of the SEBI (Share Based Employee Benefits) Regulations, 2014 have been
uploaded on the website of the Bank at https://www.axisbank.com/shareholders-corner/corporate-governance/compliance-report.
CORPORATE GOVERNANCE
The Bank is committed to achieving and adhering to the highest standards of Corporate Governance and it constantly benchmarks
itself with best practices, in this regard.
The Report on Corporate Governance for the financial year 2017-18 along with a Certificate issued by the Statutory Auditors of
the Bank confirming compliance with the mandatory requirements relating to Corporate Governance as stipulated under Chapter
IV of the Listing Regulations, forms part of this report.
The Corporate Governance framework of the Bank incorporates all the mandatory requirements as prescribed in the Listing
Regulations. The Bank has also adopted the non-mandatory requirements as recommended in the Listing Regulations, detailed in
the Report on Corporate Governance, which forms part of this report.
DIRECTORS’ RESPONSIBILITY STATEMENT

The Board of Directors of the Bank hereby declares and confirms the following statements, in terms of Section 134(3)(c) of the
Companies Act, 2013:
a) That in the preparation of the annual accounts for the financial year ended 31st March 2018, the applicable accounting
standards had been followed along with proper explanation relating to material departures.
b) That such accounting policies as mentioned in Note 17 of the Notes to accounts of the Financial Statements have been
selected and applied consistently and judgments 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 2018 and of the profit of the Bank for the year
ended on that date.
c) That proper and sufficient 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.
d) That the annual accounts have been prepared on a going concern basis.
e) That internal financial controls to be followed by the Bank, were in place and that the same were adequate and were
operating effectively.
f) 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

Pursuant to Section 92(3) and Section 134(3) of the Companies Act, 2013 read with Rule 12 (1) of the Companies (Management
and Administration) Rules, 2014, as amended, the extract of the Annual Return in Form MGT 9, is provided as an annexure to this
report.
PARTICULARS OF EMPLOYEES
The information required pursuant to Section 197 read with Rule 5 (1) of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014, as amended, in respect of directors / employees of the Bank, is provided as an annexure to
this report.
36
As on 31st March 2018, the Bank had 50 employees who were employed throughout the year and were in receipt of remuneration
of more than `1.02 crore per annum and 6 employees of the Bank who were employed for part of the year and were in receipt of
remuneration of more than `8.50 lakhs per month.
In terms of Section 136 of the Companies Act, 2013, the copy of the financial statements of the Bank, including the consolidated
financial statements, the auditor’s report and relevant annexures to the said financial statements and reports are being sent to the
Members and other persons entitled thereto, excluding the information in respect of the said 56 employees of the Bank containing
the particulars as specified in Rule 5 (2) of the said Rules, which is available for inspection by the Members at the Registered Office
of the Bank during business hours of the Bank up to the date of the ensuing Annual General Meeting. Any Member interested in
obtaining a copy thereof, may write to the Company Secretary of the Bank at its Registered Office.
CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO
CONSERVATION OF ENERGY & TECHNOLOGY ABSORPTION:

Energy and natural resource conservation have been focus areas for the Bank and conscious efforts are being made towards improving
energy performance, year on year.
For Sustainable Development, Energy efficiency initiatives have been implemented across several branches and offices through energy
and resource conservation projects.
The Bank ensures strict compliance with all statutory requirements and voluntarily undertakes several sustainable steps in order to
contribute towards a better environment.
Some of the steps undertaken and the impact perceived are listed below:
• Implementation of Solar energy projects across select Branches/ Offices, aggregating ~5.05 MW. This also includes 1.27 MW
project at Axis House, NOIDA
• Implementation of Centralised Energy Management System (CEMS) to monitor and control energy consumption.
• Conversion of conventional lighting to LED in select premises & implementation of LED lights in all new Branches/Offices.
• Conversion of Food/Wet waste at Axis House into manure through compost machine for use in landscaping/gardening.
• Maintenance of unity power factor through 500 KVAR x 4 Nos of APFC panels in auto mode for optimum use of power at Axis
House
• Installation of Motion sensors for workstation and common area lighting at Axis House.
• Re-cycling of Dry waste at Axis House into stationery items like notepads.
• Daily re-cycling of 150 KL of water through Sewage Treatment Plant at Axis House, Worli.
• Reduction of water consumption at Axis House and Gigaplex (Airoli) through use of aerators.
• Rain Water Harvesting at Axis House.
• Saving of water through use of Bio-blocks in urinals at Select Large Facilities.
• Installation of sensors i3n washbasins to optimise flow of water.
FOREIGN EXCHANGE EARNING AND OUTGO:

The provisions relating to Section 134(3)(m) of the Companies Act, 2013 on particulars relating to Foreign Exchange Earning and
Outgo are not applicable to a Banking Company, as such no disclosure is being made in this regard.
MANAGEMENT’S DISCUSSION AND ANALYSIS REPORT

The Management’s Discussion and Analysis Report for the year under review, as stipulated under Regulation 34(2)(e) of the Listing
Regulations, is provided as an annexure to this report.
RISK MANAGEMENT
Pursuant to Regulation 21 of the Listing Regulations, the Bank has constituted a Risk Management Committee of the Board of Directors.
The details of the said Committee and its terms of reference are set out in the Report on Corporate Governance, which forms part of
this report.
37
The Bank has formulated and adopted a robust Risk Management Framework. Whilst the Board is responsible for framing, implementing
and monitoring the Risk Management Framework, it has delegated its powers relating to monitoring and reviewing of risks 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 provided as an annexure to this report.
BUSINESS RESPONSIBILITY REPORT

In terms of Regulation 34(2)(f) of the Listing Regulations, top 500 listed entities based on their market capitalisation as on 31st March
every year, are required to submit their Business Responsibility Report (BRR) as a part of the Annual Report. The Bank’s Business
Responsibility Report describing the initiatives taken by the Bank from an environmental, social and governance perspective has been
hosted on the website of the Bank, www.axisbank.com at https://www.axisbank.com/shareholders-corner/shareholder’s-information/
business-responsibility-report. Any Member interested in obtaining a copy of the BRR may write to the Company Secretary of the Bank
at its Registered Office.
PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

The provisions relating to Section 134(3)(g) of the Companies Act, 2013 on particulars of loans, guarantees and investments are not
applicable to a Banking Company, as such no disclosure is being made in this regard.
CORPORATE SOCIAL RESPONSIBILITY

The Bank has constituted the Corporate Social Responsibility (CSR) Committee 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, as
amended.
The brief outline of the CSR Policy, including overview of the programs undertaken by the Bank, the composition of the CSR Committee,
average net profits of the Bank for the past three financial years, prescribed CSR expenditure and details of the amounts spent by the
Bank on CSR activities during the year under review, have been provided as an annexure to this report.
The Bank’s Corporate Social Responsibility Policy which has been reviewed and approved by the CSR Committee has been hosted on
the website of the Bank at https://www.axisbank.com/csr.
PLAN AND STATUS OF IND AS IMPLEMENTATION

The Reserve Bank of India (RBI) issued a circular in February 2016 requiring banks to implement Indian Accounting Standards (Ind
AS) and prepare standalone and consolidated Ind AS financial statements with effect from 1st April 2018. Banks are also required
to report the comparative financial statements for the financial year 2017-18, to be published along with the financial statement for
the year beginning 1st April 2018. However, the RBI in its press release issued on 5th April 2018 has deferred the applicability of Ind
AS by one year for Scheduled Commercial Banks. Banks are now required to implement Ind AS with effect from 1st April 2019 and
prepare standalone and consolidated Ind AS financial statements for FY 2019-20 with comparative figures for financial year 2018-19.
In line with the RBI guidelines on Ind AS implementation, the Bank has formed a Steering Committee comprising members from the
concerned functional areas, headed by the Deputy Managing Director of the Bank. A quarterly progress report on the status of Ind
AS implementation in the Bank is presented to the Audit Committee of the Board. During FY 2016-17, the Bank has undertaken a
preliminary diagnostic analysis of the GAAP differences between Indian GAAP vis-a-vis Ind AS. The Bank has also submitted Proforma
Ind AS financial statements for the six months ended 30th September 2016 and three months ended 30th June 2017 to the RBI.
The Bank has identified and evaluated data gaps, process and system changes required to implement Ind AS and is in the process of
implementing necessary changes in its IT system and other processes. Dry-run of accounting systems and end-to-end reporting process
will be undertaken at the appropriate time during the year. The Bank has been holding workshops and training for its staff, which will
continue in the current year.
The Bank is in the process of preparation of opening Ind AS financials as on 1st April 2018 and is also examining impact of Ind AS on
business planning, budgeting, taxation, capital planning and on capital adequacy. The Bank will prepare quarterly Ind AS financials
during the year 2018-19 for internal purpose, which will be used later, as comparative numbers for the financial year 2019-20.
STATUTORY AUDITORS
At the 20th Annual General Meeting of the Shareholders of the Bank held on 27th June 2014, M/s S. R. Batliboi & Co. LLP, Chartered
Accountants, Statutory Auditors of the Bank (Membership No. 301003E/ E300005), was appointed as the Statutory Auditors of the
Bank to hold office as such from the conclusion of the 20th Annual General Meeting until the conclusion of the 24th Annual General
Meeting, subject to the approval of the Reserve Bank of India and ratification by the Shareholders each year and on such remuneration,
as may be approved by the Audit Committee of the Board (ACB).
38
As the term of M/s S. R. Batliboi & Co. LLP, Chartered Accountants will expire at the conclusion of the ensuing 24th Annual General
Meeting of the Bank, it is proposed to appoint M/s Haribhakti & Co. LLP, Chartered Accountants, Mumbai (Membership Number
103523W/W100048) as the Bank’s new Statutory Auditor, subject to the approval of the Shareholders of the Bank. Pursuant to the
recommendation of the Audit Committee of the Board, the Board of Directors has proposed the appointment of M/s Haribhakti & Co.
LLP, Chartered Accountants, having registration number 103523W/W100048, issued by the Institute of Chartered Accountants of
India, as the Statutory Auditors of the Bank for a period of four consecutive years and to hold office as such from the conclusion of the
24th Annual General Meeting upto the conclusion of the 28th Annual General Meeting. The Shareholders are requested to consider
their appointment on such remuneration as may be decided by the ACB. The said appointment has been approved by the RBI.
In this regard, the Bank has received a certificate from the said Statutory Auditor to the effect that the appointment, if made, would be
in accordance with the relevant provisions of Section 141 of the Companies Act, 2013. The said appointment has also been approved
by the RBI in terms of relevant provisions of the Banking Regulation Act, 1949.
As required under Regulation 33(1)(d) of the Listing Regulations, the Statutory Auditors have confirmed 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 certificate
issued by the Peer Review Board of ICAI.
There are no qualifications, reservations or adverse remarks made by M/s S. R. Batliboi & Co. LLP, Chartered Accountants, Statutory
Auditors of the Bank, in their report. Further, pursuant to Section 143(12) of the Companies Act, 2013, the Statutory Auditors of the
Bank have not reported any instances of frauds committed in the Bank by its officers or employees.
The Board of Directors places on record their appreciation for the professional services rendered by M/s S. R. Batliboi & Co.,
Chartered Accountants, during their tenure as the Statutory Auditors of the Bank.
SECRETARIAL AUDITORS
Pursuant to the provisions of Section 204 of the Companies Act, 2013 and the relevant provisions of the Companies (Appointment
and Remuneration of Managerial Personnel) Rules, 2014, the Bank had appointed M/s BNP & Associates, Company Secretaries,
Mumbai, to act as the Secretarial Auditor of the Bank for the financial year 2017-18. The secretarial audit of the Bank was conducted
on a quarterly basis in respect of the matters prescribed in the said Rules and as set out in the Secretarial Audit Report for the financial
year 2017-18, which is provided as an annexure to this report.
The Secretarial Auditor of the Bank, in its report has made an observation on the Directions issued by SEBI on 27th December 2017
with respect to the alleged leakage of Unpublished Price Sensitive Information (UPSI) relating to the unaudited financial results of the
Bank, for the quarter ended 30th June 2017.
Pursuant to the said Directions, the Bank had appointed Deloitte Touche Tohmatsu India LLP, Mumbai (Deloitte) to evaluate and suggest
measures to strengthen the process, controls and systems relating to preparation, finalization and disclosure of the financial results of
the Bank and conduct a fact-finding review into the alleged leakage of unpublished price sensitive information relating to the unaudited
financial results of the Bank, for the quarter ended 30th June 2017 and submit a report to the Bank within the time frame prescribed
by SEBI. The Bank had also appointed Ernst & Young (EY) to conduct a similar review in respect of the representatives of the Statutory
Auditors of the Bank, as they had access to the said results.
The Bank has submitted its report to SEBI, in compliance with the said Directions. Based on the procedures performed by Deloitte and
EY, their findings indicate that they did not come across any specific instance that indicates sharing or forwarding of UPSI data relating
to the said financial results of the Bank, with any external parties/ individuals.
The Bank has also taken measures to further strengthen its process, controls and systems relating to preparation, finalisation and
disclosure of its financial results and to plug any possible source of leakage of UPSI relating to its financial results, in future.
Apart from the above, there are no qualifications, reservations or adverse remarks made by the Secretarial Auditor of the Bank, in its
report.
SIGNIFICANT AND MATERIAL ORDER PASSED BY REGULATORS OR COURTS OR TRIBUNALS IMPACTING THE
GOING CONCERN STATUS AND OPERATIONS OF THE BANK
During the financial year 2017-18, no significant or material orders were passed by any Regulator, Court or Tribunal against the Bank,
which could impact its going concern status or operations.
39
ADEQUACY OF INTERNAL FINANCIAL CONTROLS RELATED TO FINANCIAL STATEMENTS

The Board has inter alia reviewed the adequacy and effectiveness of the Bank’s internal financial controls relating to its financial
statements.
The Board has discussed with the Management of the Bank the major financial 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 Bank’s Fraud
Risk Management Policy) and the findings in respect of the investigations conducted on frauds, which were material in nature and the
actions taken by the Management in this regard.
CEO & CFO CERTIFICATION

Certificate issued by Smt. Shikha Sharma, Managing Director & CEO and Shri Jairam Sridharan, Group Executive & CFO of the Bank,
for the financial year ended 31st March 2018, was placed before the Board of Directors at its meeting held on 26th April 2018, in
terms of Regulation 17(8) of the Listing Regulations.
MATERIAL CHANGES AND COMMITMENTS AFFECTING THE FINANCIAL POSITION OF THE BANK
There are no material changes and commitments which affected the financial position of the Bank which occurred between the end of
the financial year of the Bank to which the financial statements relate and the date of this report.
ACKNOWLEDGEMENTS
The Board of Directors places on record its gratitude to the Reserve Bank of India, Ministry of Corporate Affairs, Securities and
Exchange Board of India, other Statutory and Regulatory Authorities, Financial Institutions, Stock Exchanges, Registrar and Share
Transfer Agent, Debenture Trustees, Depositories and Correspondent Banks for their continued support and guidance.
The Board also places on record its appreciation to the Shareholders of the Bank for their continued support and to its valued customers
for their continued patronage. The Board also expresses its deep sense of appreciation to all the employees of the Bank for their strong
work ethic, excellent performance, professionalism, teamwork, commitment and initiatives which has led to the Bank reinforcing its
customer centric image and making commendable progress in today’s challenging environment.
For and on behalf of the Board of Directors
Place: Mumbai Dr. Sanjiv Misra

Date: 16th May 2018 Chairman
40
MANAGEMENT’S DISCUSSION AND ANALYSIS

MACRO-ECONOMIC ENVIRONMENT
Global growth accelerated during fiscal 2018, with a synchronized recovery in US, the Euro area, and Japan; even China seemed
to be stabilizing. A pervasive sense of investor confidence led to unusually low financial markets volatility, resulting in aggressive
pricing of risk assets across bond and emerging markets. Oil prices rose during the year, as OPEC cuts led inventories to be drawn
down, while metal prices recovered along with fall in inventories due to stronger demand. Global Inflation, however, has remained
persistently below central bank’s targets. However, global central banks are becoming more hawkish, with at least 3 Fed rate hikes in
2018, an ECB rate hike in 2019, and the end of Quantitative Easing by Bank of Japan in 2019 all now within the realm of possibility.
India’s macro fundamentals have remained broadly stable, but with oil prices no longer falling, the tailwinds from falling inflation and
a low current account deficit are fading. At the same time, the government has extended the fiscal consolidation programme, raising
deficit targets for both FY18 and FY19. Domestic growth appears to be recovering cyclically, and high frequency indicators showing
a recovery more pronounced in manufacturing than in services. Both remain drivers of a stronger GDP print, with the CSO estimating
FY18 growth at 6.6%, and the RBI forecasting FY19 growth at 7.4%.
Capex trends are beginning to improve, as seen in IIP and other high frequency indicators, and as noted by the RBI in its latest
monetary policy review. Corporate credit growth is better than the troughs following the demonetization exercise, but this currently
appears to be partially due to working capital financing. A reallocation from market instruments, which tightening liquidity has made
less attractive, to bank credit is also a factor.
At the first RBI Monetary Policy Committee (MPC) meeting in early April, members did express concerns on upside risks to inflation,
but seemed more confident over a lower trajectory, which they projected only slightly above the 4% target well into FY20 (with the
caveat that these did not factor in the new Minimum Support Prices formula). The risks to inflation which appeared tilted to the upside
– lengthening of fiscal consolidation, potentially higher inflation through the new Minimum Support Prices (MSP) formula and higher
customs duty, high household inflation expectations, global central bank tightening, higher commodity prices, etc – will play a role in
determining the stance of policy. The MPC chose to continue with its neutral stance so as to nurture the nascent recovery.
PROSPECTS FOR FISCAL 2019

The IMF projects Global growth prospects to remain firm in the coming year, with lower taxes and fiscal expansion in the US, as
well as potential Eurozone reforms amid accommodative financing conditions. China’s able stewardship of the shift to a lower and
sustainable growth trajectory has led to some easing in investor uncertainty. However, fresh risks are asserting themselves. Higher oil
and commodity prices might once again lead to larger trade imbalances, increasing future potential volatility. A potential trade war,
with US tariffs on steel seeing retaliation from other countries, might escalate. The effects of faster than expected withdrawal of stimulus,
can still hit markets where risks are priced aggressively, particularly Emerging Markets currencies.
Although our base projections indicate that CPI inflation in India is likely to average ~4.3% over FY19, there are many upside risks,
including the pass through to fuel of high oil prices, spatial and temporal distribution of monsoon rains, implementation of 7th Pay
Commission awards for State Government employees and steep increase in kharif MSP. Given these risks, which are reflected in the
minutes of the latest meeting, we expect the Monetary Policy Committee to remain on an extended pause with a rising probability of
eventual tightening. Liquidity will be tighter than in FY 18, and market interest rates have risen back from low levels to those more
commensurate with seasonal patterns. Assuming that liquidity conditions will be maintained around neutral levels by the RBI, short end
interest rates are likely to remain linked to the RBI repo rate. However, long term rates retain the potential to be driven by broader
market trends, as in the past few months.
As per our base projections, India’s growth is expected to improve to 7.3% in FY19, with much of the increase likely from higher
consumption. Investment is likely to remain modest, particularly in H1, but capex spend will be supported by spends on urban
infrastructure and road and rail projects, renewable energy and affordable housing. Bank credit growth will also revive only gradually,
since most of the initial capex will be public sector led.
As a result of these trends, the Rupee is likely to steadily depreciate, with RBI able to modulate volatility. The broad, longer term drift
is likely to depend more on global trends, especially movements in other Emerging Market currencies.
41
OVERVIEW OF FINANCIAL PERFORMANCE

Operating performance
(` in crores)
Particulars 2017-18 2016-17 % change
Net interest income 18,617.73 18,093.12 2.90

Non-interest income 10,967.09 11,691.31 (6.19)
Operative revenue 29,584.82 29,784.43 (0.67)
Operating expenses 13,990.34 12,199.91 14.68
Operating profit 15,594.48 17,584.52 (11.32)
Provisions and contingencies 15,472.91 12,116.96 27.70
Profit before tax 121.57 5,467.56 (97.78)
Provision for tax (154.11) 1,788.28 -
Net profit 275.68 3,679.28 (92.51)
Net profit for the year ended 31 March, 2018 contracted by 92.51% and stood at `275.68 crores, as compared to the net profit of
`3,679.28 crores last year, primarily on account of higher provision for non-performing assets (NPAs). Operating profit reported a
decline of 11.32% over the previous year to `15,594.48 crores with operating revenue decline of 0.67%.
Operating revenue declined from `29,784.43 crores in fiscal 2017 to `29,584.82 crores in fiscal 2018. Net interest income (NII)
rose 2.90% from `18,093.12 crores in fiscal 2017 to `18,617.73 crores in fiscal 2018. Non-interest income consisting of fee,
trading and other income declined by 6.19% from `11,691.31 crores in fiscal 2017 to `10,967.09 crores in fiscal 2018. However
fee income grew strongly by 12.50% from `7,882.01 crores in fiscal 2017 to `8,866.97 crores in fiscal 2018. Trading profit
declined by 52.45% and stood at `1,616.76 crores in fiscal 2018.
Operating expenses rose 14.68% from `12,199.91 crores in fiscal 2017 to `13,990.34 crores in fiscal 2018 as the Bank continued
to invest in branch infrastructure, technology and human capital to support its business growth. Decline in operating revenues along
with higher operating expenses this fiscal led to a decline in the Bank’s operating profit by 11.32% to `15,594.48 crores from
`17,584.52 crores reported last year. Provisions and contingencies jumped 27.70% from `12,116.96 crores in fiscal 2017 to
`15,472.91 crores in fiscal 2018. Consequently, profit before taxes declined by 97.78% to `121.57crores and net profit contracted
by 92.51%, from `3,679.28 crores in fiscal 2017 to `275.68 crores in fiscal 2018.
Net interest income

(` in crores)
Interest on loans 34,137.47 33,124.96 3.06

Interest on investments 9,983.30 9,622.82 3.75
Other interest income 1,659.54 1,794.38 (7.51)
Interest income 45,780.31 44,542.16 2.78
Interest on deposits 19,173.52 19,639.63 (2.37)
Other interest expense 7,989.06 6,809.41 17.32
Interest expense 27,162.58 26,449.04 2.70
Net interest income 18,617.73 18,093.12 2.90
Average interest earning assets1 541,127 492,868 9.79
Average CASA1 179,731 151,678 18.50
Net interest margin 3.44% 3.67% -
Yield on assets 8.44% 8.97% -
Yield on advances 9.12% 9.77% -
Yield on investments 7.14% 7.49% -
Cost of funds 5.15% 5.60% -
Cost of deposits 4.89% 5.54% -
1
computed on daily average basis
42
NII constituted 62.93% of the operating revenue and increased by 2.90% from `18,093.12 crores in fiscal 2017 to `18,617.73
crores in fiscal 2018. The increase is primarily due to an increase in average interest earning assets on a daily average basis by
9.79%, even as net interest margin (NIM) during the fiscal year 2018 contracted by 23 bps to 3.44%. The decline in NIM was mainly
on account of higher fall in yield on interest earning assets of 53 basis points (bps) as compared to 45 bps decline in cost of funds.
During this period, the yield on interest earning assets decreased from 8.97% last year to 8.44%. The yield on advances declined by
65 bps from 9.77% in fiscal 2017 to 9.12% in fiscal 2018 primarily due to higher interest reversals on NPAs and reduction in base
rate by 20 bps, even as marginal cost of funds based lending rate (MCLR) rose by 15 bps in the last quarter of the fiscal 2018. The
yield on investments contracted by 35 bps during the fiscal 2018. Cost of funds also moderated by 45 bps from 5.60% in fiscal 2017
to 5.15% in fiscal 2018 led by moderation in the cost of deposits and further aided by the Bank’s continued focus on CASA. During
the year, the cost of deposits decreased to 4.89% from 5.54% last year, primarily due to a decrease in cost of term deposits by 73
bps to 6.91% from 7.64% last year. CASA deposits, on a daily average basis, reported a healthy increase of 18.50% to `179,731
crores from `151,678 crores last year.
Non-interest income
(` in crores)
Fee income 8,866.97 7,882.01 12.50

Trading profit 1,616.76 3,400.34 (52.45)
Miscellaneous income 483.36 408.96 18.19
Non-interest income 10,967.09 11,691.31 (6.19)
Non-interest income comprising fees, trading profit and miscellaneous income declined by 6.19% to `10,967.09 crores in fiscal 2018
from `11,691.31 crores last year and constituted 37.07% of the operating revenue of the Bank.
Fee income increased by 12.50% to `8,866.97 crores from

FEE INCOME
(` in crores) `7,882.01 crores last year and continued to remain a significant
8,867 part of the Bank’s non-interest income. It constituted 80.85% of non-
17-18 interest income and contributed 29.97% to the operating revenue.
7,882 The share of granular fees comprising of Retail and Transaction
16-17 Banking fees witnessed improvement during the year and stood at
75% compared to 70% last year. Retail card fees, Retail non-card
7,502
15-16 fees and Transaction Banking fees constituted 18%, 30% and 27%,
respectively of the total fee income in fiscal 2018. The Corporate
6,779
14-15 Banking fee growth momentum remained weak during the year due
to lack of fresh investment demand and the Bank’s continued focus
5,985 on better rated corporate clients. The share of Corporate fee in the
13-14
overall fee profile stood at 18%. The rest 7% was contributed by
Treasury and SME segments.
During the year, proprietary trading profits declined by 52.45% to `1,616.76 crores from `3,400.34 crores last year mainly on
account of lower profits on SLR and bond portfolio in fiscal 2018 compared to fiscal 2017.
The Bank’s miscellaneous income was higher at `483.36 crores compared to `408.96 crores in previous year mainly on account of
recovery in written off accounts.
Operating revenue
The operating revenue of the Bank decreased by 0.67% to `29,584.82 crores from `29,784.43 crores last year. The core income
streams (NII and fees) constituted 92.90% of the operating revenue, reflecting the stability of the Bank’s earnings.
43
Operating expenses
(` in crores)
Staff cost 4,312.96 3,891.86 10.82

Depreciation 568.10 508.80 11.65
Other operating expenses 9,109.28 7,799.25 16.80
Operating expenses 13,990.34 12,199.91 14.68
Cost : Income Ratio 47.29% 40.96% -
Cost : Assets Ratio 2.17% 2.13% -
The operating expenses growth for the Bank moderated during the year to 14.68% as compared to 20.78% last year. The Bank
continued to focus on making investments in expanding branch network and other infrastructure required for supporting the existing
and new businesses, as a result of which the operating expenses increased to `13,990.34 crores from `12,199.91 crores last year.
The operating expenses to assets ratio stood at 2.17% compared to 2.13% last year.
Staff cost increased by 10.82% from `3,891.86 crores in fiscal 2017 to `4,312.96 crores in fiscal 2018, primarily on account of
5.29% increase in employee strength from 56,617 as at end of fiscal 2017 to 59,614 as at the end of fiscal 2018.
Other operating expenses increased by 16.80% from `7,799.25 crores in fiscal 2017 to `9,109.28 crores in fiscal 2018. The
increase is primarily due to investments in branch infrastructure and technology to support business growth. The Bank added 400
branches during fiscal 2018.
Operating profit
During the year, the operating profit of the Bank declined by 11.32% to `15,594.48 crores from `17,584.52 crores last year.
Provisions and contingencies

(` in crores)
Provision for non-performing assets 16,598.71 11,157.06 48.77
Provision for restructured assets/SDR/S4A (307.16) 290.53 -
Provision for standard assets including unhedged foreign currency exposure (144.30) 334.57 -
Provision for depreciation in value of investments (211.01) 238.70 -
Provision for country risk (19.94) 19.94 -
Provision for other contingencies (443.39) 76.16 -
Provisions and contingencies 15,472.91 12,116.96 27.70
During fiscal 2018, the Bank created higher amount of total provisions (excluding provisions for tax) of `15,472.91 crores compared
to `12,116.96 crores last year. The Bank provided `16,598.71 crores towards non-performing assets compared to `11,157.06
crores last year and `144.30 crores were written back for standard assets including unhedged foreign currency exposure compared
to `334.57 crores provided last year. During the year, there was a net write-back in provision against restructured assets/SDR/S4A
of `307.16 crores mainly due to accounts turning NPAs. The credit costs for fiscal 2018 stood at 3.57%, 75 bps higher than that
witnessed in fiscal 2017.
Asset Quality Parameters

The asset quality stress during the year continued to remain largely dominated by legacy corporate loans to stressed sectors like
iron and steel, infrastructure construction and power. The Bank added `33,419 crores as fresh addition to Gross NPAs during the
fiscal year with the Bank’s ratio of Gross NPAs to gross customer assets increasing to 6.77%, at the end of March 2018 from 5.04%
as at end of March 2017. In February 2018, RBI issued revised guidelines on Resolution of Stressed Assets. Under the revised
guidelines, all the extant instructions on resolution of stressed assets such as Framework for Revitalising Distressed Assets, Corporate
44
Debt Restructuring Scheme, Flexible Structuring of Existing Long

GROSS AND NET NPA
Term Project Loans, SDR Scheme, Change in Ownership outside (` in crores)
SDR and S4A Scheme were withdrawn with immediate effect. This 16,592
has resulted in higher NPA slippages due to accounts under these 17-18
34,249
schemes losing the ‘stand still’ benefit. 8,627
16-17
21,280
The Bank added `24,656 crores to Net NPAs after adjusting for 2,522
recoveries and upgradations of `3,853 crores and `4,910 crores 15-16
6,088
respectively and the Bank’s Net NPA ratio (Net NPAs as percentage 1,317
of net customer assets) increased to 3.40% from 2.11%. 14-15
4,110
1,025
During the fiscal, the Bank started disclosing the quantum of 13-14
3,146
low rated pool of stressed accounts in addition to the Watch List
Net NPA Gross NPA
disclosures, to provide a better sense of the source of stress. The
Bank added `27,345 crores of corporate slippages during the
year, of which 84% came from lower rated BB and below pool.
The Watch List that the Bank had first published in end March 2016 declined by 98% over FY17 and FY18 and residual balance of
the same stood at `428 crores as on 31 March, 2018. The residual Watch List has now been dissolved and continues to be a part of
the BB and below pool of standard advances.
The Bank’s provision coverage remained steady during the fiscal and stood at 65% after considering prudential write-offs.
The net restructured book stood at `1,087 crores and net restructured assets ratio (net restructured assets as percentage of net customer
assets) was 0.22%. During the year slippages from the standard restructured book stood at `5,096 crores.
The book value of the assets sold by the Bank to ARCs during fiscal 2018 was `42 crores (net of provisions). The consideration
(excluding accounts already written-off) was settled in cash of `67 crores.
KEY RATIOS
Particulars 2017-18 2016-17
Basic earnings per share (`) 1.13 15.40
Diluted earnings per share (`) 1.12 15.34
Book value per share (`) 247.20 232.83
Return on equity (%) 0.53% 7.22%
Return on assets (%) 0.04% 0.65%
Net interest margin (%) 3.44% 3.67%
Profit per employee (` lakh) 0.47 6.68
Business per employee (` crores) 14.84 14.00
Credit/deposit ratio (Domestic) 85.50% 79.07%
Credit/deposit ratio (Global) 96.92% 90.03%
Basic Earnings Per Share (EPS) was `1.13 compared to `15.40 last year, while the Diluted Earnings Per Share was `1.12 compared
to `15.34 last year. Return on Equity (RoE) and Return on Assets (RoA) stood at 0.53% and 0.04% respectively. Book Value per Share
increased by 6.17% to `247.20 from `232.83 last year. Profit per Employee stood at `0.47 lakh and Business per Employee stood
at `14.84 crores.
Credit Deposit (CD) ratio of the Bank as on 31 March, 2018 was at 96.92% with a domestic CD ratio of 85.50%. Considering
Infrastructure Bonds, that are more cost effective and asset liability management friendly than deposits of same maturity, as a part of
the Bank’s deposits base, the domestic CD ratio stood at 82.98%.
45
Balance Sheet parameters

Assets
(` in crores)
Cash and bank balances 35,481 50,256 (29.40)

Government securities 104,053 93,008 11.88
Other securities 49,823 35,786 39.22
Total investments 153,876 128,794 19.47
Retail advances 206,464 167,993 22.90
Corporate advances 174,446 155,904 11.89
SME advances 58,740 49,172 19.46
Total advances 439,650 373,069 17.85
Fixed assets 3,972 3,747 6.00
Other assets 1
50,377 45,602 10.47
Total assets 691,330 601,468 14.94
1
includes Priority Sector Lending deposits of `21,479 crores (previous year `17,107 crores)
Total assets increased by 15% to `691,330 crores as on 31 March, 2018 from `601,468 crores as on 31 March, 2017.
Advances
Total advances of the Bank as on 31 March, 2018 increased by
18% to `439,650 crores from `373,069 crores as on 31 March ADVANCES (` in crores)
2017, largely driven by healthy growth in the Retail segment. 439,650
Corporate advances comprised 40% of total loans and grew by 17-18
373,069
RETAIL ADVANCES AS % TO TOTAL ADVANCES 16-17
338,774
47% 15-16
17-18
45% 281,083
16-17 14-15
41% 230,067
15-16 13-14
40%
14-15
38% 12% to `174,446 crores, Retail loans comprised 47% of total loans
13-14
and increased by 23% to `206,464 crores, SME loans grew by
19% to `58,740 crores and constituted 13% of total loans.
The retail lending growth was led by auto loans, personal loans and credit cards. Mortgages continue to grow faster than the industry
growth. Home loans remain the largest retail segment and accounted for 40% of retail loans, retail agricultural loans accounted
for 15%, loans against property 8%, personal loans and credit cards together accounted for 14% and auto loans 10%, while non-
schematic loans comprising loan against deposits and other loans accounted for 13%.
Investments
The investment portfolio of the Bank increased by 19% to `153,876 crores, of which investments in Government and approved
securities, held mainly for SLR requirement, increased by 12% to `104,053 crores. Other investments, including corporate debt
securities, increased by 39% to `49,823 crores. 85% of the government securities has been classified in the HTM category, while
79% of the bonds and debentures portfolio has been classified in the AFS category.
46
Liabilities and shareholder’s funds

(` in crores)
Capital 513 479 7.10

Reserves and Surplus 62,932 55,284 13.83
Total shareholder’s funds 63,445 55,763 13.78
Deposits 453,623 414,379 9.47
- Current account deposits 95,650 87,002 9.94
- Savings bank deposits 148,202 126,048 17.58
- CASA 243,852 213,050 14.46
- Retail term deposits 137,795 123,925 11.19
- Non-retail term deposits 71,976 77,404 (7.01)
- Total term deposits 209,771 201,329 4.19
Borrowings 148,016 105,031 40.93
- In India 76,096 51,082 48.97
- Infra bonds 13,705 13,705 -
- Outside India 71,920 53,949 33.31
Other liabilities and provision 26,246 26,295 (0.19)
Total liabilities and shareholder’s funds 691,330 601,468 14.94
Deposits
The total deposits of the Bank increased by 9% to `453,623 crores against `414,379 crores last year. The high base effect of last
fiscal year that saw huge deposit inflows post demonetization impacted the deposit growth in fiscal 2018. Savings Bank deposits
reported a growth of 18% to `148,202 crores, while Current Account deposits reported an increase of 10% to `95,650 crores.
During the fiscal 2018, the Bank reduced the interest rate on Savings Accounts by 50 bps to 3.50% for deposits up to `50 lakhs. As
on 31 March, 2018, low-cost CASA deposits increased by 14% to `243,852 crores from `213,050 crores last year and constituted
53.76% of total deposits as compared to 51.41% last year. Savings Bank deposits on a daily average basis, increased by 16% to
`119,578 crores, while Current Account deposits reported a growth of 23% to `60,154 crores. The percentage share of CASA in
total deposits, on a daily average basis, was at 45.83% compared to 42.75% last year.
The Bank continued to maintain its focus on retail term deposits. As on 31 March, 2018, the retail term deposits grew 11% and stood
at `137,795 crores, constituting 65.69% of the total term deposits compared to 61.55% last year. As on 31 March, 2018, CASA
and retail term deposits constituted 84.13% of total deposits.
Borrowings
The total borrowings of the Bank increased by 40.93% from `105,031 crores in fiscal 2017 to `148,016 crores in fiscal 2018.
During the fiscal, the Bank issued senior fixed rate bonds aggregating to US $ 500 million under its Global Medium Term Note (MTN)
programme in the international markets. Domestically, the Bank raised `5,000 crores through Subordinated Debt and `3,500 crores
through Additional Tier I bonds during the fiscal. The outstanding balance in long term infrastructure bonds as on 31 March, 2018
was `13,705 crores.
Capital Management
The Bank continues its endeavour for greater capital efficiency and shoring up its capital adequacy to enhance shareholder value.
In order to achieve this objective, the Bank has been focusing on increasing the proportion of lower risk weighted assets. With asset
quality on mend and loan mix having largely diversified, the Bank’s capital management framework attains further prominence for
better utilisation of capital for an optimal mix of businesses.
During the year under review, the Bank raised capital in the form of equity and debt to support future growth. It raised Tier I capital in
the form of equity through preferential allotment of equity shares to select investors. The Bank mobilised an aggregate of `8,653.79
crores (net of share issue expenses) through this offering, by issuing 165,328,892 equity shares collectively to Bain Capital, LIC of
India and other marquee investors. The equity shares offered in the preferential allotment were priced at `525 per share. The Bank
also issued 45,357,385 warrants convertible into equity shares to entities associated with Bain Capital and Capital Group at a price
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of `565 per share. During the year, the Bank also raised capital of `8,500 crores through issuance of Tier I and Tier II bonds, of which
Tier I was `3,500 crores and Tier II was `5,000 crores.
These measures have significantly strengthened the capital position of the Bank, particularly core Tier I capital, providing adequate
support for future growth.
The Bank is well capitalised with an overall capital adequacy ratio (CAR) under Basel III being at 16.57% at the end of the year,
well above the benchmark requirement of 9.00% stipulated by Reserve Bank of India (RBI). Of this, the Common Equity Tier I (CET
I) CAR was 11.68% (against minimum regulatory requirement of 5.50%) and Tier I CAR was 13.04% (against minimum regulatory
requirement of 7.00%). As on 31 March, 2018, the Bank’s Tier II CAR under Basel III stood at 3.53%.
The Bank has implemented the Basel III capital regulation from 1 April, 2013 in a phased manner which is to be fully implemented as
on 31 March, 2019. This will also align full implementation of Basel III in India closer to the internationally agreed date of 1 January,
2019.
The following table sets forth the capital, risk-weighted assets and capital adequacy ratios computed as on 31 March, 2018 and 31
March, 2017 in accordance with the applicable RBI guidelines under Basel III.
(` in crores)
Particulars 2017-18 2016-17
Tier I capital 67,476.27 56,039.32

Tier II capital 18,298.59 14,565.85
Out of which
- Tier II capital instruments 16,035.00 12,366.01
- Other eligible for Tier II capital 2,263.59 2,199.84
Total capital qualifying for computation of capital adequacy ratio 85,774.86 70,605.17
Total risk-weighted assets and contingencies 517,630.78 472,313.18
Total capital adequacy ratio 16.57% 14.95%
Out of above
- Common equity tier I capital ratio 11.68% 11.13%
- Tier I capital ratio 13.04% 11.87%
- Tier II capital ratio 3.53% 3.08%
BUSINESS OVERVIEW
An overview of the Bank’s various business segments along with their performance during financial year 2017-18 and future strategies
is presented below.
Retail Banking
Retail Banking – Bedrock of the Bank’s performance
Retail Bank continues to be the bedrock of Bank’s financial performance. Strong execution, robust distribution and digital proliferation
has helped the Bank gain strong market share and improve customer experience. During the financial year 2017-18, Retail contributed
63%, 47% and 48% of the Bank’s deposits, advances and fee income respectively.
The Bank has over the years developed long-term relationship with its customers by being their preferred financial solutions provider
across their needs. Customer centricity and innovation remain the core pillars through which the Bank has been fulfilling the financial
needs and aspirations of its customers and the society at large.
In addition to acquiring new customers, the Retail Banking strategy has been to deepen relationships with existing internal customers,
led by big data analytics for growth. The Bank has created a strong and contemporary digital backend to support its operations.
Further, adopting design-thinking approach, process automation and partnership-driven innovation has enabled the Bank to harness
the true potential that Retail Banking in India has to offer.
India – Immense Potential for Retail Banking

India continues to offer immense potential and opportunities for the Retail Banking franchise. The Bank sees exciting times ahead with
four key themes shaping the future of retail banking in the next five years -
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1. Low penetration numbers across key products - low housing loan penetration (2.5%), household debt at very low level (11%),
low penetration of acceptance infrastructure for digital payments (165 Point Of Sales terminals per 100,000 adults)
2. Rapid technology adoption amongst all income and social strata due to falling cost of data and internet access
3. Democratization of data with India Stack and open application programming interfaces (APIs)
4. Concerted efforts to formalize the economy through tax reforms, introduction of Goods and Services Tax (GST), digitization
of high volume low value transactions, Aadhaar seeding across financial & non-financial services and the drive for affordable
housing
Leveraging these macro trends has helped the Bank create ‘real progress, real impact’ across customer segments and businesses
resulting in higher market share specifically in digital payments space. The pace at which the Bank has gained market share in digital
space compared to its traditional banking business is a testimony to the Bank’s predilection for digital and customer.
Technology and Analytics – The Back Bone of growing Branch Network

Branches are not just places where the customers transact and conduct business but also are edifices of trust. The Bank believes that
branches continue to play an integral role not only in deposit mobilisation from new to bank customers, but have also been core driver
of the Bank’s acquisition strategy across products. Savings Bank deposits grew by 18% while the Retail Term Deposits grew by 11%
during the year. As on 31 March, 2018, the Bank had over 22.5 million savings account customers, registering a growth of 11%. The
sourcing of retail loans through branches has seen significant improvement over the years and contributed 50% to overall sourcing in
FY18 vis-à-vis 36% in FY13.
The Bank therefore sees greater merit in a calibrated growth of its branch network through combination of advanced analytics that help
in identifying high potential locations and technology tools that increase staff productivity & smaller branch formats.
During the year the Bank added 399 domestic branches/banking outlets and 1 offshore banking unit at IFSC, GIFT City, Gandhinagar.
The Bank’s geographical reach now extends to 29 states and 6 union territories, covering 2,163 centers and 653 districts. As on 31
March, 2018, the Bank had a network of 3,703 domestic branches/banking outlets as compared to 3,304 last year. Around 17%
of the Bank’s branches are in rural areas and 78% of the Bank’s rural branches are in unbanked locations. As on 31 March, 2018,
the Bank had 13,814 ATMs. The Bank was the first private sector Bank to introduce recyclers, which can accept and dispense cash.
As on 31 March, 2018, the Bank had deployed 2,263 recyclers. The recycler handles 40% of the overall cash deposits at the Bank,
leading to efficient use of Bank Staff.
The Bank has also successfully scaled up the ‘Saksham’ initiative, aimed at improving the customer experience by providing a single
screen for instant fulfilment of various service requests. Saksham currently processes over 55 million transactions and service requests
annually
Speed Banking kiosks are a flagship initiative. Walk in customers can do financial and non-financial transactions on these kiosks. The
Bank has added 302 speed banking kiosks in fiscal 2017-18 and intends to keep increasing the digital footprint further.
The Bank has deployed about 20,000 biometric readers across its network to leverage eKYC (electronic know your customer)
for account opening and other Aadhaar-based services thereby creating seamless authentication experience for customers even at
branches. 75% of the Bank’s key service requests at branches are being serviced through the instant gratification mode.
Retail Advances – The Growth Engine

The Retail Advances portfolio has grown at a CAGR of 26% over the last five years and stood at `206,465 crores as on 31 March,
2018 up 23% from `167,993 crores last year. The Bank continued to increase its share of retail loans to total advances, which stood
at 47% compared to 33% in March 2013. The Bank has been able to grow retail advances faster than Industry by focusing on two
key areas:
• Deepening within existing branches coupled with expansion in new geographies, where the Bank already had seasoned
branches.
• Increased use of analytics that helped not just in identifying the right target segments but also helped in keeping risks under
control.
Overall, about 50% of incremental retail loans were sourced through branches in fiscal 2018. Existing deposit customers contributed
about 72% of the incremental retail loans, which in turn has helped the credit quality of retail loans to remain steady. The Bank has
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steadily diversified its retail loan portfolio into a broad based portfolio spanning rural loans, personal loans, small business banking
loans, vehicle loans and credit cards etc. which had been dominated by home loans in the past. Secured loan products accounted for
84% of retail loans. Of the total portfolio, home loans accounted for 40%, rural loans accounted for 15%, auto loans 10% and loans
against property 8%. The Bank has been comfortable taking on granular risk and the unsecured retail loans stood at 16% of the total
portfolio, with personal loans and credit cards accounting for 10% and 4%, respectively.
Small Business Banking (SBB) has emerged as one of the growth engines in retail lending space with a targeted focus on small
borrowers. SBB book grew by 81%, which can be attributed to the continuous iteration across sales processes, score-based decision
making and strong engagement at the branch level.
Building scale and leadership in traditional and newer models of Digital Payments
As the economy continues to go digital, there has been a significant behavioral change in retail payments – from large value-
low volume transactions using credentials that are managed by the Bank to small ticket size-high volume transactions using public
credentials. This shift has presented the opportunity to broad base payments. The new age digital payments are outgrowing cash, but
the opportunity remains large and compounding effect will show over time.
Digital Payments continues to be at the core to the Retail Banking strategy. UPI is at the forefront of this digital ecosystem as the Bank
is leveraging UPI to attract non-Axis Bank customers. The Bank was among the early entrants to work closely with NPCI for UPI launch.
The Bank has built strong technology platform and developer friendly API’s that allow partners, startups to plug & play Axis UPI on
their mobile applications. The Bank has used this head start to its advantage by making this platform available to multiple partners
like Google Tez, Uber, Samsung Pay, LIC, IRCTC, Big Bazaar. Today the Bank has a share of 15% in UPI transactions, with over 11.5
million UPI IDs onboarded and 64% of them being non-Axis Bank customers.
The Bank’s traditional cards business continues to grow and deepen the franchise. The Bank is one of the largest debit card issuers
in the country, with a base of 22.34 million and going forward ~50% of cards issuance are going to be enabled for contactless
payments. The Bank had over 4.48 million credit cards in force as on 31 March, 2018, making it the 4th largest credit card issuer in
the country. The credit cards portfolio saw a substantial increase in spends by 54% to `44,328 crores from `28,740 crores last year.
The Bank’s merchant acquiring business continues to be one of the largest acquirers in the country with over 502,226 base of installed
terminals of which 225,819 terminals are enabled for accepting contactless payments. The Bank is also using digital technologies like
Bharat QR to drive high volume-low value payments acceptance use cases.
Rapid Adoption of Mobile and Internet Banking Channels

The Bank takes a holistic view of digital that transcends beyond mobile applications and customer interfaces. Taking cognizance of the
fact that with the onset of fintech startups and global technology giants, customers are now comparing buying journeys across product
categories; the Bank has extensively adopted a Design thinking approach with greater use of customer usability panels to test design
and flows of various digital journeys. The bank has seen immediate results of this approach.
During the year, an improved and redesigned version of Axis Mobile App was launched with several new and useful features for the
customers like a dedicated loan centre, credit card spend analyzer, notifications and a newer dashboard. The focus was on increasing
discoverability of various products and services within the app. The version was well received and has helped the Bank to significantly
improve Google play store ratings for its App.
In November 2017, the Bank launched its first online ekYC based account Axis ASAP. Axis ASAP offers customers the opportunity to
open bank accounts instantly in minutes without any paperwork. The Bank has seen a strong consumer response with the number of
accounts opened already crossing the 2.5 lac mark.
The Bank launched Axis Aha! Chatbot on the website in December 2017. Axis Aha! is a conversational assistant powered by artificial
intelligence and uses machine learning to assist customers with banking services. The Bank has been among the first in the industry
to enable financials transactions via simple chats; Just type Pay `200 to Sam and Axis Aha! does the rest. Axis Aha! lets users
send money, pay mobile bills, do recharges or block cards. It also answers user questions on FAQ’s, loans and general help. Since
inception, it has processed over 3.5 lac conversations, answered over 1.3 lac FAQs and transacted over `12.5 lacs.
The mobile banking user base witnessed a 72% increase in fiscal 2018 and the Bank was ranked number 1 by mobile banking
transactions value in August and October 2017 as per data published by RBI. Axis Internet Banking too has witnessed strong adoption
and has been awarded with prestigious Best Retail Online Banking Experience, India award at The Asset Triple A Digital Awards
2017, Hong Kong.
Digital as a strong lever for enhancing service levels and productivity

The Bank is making greater use of technology to further reduce account opening times. The entire sales force is equipped with tablets
that helps them on-board savings accounts, current accounts and credit card customers in a paperless process. Tablet based account
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opening now forms the back bone of customers on-boarding journey.
Robotic Process Automation (RPA) and Artificial Intelligence (AI) were extensively adopted with the objective of improving turnaround
time and efficiency. Through an extensive process redesign exercise, 90 key processes were identified for re-architecting using RPA
and AI. By process Re-Engineering and digitisation, the Bank has been able to reduce the turnaround time on savings and current
account opening by about 90%; and on various other processes by 50%-80%. In addition to improving efficiency, there was significant
impact on customer satisfaction and risk containment as well.
Enabling Wealth Creation through Niche Offerings

During the year, Burgundy – the Bank’s unique offering for its affluent customers further consolidated its portfolio. The AUM of Burgundy
customers with the Bank, across banking and wealth management products, crossed the `1 lakh crore milestone to end the year at
`123,298 crores (~[US$ 18.92 billion]). Savings account balances have been growing at a CAGR of 23% over the last 4 years while
fee from wealth management services has been growing at a CAGR of over 55% over the last 4 years - demonstrating a healthy mix
and sustainable growth for the business. Burgundy customers represent a unique blend of traditionally wealthy along with affluent
millennials. On an average, each Burgundy family has availed 4.56 unique products from the Bank.
A strong and growing 30 million Indian diaspora (NRIs and PIOs) across the world look for a trusted banking partner in India; through
a focused approach, the Bank has been strengthening its proposition to better serve these customers. The Bank offers a complete
suite of banking and investment products under its NRI Services for Indians living and working overseas. NRIs can open an account,
operate it and also invest in deposits, secondary market or mutual funds, all through the comfort of their home or office overseas by
way of strong digital offerings. The Bank also offers a range of premium services to NRI customers under the NRI Burgundy and NRI
Priority program.
The Bank launched two key customer centric initiatives in this space this year. The first was Dedicated Inward Remittance rates for NRI
customers on wire transfers, making it absolutely transparent and simple for customers. The Bank also launched new digital remittance
platform, remitmoney.com, to bring convenience in every remittance transaction to its customers. Going a step ahead and assisting
NRIs beyond just financials, the Bank also tied up with Indian Health Organization (IHO) for discounted health services for the NRI
Family Banking customers.
Axis Bank today is one of the leading distributors of mutual funds in India and distributes products of 13 major asset management
companies. These investment products are mainly offered by the Bank’s branch network and digital channels based on a thorough
analysis of the customers’ lifecycle and lifestyle requirements. The Bank has over 1 million mutual fund customers and generates a fee
income of around 11% of the total Retail Banking fees. The Bank also offers online trading services to its customers in collaboration
with Axis Securities Ltd. (a 100% subsidiary of the Bank) under the name Axis Direct. Axis Direct crossed 1.8 million total customers
during the year.
Insurance penetration in India is almost half of the global average, product suitability and fitment is the key and the Bank has taken
several measures to ensure customers get the product best suited for their needs. With Max Life Insurance, the Bank has now secured
over 1 million lives since inception of the partnership. Partnership with Life Insurance Corporation of India has given the desired choice
to prospective customers and Bank has insured 19,000 customers through LIC of India in its very 1st year of the relationship making the
Bank one of the leading bancassurance partners for LIC. In General insurance, the Bank has a tie-up with Tata AIG General Insurance
Company Ltd. (American International Group) and for health insurance with Apollo Munich Health Insurance Company Ltd. The Bank
remains committed to bring the best of insurance products that best suit the needs of its customers and is constantly looking at more
and better avenues.
Using Technology to bring the under-served into the mainstream

Financial Inclusion is an integral component of the Bank’s rural strategy to further extend reach in the rural market. During financial
year 2017-18, the Bank has covered 0.22 million rural people in 15,240 Financial Literacy Camps under ‘Pragatishala’. The Bank
launched project DigiPrayas across villages which has impacted 80,000 lives through opening of 4,500 basic savings accounts,
appointing 50 Business Correspondents, seeding of 4,100 accounts with Aadhaar. Under PMJDY, Bank has opened over 0.77 million
accounts of which 89% customers have been issued Rupay Cards with a total balance of `225 crores. Overall, the Bank has issued
0.85 million Pradhan Mantri Suraksha Bima Yojana (PMSBY) and 0.22 million Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
policies of which, the Bank has registered 599 claims under both insurance scheme. Further, the Bank has actively promoted Atal
Pension Yojana (APY) wherein the Bank is ranked first amongst all private sector banks in sourcing of APY. Overall, 0.23 million
customers have been enrolled under APY.
The Bank’s home loan product Asha Home Loans for aspiring first time home owners belonging to the low-income group (LIG) and
economically weaker segments (EWS) has seen 40% increase in book size from `3,131 crores as on 31 March, 2017 to `4,371
crores as on 31 March, 2018.
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Corporate Banking
During the financial year 2017-18, the credit off take by the corporate segment was marginally better compared to previous fiscal
even as the asset quality issues continued to weigh on the sector. The credit growth continued to improve through the year aided by
the fading base effect of demonetisation. The tightening liquidity conditions resulted in sharp rise in bond yields towards the second
half of the fiscal which helped in shifting the credit demand back from bond markets to banks.
While the basic industries like steel and construction saw pickup in loan growth, credit off take to the core industrial segments like
power, metals, roads and energy remained weak due to low capex and leveraged corporate balance sheets. The Government and
Regulator’s efforts to alleviate and resolve the asset quality issues through implementation of Insolvency and Bankruptcy Code have
been progressing well and the resolution for some of the large stressed accounts is expected in the near term. The regulator’s recent
guidelines on resolution of stressed assets are further likely to expedite the recognition and resolution mechanism. The ongoing NCLT
resolution mechanism under IBC is likely to result in stressed assets going into the hands of stronger sponsors and this will result in
consolidation of banking relationships and refinancing opportunity for the larger banks.
In the corporate segment, the Bank’s strategic focus in recent years has been towards building a higher rated lending book, increase
the share of working capital loans and reducing the concentration risk. During the fiscal 2018, the Bank’s corporate loan growth
picked up to 12% as compared to flat growth in fiscal 2017 with working capital loans growing by 63% YOY.
The Bank continues to focus on lending to higher rated corporates with operational cash flows. Approximately 86% of new sanctions in
the corporate book were to companies rated ‘A’ and above. Presently, 77% of outstanding standard corporate loans are to companies
rated ‘A’ and above. At the same time, we have been focussing on increasing the share of working capital facilities in the overall
business composition tapping the pool of better rated corporates. The share of working capital exposures to overall corporate loan
book has increased from 22% in 2017 to 32% in 2018.
The Bank’s strategy of portfolio diversification through sectoral approach to credit continued where the focus was on identifying sector-
specific opportunities and risks. The concentration risk continues to see a steady decline in the last few years with exposure to top 20
single borrowers as percentage of Tier-1 capital at 121% as on end March 2018, as compared to 283% at the end of fiscal 2010.
The corporate client relationship model introduced a few years ago continued to prove beneficial for the bank. The Bank along with
its subsidiaries addresses most of financial services requirements of a corporate be it borrowing, trade finance, cash management,
remittances, investment banking, security services etc. The holistic approach has moved the Bank away from just sales based approach
of offering corporate credit to providing an entire bouquet of products and services.
The Bank continues to focus on the government business and widened its footprint in PSUs during the year. The Bank also increased its
focus on tapping credit opportunities in the new Digital Age businesses through a sub-vertical New Economy Group (NEG). Further,
Bank has identified the Food processing and Agro processing industries as sunrise sectors. The credit opportunities in these industries
are also tapped by NEG. The loan book of NEG business has grown strongly by 584% in fiscal 2018.
International Banking
The International Banking strategy of the Bank continues to revolve around leveraging its relationships with corporates in India and
non-resident Indians, by providing banking solutions at overseas centres. The Bank, through its international operations, leverages 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 strategic international presence
in seven countries through its branches in Singapore, Hong Kong, DIFC – Dubai, Colombo and Shanghai, representative offices at
Dubai, Abu Dhabi, Sharjah and Dhaka; an off-shore banking unit in International Financial Service Centre (IFSC), Gujarat International
Finance Tec-City (GIFT City), Gandhinagar and a wholly-owned overseas banking subsidiary in the United Kingdom. During the year,
the Bank witnessed opening of its sixth branch, an offshore banking unit at IFSC, GIFT City, Gandhinagar. GIFT City Branch will make
its contribution towards government’s initiatives of growth of IFSC in India besides consolidating its corporate banking business there.
The bank also opened its fourth Representative Office at Sharjah, UAE in March 2018. The Representative Office will promote the
retail business emanating from the affluent and mass affluent segment of NRIs in UAE, as is being done by existing Representative
Offices. The Bank continues to offer corporate banking, trade finance, treasury and risk management solutions through the branches
at Singapore, Hong Kong, DIFC, Shanghai, Colombo and GIFT City and retail liability products from its branches at Hong Kong and
Colombo. The Bank’s Gulf Co-operation Council (GCC) initiatives in the form of representative offices in UAE 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. The representative office at Dhaka promotes trade finance business arising between Bangladesh
and India & other Asian financial markets where Bank has a presence.
During the year under review, emphasis continued towards trade finance business and value added services. As on 31st March, 2018,
the total assets at overseas branches stood at USD 9.36 billion as compared to USD 8.37 billion last year. Axis Bank UK Limited
(ABUK), the Bank’s overseas banking subsidiary, completed its fifth year of operations during the year under review. The total assets
of ABUK stood at USD 1,040 million as on 31 March, 2018, as against USD 823 million as on 31 March, 2017.
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Treasury
The Bank’s Treasury function comprises Asset Liability Management (ALM), Proprietary trading business in Interest rates & Equity,
Foreign Exchange & Derivatives and Arrangership business.
The ALM group manages the regulatory requirements of Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR) and Liquidity
Coverage Ratio (LCR). The group also manages the liquidity, interest rate and currency risks in the Bank’s portfolio, under the guidance
of the Asset Liability Committee (ALCO) of the Bank. ALM group is responsible for overall liquidity management of the domestic book
and longer term liquidity management of the overseas branches across geographies.
The proprietary trading group in Government securities within Treasury plays an important role of market making, participating in
primary auctions of RBI etc. The Bank also holds one of the largest Corporate bond investment portfolio with 95% of them have rating
of atleast ‘A’ and runs limited trading book in Equity, Commercial papers and Certificate of deposits.
Forex Trading Group is a major participant in the Foreign Exchange & Derivatives market. The group provides risk management
and hedging solutions to a wide range of corporate customers and financial institutions. The Bank was awarded the First Rank by
Euromoney in their FX Survey 2016 in eight categories amongst Asian Corporate Respondents and in eleven categories amongst
Indian Corporate Respondents.
The Bank continues to remain a dominant player in the Debt Capital Market (DCM) Segment. During the year, the Bank arranged
`184,104 crores of bonds and debentures for various PSUs and corporates. The Bank has been ranked number one in the Bloomberg
Official League Table for domestic bonds in India for the 11th consecutive year for calendar year 2017. Bank has also been ranked
number one arranger as per Prime Database for the nine months ended December 2017.
In International Debt Capital Markets business, the Bank has been a leader in this segment covering USD/EUR bonds, Masala bonds,
Green bonds etc. The Bank was the Lead Manager in the very first Masala Bond issue and the first Green Masala Bond issued by
domestic companies.
During the year, the Bank was awarded Best DCM House in India by Finance Asia and Best Bond Adviser – Domestic India-2017 at
The Asset Triple A Country Awards. The Bank was also ranked among the Top banks in the secondary market in Asia currency bonds
(India)-Corporate Bonds by The Asset Benchmark Research.
Transaction Banking
Transaction Banking unit focuses on the flow businesses, i.e. current accounts, collection & payments solutions, trade services, forex
remittances and capital market solutions. It caters to corporates, SMEs, financial institutions, Government segment and also to retail
customers for their forex requirements such as forex cards and wire transfers.
The key financial deliverables of the business are current account float balances and fee income. Current account balances grew from
`87,002 crores as on 31 March, 2017 to `95,650 crores as on 31 March, 2018, a year on year growth of 10%. Daily average
balances in current accounts grew 23%, from `48,800 crores in fiscal 2017 to `60,154 crores in fiscal 2018. The business generated
a fee income of `2,396 crores in fiscal 2018, a growth of 18% year on year.
The key themes that the business has been focusing on are deepening share of wallet for existing clients, offering digital solutions to
customers and enhancing customer service. The relationship managers and branches are continuously equipped with analytical tools
and learning interventions to help cross-sell the large suite of transaction banking products to customers.
Current Accounts
The Bank has over 1.9 million current accounts served through a range of customised, sector specific offerings. The Bank has made
significant investments and enhancements in its online banking platforms for driving digital adoption and channel migration. Further,
the Bank continues to focus on deepening the current account relationships by cross-selling other products such as tax payments, cash
management solutions, loans, forex and trade products.
Cash Management Solutions

The Bank provides comprehensive and customizable cash management solutions that enable faster fund movement by leveraging the
Bank’s extensive physical network backed by state-of-the-art technological systems. To provide a seamless experience to its customers,
the Bank has integrated all its digital products onto its new Corporate Internet Banking platform. The Bank also provides digital bulk
payment solutions that include front-end file-upload for various payments and ERP integration for high-transacting corporates. The
enhanced collections product suite includes new features like National Automated Clearing House (NACH) Debit, Unified Payments
Interface (UPI), Aadhaar E-sign mandate and innovative easy-to-use Point of Sale machines, increasing the breadth of options available
to customers.
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Government Business
The Bank has been authorised by Reserve Bank of India and Government of India (GOI) to handle all Government Banking transactions
which includes the following:
• Collection of Direct taxes
• Collection of GST in all branches in online as well as offline mode
• Disbursement of Central Civil as well as Defence Pensions
• Accredited by Reserve Bank of India as one of the authorized banker for Ministry Of Urban Development, Ministry of Housing
and Poverty Alleviation, Controller General of Accounts and Institute of Government accounts and finance
The Bank is a participating entity in the Government’s Public Financial Management System (PFMS). PFMS monitors different social
sector programmes in India and tracks the disbursement of funds in relation to such programmes, using an online management
information system and decision support system. The Bank also is associated with the e-Governance initiatives of five states and
union territories, namely Andhra Pradesh (e-Seva), Karnataka (Bangalore One and Karnataka One), Chandigarh UT (Sampark),
Chhattisgarh (Chhatisgarh Online information system for Citizen Empowerment), Uttar Pradesh (e-Suvidha) aimed at providing better
services to the citizens. Further, the Bank is also involved in various digital initiatives of GOI which includes e-Procurement, e-mandi,
e-nagarpalika, direct benefit transfers, smart city, online payment gateways and cashless initiatives through various modes.
Trade, Forex and risk management Services

The Bank offers a complete suite of Trade finance and foreign exchange business solutions through Forex B category branches spread
across the country. The Bank also offers a variety of hedging solutions such as exchange and interest rate derivative structures,
including forwards, options and swaps in accordance with the regulatory guidelines and derivative policy of the Bank. Overall, client
risk management service continues to be a strong business franchise for the Bank with total annual turnover expected to reach close
to `4 lac crores in this financial year. In addition to the services offered through branch and subsidiary network spread across India,
the Bank also leverages its tie-ups with reputed correspondent banks across the world to offer these services to overseas customers.
The Bank is one of the few private sector banks on-boarded as advisory bank in Government e-Marketplace (GeM). This tie-up enables
the Bank to offer automated solution for advising electronic performance guarantees (e-PBG) to Govt. departments/organisations/
PSUs with value added features like integrated responses and faster turnaround time.
International Retail
The Bank offers a range of forex and remittances products to its retail customers, which include forex cards, inward and outward wire
transfers, traveller’s cheques and foreign currency notes, remittance facilities through online portal as well as through collaboration
with correspondent banks and exchange houses. The Bank offers remittances facility to NRI customers through the Bank’s Sri Lanka
Branch and Axis Bank UK Ltd., for remittances to India. Additionally, the Bank offers remittances from Gulf Co-operation Council (GCC)
region to Sri Lanka through tie-up with four exchange houses.
The Bank continues to have a market leadership position in forex cards with 16 currency options other than INR being offered.
Additionally, the Bank offers Miles & More Multi-Currency Forex Card in association with Lufthansa airline aimed at frequent flyers, an
industry first in this segment. In line with the continuing focus on enabling digital channels for its customers, the Bank has enabled Axis
Mobile app for the standalone forex card holders. The aggregate load value on forex cards crossed USD 9 billion during the year.
The volumes of retail remittances also rose by 8% during the year and the Bank processed outward remittances of USD 4 billion and
inward remittances of USD 9.3 billion.
Custodial and Capital Market Services

The major activities undertaken by the Capital Market Division are fund based and non-fund based credit facilities, clearing bank
activities, Professional Clearing Member Services (PCM), NSCCL custodian services, fund accounting services, IPOs, dividend
distribution & escrow services.
The Bank acts as a clearing bank and professional clearing member across exchanges in India providing clearing member services
and funds clearing solutions to exchange members. The Bank is also a SEBI registered custodian of securities servicing various segment
of clients viz. Foreign Portfolio Investments, Foreign Direct Investments, Portfolio Management Service Providers and Foreign Venture
Capital Investors etc. Assets under custody services are over `58,224 crores.
Lending to Small and Medium Enterprises

Small and Medium Enterprises (SME) play a crucial role in shaping the economic growth and development of the nation. The sector
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has also been regarded for fostering entrepreneurship, employment generation and innovation. The government has in the recent years
provided major impetus through various programs and schemes to strengthen the SME sector. During the year, while the implementation
of GST led to formalisation of businesses for SMEs after initial disruptions during the transition phase, the subsequent measures like
rationalisation of GST rates and change in the criteria for classification of MSMEs are likely to aid the SME growth.
The Bank, by virtue of its understanding and expertise in SME business, is committed to provide timely, adequate and hassle free credit
to the SMEs across sectors. The Bank, through its 66 dedicated SME Centres and more than 3,500 Branches, is able to offer best-in
class lending and other banking services to customers. The Bank’s SME Business comprises of three business verticals namely Medium
Enterprises Group (MEG), Small Enterprises Group (SEG) and Supply Chain Finance (SCF).
The Bank has a wide range of regular and customised products designed for SME customers across manufacturing, trade and services
sectors including Working Capital, Term Loan, Trade Finance, Project Finance and Bill / Invoice Discounting etc. The SME Business in
the Bank continues to focus towards lending to the Priority sector (PSL) and is a significant contributor to the Bank’s overall PSL portfolio.
During the fiscal, the Bank’s SME advances grew at 19% to `58,740 crores from `49,172 crores last year. The SME portfolio of the Bank
constituted 13% of the Bank’s total advances as on 31 March, 2018.
With a commitment to support the SME growth, the Bank has taken its Evolve series - an educational initiative for SMEs - to a new level.
The 4th edition of Evolve was organised around the concept of How Family Business may be transformed into successful business in 30
cities where more than 3,000 SMEs participated. Similar to last three events, the fourth edition of Evolve series was much appreciated
by all the participants and has become a signature initiative in building the SME capacity. These initiatives were aligned to relevant
government initiatives/national priority programs such as ‘Make in India’, ‘Skill India’ and ‘Digital India’.
Despite the challenging environment, the asset quality in SME segment has remained relatively stable and the focus remains on building
a quality portfolio by acquiring better rated SME customers. Advanced business analytics is being used to identify potential borrower
across various sectors. The Bank also uses the Early Warning Signals tool which helps the Bank to identify unfavourable sectoral trends
early in the cycle and take corrective action if necessary. We continue to source good rated Customers and maintain quality of portfolio.
Business Intelligence Unit

Artificial Intelligence and machine learning are changing lives globally at rapid pace. Businesses are adopting AI and machine learning
across industries to revolutionize customer experience, personalization and decision making.
The Business Intelligence Unit along with Thought Factory (Axis Innovation Lab), is setting up an AICoE (Artificial Intelligence Centre of
Excellence) to build and enhance customer facing solutions such as creation of personalized product recommendations, improved customer
targeting by smart micro-segments through identification of latent behavior patterns, identification of customer base for pre-approved
loans and planning of branches and ATM locations. This Centre will also help identifying fraudulent card transactions, identifying point
of compromise at ATMs in case of skimming and to prioritize investigation on complex money laundering transactions.
This year, the Bank is going live with its Big Data Lake project for implementing scalable analytical solutions to bring personalized banking
services for its customers in real time. As a first for Micro Finance Industry, the Bank has built an integrated Tab sourcing and Big Data
platform to understand borrower’s behavior for better credit decision making and underwriting. At Axis Bank we are investing significantly
in tools and technology infrastructure for understanding unstructured data (like email text, voice data from call center, video data from
CCTV cameras etc.) to build customer centric solutions on top of it.
Risk Management
The risk management objective of the Bank is to balance the trade-off between risk and return and ensure that the Bank operates within
the Board approved risk appetite statement. An independent risk management function ensures that the risk is managed through a risk
management architecture as well as through policies and processes approved by the Board of Directors encompassing independent
identification, measurement and management of risks across the various businesses of the Bank. 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 continues to focus on refining 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 profile 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 defined 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 significant 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-defined 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
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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 Governance Committee (SGC), Reputation Risk Management Committee (RRMC), Information Security Committee
(ISSC), Central Outsourcing Committee (COC) and Business Continuity Planning Management Committee (BCPMC) operate within
the broad policy framework of the Bank.
Credit Risk
Credit risk is the risk of financial 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 maintaining asset quality and concentrations at
individual exposures as well as at the portfolio level.
Internal rating forms the core of the risk management process for wholesale business with internal ratings determining the acceptability
of risk, maximum exposure ceiling, sanctioning authority, pricing decisions, review frequency. For the retail portfolio including small
businesses and small agriculture borrowers, the Bank uses different product-specific scorecards. Large, risky or complex exposures
require to be independently vetted by the risk department for each incremental transaction whereas small, templated exposures are
extended within the approved product policies. 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.
Credit models used for risk estimation are assessed for its discriminatory power, calibration accuracy and stability independently
by a validation committee.
During the year the Bank has brought greater alignment in bank level appetite and the operational limits. The key risk metrics are
monitored regularly and deviations are discussed with business to decide on the course of remedial action. The governance around
deviation from internal limits has also been considerably strengthened. Asset quality target on incremental corporate loan business
have been considerably tightened over the past few years. While parts of corporate portfolio remain under stress, key asset quality
metrics have all moderated during the year. Concentration limits have also been tightened over the past few years.
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 market risk limits and comparable benchmarks which
provides guidance to the business in optimizing the risk-adjusted rate of return of the Bank’s trading and investment portfolio.
Market risk management is guided by well laid down policies, guidelines, processes and systems for the identification, measurement,
monitoring and reporting of exposures against various risk limits set in accordance with the risk appetite of the Bank. Treasury
Mid-Office 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, trigger limits, gaps and sensitivities (duration, PVBP, option greeks) are used as non-statistical measures of market
risk management.
Historical data calculated at a 99% confidence level for a one-day holding period over a simulation and its variants are used to
compute VaR for the trading portfolio 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 efficacy of the model. VaR measurements are supplemented with a series
of stress tests and sensitivity analyses as per a well laid out stress testing framework.
Liquidity Risk
Liquidity is a bank’s capacity to fund increase in assets and meet both expected and unexpected cash and collateral obligations at
reasonable cost and without incurring unacceptable losses. Liquidity risk is the inability of a bank to meet such obligations as they
become due, without adversely affecting the bank’s financial condition. The Asset Liability Management Policy of the Bank stipulates
a broad framework for liquidity risk management to ensure that the Bank is in a position to meet its liquidity obligations as well as to
withstand a period of liquidity stress from bank-level factors, market-wide factors or a combination of both.
The liquidity profile of the Bank is monitored for both domestic as well as overseas operations on a static as well as on a dynamic basis
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by using the gap analysis technique supplemented by monitoring of key liquidity ratios and conduct of liquidity stress tests periodically.
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 integrated into the asset liability management framework 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). The Bank maintains the regulatory mandated LCR as per the transitional arrangement laid down by RBI and also ensures
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, efficient and proactive manner. The policy aims at assessing and measuring the magnitude of risks,
monitoring and mitigating them through well-defined framework and governance structure.
The RMC at the apex level is the policy making body and is supported by the Operational Risk Management Committee (ORMC),
responsible for the implementation of the Operational Risk framework of the Bank and the management of operational risks across
the Bank.
All new products and processes, as well as changes in existing products and processes are subjected to risk evaluation by the
Operational Risk team. The overall responsibility of new products is vested with the Bank’s Product Management Committee and
Change Management Committee. Outsourcing arrangements are examined and approved by the Bank’s Outsourcing Committee
after due recommendations from the Operational Risk team. 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 across all business lines.
Over the year, the Bank has focused on strengthening the operational and information security risk frameworks by implementing
several initiatives.
The Business Continuity Planning Management Committee (BCPMC) exercises oversight on the implementation of the approved
Business Continuity Plan (BCP) framework which has been put in place to ensure continuity of service to its large customer base. The
effectiveness of the approved Business Continuity Plan (BCP) framework is tested for all identified critical internal activities to ensure
readiness to meet various contingency scenarios. The learning from the BCP exercises are used as inputs to further refine the framework.
Subsidiary Governance
The Bank currently has eleven subsidiaries. The oversight of Subsidiaries is an essential element for the implementation of robust
corporate governance across group entities and is an integral feature of a well-managed business, capable of creating value through
enhanced reputation and investor confidence. Towards this objective, the Bank has implemented an integrated framework to align
governance practices at Axis Group level which is overseen by the Board and Board level committees. The governance framework
comprises risk, compliance, audit and finance frameworks and encompasses a set of policies including inter alia, Policy for Oversight
of Subsidiaries, Arm’s Length Policy, Subsidiary Risk Management Policy etc. for operationalization of the governance framework.
Information Technology and Cyber Security

The Bank has undertaken various technology enabled business initiatives to realize the vision of customer centricity and to respond to
customer demand in real time by knowing its customers and their behaviour and to offer a single view across all the bank’s products
and services.
Reliable business processes and improved customer service continued to be the key business capabilities that IT delivered for the
Bank. With new customers entering formal banking system and the volume of transactions increasing rapidly, the need for robust
and dependable technology has increased significantly. The Bank’s IT infrastructure was augmented to build capabilities. The Bank
upgraded its core systems, moved to next versions of applications and adopted modern technology stack for better scalability.
The Bank has adopted a holistic cyber security program with a comprehensive Cyber Security Policy (CSP) and standards based
on industry best practices with compliance to regulatory guidelines. The Bank has created its cyber security design and framework
based on National Institute of Standards and Technology (NIST) standard. The Bank’s cyber security framework is built around five
fundamental areas including Identify, Protect, Detect, Respond and Recover. The Bank has a 24 X 7 Security Operations Centre and
Cyber Security Operations System.
Digital-first application architectures were created that takes advantage of the new capabilities of business analytics. Using data
collected in a mobile world and providing real-time analytics, the Bank was able to build objective measures by which it was able to
respond to the unpredictability of the changing consumer behaviour.
The Bank also took significant steps in the area of Robotics Process Automation (RPA) and Blockchain technology this year. The Bank
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has implemented Straight through processing (STP) and automation through advanced techniques of RPA and Machine Learning to
reduce human intervention and errors and deliver improved throughput. Blockchain has emerged as a potentially disruptive force
capable of transforming financial services industry by making transactions faster, cheaper, more secure and transparent. The Bank
implemented Blockchain Inter Ledger protocol technology solution to build a faster and more efficient cross-border remittance network.
Compliance
The Compliance function is one of the key elements in Bank’s corporate governance structure. It ensures strict observance of all
statutory provisions in various legislations such as Banking Regulation Act, Foreign Exchange Management Act, Prevention of Money
Laundering Act, Reserve Bank of India Act, etc. as well as other regulatory guidelines issued from time to time, standards and codes
prescribed by BCSBI, FEDAI, FIMMDA, etc. and also the Bank’s internal policies and fair practice code. The Compliance function
assists the Board and Top Management in managing the compliance risk that is the risk of legal or regulatory sanctions, financial loss
or reputational loss that the Bank may suffer as a result of its failure to comply with the applicable laws, regulations or code of conduct
applicable to banking activities.
The Bank is committed to adhere to the highest standards of compliance vis-à-vis regulatory prescriptions and internal guidelines. The
Bank has a robust Compliance Policy, outlining compliance philosophy of the bank and roles and responsibilities of the Compliance
Department. The Compliance function plays a crucial role in ensuring that the overall business of the Bank is conducted in accordance
with regulatory prescriptions. The Compliance function aims to improve compliance culture within the Bank through various enablers
like dissemination of regulatory changes, percolation of compliance knowledge through training, newsletters, 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. The Audit Committee of the Board reviews the performance of the Compliance
Department and the status of compliance with regulatory guidelines on a periodic basis.
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.
The Bank has put in place an Enterprise-wide Governance Risk and Compliance Framework, an online tool, which is pivotal in
addressing operational, compliance and financial reporting risk, bringing efficiency in processes and improvement in compliance
levels besides facilitating annual assessment of these risks. 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 view to its Board of Directors and Senior Management on the quality and
efficacy of the internal controls, risk management systems, governance systems and processes in place on an on-going basis. This is
provided to primarily ensure that the business and support functions are in compliance 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 internal audit policy. The Risk
Based Internal Audit has been designed after factoring regulatory guidelines and also international best practices. The policy has
a well-defined architecture for conducting Risk Based Internal Audit across all audit entities. The audit policy articulates the audit
strategy in terms of a concerted focus on strategic and emerging business risks. These inputs form a key step in the identification of the
audit universe for the audit planning exercise. The audit frequencies are in sync with the risk profile of each unit to be audited. This
is in alignment with guidelines relating to Risk Based Internal Audit. The scope of Risk Based Internal Audit includes examining the
adequacy and effectiveness of internal control systems, external compliances and also evaluating the risk residing at the audit entities.
Further to augment the internal audit function, concurrent audit, thematic audit and integrated audit reviews have been integrated into
the internal audit process in order to make the function more robust.
The Internal Audit functions independently under the supervision of Audit Committee of the Board, thereby ensuring its independence.
The Board reviews the efficacy of the internal audit function, effectiveness of the internal controls laid down by the Bank and compliance
with internal as also regulatory guidelines.
Corporate Social Responsibility (CSR)
The primary purpose of Axis Bank’s CSR philosophy is to make a meaningful and measurable impact on the lives of economically,
physically and socially challenged communities across India, by actively supporting initiatives that aim at creating suitable conditions
for their sustainable livelihoods. As a financial institution, the Bank believes that it can play an active role in stimulating India’s socio-
economic development as well as its ecological balance. The Bank is also making efforts to align its CSR activities with some of the
Sustainable Development Goals laid out by United Nations in 2015.
The CSR activities of the Bank are guided by its Corporate Social Responsibility (CSR) Policy which has been formulated and adopted
by the Bank in compliance with the provisions of Section 135 of the Companies Act, 2013 and is accessible on the Bank’s website
www.axisbank.com.
The prescribed CSR expenditure for the Bank for fiscal 2018 in terms of the Section 135 of the Companies Act, 2013 and Rules
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framed thereunder was `186.82 crores, against which the Bank has spent `133.77 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 as an annexure to the Directors’ Report.
The Bank pursues its CSR activities either directly or through the Axis Bank Foundation (ABF), directly, or through any other entity as
deemed suitable by the CSR Committee of the Board. The CSR activities undertaken directly by the Bank focus on poverty alleviation,
rural development through promoting financial literacy and enabling financial inclusion, environmental sustainability, education and
skill development. With over 3,703 branches across the country, the Bank actively tries to leverage its geographical spread to expand
the reach and impact of its initiatives. During the year, the Bank directly supported 15 such programs.
By reaching out to the rural populace through these interventions, the Bank aims to help the intended participants generate sustainable
sources of income for their households. The Bank has collaborated with reputed NGOs and Trusts to have a deeper penetration in the
rural areas to support livelihood programs that are sustainable and replicable. In its endeavour to foster inclusiveness, the Bank has
tied up with a reputed NGO to create awareness on the Right of Persons with Disabilities (RPWD) Act and will train organizations
involved in skilling the Persons with Disabilities (PWDs) to ensure the absorption of PWDs in the workforce.
The Bank has also taken a pioneering step to bridge the human resource gap faced by the development sector by supporting the
‘Buddha Fellowship’ initiative wherein young graduates from IIM, IIT and other reputed institutions will get an opportunity of two years
of rigorous engagement with the development sector – on field work in NGOs and government and mentorship by senior leaders from
corporate and development sector to groom them into a development entrepreneur.
Understanding the need to propagate the importance of health in the rural areas, the Bank conducted a health camp offering basic
diagnostic services. Additionally, Financial Literacy sessions were conducted as part of the Mass Awareness Camp (MAC) for the
participants of Joint Liability Group (JLG) and other community members. The mass awareness camp is designed to involve the entire
community at large to be a part of the financial learning process. A skit was prepared on the overview and the benefits of banking.
The activities are part of a larger intervention undertaken by the Bank with the rural communities on Financial Literacy that will include
vocational training and financial awareness campaigns for low-income households.
Towards promoting Financial Inclusion at a pan-India level, the Bank engages Business Correspondents (BCs) to act as banking
intermediaries to impart the financial literacy programs leading to a deeper percolation and adoption of financial products and
services. In FY 2017-18, the Bank enrolled 7.7 lac members for various social security schemes through its various banking channels.
During the year, the Bank conducted specialized knowledge sharing sessions for SMEs wherein industry domain experts share
knowledge and discuss case studies focusing on SME sector growth and development. The various sessions covered more than 3,000
SMEs through 30 knowledge sharing sessions held in 30 cities. The Bank also conducts knowledge sessions on global trade through
its Forex Club initiative, reaching 6,500 MSMEs of which 60% were New To Bank (NTB).
In line with the national priority to eliminate open defecation from the country under the ‘Swachh Bharat Mission’, the Bank supported
various initiatives towards an ODF-free India, such as in the greater Nagpur region, where the Bank partnered with a nationally
recognized NGO to design a communication strategy to take the message to the general public and specifically to school students.
Towards promoting greater environmental sustainability, the Bank has been working towards reducing its carbon emissions through
installation of solar panels at select locations and remotely managed smart energy systems. As on March 31, 2018, the Bank had
an installed capacity of 5.05 MW. The Bank is also supporting an initiative wherein 3,80,000 trees will be planted in around five
states viz. Andhra Pradesh, Rajasthan, Gujarat, Odisha and Maharashtra that will improve vegetation in common lands, arrest and
reverse land degradation, besides helping in reducing pressure on the forests and common lands. This initiative is expected to improve
availability of fodder, fuel wood, biodiversity, water, nutrients thereby improving livelihoods of poor rural households. Additionally,
ABF, through its partners, undertakes tree plantation drives at locations across India. During the reporting period, 14.35 lac saplings
were planted.
During the year, Axis Bank embarked on an ambitious endeavour to reach out to the remote communities in the Ladakh region of
Jammu & Kashmir and launched a three year program ‘Axis DilSe – Connecting Remote Communities’ aimed at transforming over
100 village schools in Leh and Kargil districts by creating physical and educational infrastructure. The initiative is in alignment with
the Government of India’s Border Area Development Program (BADP).
The Axis Bank Foundation (ABF), set up as a Public Charitable Trust in 2006 has partnered with NGOs primarily working in the
areas of Rural Livelihood and Vocational Training. Within Rural Livelihoods, the core focus areas are Watershed Management and
Agriculture Productivity, Livestock Enhancement and Financial Inclusion. The initiatives undertaken in these areas have helped in
enhancing agricultural output through improved farm practices, thereby making multiple cropping possible. The initiatives also support
communities in better livestock rearing thereby creating an alternative stream of income, which can supplement and improve overall
income. Many of the ABF-supported programs are closely aligned with the Government of India’s rural development schemes such as
The Mahatma Gandhi National Rural Employment Guarantee Act and Pradhan Mantri Krishi Sichai Yojana.
The Foundation’s programs also aim to strengthen the role of women in rural economies. As part of ABF’s financial inclusion initiatives,
a total of 13,396 Self Help Groups (SHGs) have been formed with 159,654 women members. These SHGs have recorded a savings
of `28.95 crores and borrowings of `55.30 crores from the formal sector.
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During the reporting period, ABF achieved its stated mission of creating 1 million livelihoods well before the stated target completion
date of 31 December 2017, of which 63% are women. The Foundation has now committed itself to supporting 2 million households
by 2025.
The various Livelihood programs of the Bank and ABF seek to provide vocational training to unemployed youth, including Persons with
Disabilities (PwD), improving their ability to find employment and strengthen their self-dependence, in alignment with national schemes
such as Skill India Mission. In the reporting year, 21,510 youth have been trained, of which 67% have been placed.
‘Axis Cares’ is the employee engagement platform that enables the workforce of the Bank to engage with various initiatives of the
Foundation and support them through payroll donations.
The Bank’s CSR agenda is closely guided and monitored by the Board level CSR Committee of the Bank and its top management. The
Bank and ABF follow the highest fiduciary responsibility to ensure a thorough due diligence and monitoring of projects, partners and
measurement of impact. From time to time, members of the CSR Committee or top management visit project intervention sites to directly
interact with implementation partners and participants.
During the year, the Bank was rewarded by the ‘FICCI CSR Summit & Awards 2017 in the ‘Women Empowerment Category’ in
recognition of its CSR efforts and impacts created.
Additional details of the Bank’s community development efforts can be accessed through the Bank’s standalone annual sustainability
report, the Bank’s ‘CSR & Sustainability’ web-section on www.axisbank.com and ABF’s website www.axisbankfoundation.org.
Human Resources
This year, the Bank entered the 25th year of its journey. The Bank continues to focus on capability building, keeping the future in mind.
The Bank has made intensive efforts to ensure that employees’ capabilities are developed so that employees can handle challenges of
future while staying abreast with the functional domain knowledge of Banking. The Bank ended the year with a workforce strength of
59,614 employees. Some key focus areas of the Bank were:
Building Bankers the Axis Way: The Bank takes significant efforts to enhance the employee’s capabilities by focusing on developing
their core functional knowledge and building on their banking skills. Through its various learning interventions, the Bank continues to
provide platforms for employees to improve on their Banking domain knowledge and skills. The Bank’s online learning and testing
platform, Axis Competency Profiler, assesses employees on their functional competence and creates a pool of functionally strong
employees. The Bank has collaborations with the best names in their respective fields of expertise, to bring learning academies to our
employees. These Academies provide employees the opportunity to gain levels of mastery in Core Banking areas like the Credit, Risk,
Trade & Forex Academies in collaboration with CRISIL to build deep knowledge in these areas.
This learning mindset is strengthened when subject matter experts within the Bank are encouraged to nurture a culture of learning and
sharing. The Axis Learning Achievers program and the Axis Business Clinics provides leaders with teachable points of view while
assimilating story telling as a powerful medium of learning. Using the cascade format of facilitation, the Banking on Compliance
program drives ethical decision making, KYC/AML knowledge and importance of compliance in every transaction the Bank undertakes.
Reinforcing Meritocracy: The Bank’s integrated Performance Management & Capability Development system - ACElerate – helps in
fostering high performance as well as building capability. Capability development interventions are provided to high performing
employees to hone their skills further and help them perform at the next level. More than 24,600 employees underwent a 2-day
behavioural training program customized to their grade and their role challenges. Enhancement Program was offered to poor
performers as a lever to opt for stretch targets and have a chance at upgrading their rating retrospectively. The Bank’s promotion
process allows for the best performers to shine through, regardless of their age, gender, past performance & background. A young
and engaged workforce with an average age of 29.5 years and the Bank’s policy on being an equal opportunity employer continue
to significantly contribute towards the Axis Bank brand.
Leadership development across levels has been the Bank’s continued focus. ’Hire at frontline and grow from within’ is the strategy
deployed across the Bank. Inter-linkages across the different academic tie-ups ensure that the best talent are placed across the
organization in roles that add value while bring in new perspectives and points of view.
The Bank follows an institutionalized approach of providing differentiated learning opportunities to the Top Talent. In order to gain
a better understanding of how the Digital Wave is disrupting businesses and reshaping strategies, the Bank partnered with INSEAD,
one of the world’s pre-eminent Business Schools, to bring our Leaders a world-class program in the shape of the Axis INSEAD Digital
Leadership Academy. Additionally, developmental interventions in the form of executive coaching, mentoring and feedback tools
were introduced and extended to a wider audience to facilitate their leadership journey.
Axis Blitz Voices continued, where our leaders travelled to 27 locations and met nearly 5,000 employees to listen to their voices.
The Bank introduced an integrated employee survey architecture to be able to hear from employees at various stages of their
employee lifecycle.
The Bank has been continuously enhancing employee experience through personalized human connect as well as technology
enabled connect. The best-in-class technology is deployed to automate HR processes & the internal employee portal, MyConnect
provides employees with a seamless and digitally enhanced HR experience.
60
Partnering with external stakeholders: The Bank continued giving back to the community via the Axis DilSe initiative. The DilSe
program saw 108 schools across the remotest part so of Kargil and Ladakh being adopted by 20 senior leaders for a period of
3 years. Providing playgrounds, libraries, solar panels, digital learning, desks and chairs are part of the program. 31 employees
along with the leaders spent time with the children, villagers and teachers to drive home the importance of education and the
importance of working towards fulfilling their dreams.
Through the fulfilment of its HR agenda, the Bank continues to strive towards its pledge of serving its customers, shareholders,
employees & communities.
Subsidiary Performance
During fiscal 2018, the Bank’s subsidiaries reported healthy growth in revenue and earnings of 31% and 5% respectively.
Axis Finance Limited, the Bank’s fast growing NBFC that caters to the unique financing requirment of retail and wholesale customers,
reported 54% YoY growth in total loans with 64% growth in retail loans. Axis Finance’s net profit increased by 27% and contributed
44% to total subsidiaries’ earnings.
Axis Capital, the Bank’s institutional equities and investment banking franchise has been the leader in equity and equity linked
deals over the last decade and had another great year with 42% market share of the IPO market. Axis Capital contributed 29% to
the total earnings of the subsidiaries.
Axis AMC and Axis Securities continued to contribute towards the Bank’s Retail Franchise building strategy and strengthen the bond
with its customers. Axis AMC reported 45% YoY growth in average AUM with 26% growth in total number of folios and contributed
9% to total subsidiaries’ earnings. Axis Securities, one of the fastest growing brokerage firms in India reported 33% growth in
cumulative client base to 1.84 million and contributed 13% to subsidiairies’ net profits.
During the fiscal, the Bank acquired Freecharge, one of the India’s leading digital payment companies that has a current user base
of 61.5 million, GMV of over `2,000 crores and ~110 million transactions. The Bank believes that the Freecharge’s unique value
proposition in the digital payments space and the strength of its acquisition engine would help to build the Axis franchise further
and create significant value for the Bank. With Digital Payments as a hook, the Bank intends to leverage the platform for digital
distribution of retail products by targeting digitally native mobile first customers. The post-acquisition activities at Freecharge remain
on track with total payment volumes up 36% and monthly active users increasing by 44% during the period October 2017 to March
2018.
A.TReDs Limited, the Bank’s subsidiary that was set up in partnership with m-Junction, was one of the three entities allowed by RBI
to set up the Trade Receivables Discounting System (TReDS), an electronic platform for facilitating cash flows for MSMEs. The Bank’s
digital invoice discounting platform ‘Invoicemart’ for MSMEs has done exceptionally well with market share of nearly 43% among
all TReDS platforms. It currently has more than 350 particpants on the platform and has clocked more than `410 crores in financed
throughput by e-discounting nearly 14,300 invoices.
Safe Harbor
Except for the historical information contained herein, statements in this Annual Report which contain words or phrases such as
“will”, “aim”, “will likely result”, “would”, “believe”, “may”, “expect”, “will continue”, “anticipate”, “estimate”, “intend”, “plan”,
“contemplate”, “seek to”, “future”, “objective”, “goal”, “strategy”, “philosophy”, “project”, “should”, “will pursue” and similar
expressions or variations of such expressions may constitute “forward-looking statements”. These forward-looking statements involve
a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the
forward-looking statements. These risks and uncertainties include, but are not limited to our ability to successfully implement our
strategy, future levels of non-performing loans, our growth and expansion, the adequacy of our allowance for credit losses, our
provisioning policies, technological changes, investment income, cash flow projections, our exposure to market risks as well as
other risks. Axis Bank Limited undertakes no obligation to update forward-looking statements to reflect events or circumstances after
the date thereof.
61
INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE WITH THE CONDITIONS OF CORPORATE GOVERNANCE AS

PER PROVISIONS OF CHAPTER IV OF SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND
DISCLOSURE REQUIREMENTS) REGULATIONS, 2015
The Members of Axis Bank Limited

Axis Bank Limited
’Axis House’, C-2,
Wadia International Centre,
Pandurang Budhkar Marg,
Worli, Mumbai,
Maharashtra – 400 025
1. The Corporate Governance Report prepared by Axis Bank Limited (hereinafter “the Bank”), contains details as required by
the provisions of Chapter IV of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)
Regulations, 2015, as amended (“the Listing Regulations”) (‘Applicable criteria’) with respect to Corporate Governance for the
year ended March 31, 2018. This report is required by the Bank for annual submission to the Stock exchange and to be sent to
the Shareholders of the Bank.
Management’s Responsibility
2. The preparation of the Corporate Governance Report is the responsibility of the Management of the Bank including the
preparation and maintenance of all relevant supporting records and documents. This responsibility also includes the design,
implementation and maintenance of internal control relevant to the preparation and presentation of the Corporate Governance
Report.
3. The Management along with the Board of Directors are also responsible for ensuring that the Bank complies with the conditions
of Corporate Governance as stipulated in the Listing Regulations, issued by the Securities and Exchange Board of India.
Auditor’s Responsibility
4. Pursuant to the requirements of the Listing Regulations, our responsibility is to express a reasonable assurance in the form of
an opinion whether the Bank has complied with the specific requirements of the Listing Regulations referred to in paragraph 3
above.
5. We conducted our examination of the Corporate Governance Report in accordance with the Guidance Note on Reports or
Certificates for Special Purposes and the Guidance Note on Certification of Corporate Governance, both issued by the Institute
of Chartered Accountants of India (“ICAI”). The Guidance Note on Reports or Certificates for Special Purposes requires that we
comply with the ethical requirements of the Code of Ethics issued by the Institute of Chartered Accountants of India.
6. We have complied with the relevant applicable requirements of the Standard on Quality Control (SQC) 1, Quality Control
for Firms that Perform Audits and Reviews of Historical Financial Information and Other Assurance and Related Services
Engagements.
7. The procedures selected depend on the auditor’s judgement, including the assessment of the risks associated in compliance of
the Corporate Governance Report with the applicable criteria. Summary of key procedures performed include:
i. Reading and understanding of the information prepared by the Bank and included in its Corporate Governance Report;
ii. Obtained and verified that the composition of the Board of Directors w.r.t. executive and non-executive directors has been
met throughout the reporting period;
iii. Obtained and read the Directors Register as on March 31, 2018 and verified that at least one women director was on
the Board during the year;
iv. Obtained and read the minutes of the following committee meetings held from April 1, 2017 to March 31, 2018:
(a) Board of Directors Meeting;
(b) Audit Committee;
62
(c) Annual General Meeting and Extraordinary General Meeting;
(d) Nomination and Remuneration Committee;
(e) Stakeholders Relationship Committee; and
(f) Risk Management Committee;
v. Obtained necessary representations and declarations from directors of the Bank including the Independent Directors ; and
vi. Performed necessary inquiries with the management and also obtained necessary specific representations from
management.
The above-mentioned procedures include examining evidence supporting the particulars in the Corporate Governance Report on
a test basis. Further, our scope of work under this report did not involve us performing audit tests for the purposes of expressing
an opinion on the fairness or accuracy of any of the financial information or the financial statements of the Bank taken as a
whole.
8. Based on the procedures performed by us as referred in paragraph 7 above, and according to the information and explanations
given to us, we are of the opinion that the Bank has complied with the conditions of Corporate Governance as stipulated in the
Listing Regulations, as applicable for the year ended March 31, 2018, referred to in paragraph 3 above.
Other Matters and Restriction on Use
9. This report is neither an assurance as to the future viability of the Bank nor the efficiency or effectiveness with which the
management has conducted the affairs of the Bank.
10. This report is addressed to and provided to the members of the Bank solely for the purpose of enabling it to comply with its
obligations under the Listing Regulations with reference to compliance with the relevant regulations of Corporate Governance
and should not be used by any other person or for any other purpose. Accordingly, we do not accept or assume any liability or
any duty of care or for any other purpose or to any other party to whom it is shown or into whose hands it may come without our
prior consent in writing. We have no responsibility to update this report for events and circumstances occurring after the date of
this report.
For S.R. Batliboi & CO. LLP

ICAI Firm registration number: 301003E/E300005
per Viren H. Mehta

Partner
Membership No.048749
Place: Mumbai
Date: 16th May 2018
63
CORPORATE GOVERNANCE
(Part of the Directors’ Report for the year ended 31st March 2018)
(1) PHILOSOPHY ON CODE OF GOVERNANCE

Your Bank’s policy on Corporate Governance has been:
I. 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.
II. To institutionalize 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. The composition of the Board of Directors of the Bank is governed under the relevant provisions of the Companies Act,
2013, the relevant Rules made thereunder, the Banking Regulation Act, 1949, the Securities and Exchange Board of
India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (the Listing Regulations) and the Articles of
Association of the Bank.
II. The Board of Directors of the Bank has an optimum combination of Independent, Non-Executive and Executive Directors.
The Board presently comprises of 15 Directors representing diverse combination of professionalism, knowledge, expertise
and experience as relevant for the banking business. The Board has 8 Independent Directors constituting more than one-
third of its total membership strength and 3 Women Directors. None of the Directors or their relatives are related to each
other. The Board is led by the Non-Executive (Part-Time) Chairman, who is an Independent Director.
III. The Board comprises of nominees of the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) and
Life Insurance Corporation of India (LIC), Promoters of the Bank and BC Asia Investments VII Limited, Integral Investments
South Asia IV and BC Asia Investments III Limited (being entities affiliated to BAIN Capital, a Global Private Equity firm).
The following Members constitute the Board, as on 31st March 2018:
Sr. No. Name of the Director Category

1. Dr. Sanjiv Misra Independent Director & Non-Executive (Part-Time) Chairman
2. Smt. Shikha Sharma Managing Director & CEO
3. Shri Prasad R. Menon Independent Non-Executive
4. Prof. Samir K. Barua Independent Non-Executive
5. Shri Som Mittal Independent Non-Executive
6. Shri Rohit Bhagat Independent Non-Executive
7. Smt. Usha Sangwan Nominee Director – Life Insurance Corporation of India (LIC) [Equity Investor] - Promoter
8. Shri S. Vishvanathan Independent Non-Executive
9. Shri Rakesh Makhija Independent Non-Executive
10. Smt. Ketaki Bhagwati Independent Non-Executive
11. Shri B. Baburao Nominee Director – Administrator of the Specified Undertaking of Unit Trust of India
(SUUTI) [Equity Investor] – Promoter
12. Shri Stephen Pagliuca Additional Nominee Director – Entities affiliated to BAIN Capital [Equity Investor]
(w.e.f. 19th December 2017)
13. Shri V. Srinivasan Deputy Managing Director
14. Shri Rajiv Anand Executive Director (Retail Banking)
15. Shri Rajesh Dahiya Executive Director (Corporate Centre)
IV. The Bank recognizes and embraces the importance of a diverse board in its success and is endowed with appropriate
balance of skills, experience and diversity of perspectives thereby ensuring effective board governance. The Board has
reviewed and adopted the Policy on Board Diversity which sets out its approach to ensure Board diversity so as to enhance
its effectiveness whilst discharging its fiduciary obligations towards the stakeholders of the Bank.
64
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 functions in an ethical and efficient
manner. The duties and responsibilities of the Board have been set out in its Charter, in terms of the relevant provisions
of the Companies Act, 2013, the relevant Rules made thereunder, the Listing Regulations, Banking Regulation Act, 1949,
Guidelines issued by the RBI, in this regard, from time to time and the Articles of Association of the Bank.
The responsibilities of the Board include inter alia overseeing the functioning of the Bank, monitoring legal, statutory
compliance, internal controls and risk management on the basis of information provided to it. The Board is also responsible
for approving the strategic direction, plans and priorities for the Bank, monitoring corporate performance against strategic
business plans, reviewing and approving the Bank’s operating results on a quarterly basis, overseeing the Bank’s Corporate
Governance framework and supervising the succession planning process for its Directors and Senior Management.
Accordingly, the Board deliberates on matters such as business strategy, risk, financial results, succession planning,
compliance, customer service, information technology and human resources as covered under the seven critical themes
prescribed by the RBI and such other matters as deemed appropriate. The Board spends considerable time perusing
the information provided to them which facilitates informed decision making and effective participation at its meetings,
leading to higher board effectiveness. The Board oversees the actions and results of the Management to ensure that the
long term objectives of enhancing shareholders value are met. The Board has the discretion to engage the services of
external experts / advisors, as deemed appropriate.
In all, 9 meetings of the Board were held during the financial year 2017-18, i.e. on 25th April 2017, 15th May 2017,
25th July 2017, 16th October 2017, 9th November 2017, 10th November 2017, 7th December 2017, 22nd January 2018
and 23rd March 2018. The meetings held on 25th April 2017, 25th July 2017 and 16th October 2017 were spread over
a period of 2 days. The gap between two Board meetings did not exceed the prescribed limit of 120 days. The requisite
quorum was present for all the meetings of the Board held during the financial year 2017-18.
The details of the meetings of the Board attended by the Directors during the financial year 2017-18, their attendance at the
23rd Annual General Meeting (AGM) of the Bank, the number of other Directorships and Memberships / Chairmanships
in Board Committees held by them, as on 31st March 2018, are given below:
Name of the Director Board Sitting Attendance Number of other Number of

Meetings fees (in at 23rd directorships memberships
attended Rupees) AGM (26th in board
of Indian of other
during July 2017) committees(2)
public companies(1)
the year
limited
companies
Independent Director & Non-Executive (Part-Time) Chairman
Dr. Sanjiv Misra 9/9 9,00,000 Yes 2 0 2(1)
Nominee Director – SUUTI
Shri B. Baburao& 9/9 9,00,000 Yes 4 1 2(1)
Nominee Director – LIC
Smt. Usha Sangwan@& 6/9 6,00,000 Yes 5 7 3(1)
Nominee Director – Entities affiliated to BAIN Capital
Shri Stephen Pagliuca 2/2 2,00,000 N.A. 0 6 0
(Appointed w.e.f. 19th December
2017)
Independent Directors
Shri V. R. Kaundinya@ 2/3 2,00,000 Yes - - -
(Ceased to be a Director on expiry
of tenure w.e.f. the close of business
hours on 11th October 2017)
Shri Prasad R. Menon 9/9 9,00,000 Yes 2 2 2(1)
Prof. Samir K. Barua 9/9 9,00,000 Yes 5 1 6(4)
Shri Som Mittal@ 7/9 7,00,000 Yes 3 5 3(2)
65
Name of the Director Board Sitting Attendance Number of other Number of

Meetings fees (in at 23rd directorships memberships
attended Rupees) AGM (26th in board
of Indian of other
during July 2017) committees(2)
public companies(1)
the year
limited
companies
Shri Rohit Bhagat 9/9 9,00,000 Yes 0 4 0
Shri S. Vishvanathan @
8/9 8,00,000 Yes 2 0 3(1)
Shri Rakesh Makhija 9/9 9,00,000 Yes 4 0 5(1)
Smt. Ketaki Bhagwati 9/9 9,00,000 Yes 1 0 0
Managing Director & CEO/ Whole Time Directors
Smt. Shikha Sharma 9/9 --- Yes 2 0 0
Managing Director
& CEO
Shri V. Srinivasan-Deputy Managing 9/9 --- Yes 5 1 0
Director
Shri Rajiv Anand Executive Director - 9/9 --- Yes 2 0 0
Retail Banking
Shri Rajesh Dahiya 9/9 --- Yes 1 0 1
Executive Director
-Corporate Centre
The meetings held on 15th May 2017, 9th November 2017, 10th November 2017, 7th December 2017 and 22nd January
2018 were conducted through video conference.
@ Leave of absence was granted to the concerned Directors who had expressed their inability to attend the respective
meetings.
& Sitting fees paid to Shri B. Baburao (Nominee Director – SUUTI) and Smt. Usha Sangwan (Nominee Director – LIC)
for attending the meetings of the Board/Committees have been credited to the bank account of SUUTI and LIC,
respectively.
(1) Includes foreign companies, private limited companies and Section 8 companies.
(2) Includes only Memberships of the Audit Committee and Stakeholders Relationship Committee in public limited
companies. Figures in brackets represent number of Chairmanships of the said Committees.
Notes:
• Section 165 of the Companies Act, 2013:
1) None of the Directors of the Bank holds office of directorships in more than 20 companies. This includes alternate
directorships, private limited companies and Section 8 companies.
2) None of the Directors of the Bank holds office of directorships in more than 10 public limited companies. This
includes directorship in private companies that are either holding or subsidiary company of a public company.
• Regulation 25 of the Listing Regulations:
1) None of the Directors of the Bank serve as an Independent Director in more than 7 listed companies.
2) None of the Whole-Time Directors of the Bank serve as an Independent Director in any listed company.
• Regulation 26 of the Listing Regulations:
None of the Directors of the Bank is a Member in more than 10 Committees or is a Chairperson in more than 5 Committees
of Public Limited Companies. In terms of this regulation, only Chairmanship / Membership in Audit Committee and
Stakeholders Relationship Committee are required to be considered for the said purpose.
66
All Directors of the Bank have submitted their annual disclosures / declarations as mandated under the Companies Act,
2013 and the Rules made thereunder, the SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 and
the Banking Regulation Act, 1949 and the Guidelines issued by the RBI, in this regard, from time to time.
Board Meetings
Schedule of Board meetings
The schedule in respect of the meetings of the Board / Committees thereof to be held during the next financial year and for the
ensuing Annual General Meeting is circulated in advance to all the Members of the Board.
Critical themes for review by the Board
The RBI vide its Circular no. DBR No. BC.93/29.67.001/2014-15 dated 14th May 2015 had prescribed ‘Seven Critical
Themes’ to be reviewed by the Board namely business strategy, financial reports and their integrity, risk, compliance, customer
protection, financial inclusion and human resources. The agenda for Board meetings also includes matters forming part of the
said critical themes, as stipulated by the RBI.
Board agenda
The Board agenda is prepared based on inputs received from the concerned departments of the Bank and finalised in consultation
with the Chairman of the Board of Directors of the Bank. The Board agenda and notes thereof are sent to the Directors in
advance to enable them to read and comprehend the matters to be dealt with and seek further information / clarification.
The Board agenda and notes are uploaded on the Bank’s e-meeting portal wherein the Directors can review the same in a
secure environment and at their convenience. The information relating to schedule of meetings, organization structure, events
and conferences, announcements of material events and various articles about the Bank are also uploaded on the said e-meeting
portal, for the information of the Directors.
The Minutes of the Board meetings are circulated to the Chairman for his review and approval and thereafter circulated to
the other Members of the Board for their comments in accordance with the Secretarial Standards on meetings of the Board of
Directors (SS-1) issued by the Institute of Company Secretaries of India (ICSI).
In case of business exigencies or urgency of matters, resolutions are passed by the Board through circulation. Video conferencing
facilities are also used to facilitate participation by Directors who are unable to physically attend the meetings of the Board or
its Committees. As a matter of good governance, the Directors of the Bank are not allowed to participate in Board meetings
through video conference during deliberations on the agenda items relating to consideration of financial results of the Bank and
other price sensitive matters as prescribed in SS-1.
Committees of the Board
The business of the Board is also conducted through the Committees constituted by the Board to deal with specific matters as per
delegated powers for different functional areas of the Bank and as mandated under the relevant provisions of the Companies
Act, 2013, the relevant Rules made thereunder, the Listing Regulations, Banking Regulation Act, 1949, Guidelines issued by the
RBI, from time to time and the Articles of Association of the Bank.
The Board has constituted 12 Committees, viz., Committee of Directors, Audit Committee, Risk Management Committee,
Stakeholders Relationship Committee, Nomination and Remuneration Committee, Corporate Social Responsibility Committee,
Special Committee of the Board of Directors for Monitoring of Large Value Frauds, Customer Service Committee, IT Strategy
Committee, Review Committee, Acquisitions, Divestments and Mergers Committee and Committee of Whole-time Directors.
The Agenda of the meetings of the Committees is finalised in consultation with the Chairman of the concerned Committees. The
Committees ensure that any feedback or observations made by them during the course of the meetings forms part of the Action
Taken Report for their review at the subsequent meetings. The Chairman of the Committees briefs the Board on the key decisions
taken by the Committee at its meetings.
The Bank in order to facilitate linkages between two Board Committees has appointed Non-Executive Directors as common
members. The Audit Committee of the Board and the Committee of Directors have Shri S. Vishvanathan as a common member.
The Risk Management Committee and the Nomination and Remuneration Committee have Shri Rohit Bhagat as a common
member. The Audit Committee of the Board and the Special Committee of the Board of Directors for Monitoring of Large Value
Frauds have Prof. Samir Barua, Shri Rakesh Makhija and Shri B. Baburao as common members. IT Strategy Committee and
67
Customer Service Committee have Shri Som Mittal as a common member. The Audit Committee of the Board and the Risk
Management Committee have Prof. Samir Barua as a common member. The Committee of Directors and the Risk Management
Committee have Smt. Ketaki Bhagwati as a common member. The Committee of Directors and the Review Committee have
Shri S. Vishvanathan and Smt. Ketaki Bhagwati as common members.
The terms of reference of the said Committees, their composition and attendance of the members at the meetings of the said
Committees, are detailed as under.
(1) Committee of Directors
The Committee of Directors of the Board (Committee of Directors) comprises of 5 members out of which 3 are Independent
Directors. The Members are Shri S. Vishvanathan, Independent Director (Chairman), Smt. Shikha Sharma, Managing
Director & CEO, Shri Prasad R. Menon, Independent Director, Shri V. Srinivasan, Deputy Managing Director and Smt.
Ketaki Bhagwati, Independent Director of the Bank.
The terms of reference of the Committee of Directors, are as under:
i) To review loans sanctioned by Senior Management Committee, provide approvals for loans above certain stipulated
limits, to discuss strategic issues in relation to credit policy and deliberate on the quality of the credit portfolio of the
Bank.
ii) To monitor the exposures (both credit and investments) of the Bank and to consider and approve one time compromise
settlement proposals, in respect of loan accounts which have been written off.
iii) To sanction revenue expenditures relating to the Bank’s business/operations covering all its departments and
business segments, above certain stipulated limits.
iv) To approve expansion of the location of the Bank’s Network of offices, Branches, Extension counters, Automated
Teller Machines, Automated Fare Collection Equipment and Currency chests locally as well as internationally and
review the Annual Branch Expansion Plan and Annual Report of the Branches.
v) To review investment strategy, periodically review investments made and approve investment related proposals
above certain limits.
vi) To review and approve proposals relating to the Bank’s business/operations covering all its departments and
business segments.
vii) To ensure compliance with the statutory/regulatory framework, etc. locally as well as internationally.
viii) To discuss issues relating to day to day affairs/problems and to establish systems for facilitating efficient operations
of the Bank.
ix) To assess the adequacy of Policies mandated by RBI/other regulators (domestic/overseas) relating to the business/
operations of the Bank on an ongoing basis.
x) To review loans granted to directors (including the Chairman/Managing Director) of other banks which have been
sanctioned by the Management Committee.
xi) To sanction credit facility extended to any firm/company in which any director of other banks is interested as a
partner/ director or guarantor.
xii) Any other matter as may be authorised by the Board of Directors or required to be done pursuant to any applicable
laws, rules, regulations or as decided by the Management of the Bank.
xiii) Any other matter as may be required to be done pursuant to the Board approved policy of the Bank.
In all, 12 meetings of the Committee of Directors were held during the Financial Year 2017-18 i.e. on 24th May 2017,
22nd June 2017, 11th August 2017, 20th September 2017, 8th November 2017, 15th November 2017, 30th November
2017, 22nd December 2017, 21st January 2018, 30th January 2018, 23rd February 2018 and 22nd March 2018.
68
The details of the meetings of the Committee of Directors attended by the Members during the year 2017-18, are given
below:
(in `)
Name of the Members Attendance Sitting fees
Shri S. Vishvanathan 12/12 6,00,000
Smt. Shikha Sharma @
9/12 ---
Shri Prasad R. Menon@ 10/12 5,00,000
Shri V. Srinivasan 12/12 ---
Smt. Ketaki Bhagwati 12/12 6,00,000
The meetings held on 24th May 2017, 20th September 2017, 15th November 2017, 30th November 2017, 22nd December
2017, 21st January 2018, 30th January 2018 and 23rd February 2018 were conducted through video conference.
@Leave of absence was granted to the concerned Members who had expressed their inability to attend the respective
meetings.
(2) Audit Committee
The Audit Committee of the Board of Directors of the Bank (Audit Committee) comprises of 4 members out of which 3
are Independent Directors. The Members are Prof. Samir K. Barua, (Chairman), Shri S. Vishvanathan and Shri Rakesh
Makhija, Independent Directors and Shri B. Baburao, Non-Executive Director of the Bank. The Members of the Audit
Committee are financially literate and have requisite accounting and financial management expertise.
The tenure of Shri V. R. Kaundinya as an Independent Director of the Bank had ceased, with effect from the close of
business hours on Wednesday, 11th October 2017, upon completion of the maximum permissible tenure of 8 continuous
years, under Section 10A (2A) of the Banking Regulation Act, 1949. Accordingly, he ceased to be a member of the Audit
Committee with effect from the said date.
Pursuant to the vacancy caused by the expiry of tenure of Shri V. R. Kaundinya, Shri B. Baburao, Non-Executive Director
was inducted as a member of the Audit Committee w.e.f. 17th October 2017.
The terms of reference of the Audit Committee, are as under:
i) To provide direction and to oversee the operation of the audit function.
ii) To review the internal audit system with special emphasis on its quality and effectiveness.
iii) To review all matters as specified by RBI in the circular on Calendar of Reviews as per RBI Circular dated 10th
November 2010 and notifications, if any, issued from time to time in this regard.
iv) To review findings of internal and concurrent audit reports.
v) To discuss the matters related to frauds.
vi) To discuss and follow up for the audit observations relating to Long Form Audit Report.
vii) To review the status of compliance with respect to Risk Assessment Report, Risk Mitigation Plan, Scrutiny Reports
issued by RBI and any other domestic/overseas regulators and forensic audit reports by external agencies, if any.
viii) To review the concurrent audit system of the Bank (including the appointment of concurrent auditors) and appointment
of statutory auditors.
ix) To oversee the Bank’s financial reporting process and the disclosure of its financial information to ensure that the
financial statements are correct, sufficient and credible.
x) To recommend to the Board, the appointment, re-appointment, remuneration and terms of appointment of the
statutory auditors of the Bank.
69
xi) To approve payments to statutory auditors for any other services rendered by them.
xii) To review, with the management, the annual financial statements and auditor’s report thereon before submission to
the Board for approval with particular reference to:
• Matters required to be included in the Director’s Responsibility Statement in the Board’s report in terms of
clause (5) of section 134 of the Companies Act, 2013.
• Changes, if any, in accounting policies & practices and reasons for the same.
• Major accounting entries involving estimates based on the exercise of judgment by the management.
• Significant adjustments made in the financial statements arising out of audit findings.
• Compliance with listing and other legal requirements relating to financial statements.
• Disclosure of any related party transactions.
• Modified opinion in the draft audit report.
xiii) To review with the management, the quarterly financial statements before submission to the Board for approval.
xiv) 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 utilized 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.
xv) To review with the management, performance and independence of statutory and internal auditors, adequacy of
the internal control systems and effectiveness of audit process.
xvi) To obtain and review reports of the Compliance Officer appointed in the Bank, at stipulated periodicity, in terms of
RBI instructions and circulated to all the functional heads.
xvii) To review the adequacy of internal audit function, if any, including the structure of the internal audit department,
staffing, seniority of the official heading the department, reporting structure, coverage and frequency of internal
audit.
xviii) To discuss with Chief Audit Executive / Internal Auditors any significant audit findings and follow up thereon.
xix) To review the findings of any internal investigations by the internal / statutory 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.
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.
xxi) To look into the reasons for substantial defaults in the payment to the depositors, debentureholders, shareholders (in
case of non-payment of declared dividends) and creditors.
xxii) To review functioning of the Whistle Blower and Vigilance Mechanism.
xxiii) To approve the appointment of the Chief Financial Officer. The Audit Committee, while approving the said
appointment, shall assess the qualifications, experience & background, etc. of the candidate.
xxiv) To review and approve the appointment, removal and terms of remuneration of the Chief Audit Executive and / or
any change in the incumbency of the Chief Audit Executive of the Bank, along with the reasons for such change.
xxv) To approve any subsequent modification of transactions of the Bank that shall involve related parties.
xxvi) Scrutiny of inter-corporate loans and investments which are not in the ordinary course of business of the Bank.
70
xxvii) Evaluation of internal financial controls and risk management system.
xxviii) Valuation of undertakings or assets of the company, wherever it is necessary.
xxix) Review and approve the change in the incumbency of the Chief Compliance Officer of the Bank.
xxx) Review Segmental Reporting.
xxxi) Review of cases of wilful defaults.
xxxii) Review of the consolidated status of adherence to the arm’s length principle by the subsidiaries /step down
subsidiaries as per the Group Arm’s Length Policy.
xxxiii) Review of the summary of changes in Compliance Officers of the subsidiaries.
The Chief Audit Executive and the Group Executive & Chief Financial Officer of the Bank attend the meetings of the Audit
Committee. The Chief Audit Executive of the Bank directly reports to the Audit Committee of the Board. Prof. Samir K.
Barua, Chairman of the Audit Committee attended the Twenty Third Annual General Meeting of the Shareholders of the
Bank. The Company Secretary of the Bank acts as a secretary to the Audit Committee.
The Audit Committee discusses with the Statutory Auditors, the key highlights of the quarterly and annual financial results
of the Bank, before recommending the same to the Board of Directors of the Bank for their approval. The representatives of
the Statutory Auditors have attended the meetings of the Audit Committee held during the year for review of the quarterly
/annual financial results of the Bank. The Audit Committee also discusses with the Statutory Auditors on matters connected
with the said financial results, without the presence of any executives of the Bank.
In all, 15 meetings of the Audit Committee were held during the Financial Year 2017-18 i.e. on 26th April 2017, 24th
May 2017, 22nd June 2017, 25th July 2017, 18th August 2017, 20th September 2017, 17th October 2017, 23rd October
2017, 8th November 2017, 15th November 2017, 29th November 2017, 21st December 2017, 22nd January 2018, 22nd
February 2018 and 22nd March 2018.
The details of the meetings of the Audit Committee attended by the Members during the year 2017-18, are given below:
(in `)
Prof. Samir K. Barua 15/15 7,50,000
Shri V. R. Kaundinya@ (Ceased to be a Member w.e.f. the close of business hours on 5/6 2,50,000
11th October 2017)
Shri S. Vishvanathan@ 14/15 7,00,000
Shri Rakesh Makhija @
14/15 7,00,000
Shri B. Baburao (inducted as a Member w.e.f. 17 October 2017)
th
9/9 4,50,000
The meeting held on 20th September 2017 was conducted through video conference.
@ Leave of absence was granted to the concerned Members who had expressed their inability to attend the respective
meetings.
(3) Risk Management Committee
The Risk Management Committee of the Board of Directors of the Bank (Risk Management Committee) comprises of 5
members out of which 4 are Independent Directors. The Members are Prof. Samir K. Barua, (Chairman) and Dr. Sanjiv
Misra, Independent Directors, Smt. Shikha Sharma, Managing Director & CEO, Shri Rohit Bhagat and Smt. Ketaki
Bhagwati, Independent Directors of the Bank.
The terms of reference of the Risk Management Committee, are as under:
i) To review the status of risk management in the Bank in pursuance of the objectives of the risk strategy of the Bank
71
and in terms of the notifications / guidelines issued by the RBI or any other regulators and as assigned by the Board,
from time to time.
ii) To oversee and advise to the Board, on:
a) defining risk appetite, tolerance thereof and review the same, as appropriate;
b) the systems of risk management framework, internal control and compliance to identify, measure, aggregate,
control and report key risks;
c) the alignment of business strategy with the Board’s risk appetite;
d) the 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.
iii) To advise the Board on all risk matters.
iv) 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.
v) To review the asset liability management (ALM) of the Bank on a regular basis.
vi) To consider any major regulatory issues that may have a bearing on the risk profile and risk appetite of the Bank.
vii) To provide to the Board such additional assurance as it may require regarding the quality of risk information
submitted to it.
viii) To approve the strategy and policies of the Bank, to ensure well integrated enterprise risk management in the Bank.
ix) To review risk return profile of the Bank, capital adequacy based on the risk profile of the Bank’s balance sheet,
Basel-II implementation, assessment of Pillar II risk under Internal Capital Adequacy Assessment Process (ICAAP),
business continuity plan and disaster recovery plan, key risk indicators and significant risk exposures.
x) To exercise oversight over the risk management function of the Bank.
xi) To review 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 and to give clear focus to current and
forward-looking aspects of risk exposure.
xii) To ensure that processes and infrastructure (including staffing, people, systems, operations, limits and controls)
satisfy Bank’s policy on risks.
xiii) To review and approve market risk limits, including triggers or stop-losses for traded and accrual portfolios.
xiv) To ensure certification of financial models – through appointment of qualified and competent staff and the effectiveness
of all systems used to calculate market risk.
xv) To reinforce the culture and awareness of risk management throughout the organisation.
xvi) To provide guidance and inputs to the Board and the Management on the hiring and reporting structure of the Chief
Risk Officer of the Bank.
xvii) To carry out any additional specific functions that may be laid down by RBI or other regulators from time to time,
including oversight over funding and liquidity management;
xviii) Delegation of authority to the operating teams, operational risk capital methodology etc.
xix) To review the Potential Risks to Credit Portfolio, accentuated level of credit risk and rating migration.
72
xx) To review Stress Testing Results.
xxi) To review Back-Testing Report.
The Chief Risk Officer (CRO) of the Bank reports directly to the Managing Director & CEO of the Bank. The CRO of
the Bank oversees the risk management function and is responsible for developing and setting the risk management
framework, developing and maintaining systems and processes to identify, approve, measure, monitor, control and report
risks, developing risk controls and mitigation processes, ensuring adherence to the Risk Appetite established by the Board.
The CRO of the Bank is independent of the business lines and is actively involved in key decision making processes. The
CRO of the Bank also meets the Risk Management Committee without the presence of other executive management of the
Bank.
In all, 7 meetings of the Risk Management Committee were held during the Financial Year 2017-18 i.e. on 25th April
2017, 31st May 2017, 21st June 2017, 26th July 2017, 16th October 2017, 23rd January 2018 and 22nd February 2018.
The details of the meetings of the Risk Management Committee attended by the Members during the year 2017-18, are
given below:
(in `)
Prof. Samir K. Barua 7/7 3,50,000
Dr. Sanjiv Misra
@
6/7 3,00,000
6/7 ---
Shri Rohit Bhagat@ 5/7 2,50,000
Smt. Ketaki Bhagwati@ 7/7 3,50,000
The meetings held on 31st May 2017, 21st June 2017, 23rd January 2018 and 22nd February 2018 were conducted
through video conference.
meetings.
(4) Stakeholders Relationship Committee
The Stakeholders Relationship Committee of the Board of Directors of the Bank (Stakeholders Relationship Committee)
comprises of 2 members. The Members are Shri B. Baburao Non-Executive Director (Chairman) and Shri Rajesh Dahiya,
Executive Director (Corporate Centre) of the Bank.
years, under Section 10A (2A) of the Banking Regulation Act, 1949. Accordingly, he ceased to be a member of the
Stakeholders Relationship Committee, with effect from the said date.
Shri V. R. Kaundinya, erstwhile Chairman of the Stakeholders Relationship Committee had attended the Twenty Third
Annual General Meeting of the Shareholders of the Bank. The Company Secretary of the Bank is the Compliance Officer,
in terms of Regulation 6 of the Listing Regulations.
The terms of reference of the Stakeholders Relationship Committee, are as under:
i) To review the status of redressal of correspondences / complaints, received from the security holders of the Bank
/ Statutory / Regulatory Authorities, inter alia relating to non-receipt of dividend / interest / refund order /
redemption of debt securities, transfer / transmission of shares, non-receipt of annual report and other related
documents.
ii) To review the adherence to the service standards adopted by the Bank in respect of various services being rendered
by the Registrar & Share Transfer Agent to its shareholders.
73
iii) To review the various measures / initiatives taken by the Bank inter alia for reducing the quantum of unclaimed
dividends, ensuring timely receipt of dividend warrant / annual report / statutory notice by the shareholders of the
Bank and recommend measures to further enhance the service standards for the benefit of the security holders of the
Bank.
iv) To review the status of compliance by the Bank under applicable Corporate and Securities laws.
v) To consider and review such other matters, as the Committee may deem fit, from time to time.
In all, 4 meetings of the Stakeholders Relationship Committee were held during the Financial Year 2017-18 i.e. on 13th
April 2017, 13th July 2017, 13th October 2017 and 15th January 2018.
The details of the Stakeholders Relationship Committee meetings attended by the Members during the year 2017-18, are
given below:
(in `)
Shri V. R. Kaundinya (Ceased to be a Member w.e.f. the close of business hours on 2/2 1,00,000
11th October 2017)
Shri B. Baburao 4/4 2,00,000
Shri Rajesh Dahiya 4/4 ---
The meeting held on 13th April 2017 was conducted through video conference.
(5) Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Board of Directors of the Bank (Nomination and Remuneration
Committee) comprises of 4 members, all of them being Independent Directors. The Members are Shri Prasad R. Menon
(Chairman), Shri Rohit Bhagat, Shri Rakesh Makhija and Shri Som Mittal.
years, under Section 10A (2A) of the Banking Regulation Act, 1949. Accordingly, he ceased to be a member of the
Nomination and Remuneration Committee with effect from the said date.
Shri Som Mittal, Independent Director was inducted as a member of the Nomination and Remuneration Committee w.e.f.
7th December 2017.
Shri Prasad R. Menon, Chairman of the Nomination & Remuneration Committee attended the Twenty Third Annual
General Meeting of the Shareholders of the Bank.
The terms of reference of the Nomination and Remuneration Committee, are as under:
For Nomination / Governance matters:
i) 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.
ii) Evaluate the skills that exist and those that are absent but needed at the Board level, based on the diversity policy
of the Board and search for appropriate candidates who have the profile to provide such skill sets.
iii) To evaluate the succession planning process adopted by the Bank and suggest suitable course of action, if any,
relating to vacancies that would be required to be filled at Board level on account of retirement / resignation /
expiry of term of Directors, including Chairman.
iv) Advise criteria for evaluation of Individual and Independent Directors, Board as a whole as well as Committees
thereof and shall carry out evaluation of performance of Individual and Independent Directors, Board as a whole
and Committees thereof.
74
v) 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 qualification, expertise, track record, integrity, ‘fit and
proper’ criteria, positive attributes and independence (if applicable) and on the basis of the report of performance
evaluation of directors including independent directors and formulate the criteria relating thereto.
vi) To recommend the appointment / re-appointment of Managing Director & CEO and other Whole-Time Directors and
also terms of their appointment including remuneration, for the approval of the Board.
vii) To identify persons who may be appointed in Senior Management position of the Bank, in accordance with the
criteria laid down and recommend their appointment / removal for the approval of the Board.
viii) Formulate and review the Policy on Board Diversity.
For Remuneration / HR matters:
i) Review and recommend to the Board for approval, the overall remuneration framework and associated policy of the
Bank (including remuneration policy for Directors, Key Managerial Personnel and other employees of the Bank).
ii) Review and recommend to the Board for approval of the level and structure of fixed pay, variable pay, perquisites,
bonus pool 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, the Whole-time Directors and Senior Management and also annual
revision in remuneration to be made thereof.
iii) 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.
iv) Recommend to the Board the compensation payable to the Chairman of the Bank.
v) 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.
vi) Review and recommend to the Board for its approval, the talent management and succession policy and process
in the Bank, for ensuring business continuity, especially at the levels of Managing Director & CEO, Whole Time
Directors and Senior Management and other key roles of the Bank and their progression to the Board.
vii) Review and recommend to the Board for approval the creation of new positions one level below the Managing
Director & CEO of the Bank.
viii) Set the goals, objectives and performance benchmarks for the Bank and for Managing Director & CEO, the Whole
Time Directors and Senior Management for the financial year and over the medium to long term.
ix) Review the performance of the Managing Director & CEO, the Whole-Time Directors and Senior Management of
the Bank, at the end of every financial year.
x) Review organization health through feedback from employee surveys conducted on a regular basis.
xi) 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.
xii) Review and recommend to the Board for approval, the early retirement option scheme for the Whole-Time Directors
and other employees of the Bank.
xiii) Consider and approve the Stock based compensation for all the employees of the Bank including the Managing
Director & CEO, the Whole-time Directors, Senior Management and other eligible employees of the Bank, in terms
of the relevant provisions of the SEBI (Share Based Employee Benefits) Regulations, 2014, as amended, from time
to time.
In all, 8 meetings of the Nomination and Remuneration Committee were held during the Financial Year 2017-18 i.e. on
25th April 2017, 15th May 2017, 22nd June 2017, 24th July 2017, 16th October 2017, 7th December 2017, 22nd January
2018 and 23rd March 2018.
75
The details of the meetings of the Nomination and Remuneration Committee attended by the Members during the year
2017-18, are given below:
(in `)
Shri Prasad R. Menon 8/8 4,00,000
Shri Rohit Bhagat 8/8 4,00,000
Shri Rakesh Makhija 8/8 4,00,000
Shri V. R. Kaundinya (Ceased to be a Member w.e.f. the close of business hours on 4/4 2,00,000
11th October 2017)
Shri Som Mittal (inducted as a Member w.e.f. 7th December 2017) 2/2 1,00,000
The meetings held on 25th April 2017, 15th May 2017, 22nd June 2017 and 7th December 2017 were conducted through
video conference.
(6) Special Committee of the Board of Directors for Monitoring of Large Value Frauds
The Special Committee of the Board of Directors for Monitoring of Large Value Frauds of the Bank (Special Committee for
Monitoring of Large Value Frauds) comprises of 5 members out of which 2 are Independent Directors. The Members are
Prof. Samir K. Barua, Independent Director (Chairman), Smt. Shikha Sharma, Managing Director & CEO, Shri Rakesh
Makhija, Independent Director, Shri B. Baburao, Non-Executive Director and Shri Rajesh Dahiya, Executive Director
(Corporate Centre) of the Bank.
The major functions of the Special Committee for Monitoring of Large Value Frauds are to monitor and review all the frauds
of `10 million and above and the terms of reference of the Committee, are as under:
i) Identify the systemic lacunae, if any that facilitated perpetration of the fraud and put in place measures to plug the
same.
ii) Identify the reasons for delay, in detection, if any and reporting to top management of the Bank and RBI.
iii) Monitor progress of CBI / Police investigation and recovery position.
iv) Ensure that staff accountability is examined at all levels in all the cases of frauds and staff side action, if required,
is completed quickly without loss of time.
v) Review the efficacy of the remedial action taken to prevent recurrence of frauds, such as, strengthening of internal
controls.
vi) Put in place other measures as may be considered relevant to strengthen preventive measures against frauds.
vii) To review the reporting of all identified accounts to Central Fraud Monitoring Cell (CFMC), RBI as per existing cut-
offs and to review reporting of all accounts beyond `500 million classified as RFA or ‘Frauds’ on the CRILC data
platform with the dates on which the accounts were classified as such as per the existing cut-offs.
viii) To consider and approve the Policy prescribing the process to be adopted by the Financial Crime Management
Department of the Bank to implement the directions of the Committee, subject to review by the Board.
ix) To review cyber frauds and specifically monitor the progress of the mitigating steps taken by the Bank in such cases
and the efficacy of the same in containing fraud numbers and values.
x) To review functioning of the Fraud Review Council (FRC) with regard to fraud trends and preventive steps taken by
the business groups within the Bank to prevent/curb the frauds.
xi) To review the Fraud Risk Management process, Fraud Monitoring and Fraud Investigation Function of the Bank.
In all, 5 meetings of Special Committee for Monitoring of Large Value Frauds were held during the Financial Year 2017-18
i.e. on 22nd June 2017, 20th September 2017, 29th November 2017, 21st December 2017 and 22nd March 2018.
76
The details of the meetings of the Special Committee for Monitoring of Large Value Frauds attended by the Members
during the year 2017-18, are given below:
(in `)
Prof. Samir Barua 5/5 2,50,000
4/5 ---
Shri B. Baburao@ 4/5 2,00,000
Shri Rajesh Dahiya @
4/5 ---
No meeting of the Committee was conducted through video conference.
meetings.
(7) Customer Service Committee
The Customer Service Committee of the Board of Directors of the Bank (Customer Service Committee) comprises of 3
Members out of which 1 is an Independent Director. The Members are Shri Som Mittal, Independent Director (Chairman),
Shri B. Baburao, Non-Executive Director and Shri Rajiv Anand, Executive Director (Retail Banking) of the Bank.
The terms of reference of the Customer Service Committee, are as under:
i) Overseeing the functioning of the Bank’s Standing Committee on Customer Service.
ii) To review the level of customer service in the Bank including customer complaints and the nature of their resolutions.
iii) Provide guidance in improving the customer service level / customer care aspects in the Bank.
iv) Review awards given by the Banking Ombudsman in respect of a complaint filed by any customer with the
Ombudsman and also to review awards remaining unimplemented for more than three months with the reason(s)
thereof.
v) To ensure that the Bank provides and continues to provide, best-in-class service across all its category of customers
which will help it in protecting and growing its brand equity.
vi) The Committee could address the formulation of a Comprehensive Deposit Policy, incorporating the issues such as
the treatment of death of a depositor for operation of his account, the product approval process with a view to its
suitability and appropriateness, the annual survey of depositor satisfaction and the triennial audit of such services.
vii) The Committee could also examine any other issues having a bearing on the quality of customer service being
rendered by the Bank including the root cause analysis of the Complaints being made.
viii) To ensure implementation of the directives issued by the RBI, from time to time, with respect to rendering services to
customers of the Bank.
ix) To review the customer complaints received against subsidiaries of the Bank.
x) To review the status of providing ramp facility at the branches of the Bank, for the benefit of the disabled customers
of the Bank to access the branch and conduct banking transactions without any difficulties and to review the status
of implementation of recommendations made by the Committee for providing other services for the benefit of
physically disabled customers of the Bank.
xi) To review the progress made by the Bank relating to converting all existing ATMs as talking ATMs with Braille
keypads for the benefit of blind customers.
77
xii) To review the details of claims received pertaining to deceased depositors / locker-hirers / depositors of safe
custody article accounts and those pending beyond the stipulated period and reasons thereof.
In all, 5 meetings of the Customer Service Committee were held during the Financial Year 2017-18 i.e. on 3rd April 2017,
25th April 2017, 26th July 2017, 17th October 2017 and 23rd January 2018. The details of the meetings of the Customer
Service Committee attended by the Members during the year 2017-18, are given below:
(in `)
Shri Som Mittal 5/5 2,50,000
Shri B. Baburao @
4/5 2,00,000
Shri Rajiv Anand 5/5 ---
The meeting held on 3rd April 2017 was conducted through video conference.
@ Leave

of absence was granted to the concerned Member who had expressed his inability to attend the respective
meeting.
(8) IT Strategy Committee
The IT Strategy Committee of the Board of Directors of the Bank (IT Strategy Committee) comprises of 5 Members out of
which 2 are Independent Directors. The Members are Shri Som Mittal, (Chairman) and Shri Prasad R. Menon, Independent
Directors, Smt. Shikha Sharma, Managing Director & CEO, Shri V. Srinivasan, Deputy Managing Director and Shri Rajiv
Anand, Executive Director (Retail Banking) of the Bank.
The terms of reference of the IT Strategy Committee, are as under:
i) Approving IT strategy and policies.
ii) Ensuring that management has an effective IT strategic planning process in place.
iii) Ensuring and ratifying that the business strategy is aligned with the IT strategy.
iv) Ensuring that the IT organizational structure serves business requirements and direction.
v) Oversight over implementation of processes and practices that ensures IT delivers value to businesses.
vi) Monitoring 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) Ensuring proper balance of IT investments for sustaining Bank’s growth.
viii) Assess exposure to IT risks and its controls and evaluating effectiveness of management’s monitoring of IT risks.
ix) Assessing management’s performance in implementing IT strategies.
x) Assessing if IT architecture has been designed to derive maximum business value.
xi) Reviewing IT performance measurement and contribution to businesses.
xii) To approve capital and revenue expenditure in respect of IT procurements.
xiii) Ensuring IT investments represent a balance of risks and benefits and that budgets are acceptable.
xiv) Assessing Senior Management’s performance in implementing IT strategies.
xv) Overseeing the aggregate funding of IT at a bank-level and ascertaining if the management has resources to ensure
the proper management of IT risks.
78
xvi) Ensuring that the IT organizational structure complements the business model and its direction.
xvii) Review the activities of the IT Steering Committee.
xviii) Reviewing strategy for addressing cyber security risks and review of related issues.
xix) Review of the IT related frauds, if any.
In all, 7 meetings of IT Strategy Committee were held during the Financial Year 2017-18 i.e. on 15th June 2017, 12th
September 2017, 9th November 2017, 18th December 2017, 23rd January 2018, 15th March 2018 and 22nd March
2018.
The details of the meetings of the IT Strategy Committee attended by the Members during the year 2017-18, are given
below:
(in `)
6/7 ---
Shri V. Srinivasan@
4/7 ---
Shri Rajiv Anand@ 6/7 ---
The meeting held on 18th December 2017 was conducted through video conference
@ Leave

of absence was granted to the concerned Members who had expressed their inability to attend the respective
meetings.
(9) Corporate Social Responsibility Committee
The Corporate Social Responsibility Committee of the Board of Directors of the Bank (CSR Committee) comprises of 3
members out of which 1 is an Independent Director. The Members are Shri Som Mittal, Independent Director (Chairman),
Shri Rajesh Dahiya, Executive Director (Corporate Centre) and Shri Rajiv Anand, Executive Director (Retail Banking) of the
Bank.
The terms of reference of CSR Committee, are as under:
i) Formulating and recommending to the Board, the Corporate Social Responsibility (CSR) strategy of the Bank
including the CSR Policy, its implementation and review such that the Bank’s social, environmental and economic
activities are aligned.
ii) Reviewing and approving, 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.
iii) Recommending the amount of expenditure to be incurred on the CSR activities in accordance with Section 135(5)
of the Companies Act, 2013.
iv) Review and monitor the compliance of initiatives undertaken and evaluate performance of the activities against the
agreed targets.
v) Conduct an impact assessment of the various initiatives undertaken in terms of the CSR Policy of the Bank at periodic
intervals.
vi) Instituting a transparent monitoring mechanism for ensuring implementation of the projects / programs / activities
proposed to be undertaken by the Bank.
79
vii) Reviewing and recommending the annual CSR report for the Board’s approval and for public disclosure.
viii) Performing such other duties with respect to CSR activities, as may be required to be done by the Bank 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 in the annexure
to the Directors’ report.
In all, 4 meetings of CSR Committee were held during the Financial Year 2017-18 i.e. on 15th June 2017, 13th September
2017, 18th December 2017 and 15th March 2018.
The details of the CSR Committee meetings attended by the Members during the year 2017-18, are given below:
(in `)
Shri Rajesh Dahiya 4/4 ---
Shri Rajiv Anand 4/4 ---
No meeting was conducted through video conference.
(10) Review Committee
The Review Committee of the Board of Directors of the Bank (Review Committee) comprises of 3 members out of which
2 are Independent Directors. The Members are Smt. Shikha Sharma, Managing Director & CEO (Chairperson), Shri S.
Vishvanathan and Smt. Ketaki Bhagwati, Independent Directors of the Bank.
Shri V. Srinivasan, Deputy Managing Director of the Bank stepped down as a Member of the Review Committee w.e.f.
11th July 2017.
The terms of reference of the Review Committee, are as under:
i) To review and confirm the Order(s) passed by the said Internal Committee identifying a borrower as a Wilful Defaulter,
in terms of Para 3 (c) of the RBI Master Circular No. RBI/2015-16/100 DBR.No.CID. BC.22/20.16.003/2015-16
dated 1st July 2015.
ii) To review and confirm the Order(s) passed by the said Internal Committee identifying a borrower as a Non-cooperative
borrower, in terms of Para 2 (d) of RBI Circular No. RBI/2014-15/362 DBR.No.CID. BC.54/20.16.064/2014-15
dated 22nd December 2014.
iii) To review the information relating to the Non-cooperative borrowers to be submitted to Central Repository of
Information on Large Credits (CRILC).
In all, 3 meetings of Review Committee were held during the Financial Year 2017-18 i.e. on 24th July 2017, 11th August
2017 and 20th September 2017.
The details of the meetings of the Review Committee attended by the Members during the year 2017-18, are given below:
80
(in `)
Smt. Shikha Sharma 3/3 ---
Shri S. Vishvanathan 3/3 1,50,000
Smt. Ketaki Bhagwati 3/3 1,50,000
Shri V. Srinivasan (ceased to be a Member w.e.f. 11 July 2017)
th
0/0 ---
The meeting held on 20th September 2017 was conducted through video conference.
(11) Acquisitions, Divestments and Mergers Committee
The Acquisitions, Divestments and Mergers Committee of the Board of Directors of the Bank (ADAM Committee) comprises
of 4 Members out of which 3 are Independent Directors. The Members are Shri Prasad R. Menon, Independent Director
(Chairman), Smt. Shikha Sharma, Managing Director & CEO, Shri Rohit Bhagat and Shri Rakesh Makhija, Independent
Directors of the Bank.
The terms of reference of ADAM Committee, are as under:
The main function of the Committee is to discuss and consider any idea or proposal for merger and acquisition. This
Committee will consider and give its in-principle approval in the matter and the proposal will then be placed before the
Board of Directors for its final decision.
i) Strategic investments are distinct from financial investments. The basic parameters for defining such investments are:
• 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. (However, these would exclude cases where the stake is acquired under a loan-
restructuring / CDR arrangement or where shares are pledged to the Bank against credit facilities).
ii) Strategic divestments
• Sale of an existing business of the Bank (as distinct from the sale of assets in the normal course of business
such as sale of loans / investment portfolios, sale of assets to ARCs and fixed assets).
iii) Acquisition of business
• Business takeover / acquisition as distinct from portfolio or asset purchase (As distinct from the normal
purchase of loans/investment portfolios, purchase of assets etc. If the purchase of a portfolio is accompanied
by other integral elements of the business such as manpower, technology or a distribution franchise, a
reference should be made to the Committee).
iv) Sale of stake (including minority stake) in strategic investments/ subsidiaries.
In all, 5 meetings of ADAM Committee were held during the Financial Year 2017-18 i.e. on 24th July 2017, 11th August
2017, 16th October 2017, 7th December 2017 and 23rd March 2018.
The details of the meetings of the ADAM Committee attended by the Members during the year 2017-18, are given below:
(in `)
Smt. Shikha Sharma 5/5 ---
Shri Rohit Bhagat 5/5 2,50,000
The meeting held on 7th December 2017 was conducted through video conference.
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(12) Committee of Whole-Time Directors
The Committee of Whole-Time Directors of the Board of Directors of the Bank (COWTD) comprises of 4 Members. The
Members are Smt. Shikha Sharma, Managing Director & CEO (Chairperson), Shri V. Srinivasan, Deputy Managing
Director, Shri Rajiv Anand, Executive Director (Retail Banking) and Shri Rajesh Dahiya, Executive Director (Corporate
Centre) of the Bank.
The terms of reference of COWTD, are as under:
i) Issuance of Power of Attorney to various officials of the Bank.
ii) Allotment of equity shares under ESOP scheme.
iii) Issue of Duplicate Share Certificates in Lieu of original Share Certificates Lost / Misplaced.
iv) Annual Branch Expansion Plan approved by the Board: Substitution of Branch Centres / New Specialised & CPC /
Service Branches / Rural Unbanked Centre.
v) Review of the Security measures in branches and ATMs.
vi) Interest Rates on Deposits.
vii) Investments / Disinvestments in SLR securities & Derivatives deals during the month.
viii) Review of Non SLR activities for the month.
ix) Review of the Domestic Funds Management and SLR Investments for the month.
x) Correspondent Banking Relationship – Opening of Nostro and Vostro Accounts.
xi) Empanelment/Dis-Empanelment of Broker for FC- INR Option Market Segment, Derivative Segment, Equity and
Wholesale Debt Market Segment.
xii) Quarterly report on Customer Service for Exporters.
xiii) Money Market Operations – Deals through approved brokers.
xiv) Modification/ Changes in Service Charges.
xv) Reporting of the Debenture Trustee Activities.
xvi) To apply for registration of the Company with various authorities of any State or Centre including sales tax authorities,
income tax authorities, shops & establishment authorities and to do or perform all matters relating to the above.
xvii) To authorise persons to represent the Bank at General Meetings of any company, association of persons, cooperative
society or any institution, of which the Bank is a shareholder/member.
xviii) To authorise employee(s) or others to execute, for and on behalf of the Bank, agreements, applications, deeds,
documents and any other writings in connection with the business of the Bank.
xix) Appointment of Trustees for Employees Welfare Trust, Employees Group Gratuity Assurance Scheme, Provident
Fund, Employees Superannuation Scheme of the Bank.
xx) Approval of On-Boarding of Co-operative Banks.
xxi) Approval/Ratification of Risk Policies of Overseas Branches.
xxii) Setting up/Enhancement of New Counterparty Exposure Limits - under Exception Route.
xxiii) To review status of events escalated.

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xxiv) Any other matter as may be authorised by the Board of Directors/Board Level Committees or required to be done
pursuant to any laws, rules, regulations or any internal circular of the Bank.
xxv) Any other routine administrative matters.
xxvi) To review and approve the Early Retirement Option Scheme to be offered to Whole-Time Directors and Employees
of the Bank.
xxvii) Reviewing Rupee Drawing Arrangement (RDA) with Non-Resident Exchange Houses;
xxviii) Reviewing Status Report on Stock Audit conducted
xxix) To ratify Credit appraisal cases with rating below AB- BBB+;
xxx) To approve the Bank’s Sustainability Framework and review the Bank’s Sustainability Performance including public
disclosures in the form of Sustainability Report and any other such sustainability disclosures.
xxxi) Approve the allotment of Debt securities issued by the Bank, including, but not limited to long term bonds, green
bonds, non-convertible debentures, perpetual debt instruments, Tier II Capital Bonds or such other debt securities as
may be permitted under the RBI guidelines, from time to time, in domestic and/or overseas market, in one or more
tranches, on a private placement basis or in such manner as may be permitted by RBI.
xxxii) Approve the allotment of any other Securities issued by the Bank.
In all, 11 meetings of COWTD were held during the Financial Year 2017-18 i.e. on 10th May 2017, 15th June 2017, 11th
August 2017, 28th September 2017, 30th October 2017, 27th November 2017, 12th December 2017, 18th December
2017, 29th January 2018, 19th February 2018 and 26th March 2018. No sitting fees are paid to the Members of the
COWTD, for participating in the said meetings.
The details of the COWTD meetings attended by the Members during the year 2017-18, are given below:
(in `)
Smt. Shikha Sharma@ 10/11 ---
Shri V Srinivasan 11/11 ---
Shri Rajiv Anand@ 10/11 ---
Shri Rajesh Dahiya@ 9/11 ---
meetings.
Special Meeting of Independent Directors
During the year under review, the Independent Directors of the Bank met on 27th April 2017 and 22nd January 2018 without the
presence of the Non-Independent Directors and Members of the Senior Management of the Bank.
At the said meetings, the Independent Directors of the Bank inter alia reviewed the performance of the Non-Independent
Directors and the Board as a whole, reviewed the performance of the Chairman of the Bank taking into account the views of
the Executive and Non-Executive Directors and assessed the quality, quantity and timeliness of flow of information between the
Management and the Board which is necessary for them to effectively and reasonably perform their duties.
No sitting fees were paid to the Independent Directors of the Bank for participating in the said meetings.
Remuneration Policy
The Bank has formulated and adopted a Comprehensive Remuneration Policy for its Directors, Key Managerial Personnel and
Employees of the Bank, in terms of Section 178 of the Companies Act, 2013, the relevant Rules made thereunder, Regulation 19
of the Listing Regulations and the Guidelines issued by the RBI, in this regard, from time to time. The said policy was reviewed
and approved by the Board of Directors of the Bank at its meeting held on 25th July 2017.
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The Bank’s remuneration practices are underpinned by principles of meritocracy and fairness. The remuneration system strives
to maintain the ability to attract, retain, reward and motivate talent in order to enable the Bank to attain its strategic objectives
within the increasingly competitive context in which it operates. The Bank’s pay-for- performance approach strives to ensure that
both internal and external equity are in line with the emerging market trends.
The Bank strives to ensure that the compensation practices are in line with the extant compensation regulations as applicable.
The remuneration paid to all the employees is in accordance with the said Policy of the Bank.
Remuneration of Directors
i. Dr. Sanjiv Misra was appointed as the Non-Executive (Part-time) Chairman of the Bank, for a period of three years, with
effect from 18th July 2016. The details of remuneration paid to Dr. Sanjiv Misra, in terms of the approvals granted by the
Reserve Bank of India and the Shareholders of the Bank for the Financial year 2017-18, are as under:
For the period 1st April 2017 up to 17th July 2017 18th July 2017 up to 31st March 2018
Remuneration `2,50,000 per month `2,75,000 per month
Company Car Free use of Bank’s Car for official and private purposes Free use of Bank’s Car for official and private purposes
Touring Travelling and Official expenses to be borne by the Travelling and Official expenses to be borne by the
Bank for Board functions as a Chairman Bank for Board functions as a Chairman
Sitting Fees As payable to other Non- Executive Directors As payable to other Non- Executive Directors
ii. Smt. Shikha Sharma was re-appointed as the Managing Director & CEO of the Bank, for a period of three years, w.e.f.
1st June 2015. The Board of Directors of the Bank had approved the revision in the remuneration payable to Smt. Shikha
Sharma as the Managing Director & CEO of the Bank, for the period from 1st June 2017 to 31st May 2018, which was
approved by the RBI and the Shareholders of the Bank. The details of remuneration paid to Smt. Shikha Sharma during
the year under review, in terms of the approvals granted by the RBI and the Shareholders of the Bank, are given below in
sub-para vii.
Smt. Shikha Sharma was granted 78,40,000 options, in various tranches under the various Employee Stock Option
Schemes of the Bank, since 1st June 2009 being the date of her appointment as the Managing Director & CEO of the
Bank. Out of the above, 63,10,000 options have been vested, 39,75,000 options have been exercised and the balance
23,35,000 options remain unexercised, as on 31st March 2018. Further, 15,30,000 options remain unvested, as on
31st March 2018.
iii. Shri V. Srinivasan was appointed as the Deputy Managing Director of the Bank for a period of 3 years, w.e.f. 21st
December 2015. The Board of Directors of the Bank had approved the revision in the remuneration payable to Shri V.
Srinivasan as the Deputy Managing Director of the Bank, for the period from 1st June 2017 to 31st May 2018, which was
approved by the RBI and the Shareholders of the Bank. The details of the remuneration paid to Shri V. Srinivasan during
the year under review, in terms of the approvals granted by the RBI and the Shareholders of the Bank, are given below in
sub-para vii.
Shri V. Srinivasan was granted 38,75,000 options, in various tranches under the various Employee Stock Option Schemes
of the Bank, since 7th September 2009 being the date of his appointment as the Executive Director & Head (Corporate
Banking) of the Bank. Out of the above, 30,25,000 options have been vested, 17,50,000 options have been exercised
and the balance 12,75,000 options remain unexercised, as on 31st March 2018. Further, 8,50,000 options remain
unvested, as on 31st March 2018.
iv. Shri Rajiv Anand was appointed as the Executive Director (Retail Banking) of the Bank, for a period of 3 years w.e.f. 4th
August 2016. The Board of Directors of the Bank had approved the revision in the remuneration payable to Shri Rajiv
Anand as the Executive Director (Retail Banking) of the Bank, for the for the period from 1st June 2017 to 31st May 2018,
which was approved by the RBI and the Shareholders of the Bank. The details of remuneration paid to Shri Rajiv Anand
during the year under review, in terms of the approval granted by the RBI and the Shareholders of the Bank, are given
below in sub-para vii.
Shri Rajiv Anand was granted 19,20,000 options, in various tranches under the various Employee Stock Option Schemes
of the Bank, since 30th March 2009 being the date of his appointment as the Managing Director & CEO of Axis
Asset Management Company Limited, subsidiary of the Bank. Out of the above, 13,64,000 options have been vested,
8,25,000 options have been exercised and the balance 5,39,000 options remain unexercised, as on 31st March 2018.
Further, 5,56,000 options remain unvested, as on 31st March 2018.
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v. Shri Rajesh Dahiya was appointed as the Executive Director (Corporate Centre) of the Bank, for a period of 3 years w.e.f.
4th August 2016. The Board of Directors of the Bank had approved the revision in the remuneration payable to Shri Rajesh
Dahiya as the Executive Director (Corporate Centre) of the Bank, for the period from 1st June 2017 to 31st May 2018,
which was approved by the RBI and the Shareholders of the Bank. The details of remuneration paid to Shri Rajesh Dahiya
during the year under review, in terms of the approval granted by the RBI and the Shareholders of the Bank, are given
below in sub-para vii.
Shri Rajesh Dahiya was granted 11,67,500 options, in various tranches under the various Employee Stock Option
Schemes of the Bank, since 1st June 2010 being the date of his appointment as the President (Human Resources) of the
Bank. Out of the above, 6,85,000 options have been vested, 3,77,000 options have been exercised and the balance
3,08,000 options remain unexercised, as on 31st March 2018. Further, 4,82,500 options remain unvested, as on 31st
March 2018.
vi. The Bank does not grant Stock Options to its Non-Executive Directors. The Non-Executive Directors of the Bank are eligible
to receive sitting fees for the meetings of the Board / Committees, attended by them and to Profit Linked Commission
(except for Non-Executive (Part-Time) Chairman), in terms of the RBI circular dated 1st June 2015 on Guidelines on
Compensation of Non-executive Directors of Private Sector Banks.
vii. The Whole-Time Directors of the Bank are not entitled to receive any sitting fee from the Bank or from its Subsidiary
Companies.
The details of remuneration paid to the Whole-Time Directors of the Bank during the financial year 2017-18, in terms of
the approval(s) granted by the RBI and the Shareholders of the Bank, are as under:
(in `)
Smt. Shikha Sharma Shri V. Srinivasan Shri Rajiv Anand Shri Rajesh Dahiya
Salary (Basic) 2,90,97,336 2,06,14,000 1,51,94,698 1,33,57,954
Leave Fare Concession 14,76,000 6,05,004 5,49,996 5,49,996
facility
House Rent Allowance 97,05,336 51,52,000 50,14,248 -
Deferred Variable pay 44,09,897 11,62,855 - -
(for 2013-14 and 2014-15)
Superannuation Allowance 10% of Basic pay (fund 20,61,400 15,19,467 13,35,793
/ Fund contribution)
Perquisites (excluding ESOP) 32,08,204 10,83,946 20,86,639 21,91,364
Provident Fund (Bank 12 % of Basic Pay 12 % of Basic Pay 12 % of Basic Pay 12 % of Basic Pay
Contribution)
Gratuity One month’s salary for One month’s salary for One month’s salary for One month’s salary for
each completed year of each completed year of each completed year of each completed year
service service service of service
Perquisites (evaluated as per Income Tax Rules, 1962, wherever applicable, or otherwise at actual cost to the Bank) such
as Bank’s furnished accommodation, electricity, water and furnishings, club fees, personal accident insurance, loans,
use of car and telephone at residence, leave encashment, medical reimbursement, travelling and halting allowances,
newspapers and periodicals and others were provided in accordance with the Rules of the Bank.
Whilst the approval of the RBI for revision in the remuneration payable to the Managing Director & CEO, the Deputy
Managing Director and the Whole-time Directors of the Bank for the period 1st June 2017 to 31st May 2018 and for grant
of stock options has been received, the approval for payment of variable pay for the financial year 2016-17, to the said
Directors of the Bank, is awaited.
The Bank does not pay any severance fees to its Managing Director & CEO or to its Whole-Time Directors. The tenure
of the office of the Managing Director & CEO and the Whole-time Directors of the Bank is effective for a period of three
years from date of their respective appointment and/or as approved by the RBI and the same can be terminated by either
party by giving three months’ notice in writing.
85
viii. All the Non-Executive Directors of the Bank were paid siting fees of `1,00,000 for every meeting of the Board and
`50,000 for every meeting of the Committee of the Board attended by them. The details of the sitting fees paid to the
Non-Executive Directors of the Bank during the financial year 2017-18, are as under:
(in `)
Name of Director Sitting Fees
Dr. Sanjiv Misra 12,00,000
Shri V. R. Kaundinya (Term expired w.e.f. the close of business hours on 11th October 2017) 7,50,000
Shri Prasad R. Menon 24,00,000
Prof. Samir K. Barua 22,50,000
Shri Som Mittal 16,00,000
Shri Rohit Bhagat 18,00,000
Smt. Usha Sangwan@ 6,00,000
Shri S. Vishvanathan 22,50,000
Shri Rakesh Makhija 25,00,000
Smt. Ketaki Bhagwati 20,00,000
Shri B. Baburao@ 19,50,000
Shri Stephen Pagliuca [appointed as an Additional Non-Executive (Nominee) 2,00,000
Director w.e.f. 19th December 2017]
Total 1,95,00,000
@The sitting fees paid to Smt. Usha Sangwan (Nominee Director – LIC) and Shri B. Baburao (Nominee Director – SUUTI)
for attending the meetings of the Board / Committees thereof, have been credited to the bank account of LIC and SUUTI,
respectively.
As on 31st March 2018, none of the Non-Executive Directors of the Bank held any equity shares of the Bank.
ix. The following Non-Executive Directors of the Bank were eligible for Profit Linked Commission, for the financial year 2016-17,
in terms of the RBI Circular No.DBR. No.BC.97/29.67.001/2014-15 dated 1st June 2015 on Guidelines on Compensation
of Non-Executive Directors of Private Sector Banks, which was paid to them during the financial year 2017-18, detailed as
under:
(in `)
Name of Director Profit Linked
Commission
Dr. Sanjiv Misra# 1,83,562
Shri V. R. Kaundinya 10,00,000
Shri Prasad R. Menon 10,00,000
Prof. Samir K. Barua 10,00,000
Shri Som Mittal 10,00,000
Shri Rohit Bhagat 10,00,000
Smt. Usha Sangwan @
10,00,000
Shri S. Vishvanathan 10,00,000
Shri Rakesh Makhija 10,00,000
Smt. Ketaki Bhagwati 10,00,000
Shri B. Baburao@ 10,00,000
Total 1,01,83,562
# T he profit linked commission was paid to Dr. Sanjiv Misra in his capacity as an Independent Director of the Bank, for the
period from 12th May 2016 to 17th July 2016 (both days inclusive).
@ T he profit linked commission paid to Smt. Usha Sangwan (Nominee Director – LIC) and Shri B. Baburao (Nominee
Director – SUUTI) have been credited to the bank account of LIC and SUUTI, respectively.
86
Evaluation of Board’s Performance
The performance evaluation of the Board as a whole as well as that of its Committees, Independent Directors and Non
Independent Directors and Chairman of the Board was done in accordance with the relevant provisions of the Companies Act,
2013, the relevant Rules made thereunder and the Listing Regulations relating to Corporate Governance.
The NRC reviews and advises the criteria for such evaluation process and overseas the performance evaluation. Pursuant to the
recommendation of the NRC, the Board has adopted a formal mechanism for evaluating the performance of its Committees,
Individual Directors including the Independent Directors and Non-Independent Directors, the Chairman of the Board and the
Board as a whole.
The Bank had engaged the services of an external agency for setting the methodology and determining the process of such
evaluation and advising the Board on the measures pursuant to outcome of such evaluation.
The said evaluation was conducted on the various aspects of the Board’s functioning such as Strategic alignment and direction,
Engagement alignment, Composition & structure, Dynamics & culture, Ethical leadership & corporate citizenship, Board support,
Performance of key Committees, Self-evaluation and Attendance.
Familiarisation Programme for Independent Directors
The Bank has conducted the familiarisation programme for its Independent and Non-Executive Directors covering the matters as
specified under Regulation 25 (7) of the Listing Regulations. The details of the same have been uploaded on the website of the
Bank at https://www.axisbank.com/shareholders-corner/corporate-governance/compliance-report.
Induction Programme for new Directors
The new Directors are inducted through one to one meetings with the Managing Director & CEO, Whole-time Directors and
other members of the Senior Management on issues relating to business strategy, regulatory environment, business plans and
key performance indicators. They are also provided with information relating to the finances and operations of the Bank,
the organization structure and their roles, duties and responsibilities. On appointment, the Directors are issued a Letter of
Appointment setting out the terms and conditions relating to their appointment and their duties and responsibilities under
applicable laws.
Disclosure in terms of The Sexual Harassment of Women at Workplace (Prevention, Prohibition and
Redressal) Act, 2013
The Bank has formulated and adopted a policy on prevention of sexual harassment at workplace and 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. The Bank believes that all employees, including other individuals who are dealing with the
Bank have the right to be treated with dignity.
The following is a summary of sexual harassment complaints received and disposed off by the Bank, during the financial year
2017-2018:
Number of complaints of sexual harassment received during the year - 47
Number of complaints disposed off during the year – 43
Number of cases pending for more than 90 days – 2 (There are two cases which have exceeded the desired TAT).
Please find below a brief explanation for the delay in TAT:
Case 1: The Complainant was not an Axis Bank employee but was appointed by Axis Bank as a trainer. Inspite of repeated
follow ups by Axis Bank, there was delay by the Complainant’s employer to revert with the information requested for examining
the case.
Case 2: Show Cause Notice was issued to the Respondent, however he did not attend the personal hearing scheduled. A second
chance was provided to the Respondent in which he presented himself in front of the CICC. Thereafter the case was closed.
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Number of workshops/awareness programme conducted against sexual harassment carried out – 15
Nature of action taken by the Employer or District Officer – As per the Bank’s Staff Rules.
The said Committee takes appropriate action against the employee(s) who have violated the norms prescribed under the Policy,
which includes disciplinary action such as issuance of warning letter and in some cases termination of employment depending
upon the gravity of the violation.
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(9) of the Companies Act, 2013, Rules made thereunder and Regulation 4(2)(d) of the
Listing Regulations. The Policy provides an opportunity to address serious concerns arising from irregularities, malpractices and
other misdemeanours 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 Chairman of 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 misdemeanours.
To ensure smooth flow 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 affirmed that the Bank has not denied any of its personnel access to the Chairman of the Audit Committee of the
Board and that the Policy contains adequate provisions protecting Whistle blowers from unfair termination and other unfair
prejudicial and employment practices.
The Audit Committee of the Board has reviewed, 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 https://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 a material subsidiary, in
terms of Regulation 16(1)(c) of the Listing Regulations. Further, the minutes of the Board meetings of all the unlisted subsidiary
companies of the Bank are tabled at the meetings of the Board of Directors of the Bank for its review. Also, the minutes of the
Audit Committee meetings of all the unlisted subsidiary companies of the Bank are tabled at the meetings of the Audit Committee
of the Bank for its review. The Statement of significant transactions / arrangements, if any, entered into by the unlisted subsidiary
companies of the Bank are also tabled at the meetings of the Board of the Bank, for its review.
Policy for determining ‘Material’ Subsidiaries
As required under Regulation 16(1)(c) of the Listing Regulations, the Bank has formulated and adopted a Policy for determining
‘Material’ Subsidiaries, which has been hosted on its website at https://www.axisbank.com/shareholders- corner/corporate-
governance/compliance-report.
Policy for Related Party Transactions
As required under Regulation 23 of the Listing Regulations, the Bank has formulated and adopted a Policy on dealing with
Related Party Transactions, which has been hosted on its website at https://www.axisbank.com/shareholders-corner/corporate-
governance/compliance-report and details thereof have been disclosed in the Annual Report.
88
Prevention of Insider Trading
The Board of Directors of the Bank has formulated and adopted the Share Dealing Code – July 2017 (The Code) and the Code
of Practices and Procedures for Fair Disclosure of Unpublished Price Sensitive Information (UPSI) in line with the standards
prescribed under Schedule B of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015
(Insider Trading Regulations).
The Code prohibits all Designated Persons and Other Connected Persons of the Bank from entering into any trade in securities
of the Bank during the blackout period(s). The commencement and closure of the blackout period(s) is notified to all Designated
Persons and Other Connected Persons through e-mail and HRMS.
The Code requires Designated Persons to obtain pre-clearance of the Compliance Officer for dealing in the Bank’s securities
beyond prescribed threshold limits. Further, it prohibits the purchase / sale / transfer etc., of Bank’s securities by its Designated
Persons, Connected Persons and Other Connected Persons whilst in possession of UPSI relating to the securities of the Bank. The
Designated Persons are also prohibited from entering into contra trades on the floor of the Stock Exchange(s) and from dealing
in securities of the Bank’s Listed Client Companies, during the period(s) notified to them.
The Bank periodically reviews the efficacy of its systems, controls and processes to ensure that access to unpublished price
sensitive information relating to its financial results or that of its securities is on a need to know basis. The Bank also reviews its
Share Dealing Code to meet regulatory requirements and in line with the prevalent best practices.
Companies (Amendment) Act 2017
The Companies (Amendment) Bill, 2017, was passed by the Hon’ble Lok Sabha on 27th July 2017 and by the Hon’ble Rajya
Sabha on 19th December 2017, respectively. Whilst, it has received the assent of the President of India on 3rd January 2018,
the effective dates of various sections covered in the said Bill are being notified by the Ministry of Corporate Affairs. The Bank
will adhere to the relevant provisions of the said Act, as applicable.
Secretarial Standards
The Institute of Company Secretaries of India had revised the Secretarial Standards on Meetings of the Board of Directors (SS-1)
and Secretarial Standards on General Meetings (SS-2) with effect from 1st October 2017. The Bank is in compliance with the
revised secretarial standards.
New Governance Norms
The Securities and Exchange Board of India (SEBI) had constituted a Committee to review the existing Corporate Governance
framework for listed companies in India. The Committee submitted its report to SEBI on 5th October 2017. The recommendations
which are forward looking have been notified by SEBI on 9th May 2018 and on 10th May 2018. The Bank endeavours to ensure
compliance with the new norms, as applicable.
(3) DISCLOSURES
There were no related party transactions which were of a materially significant nature undertaken by the Bank with its promoters,
directors or management, their subsidiaries or relatives that may have a potential conflict with the interests of the Bank.
The Members of the Senior Management of the Bank have affirmed that they have not entered into any material, financial or
commercial transaction wherein they have personal interest and which may potentially conflict 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 Exchange(s) or SEBI or
other statutory authorities on any matter related to capital markets during the last three years.
(4) COMPLIANCE
The Bank has complied with all the mandatory requirements as prescribed under the Listing Regulations relating to Corporate
Governance.
89
The Bank has adopted the non-mandatory requirements relating to maintenance of Chairman’s Office at the Bank’s expense and
reimbursement of expenses incurred by its Non-Executive Chairman in performance of his duties, moving towards a regime of
financial statements with unmodified audit opinion, separation of the office of the Chairman and Managing Director and the
Chief Audit Executive directly reporting to the Audit Committee of the Board.
The Bank has obtained a certificate from M/s S.R. Batliboi & Co. LLP, Chartered Accountants, Mumbai (Registration No.
301003E/E300005) confirming that the Bank has complied with all the mandatory / non-mandatory requirements as stipulated
under the Listing Regulations relating to Corporate Governance. The said certificate is enclosed as annexure to the Directors’
Report.
(5) CODE OF CONDUCT

The Board has formulated and adopted Code of Conduct and Conflict of Interest Norms in Respect of Board of Directors and
the Code of Conduct and Ethics for Senior Management of the Bank.
The said Codes have been hosted on the website of the Bank viz. https://www.axisbank.com/shareholders-corner/corporate-
governance/Compliance-Report.
A certificate issued by the Managing Director & CEO of the Bank confirming that all the Directors and Members of the Senior
Management of the Bank have complied with the said Codes, is annexed to this Report.
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GENERAL SHAREHOLDER INFORMATION

[Pursuant to Regulation 34(3) and Schedule V of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Listing
Regulations)]
24th Annual General Meeting
Day/ Date : Wednesday, 20th June 2018

Time : 10.00 A.M.
Venue : J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA, Dr. Vikram Sarabhai Marg,
Ahmedabad 380 015, Gujarat.
Financial Year
The Bank follows the financial year starting from 1st April to 31st March, every year.
Compliance Calendar
The schedule in respect of the meetings of the Board proposed to be held during the financial year 2018-19 to inter alia review and
approve the unaudited / audited financial results of the Bank, in terms of Regulation 33(3)(a), (d) and (f) of the Listing Regulations, is
as under:
Purpose Venue Tentative Date

Audited Annual Financial Results (standalone and consolidated) for the year ended 31st March Corporate Office April/May 2018
2018
Unaudited Financial Results of the Bank for the quarter ending 30th June 2018 Corporate Office Last week of July 2018
Unaudited Financial Results of the Bank for the quarter / half year ending 30 September 2018
th
Corporate Office Last week of October 2018
Unaudited Financial Results of the Bank for the quarter / nine months ending 31 December
st
Corporate Office Last week of January 2019
2018
Audited Annual Financial Results (standalone and consolidated) for the year ending 31st March Corporate Office Last week of April 2019
2019
After the said financial results of the Bank are reviewed and approved by the Board, the same is disclosed to the Stock Exchange(s)
within the prescribed time limits as stipulated under Regulation 30 read with sub-para 4 of Para A of Part A of Schedule III of the Listing
Regulations.
Book Closure
Pursuant to the provisions of Section 91 of the Companies Act, 2013 and Rule 10 of the Companies (Management and Administration)
Rules, 2014, the Register of Members and the Share Transfer Books of the Bank, will remain closed from Saturday, 2nd June 2018 upto
Wednesday, 20th June 2018 (both days inclusive), for the purpose of 24th Annual General Meeting of the Bank.
Dividend
No dividend has been recommended by the Board of Directors of the Bank for the financial year 2017-18.
Unclaimed Dividends
Pursuant to the provisions of Section 125 of the Companies Act, 2013 and the Investor Education and Protection Fund Authority
(Accounting, Audit, Transfer and Refund) Rules, 2016, the amount of unpaid dividends that are lying unclaimed for a period of 7
consecutive financial years from the date of its transfer to the unpaid dividend account, is liable to be transferred to the Investors’
Education & Protection Fund (IEPF). Accordingly, the unclaimed dividend amounting to `47,30,544/-, in respect of the financial year
2009-10 was transferred to the IEPF on 9th August 2017. Further, please note that the unclaimed dividend in respect of the financial
year 2010-11 must be claimed by the concerned shareholders on or before 22nd July 2018, failing which it will be transferred to the
IEPF, in accordance with the said Rules.
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The details of the unclaimed dividends as on 31st March 2018 and the last date for claiming the same, prior to its transfer to the IEPF,
are as under:
Financial year No. of Unclaimed % to total Total Amount Date of Last date
Shareholders dividend as dividend of Dividend declaration for claiming
on 31st March declared Declared dividend prior
2018 (In `) (In `) to its transfer
to the IEPF
2010-11 3,837 47,36,998 0.08 5,76,37,96,262 17-06-2011 22-07-2018
2011-12 4,586 53,54,000 0.08 6,62,86,55,136 22-06-2012 27-07-2019
2012-13 3,460 55,78,200 0.07 8,44,07,35,212 19-07-2013 24-08-2020
2013-14 2,726 59,56,080 0.06 9,42,60,65,680 27-06-2014 01-08-2021
2014-15 4,927 77,18,598 0.07 10,92,77,37,331 24-07-2015 29-08-2022
2015-16 6,155 94,96,940 0.08 11,93,76,13,965 22-07-2016 28-08-2023
2016-17 6,472 1,08,61,685 0.09 11,98,58,43,545 26-07-2017 31-08-2024
Total 32,163 4,97,02,501 65,11,04,47,131
Transfer of Underlying Equity Shares in respect of the Unclaimed Dividends to the IEPF Authority Account
Pursuant to the notification of the relevant provisions of Sections 124 and 125 of the Companies Act, 2013 and the relevant provisions
of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and Refund) Rules, 2016, as amended, the
unclaimed dividend for the financial year 2009-10 and the underlying equity shares(s) of the Bank, in respect of the said financial year
(where the dividends for all the subsequent seven consecutive financial years have not been claimed by the concerned shareholder),
were liable to be transferred by the Bank to the designated account of the IEPF Authority in accordance with the said Rules.
Accordingly, pursuant to the notification of the Investor Education and Protection Fund Authority (Accounting, Audit, Transfer and
Refund) Second Amendment Rules, 2017, issued by the Ministry of Corporate Affairs on 13th October 2017, the Bank has transferred
5,35,446 underlying equity shares of `2/- each of the Bank in respect of the said unclaimed dividend, to the designated account
of the IEPF Authority.
The unclaimed dividend(s) for the financial year 2009-10 and the said underlying equity shares can be claimed by the concerned
shareholder(s) of the Bank from the IEPF Authority, subject to compliance with the procedures as prescribed under the said Rules and
they may write to Karvy for any assistance in this regard.
Unclaimed Dividends for FY 2010-11 upto 2016-17

The shareholder(s) of the Bank are requested to verify details of their unclaimed dividends in respect of the financial years from
2010-11 upto 2016-17 and lodge their claim with Karvy, before the last date for claiming dividend prior to its transfer to the IEPF, as
aforesaid.
In case the unclaimed dividend for the financial year 2010-11 is not claimed on or before 22nd July 2018, the said unclaimed dividend
along with the underlying equity share(s) of the Bank in respect of the said financial year [where the dividends for all the subsequent
seven consecutive financial years have not been claimed by the concerned shareholder] will be liable to be transferred by the Bank to
the designated account of the IEPF Authority, in accordance with the said Rules.
Unclaimed Equity Shares

Schedule VI of the Listing Regulations, inter alia, requires every listed company to comply with certain procedures in respect of equity
shares issued by it in physical form pursuant to a public issue or any other issue and which have remained unclaimed for a period of
seven consecutive financial years, for any reason whatsoever.
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Details of such unclaimed equity shares of the Bank, are as under:
Particulars FY 2017-18 FY 2016-17
Aggregate number of shareholders at the beginning of the year 29 29

Total outstanding shares in Unclaimed Suspense Account at the beginning of the year 18,000 18,000
Number of shareholders who approached the issuer for transfer of shares from Unclaimed Suspense 1 –
Account during the year
Number of shares transferred to the concerned shareholder from Unclaimed Suspense Account 500 –
during the year
Aggregate number of shareholders at the end of the year 1 29
Total outstanding shares in Unclaimed Suspense Account as on 31st March 2018. 500* 18,000
* Pursuant to the notification on IEPF Second Amendment Rules, issued by the Ministry of Corporate Affairs dated 13th October
2017, the Bank has transferred 5,35,446 unclaimed equity shares of `2 each of the Bank (including the balance 17,000 equity
shares of `2 each of the Bank which were lying in the Unclaimed Suspense Account) to the designated account of the IEPF
Authority, in accordance with the said Rules.
All corporate benefits accruing on the said equity shares viz. bonus shares, split, etc., if any, are also required to be credited to the
designated account of the IEPF Authority. Further, voting rights on the said unclaimed equity shares have been frozen till the concerned
shareholder(s) claims the same.
Equity Shares
The equity shares of the Bank are listed on National Stock Exchange of India Limited (NSE) and BSE Limited (BSE). The International
Security Identification Number (ISIN) in respect of the said equity shares is INE238A01034. The National Securities Depository Limited
(NSDL) and the Central Depository Services (India) Limited (CDSL) are the Depositories for the equity shares of the Bank. The equity
shares of the Bank have not been suspended from trading on the said Stock Exchanges or by any Regulatory / Statutory Authority.
Stock Exchange Codes Reuters Codes Bloomberg Codes

NSE – AXISBANK NSE - AXBK.NS NSE - AXSB IS
National Stock Exchange of India Limited
Exchange Plaza, 5th Floor,
Plot No. C/1, G Block,
Bandra - Kurla Complex,
Bandra (E), Mumbai – 400 051.
Website: www.nseindia.com
BSE – 532215 BSE- AXISBANK.BO BSE - AXSB IB
BSE Limited
1st Floor, New Trading Ring,
Rotunda Building, P. J. Towers,
Dalal Street, Fort, Mumbai – 400 001.
Website: www.bseindia.com
Global Depository Receipts (GDR)

The Bank’s GDRs are listed and traded on London Stock Exchange. The ISIN for the said GDRs is US05462W1099.
Stock Exchange Code

London Stock Exchange AXB
10 Paternoster Square, London EC4M 7LS, UK
Website: www.londonstockexchange.com
Bonds issued under Medium Term Note Programme (MTN Programme)

The Bonds issued by the Bank’s MTN programme are listed and traded on Singapore Stock Exchange.
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Stock Exchange Code

Singapore Stock Exchange –
Singapore Exchange Securities Trading Limited
(Attention: SGXNet Services, Operations)
11 North Buona Vista Drive #06-07
The Metropolis Tower 2
Singapore 138589
Website: www.sgx.com
Listing Fees
The annual listing fees for the financial year 2017-18 have been paid by the Bank to the said Stock Exchanges.
Debt Securities
The debt instruments issued by the Bank in the form of Additional Tier I, Bond Tier II Debt Capital Instrument and Infrastructure Bonds
on a private placement basis are listed on NSE and BSE. The Bonds issued by the Bank under the MTN programme are listed on
Singapore Stock Exchange and the Green Bonds issued by the Bank are listed on London Stock Exchange.
Debenture Trustees
IDBI Trusteeship Services Limited SBI Cap Trustee Company Limited
Asian Building, Ground Floor, 6th Floor, Apeejay House, 3,
17, R. Kamani Marg, Dinshaw Wachha Road,
Ballard Estate, Mumbai - 400 001. Churchgate, Mumbai - 400 020.
Phone No. +91 - 22 4080 7000. Phone No. +91 - 22 - 4302 5555.
Website: www.idbitrustee.com Website: www.sbicaptrustee.com
Market Price Data

a) Equity Shares
The price of the Bank’s Share - High, Low as traded during the financial year 2017-18 on NSE and BSE, are as under:
Month NSE BSE

High (`) Low (`) No. of High (`) Low (`) No. of
Shares traded Shares traded
April, 2017 525.00 481.00 15,93,66,051 525.00 481.00 1,05,86,435
May, 2017 534.60 490.25 17,54,09,774 534.35 490.10 1,17,86,508
June, 2017 525.35 484.45 11,51,16,059 525.00 484.75 64,28,613
July, 2017 547.50 501.25 14,80,01,611 547.00 501.45 87,18,985

August, 2017 524.05 480.00 12,69,71,719 523.40 480.25 2,09,51,059
September, 2017 526.00 488.30 13,03,35,638 525.65 488.30 47,79,223
October, 2017 534.65 447.50 28,67,76,172 534.40 447.80 1,59,48,117
November, 2017 565.90 523.00 22,14,25,370 565.40 523.05 1,34,43,794
December, 2017 567.85 529.10 10,24,35,138 566.00 528.00 75,04,786
January, 2018 627.60 552.50 14,41,83,345 627.50 552.85 86,67,069
February, 2018 610.00 520.00 12,34,34,817 609.00 521.00 93,08,139

March, 2018 539.20 495.20 16,59,42,618 539.00 495.35 66,20,860
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GRAPH IN COMPARISON TO NIFTY & SENSEX
Performance in Comparison to Nifty Performance in Comparison to Sensex

650 15,000 650
14,000 39,000
600 600
13,000 37,000
550 12,000 550 35,000
500 11,000 500
10,000 33,000
450 9,000 450 31,000
400 8,000 400 29,000
7,000
350 6,000 350 27,000
300 5,000 300 25,000
Axis Bank NIFTY Axis Bank SENSEX
b) GDR
The high and low closing prices of the Bank’s GDRs as traded during the financial year 2017-18 on the LSE, are as under:
Month High (In USD) Low (In USD) No. of GDRs traded
April, 2017 40.30 37.35 1,52,82,600
May, 2017 41.00 37.65 1,71,47,595
June, 2017 40.45 37.40 97,08,210
July, 2017 42.30 38.75 56,63,695
August, 2017 41.25 37.50 1,00,37,560
September, 2017 40.60 37.95 45,54,955
October, 2017 40.85 34.20 96,63,335
November, 2017 43.80 40.05 51,43,810
December, 2017 44.00 40.85 39,65,760
January, 2018 49.10 43.15 32,49,390
February, 2018 48.00 39.70 47,37,635
March, 2018 41.15 38.00 35,85,500
Dematerialization of Shares and Liquidity
The equity shares of the Bank are to be compulsorily traded on the floor of the stock exchanges in electronic form by all investors. The
Bank has entered into agreements with NSDL and CDSL, so as to provide the Members an opportunity to hold and trade in equity
shares of the Bank in electronic form.
As on 31st March 2018, 99.73% of the total issued and paid up equity share capital of the Bank was held by investors in electronic
form and 0.27% of the total issued and paid up equity share capital was held in physical form.
The number of equity shares of the Bank held in physical form which were transferred / processed during the last three financial years,
are as under:
Particulars 2017-18 2016-17 2015-16
Number of transfer deeds 141 135 202

Number of equity shares transferred 34,000 38,500 54,500
As required under Regulation 40(9) of the Listing Regulations, M/s Ahalada Rao. V & Associates, Practicing Company Secretaries,
(C. P. No. 11497), Hyderabad have examined the records relating to share transfer deeds, memorandum of transfers, registers, files
95
and other related documents on a half-yearly basis and has issued a certificate confirming compliance with the provisions of the said
Regulations. The certificate has been submitted to the BSE and NSE where the Bank’s equity shares are listed, in terms of the Listing
Regulations and also tabled at the meeting of the Stakeholders Relationship Committee of the Board of Directors of the Bank, for its
review and noting.
Distribution of Shareholding
The distribution of shareholding of the Bank as on 31st March 2018, is as under:
No. of shares Electronic Form Physical Form Total

held
No. of No. of shares No. of No. of No. of No. of shares % to
shareholders shareholders shares shareholders capital
1-5,000 3,42,136 6,03,57,666 7,479 64,45,151 3,49,615 6,68,02,817 2.60
5,001-10,000 1,226 88,33,798 23 1,72,800 1,249 90,06,598 0.35
10,001-20,000 650 92,07,065 9 1,24,300 659 93,31,365 0.36
20,001-30,000 242 59,99,848 3 77,000 245 60,76,848 0.24
30,001-40,000 145 50,27,608 0 0 145 50,27,608 0.20
40,001-50,000 115 52,38,676 1 49,500 116 52,88,176 0.21
50,001-1,00,000 273 1,98,44,149 0 0 273 1,98,44,149 0.77
1,00,001 and 820 2,44,51,61,375 0 0 820 2,44,51,61,375 95.27
above
Total 3,45,607 2,55,96,70,185 7,515 68,68,751 3,53,122 2,56,65,38,936 100.00
Shareholding pattern
Category wise shareholding pattern of the Bank as on 31st March 2018, is as under:
Sr. Category / Shareholder No. of Shares % of total issued

No. held & paid-up Capital
Promoters
1 Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) 25,32,70,690 9.87
2 Life Insurance Corporation of India (LIC) 34,94,51,108 13.62
3 General Insurance Corporation of India 3,72,50,000 1.45
4 The New India Assurance Company Limited 2,54,03,585 0.99
5 National Insurance Company Limited 21,34,681 0.08
6 The Oriental Insurance Company Limited 63,30,020 0.25
7 United India Insurance Company Limited 26,26,337 0.10
Foreign Investors
8 Overseas Investors (including FIIs/OCBs/NRIs) 1,31,64,80,211 51.29
9 Foreign Direct Investment (GDR) 11,53,42,680 4.49
Domestic Financial Institutions
10 Financial Institutions / Mutual Funds / Banks / NBFC 24,27,74,995 9.46
11 Others 21,54,74,629 8.40
Total 2,56,65,38,936 100.00
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Top 20 Shareholders of the Bank as on 31st March 2018, are as under:
Sr. Name of the Shareholder No. of % to total issued

No. Shares held & paid up capital
1. Life Insurance Corporation of India 34,94,51,108 13.62
2. Administrator of The SUUTI 25,32,70,690 9.87
3. The Bank Of New York Mellon, DR 11,53,42,680 4.49
4. Oakmark International Fund 8,40,27,467 3.27
5. Dodge and Cox International Stock Fund 7,94,50,400 3.10
6. Europacific Growth Fund 6,55,87,857 2.56
7. BC Asia Investments VII Limited - FDI 5,56,00,000 2.17
8. General Insurance Corporation of India 3,72,50,000 1.45
9. Integral Investments South Asia IV - FDI 3,19,00,000 1.24
10. Vanguard Emerging Markets Stock Index Fund, A Series of Vanguard International Equity 2,85,28,069 1.11
Index Fund
11. Lazard Emerging Markets Equity Portfolio 2,69,82,778 1.05
12. ICICI Prudential Life Insurance Company Limited 2,60,34,016 1.01
13. Centaura Investments (Mauritius) Pte Ltd. 2,55,47,908 1.00
14. The New India Assurance Company Limited 2,54,03,585 0.99
15. Government of Singapore 2,46,67,536 0.96
16. Vanguard Total International Stock Index Fund 2,40,91,148 0.94
17. Ishares India Index Mauritius Company 2,08,14,778 0.81
18. Cinnamon Capital Limited 1,93,64,182 0.75
19. T. Rowe Price International Stock Fund 1,86,53,213 0.73
20. Government Pension Fund Global 1,55,93,452 0.61
Total 1,32,75,60,867 51.73
Outstanding GDR
The Bank has in the course of international offerings to overseas investors, issued securities linked to ordinary equity shares of the
Bank in the form of Global Depository Receipts (GDRs) in March 2005, April 2005, July 2007 and September 2009. The said GDRs
are listed for trading on the London Stock Exchange. The underlying equity shares represent outstanding GDRs, which have been
included in the equity share capital of the Bank. The number of equity shares representing outstanding GDRs as on 31st March 2018
was 11,53,42,680.
Apart from the above, the Bank has not issued any ADRs during the financial year 2017-18.
Convertible warrants
During the Financial Year 2017-18, the Bank issued 4,53,57,385 convertible warrants convertible into 4,53,57,385 equity shares at
a price of `565.00 per warrant on a preferential basis. The convertible warrants have been issued pursuant to receipt of 25% upfront
payment consideration from the allottees i.e. `141.25 per convertible warrant. The allottees of the convertible warrants can exercise the
option to convert one convertible warrant into one equity share of `2/- each of the Bank within a period of 18 months from the date of
its allotment, i.e. on or before 17th June 2019, by paying balance 75% of the consideration i.e. `423.75 per convertible warrant. In
the event, allottees do not exercise their right to convert the said warrants before the said due date, the said convertible warrants (to the
extent not lodged for conversion) shall lapse and the upfront consideration paid by the warrant holders shall stand forfeited by the Bank.
Investor Services
Registrar & Share Transfer Agent (RTA)
Karvy has been entrusted with the task of administering all aspects relating to investor services. Karvy has appropriate systems to
ensure that requisite service is provided to the investors of the Bank in accordance with applicable corporate and securities laws and
within the adopted service standards. Listed below are the service standards adopted by Karvy in respect of the various services
rendered to the investors of the Bank.
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Nature of service being rendered to the Investors of the Bank Adopted Service Standards
Registration of Nomination 5 days
Issue of duplicate dividend warrant(s) 5 days
Revalidation of dividend warrant(s) 5 days
Revalidation of demand draft(s) 5 days
Split/ consolidation of share certificate(s) 7 days
Dematerialization of share(s) 7 days
Transfer of share(s) 7 days
Transmission of share(s) 7 days
Consolidation of folio(s) 7 days
Change/Deletion/Transposition of Name(s) 7 days
Release of unclaimed share(s) 7 days
Re-materialization of share(s) 10 days
Issue of duplicate share certificate(s) 10 days
Investors are requested to write to the Registered Office of the Bank or to Karvy for availing any of the said services. In terms of
Regulation 34(3) read with Schedule V of the Listing Regulations, the designated email address for correspondence is shareholders@
axisbank.com or [email protected].
The Company Secretary Department of the Bank has been entrusted with the task of attending to investor queries / complaints and
ensure its redressal in accordance with applicable laws and within the aforesaid service standards.
Share Transfer System

In terms of Regulation 40(2) of Listing Regulations, the Share Committee of the Bank comprising of the Company Secretary and
executives of Company Secretary Department of the Bank has been formed to look into matters relating to transfer of equity shares and
matters related thereto. The resolutions passed by the Share Committee are tabled at the ensuing meeting of the Board of Directors of
the Bank, for its noting.
Investor Grievances
During the year under review, the Bank received 2,821 correspondences from its investors, capital market intermediaries and statutory
/ regulatory authorities, inter alia, in respect of services relating to the securities issued by the Bank by post and through emails
(addressed to designated email address viz. [email protected] and [email protected]).
The details of the investor complaints received and redressed by the Bank during the last 3 financial years, are as under:
Received from No. of complaints received No. of complaints unresolved

as on 31st March 2018
2017-18 2016-17 2015-16
SEBI SCORES 7 8 12 -
Stock Exchanges 8 1 9 -
NSDL / CDSL - - - -
MCA and others - - - -
Total No. of complaints received 15 9 21 -
Total No. of complaints redressed 15 9 21 -
There was no investor complaint that was unresolved as on 1st April 2017. All the investor complaints received during the year were
resolved and as such there was no investor complaint that was unresolved as on 31st March 2018.
The statement highlighting the status of the investor correspondence(s)/complaint(s) received and resolved during the financial year
2017-18 were tabled at the quarterly meetings of the Stakeholders Relationship Committee of Directors of the Bank, for its review and
noting.
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Nomination Facility
Section 72 of the Companies Act, 2013, provides that every holder of securities of a company may, at any time nominate, in the
prescribed manner, any person to whom his securities shall vest in the event of his death. Where the securities of a company are held
by more than one person jointly, the joint holders may together nominate any person to whom all the rights in the securities shall vest
in the event of death of all the joint holders.
In view of the above, Shareholders may avail of the Nomination Facility. 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 Office or to Karvy, for the same.
Please note that the nomination shall be automatically rescinded on transfer / dematerialization of the shares.
Commodity Price Risk or Foreign Exchange Risk and Hedging Activities:
As an Authorised Dealer, the Bank deals with its customers and interbank participants in permitted foreign exchange and derivative
products in accordance with the extant RBI guidelines.
All these transactions are subject to Board approved trading risk limits including Net Overnight Open Position limit (NOOP), Intraday
Open Position limit, Aggregate Gap Limits (AGL), Value at Risk limits (VaR) and limits on Option Greeks (viz. Delta/Gamma/Vega).
The Bank undertakes hedging transactions to mitigate the foreign exchange and interest rate risk on the Bank’s Balance Sheet.
The valuation and reporting of all Foreign Exchange and derivative contracts is as per applicable accounting guidelines. The Bank
does not undertake trading in any commodity. However, the Bank may be exposed to commodity price risks of customers in its capacity
as a lender.
Green initiatives
Dispatch of documents in Electronic Form
In terms of Rule 18 of the Companies (Management and Administration) Rules, 2014, a company may give notice through electronic
mode including e-mail to those Members who have provided their e-mail address either to their Depository Participant (DP) or to the
Company.
Further, in terms of Regulation 36 of the Listing Regulations, the listed entity is required to send soft copies of its annual report to all
those shareholder(s) who have registered their email address(es) for this purpose.
Accordingly, the Notice convening the 24th Annual General Meeting, the annual report of the Bank for the financial year 2017-18
and the annexures stated therein will be sent by e-mail to those Members who have registered their e-mail address with their DP or
with Karvy.
Members who have not yet registered their e-mail address are requested to do so, at the earliest.
In case of shares held in electronic form and in case of any change in the e-mail address, Members are requested to update the same
with their DP and in case of shares held in physical form, Members are requested to update the same with Karvy.
In case a Member, whose email address has changed, fails to update this new e-mail address, the said documents will be sent to the
existing e-mail address and the said documents will be deemed to have been delivered, in compliance with the relevant provisions of
the Companies Act, 2013, the relevant Rules made thereunder and the Listing Regulations.
However, in case any Member wishes to receive a physical copy of the said documents, he is requested to write to einward.ris@ karvy.
com or [email protected] duly quoting his DP ID and Client ID or his Folio number, as the case may be, to enable the Bank
to record his decision and provide physical copy of the said documents, free of cost.
Please note that the said documents will also be uploaded on the Bank’s website viz. www.axisbank.com and copies thereof will
be made available for inspection at the Registered Office of the Bank during business hours on all working days except Saturdays,
Sundays, Bank Holidays and Public Holidays up to the date of the ensuing AGM.
We seek your support to the said Green Initiatives, as it is designed to protect our fragile environment.
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Means of Communication
After the financial results of the Bank are approved by the Board of Directors, they are disclosed to the Stock Exchanges, in accordance
with Regulation 30 of the Listing Regulations read with sub-para 4 of Para A of Part A of Schedule III of the Listing Regulations.
Thereafter, financial results of the Bank and the presentations made by the Senior Management to the Analysts / Investors are
uploaded on the Bank’s website, www.axisbank.com in accordance with the Listing Regulations.
The financial results of the Bank are generally published in the Economic Times and Gujarat Samachar or Divya Bhaskar on the day
after declaration of the financial results of the Bank.
For the ready reference of the investors of the Bank, a list of frequently asked questions and their answers have been uploaded on
website of the Bank at https://www.axisbank.com/shareholders-corner/investor-faqs.
General Body Meetings

The details of the last three Annual General Meetings are as under:
AGM Date and Day Time Location

21st 24th July 2015 – Friday 10.00 a.m. J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA,
Dr. Vikram Sarabhai Marg, Ahmedabad, Gujarat - 380 015.
22nd 22nd July 2016 – Friday 10.00 a.m. J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA,
23rd 26th July 2017 – Wednesday 09.30 a.m. J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA,
Special resolutions passed at previous three Annual General Meetings

The details of the special resolution(s) passed at the previous three Annual General Meetings, are as under:
AGM Date of AGM Special Resolution(s)
21st 24th July 2015 Resolution No. 12 - Increase in Borrowing limits of the Bank upto `1,50,000 crore under Section 180(1)(c) of
the Companies Act, 2013.
Resolution No. 13 - Borrowing / Raising funds in Indian Currency / Foreign Currency by issue of debt
Instruments including but not limited to bonds and non-convertible debentures on a private placement basis, for
an amount of upto `35,000 crore.
Resolution No. 14 - 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.
22nd 22nd July 2016 Resolution No. 18 – Borrowing / Raising funds in Indian/Foreign Currency by issue of debt instruments
including but not limited to subordinated debt, senior unsecured long term bonds, green bonds, medium term
notes, non-convertible debentures on a private placement basis, for an amount of upto `35,000 crore.
23rd 26th July 2017 Resolution No. 11 – Borrowing / Raising funds in Indian/Foreign Currency by issue of debt instruments
including but not limited to subordinated debt, senior unsecured long term bonds, green bonds, medium term
notes, non-convertible debentures on a private placement basis, for an amount of upto `35,000 crore.
Procedure for Postal Ballot

In compliance with Regulation 44 of the Listing Regulations and Sections 108, 110 and other applicable provisions of the Companies
Act, 2013, the relevant Rules made thereunder, the Bank provides electronic voting facility to all its Members. The Bank had engaged
the services of Karvy for the said purpose. In terms of the applicable laws, Members have the option to cast their vote either by physical
ballot or e-voting.
The Board of Directors of the Bank is required to appoint a Scrutinizer for conducting the Postal Ballot process in a fair and transparent
manner. The Postal Ballot exercise is 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, as amended.
The Bank dispatches the Postal Ballot Notice and relevant forms along with postage prepaid business reply envelope to those Members
whose names appear on the Register of Members / Statements of Beneficial Holders provided by the Depositories as on the cut-off
date. The postal ballot notice is also sent in electronic form to those Members whose email address is registered with their DP in case
shares are held in electronic form or with Karvy in case shares are held in physical form.
100
The Bank also publishes a notice in the newspaper declaring the details of completion of dispatch and other requirements as mandated
under the aforesaid provisions of the Companies Act, 2013 and the said Rules.
Voting rights are reckoned on the paid-up value of the shares registered in the names of the Members as on the said cut-off date.
Members desiring to exercise their votes by physical postal ballot forms are required to return the forms duly completed and signed
to the Scrutinizer at the address mentioned in the postage prepaid business reply envelope on or before the close of voting period.
Members desiring to exercise their votes by electronic mode are requested to exercise their vote using the e-voting facility before the
close of business hours on the last date of e-voting as set out in the Notice.
The Scrutinizer is required to submit his report to the Chairman, after verification of the records and thereafter the consolidated results
of the voting can be declared by any one of the Directors of the Bank, duly authorised by the Board of Directors, in this regard.
Subsequently, the said results alongwith the report of the Scrutinizer is disclosed to the Stock Exchanges within 48 hours of such
declaration, in terms of Regulation 44(3) of the Listing Regulations, uploaded on the website of the Bank and displayed on the notice
board at the Registered and Corporate Offices of the Bank. The resolution, if passed by requisite majority, shall be deemed to have
been passed on the last date specified by the Company for receipt of duly completed postal ballot forms or e-voting.
Resolutions passed by way of Postal Ballot held during the Financial Year 2017-18
No resolution was passed by way of Postal Ballot during the Financial Year 2017-18.
Resolutions passed in the Extraordinary General Meeting (EGM) of the Bank held during the Financial Year 2017-18, by means of a
Special Resolution:
During the year under review, Extraordinary General Meeting of the Bank was held on 8th December 2017, wherein the approval of
the Members was sought for the following matters, by means of a special resolution.
(1) [Resolution No. 1] Issue of : (i) upto 5,56,00,000 Investor 1 Equity Shares of `2/- each of the Bank to BC Asia Investments VII
Limited (Investor 1) (ii) upto 3,19,00,000 Investor 2 Equity Shares of `2/- each of the Bank to Integral Investments South Asia IV
(Investor 2) (iii) upto 4,00,00,000 Investor 3 Convertible Warrants to BC Asia Investments III Limited (Investor 3) on a preferential
basis in terms of the SEBI (ICDR) Regulations, 2009.
(2) [Resolution No. 2] Issue of : (i) upto 59,98,000 Investor 4 Equity Shares of `2/- each of the Bank to New World Fund, Inc.
(Investor 4) (ii) upto 2,26,884 Investor 5 Equity Shares of `2/- each of the Bank to Capital Group New World Fund (LUX) (Investor
5) (iii) upto 53,08,000 Investor 6 Equity Shares of `2/- each of the Bank to American Funds Insurance Series – International
Fund (Investor 6) (iv) upto 4,28,72,967 Investor 7 Equity Shares of `2/- each of the Bank to EuroPacific Growth Fund (Investor 7)
(v) upto 5,65,899 Investor 8 Equity Shares of `2/- each of the Bank to American Funds Insurance Series – International Growth
and Income Fund (Investor 8) (vi) upto 27,86,000 Investor 4 Convertible Warrants to New World Fund, Inc. (Investor 4) (vii) upto
1,05,385 Investor 5 Convertible Warrants to Capital Group New World Fund (LUX) (Investor 5) (viii) upto 24,66,000 Investor
6 Convertible Warrants to American Funds Insurance Series – International Fund (Investor 6) on a preferential basis, in terms of
the SEBI (ICDR) Regulations, 2009.
(3) [Resolution No. 3] Issue of upto 3,01,58,889 Promoter Investor Equity Shares of `2/- each of the Bank to Life Insurance
Corporation of India, (i.e. a promoter of the Bank) (Promoter Investor) on a preferential basis, in terms of the SEBI (ICDR)
Regulations, 2009.
The Bank had appointed Shri Raghavendar Rao D., Practicing Company Secretary (Membership No. ACS 35788/C.P. No. 13407)
as the Scrutinizer for conducting the e-voting process in a fair and transparent manner.
The brief summary of the EGM results in respect of the said special Resolutions, which was declared on 8th December 2017, are as
under:
Resolution No. 1: Issue of Investor 1 Equity Shares, Investor 2 Equity Shares and Investor 3 Convertible Warrants, on a preferential
basis
No. of votes in favour No. of votes against % of votes in favour % of votes against
1,94,84,60,378 1,90,08,788 99.03 0.97
101
Resolution No. 2: Issue of Investor 4 Equity Shares, Investor 5 Equity Shares, Investor 6 Equity Shares, Investor 7 Equity Shares,
Investor 8 Equity Shares, Investor 4 Convertible Warrants, Investor 5 Convertible Warrants and Investor 6 Convertible Warrants, on
a preferential basis:
1,96,74,66,118 1,558 99.99 0.01
Resolution No. 3: Issue of Promoter Investor Equity Shares, on a preferential basis

1,96,70,65,644 4,03,297 99.98 0.02
Address for correspondence:

Registered Office Corporate Office Registrar & Share Transfer Agent (RTA)
Axis Bank Limited Axis Bank Limited M/s. Karvy Computershare Private Limited
[CIN:L65110GJ1993PLC020769] ‘Axis House’, C-2, Unit: Axis Bank Limited
‘Trishul’, 3rd Floor, Wadia International Centre, Pandurang Karvy Selenium Tower B, Plot 31-32,
Opp. Samartheshwar Temple, Law Garden, Budhkar Marg, Worli, Mumbai, Maharashtra Gachibowli, Financial District, Nanakramguda,
Ellisbridge, Ahmedabad, – 400 025. Hyderabad, Telangana – 500 032.
Gujarat – 380 006. Tel. No. : +9122-2425 2525 Tel. No. : +91 40-6716 2222
Tel. No. : +9179-6630 6161 Fax No. : +9122-2425 1800 Fax No. : +91 40-2300 1153
Fax No. : +9179-2640 9321 Email:[email protected] Toll Free No. : 1800-345-4001
Email:[email protected] Email : [email protected]
102
COMPLIANCE WITH CODE OF CONDUCT AND CONFLICT OF INTEREST NORMS IN RESPECT OF BOARD OF
DIRECTORS AND THE CODE OF CONDUCT AND ETHICS FOR SENIOR MANAGEMENT OF THE BANK FOR THE
FINANCIAL YEAR 2017-18
I confirm that for the year under review, all Directors and Members of the Senior Management of the Bank have affirmed compliance
with the Codes as applicable to them.
Shikha Sharma
Managing Director & CEO
Place : Mumbai
Date : 16th May 2018
103
Form No. MGT-9

Extract of Annual Return as on the Financial Year ended 31st March 2018
[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) CIN L65110GJ1993PLC020769
ii) Registration Date 3rd December 1993
iii) Name of the Company Axis Bank Limited
iv) Category / Sub-Category of the Company Company Limited by Shares
v) Address of the Registered office and contact ‘Trishul’ 3rd Floor,
details Opp. Samartheshwar Temple,
Law Garden,
Ellisbridge, Ahmedabad,
Gujarat – 380 006.
Phone: +91-79-6630 6161,
Fax: +91-79-2640 9321
Email: [email protected]
vi) Whether listed company – Yes / No Yes

vii) Name, Address and Contact details of Karvy Computershare Private Limited
Registrar and Transfer Agent Unit: Axis Bank Limited
Karvy Selenium Tower B, Plot 31-32, Gachibowli,
Financial District, Nanakramguda,
Hyderabad – 500 032.
Phone No. : 1800-345-4001 and +91-40-6716 2222
Fax No. : +91-40 - 2300 1153
II. PRINCIPAL BUSINESS ACTIVITIES OF THE BANK

Sr. Name and description of main products / NIC Code of the Product/ % to total turnover of the
No. services service Company
1 • Deposits Section K : Financial and Insurance Not applicable
• Loans activities
• Investments and foreign exchange Code : 64191
III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr. Name of the Address CIN/GLN Holding/ % of Applicable
No. Company Subsidiary/ shares Section
Associate held
1 Axis Capital Limited Axis House, 8th Floor, Wadia U51900MH2005PLC157853 Subsidiary 99.99% 2(87)(ii)
International Centre Pandurang Budhkar
Marg, Worli, Mumbai - 400 025
2 Axis Private Equity Axis House, Bombay Dyeing Mills U66020MH2006PLC165039 Subsidiary 99.99% 2(87)(ii)
Limited Compound, Pandurang Budhkar Marg,
Worli, Mumbai - 400 025
3 Axis Trustee Services Axis House, Bombay Dyeing Mills U74999MH2008PLC182264 Subsidiary 99.99% 2(87)(ii)
Limited Compound, Pandurang Budhkar Marg,
Worli, Mumbai - 400 025
4 Axis Asset Axis House, 1st Floor, C-2, Wadia U65991MH2009PLC189558 Subsidiary 74.99% 2(87)(ii)
Management International Centre, Pandurang Budhkar
Company Limited Marg, Worli, Mumbai - 400 025
5 Axis Mutual Fund Axis House, 1st Floor, C-2, Wadia U66020MH2009PLC189325 Subsidiary 74.86% 2(87)(ii)
Trustee Limited International Centre, Pandurang Budhkar
6 Axis Finance Limited Axis House, Ground Floor, Wadia U65921MH1995PLC212675 Subsidiary 99.99% 2(87)(ii)
International Centre ,Worli,
Mumbai - 400 025
104
Sr. Name of the Address CIN/GLN Holding/ % of Applicable

No. Company Subsidiary/ shares Section
Associate held
7 Axis Securities Axis House, 8th Floor, Wadia U74992MH2006PLC163204 Subsidiary 99.99% 2(87)(ii)
Limited International Centre Pandurang Budhkar
8 Axis Bank UK 4 Chilswell street, 1st Floor, London Foreign Company Subsidiary 100% 2(87)(ii)
Limited England, EC1Y 4 UP (07554558)
9 A.TREDS Limited Axis House, C-2 Wadia International U74999MH2016PLC281452 Subsidiary 67% 2(87)(ii)
Centre, P B Marg, Worli, Mumbai - 400
025
10 Freecharge Payment Ground Floor, Plot No. 68 Okhla U74140DL2015PTC275419 Subsidiary 100% 2(87)(ii)
Technologies Private Industrial Estate, Phase-III New Delhi
Limited South Delhi -110 020
11 Accelyst Solutions 2nd Floor, unit no. 205-206, Plot no. U72900MH2008PTC185202 Subsidiary 100% 2(87)(ii)
Private Limited 1 Vaibhav Chambers, Bandra Kurla
Complex Mumbai - 400 051
12 Axis Capital USA, 1675 South State Street, Suite B, Dover, Foreign Company Step down 100% 2(87)(ii)
LLC. County of Kent, Delaware -19901 Subsidiary held by
Axis
Capital
Limited
IV. SHARE HOLDING PATTERN (EQUITY SHARE CAPITAL BREAKUP AS PERCENTAGE OF TOTAL EQUITY)
i) Category-wise Share Holding
Cate Category of Shareholder No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
gory during
Demat Physical Total % of Demat Physical Total % of
Code the year
total total
shares shares
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(A) Promoter and Promoter
Group
(1) Indian
(a) Individual /HUF - - - - - - - - -
(b) Central Government - - - - - - - - -
(C) State Government(s) - - - - - - - - -
(d) Bodies Corporate - - - - - - - - -
(e) Financial Institutions / Banks 68,88,02,073 - 68,88,02,073 28.76 67,64,66,421 - 67,64,66,421 26.36 (2.40)
(f) Any Others - - - - - - - - -
Sub-Total A(1) : 68,88,02,073 - 68,88,02,073 28.76 67,64,66,421 - 67,64,66,421 26.36 (2.40)
(2) Foreign
(a) NRIs/Foreign Individuals - - - - - - - - -
(b) Others - Individuals - - - - - - - - -
(c) Bodies Corporate - - - - - - - - -
(d) Banks / Financial Institutions - - - - - - - - -
(e) Any Others - - - - - - - - -
Sub-Total A(2) : - - - - - - - - -
TOTAL A=A(1)+A(2) 68,88,02,073 - 68,88,02,073 28.76 67,64,66,421 - 67,64,66,421 26.36 (2.40)
105
Cate Category of Shareholder No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change
gory during
Demat Physical Total % of Demat Physical Total % of
Code the year
total total
shares shares
(I) (II) (III) (IV) (V) (VI) (VII) (VIII) (IX) (X) (XI)
(B) Public Shareholding
(1) Institutions
(a) Mutual Funds 16,28,54,328 - 16,28,54,328 6.80 21,25,32,389 - 21,25,32,389 8.28 1.48
(b) Banks / Financial Institutions 29,20,751 - 29,20,751 0.12 23,30,483 - 23,30,483 0.09 (0.03)
(c) Central Government - - - - - - - - -
(d) State Government(s) - - - - - - - - -
(e) Venture Capital Funds - - - - - - - - -
(f) Insurance Companies 3,64,54,316 - 3,64,54,316 1.52 2,64,29,435 - 2,64,29,435 1.03 (0.49)
(g) Foreign Institutional Investors 115,54,57,305 - 115,54,57,305 48.24 122,31,30,379 - 122,31,30,379 47.66 (0.58)
(h) Foreign Venture Capital - - - - - - - - -
Funds
(i) Others (Specify) - - - - 8,75,00,000 - 8,75,00,000 3.41 3.41
Sub-Total B(1) : 135,76,86,700 - 135,76,86,700 56.69 155,19,22,686 - 155,19,22,686 60.47 3.78
(2) Non-Institutions
(a) Bodies Corporate 6,10,82,582 68,000 6,11,50,582 2.55 6,36,28,325 65,500 6,36,93,825 2.48 (0.07)
i. Indian - - - - - - - - -
ii. Overseas - - - - - - - - -
(b) Individuals
(i) Individuals holding 9,68,83,533 84,59,992 10,53,43,525 4.40 7,97,13,802 68,03,251 8,65,17,053 3.37 (1.03)
nominal share capital
upto `1 lakh
(ii) Individuals holding 4,78,39,668 - 4,78,39,668 2.00 4,76,19,236 - 4,76,19,236 1.86 (0.14)
nominal share capital in
excess of `1 lakh
(c) Others
HUF 17,92,228 - 17,92,228 0.07 11,41,119 - 11,41,119 0.04 (0.03)
Trusts 1,28,49,979 - 1,28,49,979 0.54 1,52,44,722 - 1,52,44,722 0.59 0.05
Clearing Members 47,86,032 - 47,86,032 0.20 29,94,530 - 29,94,530 0.12 (0.08)
Non Resident Indians 35,90,688 - 35,90,688 0.15 28,22,656 - 28,22,656 0.11 (0.04)
NRI Non-Repatriation 16,31,115 - 16,31,115 0.07 15,81,976 - 15,81,976 0.06 (0.01)
Foreign Bodies-Dr 8,09,744 - 8,09,744 0.03 6,55,836 - 6,55,836 0.03 -
Foreign Nationals 700 - 700 - 750 - 750 - -
IEPF - - - - 5,35,446 - 5,35,446 0.02 0.02
Sub-Total B(2) : 23,12,66,269 85,27,992 23,97,94,261 10.01 21,59,38,398 68,68,751 22,28,07,149 8.68 (1.33)
Total B=B(1)+B(2): 158,89,52,969 85,27,992 159,74,80,961 66.70 176,78,61,084 68,68,751 177,47,29,835 69.15 2.45
(C) Shares held by
custodian for GDR
(1) Promoter and Promoter - - - - - - - - -
Group
(2) Public 10,87,53,075 - 10,87,53,075 4.54 11,53,42,680 - 11,53,42,680 4.49 0.05
Total C: 10,87,53,075 - 10,87,53,075 4.54 11,53,42,680 - 11,53,42,680 4.49 0.05
Grand Total (A+B+C) : 238,65,08,117 85,27,992 239,50,36,109 100 255,96,70,185 68,68,751 256,65,38,936 100.00 -
106
ii) Shareholding of Promoters

Sr. Shareholder's Name Shareholding beginning of Shareholding end of
%
No. the year 31/03/2017 the year 31/03/2018
change
in
No. of Shares % of % of Shares No. of Shares % of % of Shares
Share
total Pledged / total Pledged /
holding
Shares encumbered Shares encumbered
during
of the to total of the to total
the
Bank Shares Bank Shares
year
1 Administrator of the Specified 27,48,40,905 11.48 - 25,32,70,690 9.87 - (1.61)
Undertaking of the Unit Trust of
India - SUUTI
2 Life Insurance Corporation of India 33,13,08,553 13.83 - 34,94,51,108 13.62 - (0.21)
3 General Insurance Corporation 3,99,40,000 1.67 - 3,72,50,000 1.45 - (0.22)
of India
4 The New India Assurance 2,61,03,585 1.09 - 2,54,03,585 0.99 - (0.10)
Company Limited
5 National Insurance Company 30,63,797 0.13 - 21,34,681 0.08 - (0.05)
Limited
6 The Oriental Insurance Company 63,30,020 0.26 - 63,30,020 0.25 - (0.01)
Limited
7 United India Insurance Company 72,15,213 0.30 - 26,26,337 0.10 - (0.20)
Limited
Total 68,88,02,073 28.76 - 67,64,66,421 26.36 - (2.40)
iii. Change in Promoters’ Shareholding

Sr. Name of the Shareholder Shareholding at the Date Increase/ Reason Cumulative Shareholding
No. beginning of the year Decrease during the year
in share
No. of Shares % of total No. of Shares % of total
holding
shares shares of the
of the company
company
1 Life Insurance 33,13,08,553 13.83 31-03-2017 33,13,08,553 13.83
Corporation of India 14-04-2017 -288,328 Transfer 33,10,20,225 13.82
21-04-2017 -296,573 Transfer 33,07,23,652 13.80
28-04-2017 -40,000 Transfer 33,06,83,652 13.80
05-05-2017 -100,000 Transfer 33,05,83,652 13.79
12-05-2017 -440,338 Transfer 33,01,43,314 13.78
19-05-2017 -66,130 Transfer 33,00,77,184 13.77
20-10-2017 6,500 Transfer 33,00,83,684 13.77
20-10-2017 -6,500 Transfer 33,00,77,184 13.77
29-12-2017 2,28,57,142 Transfer 35,29,34,326 13.76
19-01-2018 95,41,809 Transfer 36,24,76,135 14.14
19-01-2018 -9,541,809 Transfer 35,29,34,326 13.76
26-01-2018 -311,229 Transfer 35,26,23,097 13.75
02-02-2018 -2,050,007 Transfer 35,05,73,090 13.67
09-02-2018 -719,621 Transfer 34,98,53,469 13.64
16-02-2018 -402,361 Transfer 34,94,51,108 13.62
30-03-2018 5,000 Transfer 34,94,56,108 13.62
30-03-2018 -5,000 Transfer 34,94,51,108 13.62
34,94,51,108 13.62 31-03-2018 34,94,51,108 13.62
107
in share
holding
of the company
company
2 Administrator of the 27,48,40,905 11.48 31-03-2017 27,48,40,905 11.48
Specified Undertaking of 17-11-2017 -20,351,453 Transfer 25,44,89,452 10.61
the Unit Trust of India -
SUUTI 24-11-2017 -1,218,762 Transfer 25,32,70,690 10.56
25,32,70,690 9.87 31-03-2018 25,32,70,690 9.87

3 General Insurance 3,99,40,000 1.67 31-03-2017 3,99,40,000 1.67
Corporation of India 07-04-2017 -185,000 Transfer 3,97,55,000 1.66
03-11-2017 -400,000 Transfer 3,93,55,000 1.64
10-11-2017 -84,000 Transfer 3,92,71,000 1.64
17-11-2017 -16,000 Transfer 3,92,55,000 1.64
24-11-2017 -220,000 Transfer 3,90,35,000 1.63
01-12-2017 -35,000 Transfer 3,90,00,000 1.63
15-12-2017 -150,000 Transfer 3,88,50,000 1.62
05-01-2018 -150,000 Transfer 3,87,00,000 1.51
19-01-2018 -50,000 Transfer 3,86,50,000 1.51
26-01-2018 -250,000 Transfer 3,84,00,000 1.50
02-02-2018 -50,000 Transfer 3,83,50,000 1.50
16-02-2018 -83,425 Transfer 3,82,66,575 1.49
23-02-2018 -205,160 Transfer 3,80,61,415 1.48
02-03-2018 -267,035 Transfer 3,77,94,380 1.47
09-03-2018 -194,380 Transfer 3,76,00,000 1.47
16-03-2018 -200,000 Transfer 3,74,00,000 1.46
23-03-2018 -150,000 Transfer 3,72,50,000 1.45
3,72,50,000 1.45 31-03-2018 3,72,50,000 1.45
4 The New India Assurance 2,61,03,585 1.09 31-03-2017 2,61,03,585 1.09
Company Limited 15-09-2017 -100,000 Transfer 2,60,03,585 1.08
22-09-2017 -175,000 Transfer 2,58,28,585 1.08
29-09-2017 -425,000 Transfer 2,54,03,585 1.06
2,54,03,585 0.99 31-03-2018 2,54,03,585 0.99
5 United India Insurance 72,15,213 0.30 31-03-2017 72,15,213 0.30
Company Limited 14-04-2017 -15,000 Transfer 72,00,213 0.30
28-04-2017 -20,000 Transfer 71,80,213 0.30
23-06-2017 -110,000 Transfer 70,70,213 0.29
30-06-2017 -20,000 Transfer 70,50,213 0.29
07-07-2017 -100,000 Transfer 69,50,213 0.29
14-07-2017 -74,624 Transfer 68,75,589 0.29
21-07-2017 -105,000 Transfer 67,70,589 0.28
28-07-2017 -91,293 Transfer 66,79,296 0.28
04-08-2017 -95,000 Transfer 65,84,296 0.27
11-08-2017 -50,000 Transfer 65,34,296 0.27
01-09-2017 -105,000 Transfer 64,29,296 0.27
08-09-2017 -75,000 Transfer 63,54,296 0.27
15-09-2017 -30,000 Transfer 63,24,296 0.26
108
in share
holding
of the company
company
22-09-2017 -30,000 Transfer 62,94,296 0.26
06-10-2017 -57,000 Transfer 62,37,296 0.26
13-10-2017 -310,000 Transfer 59,27,296 0.25
20-10-2017 -120,000 Transfer 58,07,296 0.24
27-10-2017 3,57,500 Transfer 61,64,796 0.26
03-11-2017 -680,000 Transfer 54,84,796 0.23
10-11-2017 -760,000 Transfer 47,24,796 0.20
17-11-2017 -580,000 Transfer 41,44,796 0.17
24-11-2017 -70,000 Transfer 40,74,796 0.17
08-12-2017 -300,000 Transfer 37,74,796 0.16
15-12-2017 -286,013 Transfer 34,88,783 0.15
22-12-2017 -260,000 Transfer 32,28,783 0.13
29-12-2017 -120,000 Transfer 31,08,783 0.12
05-01-2018 -120,000 Transfer 29,88,783 0.12
12-01-2018 -133,556 Transfer 28,55,227 0.11
19-01-2018 -98,000 Transfer 27,57,227 0.11
26-01-2018 -100,000 Transfer 26,57,227 0.10
02-02-2018 -60,850 Transfer 25,96,377 0.10
09-02-2018 29,960 Transfer 26,26,337 0.10
26,26,337 0.10 31-03-2018 26,26,337 0.10
6 The Oriental Insurance 63,30,020 0.26 31-03-2017 63,30,020 0.26
Company Limited 63,30,020 0.25 31-03-2018 63,30,020 0.25
7 National Insurance 30,63,797 0.13 31-03-2017 30,63,797 0.13
Company Ltd 28-04-2017 -90,000 Transfer 29,73,797 0.12
27-10-2017 6,94,000 Transfer 36,67,797 0.15
10-11-2017 -200,000 Transfer 34,67,797 0.14
17-11-2017 -200,000 Transfer 32,67,797 0.14
15-12-2017 -200,000 Transfer 30,67,797 0.13
22-12-2017 -200,000 Transfer 28,67,797 0.11
02-02-2018 -40,000 Transfer 28,27,797 0.11
09-02-2018 -105,000 Transfer 27,22,797 0.11
16-03-2018 -500,000 Transfer 22,22,797 0.09
23-03-2018 -88,116 Transfer 21,34,681 0.08
21,34,681 0.08 31-03-2018 21,34,681 0.08
109
iv) Shareholding pattern of Top Ten Shareholders (other than Directors, Promoters and Holders of GDRs
and ADRs):
Sr. Name of the Shareholding at the Date Increase/ Reason Cumulative Shareholding
No. Shareholder beginning of the year Decrease during the year
in share
No. of % of total No. of % of total
holding
Shares shares Shares shares
of the of the
company company
1 Oakmark International - - 31-03-17 - -
Fund
21-04-17 45,23,955 Transfer 45,23,955 0.19
28-04-17 54,44,645 Transfer 99,68,600 0.42
05-05-17 57,51,200 Transfer 1,57,19,800 0.66
12-05-17 20,67,100 Transfer 1,77,86,900 0.74
26-05-17 41,17,597 Transfer 2,19,04,497 0.91
02-06-17 31,38,176 Transfer 2,50,42,673 1.04
09-06-17 33,46,527 Transfer 2,83,89,200 1.18
30-06-17 31,53,520 Transfer 3,15,42,720 1.32
07-07-17 10,67,880 Transfer 3,26,10,600 1.36
14-07-17 17,26,175 Transfer 3,43,36,775 1.43
21-07-17 15,88,225 Transfer 3,59,25,000 1.50
11-08-17 68,97,200 Transfer 4,28,22,200 1.79
18-08-17 66,32,500 Transfer 4,94,54,700 2.06
25-08-17 43,39,994 Transfer 5,37,94,694 2.24
01-09-17 27,18,285 Transfer 5,65,12,979 2.36
08-09-17 17,48,121 Transfer 5,82,61,100 2.43
15-09-17 22,84,558 Transfer 6,05,45,658 2.53
22-09-17 19,24,242 Transfer 6,24,69,900 2.61
29-09-17 53,13,004 Transfer 6,77,82,904 2.83
06-10-17 91,01,496 Transfer 7,68,84,400 3.21
13-10-17 55,25,963 Transfer 8,24,10,363 3.44
20-10-17 3,25,916 Transfer 8,27,36,279 3.45
27-10-17 33,58,000 Transfer 8,60,94,279 3.59
24-11-17 -4,849,500 Transfer 8,12,44,779 3.39
01-12-17 -392,178 Transfer 8,08,52,601 3.37
08-12-17 -286,412 Transfer 8,05,66,189 3.36
15-12-17 -955,100 Transfer 7,96,11,089 3.32
22-12-17 -3,191,910 Transfer 7,64,19,179 2.98
19-01-18 -823,900 Transfer 7,55,95,279 2.95
26-01-18 -1,035,700 Transfer 7,45,59,579 2.91
02-02-18 -4,455,812 Transfer 7,01,03,767 2.73
09-03-18 47,93,200 Transfer 7,48,96,967 2.92
16-03-18 11,56,600 Transfer 7,60,53,567 2.96
23-03-18 35,78,100 Transfer 7,96,31,667 3.10
30-03-18 43,95,800 Transfer 8,40,27,467 3.27
8,40,27,467 3.27 31-03-18 8,40,27,467 3.27
110
in share
holding
of the of the
company company
2 Dodge and Cox - - 31-03-17 - -
International Stock
31-10-17 19,04,509 Transfer 19,04,509 0.08
Fund
03-11-17 22,16,500 Transfer 41,21,009 0.17
10-11-17 67,48,650 Transfer 1,08,69,659 0.45
17-11-17 7,30,317 Transfer 1,15,99,976 0.48
01-12-17 49,94,872 Transfer 1,65,94,848 0.69
08-12-17 88,86,312 Transfer 2,54,81,160 1.06
15-12-17 51,89,736 Transfer 3,06,70,896 1.28
22-12-17 29,56,927 Transfer 3,36,27,823 1.31
29-12-17 21,60,777 Transfer 3,57,88,600 1.40
05-01-18 24,32,210 Transfer 3,82,20,810 1.49
12-01-18 20,47,790 Transfer 4,02,68,600 1.57
19-01-18 21,25,000 Transfer 4,23,93,600 1.65
26-01-18 20,99,333 Transfer 4,44,92,933 1.74
02-02-18 37,75,967 Transfer 4,82,68,900 1.88
09-02-18 24,04,500 Transfer 5,06,73,400 1.98
09-03-18 77,27,947 Transfer 5,84,01,347 2.28
16-03-18 45,38,298 Transfer 6,29,39,645 2.45
23-03-18 35,97,242 Transfer 6,65,36,887 2.59
30-03-18 1,29,13,513 Transfer 7,94,50,400 3.10
7,94,50,400 3.10 31-03-18 7,94,50,400 3.10
3 Europacific Growth 2,13,93,890 0.89 31-03-17 2,13,93,890 0.89
Fund
29-12-17 4,28,72,967 Transfer 6,42,66,857 2.51
16-03-18 13,21,000 Transfer 6,55,87,857 2.56
6,55,87,857 2.56 31-03-18 6,55,87,857 2.56
4 BC Asia Investments VII - - 31-03-17 - -
Limited - FDI
29-12-17 5,56,00,000 Transfer 5,56,00,000 2.17
5,56,00,000 2.17 31-03-18 5,56,00,000 2.17
5 Integral Investments - - 31-03-17 - -
South Asia IV - FDI
29-12-17 3,19,00,000 Transfer 3,19,00,000 1.24
3,19,00,000 1.24 31-03-18 3,19,00,000 1.24
6 Vanguard Emerging 2,55,30,647 1.07 31-03-17 2,55,30,647 1.07
Markets Stock Index
07-04-17 3,26,782 Transfer 2,58,57,429 1.08
Fund, A Series of
Vanguard International 21-04-17 1,94,971 Transfer 2,60,52,400 1.09
Equity Index Funds 28-04-17 29,980 Transfer 2,60,82,380 1.09
05-05-17 2,39,840 Transfer 2,63,22,220 1.10
12-05-17 74,950 Transfer 2,63,97,170 1.10
19-05-17 1,61,892 Transfer 2,65,59,062 1.11
02-06-17 2,80,704 Transfer 2,68,39,766 1.12
09-06-17 1,07,755 Transfer 2,69,47,521 1.12
111
in share
holding
of the of the
company company
30-06-17 3,75,097 Transfer 2,73,22,618 1.14
07-07-17 1,04,930 Transfer 2,74,27,548 1.14
14-07-17 2,48,666 Transfer 2,76,76,214 1.15
21-07-17 2,18,403 Transfer 2,78,94,617 1.16
28-07-17 74,674 Transfer 2,79,69,291 1.17
04-08-17 65,956 Transfer 2,80,35,247 1.17
11-08-17 86,942 Transfer 2,81,22,189 1.17
25-08-17 5,06,483 Transfer 2,86,28,672 1.19
01-09-17 1,07,928 Transfer 2,87,36,600 1.20
08-09-17 1,52,898 Transfer 2,88,89,498 1.20
15-09-17 1,37,908 Transfer 2,90,27,406 1.21
06-10-17 89,940 Transfer 2,91,17,346 1.21
13-10-17 92,938 Transfer 2,92,10,284 1.22
20-10-17 68,954 Transfer 2,92,79,238 1.22
27-10-17 62,958 Transfer 2,93,42,196 1.22
22-12-17 -922,085 Transfer 2,84,20,111 1.11
26-01-18 1,34,984 Transfer 2,85,55,095 1.11
02-02-18 1,20,624 Transfer 2,86,75,719 1.12
23-03-18 2,86,75,719 Transfer 5,73,51,438 2.23
23-03-18 -28,675,719 Transfer 2,86,75,719 1.12
30-03-18 -147,650 Transfer 2,85,28,069 1.11
2,85,28,069 1.11 31-03-18 2,85,28,069 1.11
7 Lazard Emerging 2,94,91,974 1.23 31-03-17 2,94,91,974 1.23
Markets Portfolio
29-09-17 -1,198,613 Transfer 2,82,93,361 1.18
06-10-17 -680,523 Transfer 2,76,12,838 1.15
15-12-17 -630,060 Transfer 2,69,82,778 1.12
2,69,82,778 1.05 31-03-18 2,69,82,778 1.05
8 ICICI Prudential Life 3,43,30,677 1.43 31-03-17 3,43,30,677 1.43
Insurance Company
07-04-17 6,416 Transfer 3,43,37,093 1.43
Limited
14-04-17 -725,757 Transfer 3,36,11,336 1.40
21-04-17 -493,472 Transfer 3,31,17,864 1.38
28-04-17 33,23,981 Transfer 3,64,41,845 1.52
05-05-17 -562,840 Transfer 3,58,79,005 1.50
12-05-17 -11 Transfer 3,58,78,994 1.50
19-05-17 -28,485 Transfer 3,58,50,509 1.50
26-05-17 -286,835 Transfer 3,55,63,674 1.48
02-06-17 2,08,256 Transfer 3,57,71,930 1.49
09-06-17 -227,674 Transfer 3,55,44,256 1.48
16-06-17 -8,472 Transfer 3,55,35,784 1.48
23-06-17 1,15,808 Transfer 3,56,51,592 1.49
112
in share
holding
of the of the
company company
30-06-17 4,29,378 Transfer 3,60,80,970 1.51
07-07-17 9,84,380 Transfer 3,70,65,350 1.55
14-07-17 3,91,888 Transfer 3,74,57,238 1.56
21-07-17 -60,884 Transfer 3,73,96,354 1.56
28-07-17 1,88,775 Transfer 3,75,85,129 1.57
04-08-17 -240,055 Transfer 3,73,45,074 1.56
11-08-17 -142,409 Transfer 3,72,02,665 1.55
18-08-17 -34,930 Transfer 3,71,67,735 1.55
25-08-17 95,713 Transfer 3,72,63,448 1.55
01-09-17 -2,504,537 Transfer 3,47,58,911 1.45
08-09-17 1,51,375 Transfer 3,49,10,286 1.46
15-09-17 -706,125 Transfer 3,42,04,161 1.43
22-09-17 37,30,682 Transfer 3,79,34,843 1.58
29-09-17 2,78,346 Transfer 3,82,13,189 1.59
06-10-17 5,47,925 Transfer 3,87,61,114 1.62
13-10-17 -28,181 Transfer 3,87,32,933 1.62
20-10-17 80,622 Transfer 3,88,13,555 1.62
27-10-17 -5,084,248 Transfer 3,37,29,307 1.41
31-10-17 9,749 Transfer 3,37,39,056 1.41
03-11-17 -93,839 Transfer 3,36,45,217 1.40
10-11-17 -205,104 Transfer 3,34,40,113 1.39
17-11-17 -854,878 Transfer 3,25,85,235 1.36
24-11-17 -57,192 Transfer 3,25,28,043 1.36
01-12-17 -953,108 Transfer 3,15,74,935 1.32
08-12-17 -26,329 Transfer 3,15,48,606 1.32
15-12-17 -49,573 Transfer 3,14,99,033 1.31
22-12-17 -1,186,732 Transfer 3,03,12,301 1.18
29-12-17 48,667 Transfer 3,03,60,968 1.18
05-01-18 -1,129,197 Transfer 2,92,31,771 1.14
12-01-18 -1,017,404 Transfer 2,82,14,367 1.10
19-01-18 -780,496 Transfer 2,74,33,871 1.07
26-01-18 -10,675 Transfer 2,74,23,196 1.07
02-02-18 84,048 Transfer 2,75,07,244 1.07
09-02-18 -229,110 Transfer 2,72,78,134 1.06
16-02-18 -102,019 Transfer 2,71,76,115 1.06
23-02-18 -594,752 Transfer 2,65,81,363 1.04
02-03-18 -346,959 Transfer 2,62,34,404 1.02
09-03-18 -23,477 Transfer 2,62,10,927 1.02
16-03-18 5,723 Transfer 2,62,16,650 1.02
23-03-18 -10,815 Transfer 2,62,05,835 1.02
113
in share
holding
of the of the
company company
30-03-18 -171,819 Transfer 2,60,34,016 1.01
2,60,34,016 1.01 31-03-18 2,60,34,016 1.01
9 Centaura Investments 2,55,47,908 1.07 31-03-17 2,55,47,908 1.07
(Mauritius) Pte Ltd
2,55,47,908 1.00 31-03-18 2,55,47,908 1.00
10 Government of 3,81,37,648 1.59 31-03-17 3,81,37,648 1.59
Singapore
07-04-2017 -49,690 Transfer 3,80,87,958 1.59
14-04-2017 11,20,737 Transfer 3,92,08,695 1.64
21-04-2017 4,30,611 Transfer 3,96,39,306 1.65
28-04-2017 -714,766 Transfer 3,89,24,540 1.62
05-05-2017 -416,791 Transfer 3,85,07,749 1.61
26-05-2017 -20,676 Transfer 3,84,87,073 1.61
02-06-2017 87,471 Transfer 3,85,74,544 1.61
09-06-2017 81,179 Transfer 3,86,55,723 1.61
23-06-2017 -18,658 Transfer 3,86,37,065 1.61
30-06-2017 -1,856,376 Transfer 3,67,80,689 1.53
07-07-2017 2,05,650 Transfer 3,69,86,339 1.54
04-08-2017 -2,400,119 Transfer 3,45,86,220 1.44
11-08-2017 -800,847 Transfer 3,37,85,373 1.41
18-08-2017 -21,806 Transfer 3,37,63,567 1.41
25-08-2017 -466,986 Transfer 3,32,96,581 1.39
01-09-2017 -932,527 Transfer 3,23,64,054 1.35
08-09-2017 -902,531 Transfer 3,14,61,523 1.31
15-09-2017 -464,749 Transfer 3,09,96,774 1.29
22-09-2017 -2,231,083 Transfer 2,87,65,691 1.20
29-09-2017 -312,432 Transfer 2,84,53,259 1.19
06-10-2017 1,23,020 Transfer 2,85,76,279 1.19
20-10-2017 -264,142 Transfer 2,83,12,137 1.18
27-10-2017 -147,246 Transfer 2,81,64,891 1.17
03-11-2017 2,00,559 Transfer 2,83,65,450 1.18
17-11-2017 -473,721 Transfer 2,78,91,729 1.16
24-11-2017 -210,110 Transfer 2,76,81,619 1.15
01-12-2017 -739,028 Transfer 2,69,42,591 1.12
08-12-2017 -406,054 Transfer 2,65,36,537 1.11
05-01-2018 10,26,871 Transfer 2,75,63,408 1.07
19-01-2018 5,15,115 Transfer 2,80,78,523 1.09
26-01-2018 3,73,803 Transfer 2,84,52,326 1.11
02-02-2018 1,44,792 Transfer 2,85,97,118 1.12
09-02-2018 -55,446 Transfer 2,85,41,672 1.11
16-02-2018 -2,998,976 Transfer 2,55,42,696 1.00
23-02-2018 -33,085 Transfer 2,55,09,611 0.99
114
in share
holding
of the of the
company company
02-03-2018 -587,371 Transfer 2,49,22,240 0.97
09-03-2018 -457,652 Transfer 2,44,64,588 0.95
30-03-2018 2,02,948 Transfer 2,46,67,536 0.96
2,46,67,536 0.96 31-03-2018 2,46,67,536 0.96
Note:
1. Top ten shareholders of the Bank as on March 31st 2018 have been considered, for the above disclosures.
2. Date of change is the date of the shareholding statement i.e. the date on which the statements of beneficial ownerships is
received from the depositories.
v) Shareholding of Directors and Key Managerial Personnel:

No. Shareholder beginning of the Year Decrease during the Year
No. of % of total in share No. of % of total
Shares shares holding Shares shares
of the of the
company company
1 Shikha Sharma 5,75,000 0.02 31-03-17 5,50,000 0.02
26-05-17 -25,000 Transfer 5,50,000 0.02
02-06-17 -25,000 Transfer 5,25,000 0.02
09-06-17 -25,000 Transfer 5,00,000 0.02
23-06-17 50,000 Transfer 5,50,000 0.02
30-06-17 25,000 Transfer 5,75,000 0.02
04-08-17 -100,000 Transfer 4,75,000 0.02
01-09-17 1,00,000 Transfer 5,75,000 0.02
15-12-17 -200,000 Transfer 3,75,000 0.02
05-01-18 2,00,000 Transfer 5,75,000 0.02
26-01-18 -100,000 Transfer 4,75,000 0.02
02-02-18 -100,000 Transfer 3,75,000 0.01
16-02-18 1,00,000 Transfer 4,75,000 0.02
23-02-18 1,00,000 Transfer 5,75,000 0.02
5,75,000 0.02 31-03-18 5,75,000 0.02
2 Srinivasan Varadarajan 10,80,000 0.05 31-03-17 10,80,000 0.05
10-11-17 1,00,000 Transfer 11,80,000 0.05
23-03-18 1,23,000 Transfer 13,03,000 0.05
30-03-18 97,000 Transfer 14,00,000 0.05
14,00,000 0.05 31-03-18 14,00,000 0.05
3 Rajiv Anand 3,80,500 0.02 31-03-17 3,80,500 0.02
21-04-17 1,48,000 Transfer 5,28,500 0.02
05-05-17 12,000 Transfer 5,40,500 0.02
26-05-17 -35,000 Transfer 5,05,500 0.02
08-09-17 -35,000 Transfer 4,70,500 0.02
17-11-17 -35,000 Transfer 4,35,500 0.02
09-02-18 -35,000 Transfer 4,00,500 0.02
23-03-18 1,00,000 Transfer 5,00,500 0.02
5,00,500 0.02 31-03-18 5,00,500 0.02
115
No. Shareholder beginning of the Year Decrease during the Year
No. of % of total in share No. of % of total
Shares shares holding Shares shares
of the of the
company company
4 Rajesh Dahiya 30,000 0.00 31-03-17 30,000 0.00
09-06-17 -10,000 Transfer 20,000 0.00
16-06-17 -20,000 Transfer 0 0.00
24-11-17 45,000 Transfer 45,000 0.00
01-12-17 -20,000 Transfer 25,000 0.00
15-12-17 -12,500 Transfer 12,500 0.00
22-12-17 -12,500 Transfer 0 0.00
09-02-18 12,000 Transfer 12,000 0.00
16-03-18 -6,000 Transfer 6,000 0.00
6,000 0.00 31-03-18 6,000 0.00
5 V R Kaundinya@ 5,000 0.00 31-03-17 5,000 0.00
5,000 0.00 31-03-18 5,000 0.00
6 Jairam Sridharan 1,59,041 0.01 31-03-17 1,59,041 0.01
24-11-17 50,000 Transfer 2,09,041 0.01
16-02-18 30,000 Transfer 2,39,041 0.01
2,39,041 0.01 31-03-18 2,39,041 0.01
7 Girish V. Koliyote - - 31-03-17 - -
- - 31-03-18 - -
Note: @
Shri V. R. Kaundinya ceased to be a Director of the Bank on expiry of his tenure w.e.f. the close of business hours on 11th October 2017.
V. INDEBTEDNESS
Indebtedness of the Company including interest outstanding/accrued but not due for payment
(` in crore)
Particulars Secured Loans Unsecured Deposits Total
excluding Loans Indebtedness
deposits
Indebtedness at the beginning of the financial year
i) Principal Amount 1,381.09 1,03,649.78 - 1,05,030.87
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 2.33 1,538.52 - 1,540.85
Total (I+II+III) 1,383.42 1,05,188.30 - 1,06,571.72
Change in Indebtedness during the financial year
Addition 13,46,562.33 2,64,540.69 - 16,11,103.02
Reduction (13,41,362.01) (2,25,759.39) - (15,67,121.40)
Net Change 5,200.32 38,781.30 - 43,981.62
Indebtedness at the end of the financial year
i) Principal Amount 6,579.28 1,41,436.87 - 1,48,016.14
ii) Interest due but not paid - - - -
iii) Interest accrued but not due 4.46 2,532.73 - 2,537.19
Total (I+II+III) 6,583.74 1,43,969.60 - 1,50,553.34
Notes:
1. 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.
2. Principal amount represents outstanding balance of borrowings as reported in financial statements as of the beginning and end of the financial
year.
3. Additions also include the effect of exchange rate fluctuation and net change in interest accrued but not due between the beginning of financial
year and the end of financial year.
116
VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Whole-time Directors and/or Manager for the financial year 2017-18:
(in `)
Sr. Particulars of Remuneration Name of MD / WTD / Manager Total Amount
No.
Smt. Shikha Shri V. Shri Rajiv Shri Rajesh
Sharma Srinivasan Anand Dahiya
1. Gross salary
(a) Salary as per provisions contained u/s 4,51,79,452 3,01,33,426 2,22,78,409 1,56,37,988 11,32,29,275
17(1) of the Income-tax Act, 1961
(b) Value of perquisites u/s 17(2) of the 32,08,204 10,83,946 20,86,639 21,91,364 85,70,153
Income-tax Act, 1961
(c) Profits in lieu of salary u/s 17(3) of the - - - - -
2. Stock Options (No. of options) 5,40,000 3,00,000 3,15,000 2,92,500 -
3. Sweat Equity - - - - -
4. Commission - - - - -
- as % of profit - - - - -
- others - - - - -
5. Others - - - - -
Total (A) 4,83,87,656 3,12,17,372 2,43,65,048 1,78,29,352 12,17,99,428
Ceiling as per the Act* - - - -
* In terms of provision of the Banking Regulations Act, 1949, the provisions relating to Managerial Remuneration under the
Companies Act, 2013 and the Rules made thereunder are not applicable to the Bank.
B. Remuneration to other Directors for the financial year 2017-18:

(in `)
Sr. Particulars of Dr. Sanjiv V. R. Prasad R. Samir Som Mittal Rohit S. Total
No. Remuneration to Misra Kaundinya@ Menon Barua Bhagat Vishvanathan Amount
Independent Directors
1 Fee for attending Board / 12,00,000 7,50,000 24,00,000 22,50,000 16,00,000 18,00,000 22,50,000 1,22,50,000
Committee meetings
2 Commission for FY 2016-17 1,83,562 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000 10,00,000 61,83,562
3 Others, please specify - - - - - - - -
Total (1) 13,83,562 17,50,000 34,00,000 32,50,000 26,00,000 28,00,000 32,50,000 1,84,33,562
(in `)
Sr. Particulars of Remuneration of Independent /Non- Rakesh Smt. Ketaki Shri B. Smt. Usha Shri Stephen Total Amount
No. Executive Directors Makhija Bhagwati Babu Rao* Sangwan* Pagliuca*
1 Fee for attending Board / Committee meetings 25,00,000 20,00,000 19,50,000 6,00,000 2,00,000 72,50,000
2 Commission for FY 2016-17 10,00,000 10,00,000 10,00,000 10,00,000 - 40,00,000
3 Others, please specify - - - - - -
Total (2) 35,00,000 30,00,000 29,50,000 16,00,000 2,00,000 1,12,50,000
Total (B)=(1+2) 2,96,83,562
Total Managerial Remuneration (A+B) 15,14,82,990
* Shri B. Babu Rao, Smt. Usha Sangwan and Shri Stephen Pagliuca are Non-Executive (Nominee) Directors of the Bank.
@ Shri V. R. Kaundinya ceased to be an Independent Director of the Bank on expiry of his tenure w.e.f. the close of business hours on
11th October 2017.
117
C. Remuneration to Key Managerial Personnel other than MD/Manager/WTD for the financial year 2017-18
(in `)
Sr. Particulars of Remuneration Jairam Sridharan, Girish V. Koliyote, Total
No. Chief Financial Company Secretary Amount
Officer
1. Gross salary
(a) S
alary as per provisions contained u/s 17(1) of the 1,74,59,392 73,23,399 2,47,82,791
(b) Value of perquisites u/s 17(2) of the Income-tax Act, 1961 17,79,600 3,76,826 21,56,426
(c) P
rofits in lieu of salary u/s 17(3) of the Income-tax Act,
1961
2. Stock Option (No. of options) 1,40,000 26,000 -
3. Sweat Equity - - -
4. Commission - - -
- as % of profit - -
- others - -
5. Others - - -
Total 1,92,38,992 77,00,225 2,69,39,217
VII. PENALTIES / PUNISHMENT/ COMPOUNDING OF OFFENCES:

Type Section of the Brief Details of Penalty/ Authority (Regional Appeal
Companies Act Description Punishment/ Director/National made
Compounding fees Company Law
imposed Tribunal/Court)
A. Company
Penalty - - - - -
Punishment - - - - -
Compounding - - - - -
B. Directors
Penalty - - - - -
C. Other Officers in Default
Penalty - - - - -
118
DISCLOSURE ON REMUNERATION
Information pursuant to Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and
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 Director of the Bank to the median remuneration of the employees of the Bank for the
financial year 2017-18, are as under;
Name of the Executive Directors Ratio of remuneration to median remuneration of all employees
Smt. Shikha Sharma, Managing Director & CEO 82.9
Shri V. Srinivasan, Deputy Managing Director 54.9
Shri Rajiv Anand, Executive Director (Retail Banking) 42.7
Shri Rajesh Dahiya, Executive Director (Corporate Centre) 38.1
Note: All confirmed employees (excluding front line sales force), as on 31st March 2018 have been considered.
(ii) The percentage increase in remuneration of Executive Directors, Chief Financial Officer, Chief Executive Officer and Company
Secretary or Manager, if any, in the financial year 2017-18, are as under;
Name of the Director/Key Managerial Personnel % increase in the remuneration in the financial year 2017-18
Executive Directors
Smt. Shikha Sharma, Managing Director & CEO 7.5
Shri V. Srinivasan, Deputy Managing Director 7.5
Shri Rajiv Anand, Executive Director (Retail Banking) 7.5
Shri Rajesh Dahiya, Executive Director (Corporate Centre) 15.0
Key Managerial Personnel
Shri Jairam Sridharan, Chief Financial Officer 17.5
Shri Girish V. Koliyote, Company Secretary 11.8
(iii) The percentage increase in the median remuneration of the said employees of the Bank during the financial year 2017-18, is
as under:
Median remuneration of employees of the Bank increased by 7.57% in the financial year 2017-18, as compared to the financial
year 2016-17.
(iv) The number of permanent employees on the rolls of the Bank as on 31st March 2018 - The Bank had 59,614 permanent
employees on its rolls, as on 31st March 2018.
(v) 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 financial year and its comparison with the percentile increase in the managerial
remuneration and justification 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 financial year 2017-18 was 8.61 % and
the average remuneration increase for the said managerial personnel of the Bank was around 8.73%.
Remuneration increase is dependent on the Bank’s performance as a whole, individual performance level and also market
benchmarks.
(vi) Affirmation that the remuneration is as per the remuneration policy of the Bank.
The Comprehensive Remuneration policy of the Bank as 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 Reserve Bank of India. We affirm
that the remuneration paid to all employees is as per the said Policy of the Bank.
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ANNUAL REPORT ON CORPORATE SOCIAL RESPONSIBILITY (CSR)

ACTIVITIES
(As prescribed under Section 135 of the Companies Act, 2013 and Companies (Corporate Social Responsibility Policy) Rules, 2014)
1. A brief outline of the Company’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 primary purpose of Axis Bank’s CSR philosophy is to make a meaningful and measurable impact on the lives of economically,
physically and socially challenged communities across India, by actively supporting initiatives that aim at creating suitable
conditions for their sustainable livelihoods. As a financial institution, the Bank believes that it can play an active role in stimulating
India’s socio-economic development as well as its ecological balance. The Bank is also making efforts to align its CSR activities
with various Government Schemes.
The CSR activities of the Bank are guided by its Corporate Social Responsibility (CSR) Policy which has been formulated and
adopted by the Bank in compliance with the provisions of Section 135 of the Companies Act, 2013 and is 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 in
association with any other Trust or agencies and entities as deemed suitable.
The Bank leverages its geographical spread across the country to undertake such initiatives.
Set up as a Public Charitable Trust in 2006, Axis Bank Foundation (ABF) is the Corporate Social Responsibility (CSR) arm of Axis
Bank Limited. It spearheads the CSR activities of the Bank with a focus on creating Sustainable Livelihoods. ABF had set itself an
ambitious target of creating 1 million sustainable livelihoods by the end of 2017.
Partnering with reputed NGOs across the length and breadth of India since it was set up, ABF has created 1 million livelihoods
in September 2017 of which 63% were women. ABF now aspires to reach out to 2 Million Households by 2025. An illustrative
list of various programs and activities supported by ABF can be accessed at www.axisbankfoundation.org.
ABF, as part of its Sustainable Livelihoods programs, supports promotion and sustenance of rural livelihoods primarily in the
rain-fed regions of the country. Within rural livelihoods initiatives, ABF’s core focus areas are watershed management and
agriculture productivity, livestock enhancement and financial inclusion. These initiatives help in enhancing the agricultural output
in target areas through improved farm practices that lead to increased income. Watershed management activities ensure better
availability of water making multiple cropping possible. Livestock enhancement programs support communities in better livestock
rearing thereby creating an alternative stream of income. ABF is also associated with programs that encourage involvement
in non-farm handicraft activities such as embroidery work, bamboo work, etc. that supplement the farm income and improve
the overall income. Financial Inclusion activities are conducted to help the beneficiaries gain access to banking facilities. Skill
building is a national priority and ABF conducts skilling programs across India for Youths and Persons with Disabilities (PwDs)
and lead them to employment.
Many of the ABF-supported programs are closely aligned with the Government of India’s rural development schemes such as The
Mahatma Gandhi National Rural Employment Guarantee Act and Pradhan Mantri Krishi Sichai Yojana.
During the year, ABF organized its 3rd Annual Conference on 14th March 2018 at Mumbai, with the theme ‘Partnerships for
Sustainable Development Goals’. The inaugural address was by Shri. Devendra Fadnavis, Chief Minister, Maharashtra and its
keynote address was by Shri. Sonam Wangchuk, education reformist and innovator. It featured panel discussions on themes
related to ‘Shared Action for Shared Prosperity’ and ‘Empowering a Million Livelihoods’. The Conference saw a convergence of
participants across varied sectors, ABF’s partner NGOs and thought leaders from the development sector.
The CSR activities directly undertaken by the Bank focus on poverty alleviation, promoting financial literacy and enabling
financial inclusion, environmental sustainability and education and skill development.
During the year, the Bank launched ‘Axis DilSe – Connecting Remote Communities’, an ambitious initiative to reach out to the
remote communities in the Ladakh region of Jammu & Kashmir. The three-year program aims to transform over 100 village
schools in Leh and Kargil districts by creating as well as strengthening physical and educational infrastructure. The initiative
is in alignment with the Government of India’s ‘Border Area Development Program’ (BADP) that aims to promote growth and
development in underserved border villages.
120
The Financial Literacy & inclusion activities focus on providing low income groups in rural and urban India access to financial
services. The Bank has been active in promoting the Government’s various social security schemes and has also supported
opening of accounts under the Atal Pension Yojana.
In alignment with the Government’s Digital India programme and its impetus on digital financial transactions, the Bank introduced
the DigiSupport program as an extension of its ongoing DigiPrayas program, wherein new branches opened in rural or unbanked
geographies aim to educate and empower the villagers/local communities around them. These communities are made familiar
with mainstream banking products and services, digital banking options and ways to enhance cashless transactions. In addition,
the Bank expands its reach through Business Correspondents (BCs) that promote digital banking through use of micro-ATMs and
promote digital financial literacy. During the year, the Bank launched its initiative - ‘Connecting Borders’, in Kohima, Nagaland
by adopting 20 villages where it conducted financial literacy camps.
The Bank has been working towards strengthening India’s MSME sector under its ‘Evolve’ initiative, wherein it engages with the
MSME sector through a series of knowledge sharing and skill development sessions. ‘Thought Factory’, Axis Bank’s Innovation
lab is strongly aligned with the Government’s Startup India initiative and supports start-ups through a structured mentorship
program along with providing them an opportunity to pitch their business ideas to potential investors.
During the year, the Bank won at the FICCI CSR Summit & Awards 2017 in the ‘Women Empowerment’ Category in recognition
of its CSR efforts and impacts created.
For more details on the Bank’s CSR efforts, please refer to the ‘Corporate Social Responsibility’ (CSR) section under ‘Management
Discussion and Analysis’ section of the Annual Report and disclosures made in the Bank’s Sustainability Report and Axis Bank
Foundation’s Annual Report.
2. The Composition of the CSR Committee: Shri Som Mittal (Chairman), Shri Rajesh Dahiya and Shri Rajiv Anand.
3. Average net profit of the company for last three financial years: `9,341.14 crore
4. Prescribed CSR Expenditure (two per cent of the amount as in item 3 above): `186.82 crore
5. Details of CSR spent during the financial year:
(a) Total amount spent for the financial year (2017-18): `133.77 crore
(b) Amount unspent, if any: `53.05 crore
(c) Manner in which the amount spent during the financial year is detailed in Annexure A.
6. In case the company has failed to spend the two per cent of the average net profit of the last three
financial years or any part thereof, the company shall provide the reasons for not spending the amount
in its Board report
Over the years, the Bank has endeavoured to contribute to credible NGO partners and the neediest beneficiaries. The Bank
has been playing an active role in community development even before Corporate Social Responsibility (CSR) was included
in the Companies Act. In 2006, the Bank set up the Axis Bank Foundation (ABF) as a trust to channel its social investments
and the Bank has since been contributing one percent of its previous year’s net profit to the Foundation. The Bank has made
cumulative contributions of `529.79 crore till March 2018, of which nearly `448.29 crore was contributed to the ABF and
its partner NGOs. ABF activities are spread across 178 districts in 21 states across the country, addressing the needs of the
underprivileged sections of society, while focusing on the area of creating sustainable livelihoods.
The Bank also identified new opportunities during the year and made incremental investments in the programs relating to poverty
alleviation, rural development through promoting financial literacy and enabling financial inclusion, environmental sustainability,
education and skill development. The Bank continued to bolster its financial literacy and inclusion activities to mainstream the
unbanked and the under-banked people, especially in rural India while helping customers to gradually transition to a digital way
of undertaking transactions.
During the year 2017-18, the Bank improved its CSR spend ratio to 1.43% of its average net profits of the last three financial
years, as against 1.38% last year, with contribution of `133.77 crore on various CSR activities. The Bank was not able to spend
the entire prescribed CSR amount of 2% of its average net profits of the last three financials years as few of the planned CSR
activities had less than estimated utilization of funds.
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Further, in view of its sharper focus on creating sustainable livelihoods, the Bank sought to wind down some of its programs,
especially in the health & education sectors, on account of lesser than desired outcomes. These programs were replaced by
other interventions in the area of sustainable livelihoods during the second half of the year. These programs have long gestation
periods and therefore are expected to see increased spends, in line with their improved outcomes going forward.
Six new programs through reputed partner NGOs were taken up during the year covering various activities, including
environmental sustainability, financial literacy, health, livelihoods and skilling. Through these programs, the Bank reiterated
its commitment to make a deeper penetration in the rural areas and undertake livelihood programs that are sustainable and
replicable across the country. The Bank also collaborated with a reputed NGO to create awareness on the Rights of Persons
with Disabilities (RPWD) Act and to train organizations involved in skilling the Persons with Disabilities (PwDs) to ensure that the
PwDs are included in the workforce.
The proposed spend for an open access solar plant, as part of our environmental sustainability initiatives, could not be completed
during the year on account of pending clearances. We expect contributions towards this initiative to commence in FY 2018-19
as soon as the necessary clearances are obtained.
The Bank, in a pioneering initiative, extended support to the ‘Buddha Fellowship’ program which is an attempt to bridge the
human resource gap faced by the developmental sector by engaging with bright young minds from reputed educational institutes
like the IIM, IIT, etc. to enable the youth to do field work in NGOs and government while being mentored by senior leaders
from corporate and development sector to go on to pursue developmental entrepreneurship. The Bank also reached out to the
low-income groups in the rural areas to provide them with Financial Literacy through a ‘Mass Awareness Camp’ (MAC) that is
designed to involve the entire community to be part of the financial learning process. The Bank also conducted a Health Camp
in the community in which basic diagnostic tests were carried out. The spend on financial literacy and inclusion, however, was
impacted on account of the rationalisation of the number of our Business Correspondent (BC) partners.
The Bank is also supporting the plantation of 3,80,000 trees in around five states to promote environmental sustainability and
to improve the vegetation in common lands while providing livelihoods to the rural poor.
The Bank remains committed to continually explore new opportunities which align to its CSR philosophy and create maximum
impact and incrementally invest in CSR activities to spend the prescribed CSR amount in the subsequent years.
7. The CSR Committee of the Board of Directors hereby confirms that the implementation and monitoring of
CSR Policy, is in compliance with CSR objectives and CSR Policy of the Bank.
Place: Mumbai Som Mittal Rajesh Dahiya

Date: 16 May 2018
th
Chairman – CSR Committee Executive Director (Corporate Centre)
122
Annexure A
(1) (2) (3) (4) (5) (6) (7) (8)
Sr. CSR Project or Activity Sector in which the Projects or Programs Amount Outlay Amount Spent on the Cumulative Amount
No. identified Project is covered (1) Local area or other (Budget) Projects or programs Expenditure Spent:
(2)
Specify the State and district where projects or Project or Sub-heads: up to the Direct or
programs was undertaken programs wise (1) Direct Expenditure Reporting through
BUSINESS REVIEW
on Projects or Period implementing

Programs Agency
(2) Overheads
1.a. Contribution to Axis Education (including 1. Local area (157 districts) and others (26 districts) `36.79 crore (For Direct expenditure: `36.79 `448.29 crore Through Axis
Bank Foundation and its vocational 2. Andhra Pradesh (9 districts), Assam (2 districts), Bihar (4 districts), 2017-18) crore (Contribution to Bank Foundation
partner NGOs towards skills), Livelihood Chattisgarh (7 districts), Gujarat (6 districts), Jammu & Kashmir (3 Overheads: Nil the corpus of Axis and its partner
undertaking CSR activities enhancement, districts), Jharkhand (11 districts), Karnataka (19 districts), Madhya Bank Foundation NGOs
as per the focus areas vocational skills Pradesh (27 districts), Maharashtra (35 districts), Meghalaya (4 and its partner
and programs areas listed training, conservation districts), Nagaland (1 district), Odisha (8 districts), Puducherry UT (1 NGOs since
STATUTORY REPORTS
in Axis Bank’s ‘Policy of natural resources district), Punjab (3 districts), Rajasthan (11 districts), Sikkim (1 district), 2006-07)
for Corporate Social and rural development Tamil Nadu (7 districts), Telangana (4 districts), Uttar Pradesh (12
Responsibility’. districts), Uttarakhand (1 district) and West Bengal (7 districts)
Details of the initiatives
undertaken by Axis Bank
Foundation are available at
www.axisbankfoundation.
org
1.b. Contribution to NGOs Livelihood `45.45 crore (For Direct expenditure: `44.39 crore Through
for conducting livelihood enhancement, 2017-18) `44.39 crore (For 2017-18) implementing
programs vocational skills Overheads: Nil agencies
FINANCIAL STATEMENTS
training, conservation
of natural resources
and rural development
1.c. Contribution to NGOs for Rural Development `4.28 crore Direct expenditure: `10 `10 crore Through
conducting other programs (For 2017-18) crore (For 2017-18) implementing
(creating model villages) Overheads: Nil agencies
2 Financial literacy and Education (financial 1. Local area (655 districts) and Others (1 district) `12.66 crore Direct expenditure: `121.41 crore Direct and
inclusion and public literacy, consumer 2. Andaman & Nicobar UT (2 districts), Andhra Pradesh (15 districts), `15.76 crore (since 2014-15) through Business
awareness, public Arunachal Pradesh (4 districts), Assam (30 districts), Bihar (40 districts), Overheads: Nil Correspondents
awareness program: awareness), reducing Chandigarh UT (1 district), Chattisgarh (23 districts), Dadra & Nagar and
BASEL III DISCLOSURES
inequalities faced UT (1 district), Daman & Diu UT (2 districts), Delhi (12 districts), Goa implementing
a. Financial and digital by socially and (2 districts), Gujarat (31 districts), Haryana (20 districts), Himachal agencies
literacy initiatives to economically Pradesh (8 districts), Jammu & Kashmir (14 districts), Jharkhand (25
create awareness and backward groups, districts), Karnataka (33 districts), Kerala (14 districts), Madhya
educate various sections Promoting Preventive Pradesh (51 districts), Maharashtra (43 districts), Manipur (7 districts),
of society, especially Health Care Meghalaya (4 districts), Mizoram (3 districts), Nagaland (4 districts),
those which do not Odisha (32 districts), Puducherry UT (3 districts), Punjab (22 districts),
have access to banking Rajasthan (34 districts), Sikkim (4 districts), Tamil Nadu (34 districts),
system, on personal Telangana (29 districts), Tripura (5 districts), Uttar Pradesh (72 districts),
financial management Uttarakhand (11 districts) and West Bengal (21 districts)
and provide them
access through financial
inclusion initiatives.
b. Financial literacy and

consumer awareness
initiatives to safeguard
against fraud and
cybercrime, health and
sanitation and other
social camps
c. Financial Literacy and
123
health camps
Annexure A
124
(1) (2) (3) (4) (5) (6) (7) (8)
Sr. CSR Project or Activity Sector in which the Projects or Programs Amount Outlay Amount Spent on the Cumulative Amount
No. identified Project is covered (1) Local area or other (Budget) Projects or programs Expenditure Spent:
(2)
Specify the State and district where projects or Project or Sub-heads: up to the Direct or
programs was undertaken programs wise (1) Direct Expenditure Reporting through
on Projects or Period implementing
Programs Agency
(2) Overheads
3 E n v i r o n m e n t a l Environmental 1. Local area (51 districts) and others (1 district) `16 crore Direct expenditure: `62.28 crore Direct and
sustainability program: s u s t a i n a b i l i t y,
2. Andhra Pradesh (3 districts), Assam (1 district), Bihar (1 district), `9.69 crore (since 2014-15) through
a. Reduction of GHG ecological balance Chattisgarh (1 district), Delhi (2 districts), Gujarat (6 districts), Haryana Overheads: Nil implementing
emissions through use and natural resource (2 districts), Jharkhand (1 district), Karnataka (4 districts), Madhya agencies
of renewable energy conservation Pradesh (1 district), Maharashtra (5 districts), Manipur (1 district),
and optimising energy Odisha (5 districts), Punjab (3 districts), Rajasthan (3 districts), Tamil
efficiency and maintaining Nadu (3 districts), Telangana (1 district), Tripura (1 district), Uttar
ecological balance Pradesh (1 district) and West Bengal (7 districts)
4 MSME Sector building Education 1. Local area (43 districts) `4 crore Direct expenditure: `10.16 crore Direct
program: (skills development) 2. Andhra Pradesh (2 districts), Assam (2 districts), Bihar (1 district), `3.42 crore (since 2014-15)
Contribute to MSME sector Chattisgarh (1 district), Delhi (1 district), Gujarat (5 districts), Haryana Overheads: Nil
capabilities enhancement (2 districts), Jharkhand (1 district), Karnataka (2 districts), Kerala (1
through knowledge based districts), Madhya Pradesh (2 districts), Maharashtra (6 districts),
skills development. Odisha (2 districts), Punjab (1 district), Rajasthan (2 districts), Tamil
Nadu (3 districts), Telangana (1 district), Uttar Pradesh (4 districts),
Uttarakhand (1 district) and West Bengal (3 districts)
5 Education and SkillEducation 1. Local area (2 districts) and others (1 district) `14.50 crore Direct expenditure: `17.77 crore Direct and
development program: (skills development) 2. Jammu & Kashmir (2 districts) and Karnataka (1 district) `10.46 crore (since 2015-16) through
a. Promoting and measures for Overheads: Nil implementing
entrepreneurial skillsreducing inequalities agencies
among start-ups faced by socially
b. Imparting employable and economically
skills to youth backward groups
c. Empowering Persons
with Disabilities (PwDs)
d. Promoting education
and skills in remote schools
6 Administrative expenses: Allowed under Rule 4, Not Applicable `3.56 crore Direct expenditure: Nil `8.92 crore Direct
Administrative and other sub-rule 6 of CSR Rules Overheads: (since 2014-15)
expenses including salaries 2014 `3.24 crore
and training cost for the
Bank’s CSR personnel,
training and capacity
building of implementation
partners and staff cost for
CSR initiatives up to 5% of
overall CSR Expenditure
TOTAL `137.24 crore `133.77 crore `723.22 crore
*Give details of implementing agency: The details of partners of Axis Bank Foundation are available at http://www.axisbankfoundation.org/partners/livelihood.html
The details of the Bank’s Business Correspondent (BC) Partners are available at https://www.axisbank.com/agri-and-rural/financial-inclusion/business-correspondents
Form No. MR-3

SECRETARIAL AUDIT REPORT
For the financial year ended 31st March 2018
[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule no. 9 of the Companies (Appointment and Remuneration of
Managerial Personnel) Rules, 2014]
To
The Members
Axis Bank Limited
Trishul, 3rd Floor,
Opp. Samartheshwar Temple,
Law Garden Ellisbridge,
Ahmedabad – 380 006
Gujarat.
We have conducted the Secretarial Audit of the compliance of applicable statutory provisions and the adherence to good corporate
practices by Axis Bank Limited -CIN No. L65110GJ1993PLC020769 (hereinafter called the ‘Bank’) for the audit period
covering the financial year ended on 31st March 2018 (the ‘audit period’). 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 verification of the Bank’s books, papers, minute books, forms and returns filed and other records maintained by the Bank
and also the information provided by the Bank, its officers, agents and authorized representatives during the conduct of Secretarial
Audit, we hereby report that in our opinion, the Bank has, during the audit period 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, minute books, forms and returns filed and other records maintained by the Bank for the audit
period, according to the provisions of:
(i) The Companies Act, 2013 (‘the Act’) and the Rules made thereunder;
(ii) The Securities Contracts (Regulation) Act, 1956 and the Rules made thereunder;
(iii) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
(iv) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Foreign Direct
Investment.
(v) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI Act’):
(a) The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011;
(b) The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015; except that SEBI has vide
its Directions dated 27th December 2017 came to prima facie inference that the Unpublished Price Sensitive Information
relating to financials of the Bank for the first quarter of 2017-18 was leaked due to inadequacy of the processes, controls,
systems put in place by the Bank and hence, inter alia, directed the Bank to strengthen the same so that such instance of
leakage of unpublished price sensitive information do not recur in the future and to conduct an internal inquiry into the
said leakage and take appropriate action against those responsible for the same. As per the said Directions of the SEBI,
the Bank conducted an inquiry into the matter by appointing an independent external agency. The draft report of the said
external agency was placed at the meetings of Audit Committee and Board of Directors held on 9th April 2018 and the
inquiry report was thereafter submitted to SEBI on 13th April 2018, in terms of the said Directions.
(c) The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009;
(d) The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014;
125
(e) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008,
(f) 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;
(g) The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015
(h) The Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992; and
(i) The Securities and Exchange Board of India (Banker to Issue) Regulations, 1994.
(vi) The Banking Regulations Act, 1949, as specifically applicable to the Bank.
We have also examined compliance with the applicable clauses of the Secretarial Standards issued by the Institute of Company
Secretaries of India related to Board Meetings and General Meetings.
During the audit period, the Bank has complied with the provisions of the Act, Rules, Regulations, Guidelines, Standards etc.
mentioned above.
During the period under review, provisions of the following regulations were not applicable to the Bank:
(a) The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009;
(b) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998; and
(c) The Foreign Exchange Management Act, 1999 and the Rules and Regulations made thereunder to the extent of Overseas
Direct Investment and External Commercial Borrowings.
We further report that –
The Board of Directors of the Bank is duly constituted with proper balance of Executive Directors, Non-Executive Directors and
Independent Directors. The changes in the composition of the Board of Directors that took place during the audit period 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 where the same were given at shorter notice than seven days, prior consent thereof were obtained,
and a system exists for seeking and obtaining further information and clarifications on the agenda items before the meeting and for
meaningful participation at the meeting.
Decisions at the meetings of the Board of Directors of the Bank and at Committees were carried through on the basis of majority. There
were no dissenting views by any member of the Board of Directors of the Bank during the audit period.
There are adequate systems and processes in the Bank commensurate with the size and operations of the Bank to monitor and ensure
compliance with the applicable laws, rules, regulations and guidelines.
During the audit period, the Bank has:
1. Allotted following Unsecured Non –Convertible Debentures on a Private Placement Basis,
a. 50,000 Unsecured Redeemable Non-Convertible Subordinated Debenture (Series-27) of face value `10 Lakh each at par
aggregating to `5000 Crore (Rupees Five Thousand Crore Only) on 15th June 2017.
b. 35,000 Unsecured Subordinated Perpetual Additional Tier 1 Non-Convertible Debenture (Series-28) of face value `10
Lakh each at par aggregating to `3,500 crore (Rupees Three Thousand Five Hundred Crores Only) on 28th June 2017.
126
2. Acquired of 100% Equity Capital of Accelyst Solutions Private Limited (“Accelyst”) and Freecharge Payment Technologies Private
Limited (“FPTPL”). The Bank has received approval from Reserve Bank of India (RBI) on 25th September 2017.
3. Pursuant to the approval of the Board of Directors of the Bank at its meeting held on 26th July 2017, the Bank entered into a
Share Purchase Agreement with Jasper Infotech Private Limited to acquire 100% equity capital of Accelyst and FPTPL. The Bank
has received approval from Reserve Bank of India (RBI) on 25th September 2017.
4. Approval of shareholders was obtained vide Special Resolution dated 26th July 2017 for Borrowings/Raising funds by issue
of Debt Securities including but not limited to Long Term Bonds, Green Bonds, Non- Convertible Debentures, Perpetual Debt
Instruments and Tier II Capital bonds or such other debt securities as approved by RBI on a private placement basis for an
amount of upto `35,000 crores.
5. Issued and allotted equity shares and convertible warrants to following Investors on a preferential basis on 18th December 2017:
a. 5,56,00,000 equity shares of face value `2 each (the “Investor 1 Equity Shares”) to BC Asia Investments VII Limited (the
“Investor 1”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
b. 3,19,00,000 equity shares of face value `2 each (the “Investor 2 Equity Shares”) to Integral Investments South Asia IV
(the “Investor 2”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
c. 4,00,00,000 warrants carrying an option to subscribe to an equivalent number of equity shares of `2 each (the “Investor
3 Convertible Warrants”) to BC Asia Investments III Limited (the “Investor 3”) at a price of `565 (Five Hundred and Sixty-
Five Only) per warrant;
d. 59,98,000 equity shares of face value `2 each (the “Investor 4 Equity Shares”) to New World Fund. Inc (the “Investor 4”)
at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
e. 2,26,884 equity shares of face value `2 each (the “Investor 5 Equity Shares”) to Capital Group New World Fund (LUX)
(the “Investor 5”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
f. 53,08,000 equity shares of face value `2 each (the “Investor 6 Equity Shares”) to American Funds Insurance Series –
International Fund (the “Investor 6”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
g. 4,28,72,967 equity shares of face value `2 each (the “Investor 7 Equity Shares”) to Europacific Growth Fund (the
“Investor 7”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share;
h. 5,65,899 equity shares of face value `2 each (the “Investor 8 Equity Shares”) to American Funds Insurance Series –
International Growth and Income Fund (the “Investor 8”) at a price of `525 (Five Hundred and Twenty-Five Only) per
Equity Share;
i. 27,86,000 warrants carrying an option to subscribe to an equivalent number of equity shares of `2 each (the “Investor 4
Convertible Warrants”) to Investor 4 at a price of `565 (Five Hundred and Sixty-Five Only) per warrant;
j. 1,05,385 warrants carrying an option to subscribe to an equivalent number of equity shares of `2 each (the “Investor 5
k. 24,66,000 warrants carrying an option to subscribe to an equivalent number of equity shares of `2 each (the “Investor 6
l. 2,28,57,142 equity shares of face value `2 each (the “Promoter Investor Equity Shares”) to Life Insurance Corporation of
India (the “Promoter Investor”) at a price of `525 (Five Hundred and Twenty-Five Only) per Equity Share.
For BNP & Associates

Company Secretaries
Prakash K. Pandya
Date: 16th May 2018 Partner
Place: Mumbai FCS 3901/ CP No. 2311
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.
127
Annexure A
To,
The Members,
Axis Bank Limited
Secretarial Audit Report of even date is to be read along with this letter.
1. The compliance of provisions of all laws, rules, regulations, standards applicable to Axis Bank Limited (the ‘Bank’) is the
responsibility of the management of the Bank. Our examination was limited to the verification of records and procedures on test
check basis for the purpose of issue of the Secretarial Audit Report.
2. Maintenance of secretarial and other records of applicable laws is the responsibility of the management of the Bank. Our
responsibility is to issue Secretarial Audit Report, based on the audit of the relevant records maintained and furnished to us by
the Bank, along with explanations where so required.
3. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance about the correctness
of the contents of the secretarial and other legal records, legal compliance mechanism and corporate conduct. The verification
was done on test check basis to ensure that correct facts as reflected in secretarial and other records were produced to us. We
believe that the processes and practices we followed, provides a reasonable basis for our opinion for the purpose of issue of the
Secretarial Audit Report.
4. We have not verified the correctness and appropriateness of financial records and Books of Accounts of the Bank.
5. Wherever required, we have obtained the management representation about the compliance of laws, rules and regulations and
major events during the audit period.
6. The Secretarial Audit Report is neither an assurance as to the future viability of the Bank nor of the efficacy or effectiveness with
which the management has conducted the affairs of the Bank.
For BNP & Associates

Company Secretaries
Prakash K. Pandya
Date: 16th May 2018 Partner
Place: Mumbai FCS 3901/ CP No. 2311
128
FINANCIAL STATEMENTS
130-262
130 Independent Auditor’s report - Standalone Financial Statements
134 Standalone Financial Statements
214 Independent Auditor’s report - Consolidated Financial Statements
218 Consolidated Financial Statements
262 Form AOC 1
129
INDEPENDENT AUDITOR’S REPORT

To the Members of Axis Bank Limited
Report on the Financial Statements

We have audited the accompanying standalone financial statements of Axis Bank Limited (the ‘Bank’), which comprise the Balance
Sheet as at March 31, 2018, the Profit and Loss Account and Cash Flow Statement for the year then ended, and a summary of
significant accounting policies and notes to the financial statements.
Management’s Responsibility for the Financial Statements

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 standalone financial statements that give a true and fair view of the financial position, financial
performance and cash flows of the Bank in accordance with accounting principles generally accepted in India, including the Accounting
Standards specified under section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies
(Accounting Standards) Amendment Rules, 2016, provision of section 29 of the Banking Regulation Act, 1949 and the circulars,
guidelines and directions issued by Reserve Bank of India (“RBI”) from time to time. 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 the design, implementation and maintenance of adequate internal financial control
that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and
presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud
or error.
Our responsibility is to express an opinion on these standalone financial 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 specified 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 financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to
the Bank’s preparation of the financial 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 financial
controls system over financial 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 Bank’s Directors, as well as evaluating
the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate
to provide a basis for our audit opinion on the standalone financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid standalone financial
statements together with the notes give the information required by the Banking Regulation Act, 1949 as well as 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 Bank as at March 31, 2018, its profit and cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements

1. The Balance Sheet and the Profit 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 read with Rule 7 of the Companies
(Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016.
2. As required sub section (3) of section 30 of the Banking Regulation Act, 1949 and the appointment letter dated 3 August 2017,
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;
130
(b) The transactions of the Bank, which have come to our notice, have been within the powers of the Bank; and
(c) The financial accounting systems of the Bank are centralised and therefore, accounting returns for the purpose of preparing
financial statements are not required to be submitted by the branches; we have visited 172 branches for the purpose of
our audit.
3. 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 explanations which to the best of our knowledge and belief were
necessary for the purpose of our audit;
(b) In our opinion proper books of account as required by law have been kept by the Bank so far as it appears from our
examination of those books;
(c) The Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with
the books of account;
(d) In our opinion, the aforesaid standalone financial statements comply with the Accounting Standards specified under
section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting
Standards) Amendment Rules, 2016;
(e) On the basis of written representations received from the directors as on March 31, 2018, and taken on record by the
Board of Directors, none of the directors is disqualified as on March 31, 2018, from being appointed as a director in
terms of section 164 (2) of the Act;
(f) With respect to the adequacy of the internal financial controls over financial reporting of the Bank and the operating
effectiveness of such controls, refer to our separate Report in “Annexure 1” to this report;
(g) 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:
i. The Bank has disclosed the impact of pending litigations on its financial position in its standalone financial statements
- Refer Schedule 12.I, 18.2.2.15 (a) and 18.2.2.15 (f) to the standalone financial statements;
ii. The Bank has made provision, as required under the applicable law or accounting standards, for material
foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Note 18.2.2.15 (f) to the
standalone financial statements; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection
Fund by the Bank;

ICAI Firm Registration Number: 301003E/E300005
per Viren H. Mehta

Partner
Membership Number: 048749
Place of Signature: Mumbai

Date: 26 April 2018
131
ANNEXURE 1 TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE STANDALONE FINANCIAL
STATEMENTS OF AXIS BANK LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
We have audited the internal financial controls over financial reporting of Axis Bank Limited (“the Bank”) as of March 31, 2018 in
conjunction with our audit of the standalone financial statements of the Bank for the year ended on that date.
Management’s Responsibility for Internal Financial Controls

The Bank’s Management is responsible for establishing and maintaining internal financial controls based on the internal control over
financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India (the
“Guidance Note”). These responsibilities include the design, implementation and maintenance of adequate internal financial controls
that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Bank’s policies,
the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting
records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013; in so far as they
apply to the Bank and the Guidelines issued by the Reserve Bank of India.
Our responsibility is to express an opinion on the Bank's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note and the Standards on Auditing as specified under section 143(10) of
the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal
Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require
that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate
internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all
material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the
internal financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting

A Bank's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A Bank's internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the Bank; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Bank are
being made only in accordance with authorisations of management and directors of the Bank; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the Bank's assets that could have a material
effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
132
Opinion
In our opinion, the Bank has, in all material respects, an adequate internal financial controls system over financial reporting and such
internal financial controls over financial reporting were operating effectively as at March 31, 2018, based on the internal control over
financial reporting criteria established by the Bank considering the essential components of internal control stated in the Guidance
Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.

per Viren H. Mehta

Partner

Date: 26 April 2018
133
BALANCE SHEET
AS AT 31 MARCH, 2018
(` in Thousands)
Schedule As at As at
No. 31-03-2018 31-03-2017
Capital and Liabilities
Capital 1 5,133,078 4,790,072
Reserves & Surplus 2 629,319,518 552,835,346
Deposits 3 4,536,227,223 4,143,787,878
Borrowings 4 1,480,161,446 1,050,308,694
Other Liabilities and Provisions 5 262,454,534 262,954,713
Total 6,913,295,799 6,014,676,703
Assets
Cash and Balances with Reserve Bank of India 6 354,810,577 308,579,390
Balances with Banks and Money at Call and Short Notice 7 79,738,329 193,982,441
Investments 8 1,538,760,827 1,287,933,704
Advances 9 4,396,503,045 3,730,693,495
Fixed Assets 10 39,716,792 37,468,925
Other Assets 11 503,766,229 456,018,748
Total 6,913,295,799 6,014,676,703
Contingent Liabilities 12 7,352,976,985 6,696,258,442
Bills for Collection 495,656,026 810,553,648
Significant 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 Axis Bank Ltd.
For S. R. Batliboi & Co. LLP Sanjiv Misra

Chartered Accountants Chairman
Viren H. Mehta Samir K. Barua S. Vishvanathan Rakesh Makhija Shikha Sharma

Partner Director Director Director Managing Director & CEO
Date : 26 April, 2018 Girish V. Koliyote Jairam Sridharan V. Srinivasan

Place: Mumbai Company Secretary Chief Financial Officer Deputy Managing Director
134
PROFIT & LOSS ACCOUNT

FOR THE YEAR ENDED 31 MARCH, 2018
(` in Thousands)
Schedule Year ended Year ended
No. 31-03-2018 31-03-2017
I Income
Interest earned 13 457,803,123 445,421,579
Other income 14 109,670,865 116,913,107
Total 567,473,988 562,334,686
II Expenditure
Interest expended 15 271,625,818 264,490,420
Operating expenses 16 139,903,398 121,999,053
Provisions and contingencies 18 (2.1.1) 153,187,959 139,052,421
Total 564,717,175 525,541,894
III Net Profit For The Year (I - II) 2,756,813 36,792,792
Balance in Profit & Loss Account brought forward from previous year 244,483,275 237,664,559
IV Amount Available For Appropriation 247,240,088 274,457,351
V Appropriations:
Transfer to Statutory Reserve 689,203 9,198,198
Transfer to/(from) Investment Reserve 1,034,894 (871,671)
Transfer to Capital Reserve 18 (2.2.1) 1,016,559 7,555,740
Transfer to Reserve Fund 18 (2.2.2) 16,158 17,522
Dividend paid (includes tax on dividend) 18 (2.2.5) 14,052,756 14,074,287
Balance in Profit & Loss Account carried forward 230,430,518 244,483,275
Total 247,240,088 274,457,351
VI Earnings Per Equity Share 18 (2.2.3)
(Face value `2/- per share) (Rupees)
Basic 1.13 15.40
Diluted 1.12 15.34
Schedules referred to above form an integral part of the Profit and Loss Account



135
CASH FLOW STATEMENT

(` in Thousands)
Year ended Year ended

31-03-2018 31-03-2017
Cash flow from operating activities
Net profit before taxes 1,215,715 54,675,647
Adjustments for:
Depreciation on fixed assets 5,680,974 5,087,979
Depreciation on investments (2,110,133) 2,386,992
Amortisation of premium on Held to Maturity investments 2,819,661 1,352,848
Provision for Non Performing Assets (including bad debts) 165,987,074 111,570,646
Provision on standard assets (1,350,017) 3,484,504
Provision on unhedged foreign currency exposure (93,000) (138,800)
(Profit)/loss on sale of fixed assets (net) 163,809 35,506
Provision for country risk (199,434) 199,434
Provision for restructured assets/strategic debt restructuring/sustainable structuring (3,071,587) 2,905,233
Provision for other contingencies (4,433,847) 761,558
164,609,215 182,321,547
Adjustments for:
(Increase)/Decrease in investments (174,381,077) 132,717,737
(Increase)/Decrease in advances (811,747,986) (444,184,140)
Increase /(Decrease) in deposits 392,439,345 564,112,274
(Increase)/Decrease in other assets (16,147,141) (96,324,158)
Increase/(Decrease) in other liabilities & provisions 8,353,896 54,110,786
Direct taxes paid (30,059,243) (50,831,209)
Net cash flow from operating activities (466,932,991) 341,922,837
Cash flow from investing activities
Purchase of fixed assets (8,224,338) (7,426,953)
(Increase)/Decrease in Held to Maturity investments (89,688,722) (117,857,686)
Purchase of Freecharge business (3,954,556) -
Increase in Investment in Subsidiaries (3,250,000) (1,167,500)
Decrease in Investment in Subsidiaries - 83,658
Proceeds from sale of fixed assets 114,565 64,612
Net cash used in investing activities (105,003,051) (126,303,869)
136
(` in Thousands)

31-03-2018 31-03-2017
Cash flow from financing activities
Proceeds from issue of subordinated debt, perpetual debt & upper Tier II instruments (net of 81,109,364 55,458,748
repayment)
Increase/(Decrease) in borrowings (excluding subordinated debt, perpetual debt & upper Tier II 348,743,388 (90,953,843)
instruments)
Proceeds from issue of share capital 343,006 24,409
Proceeds from share premium (net of share issue expenses) 87,864,789 3,256,270
Payment of dividend (14,052,756) (14,074,287)
Net cash generated from financing activities 504,007,791 (46,288,703)
Effect of exchange fluctuation translation reserve (84,674) (22,838)
Net increase in cash and cash equivalents (68,012,925) 169,307,427
Cash and cash equivalents at the beginning of the year 502,561,831 333,254,404
Cash and cash equivalents at the end of the year 434,548,906 502,561,831
Notes to the Cash Flow Statement:
1. Cash and cash equivalents includes the following
Cash and Balances with Reserve Bank of India (Refer Schedule 6) 354,810,577 308,579,390
Balances with Banks and Money at Call and Short Notice (Refer Schedule 7) 79,738,329 193,982,441
2. Amount of Corporate Social Responsibility related expenses spent during the year in cash
`126.50 crores (previous year `109.58 crores)



137
SCHEDULES FORMING PART OF THE BALANCE SHEET

Schedule 1 - Capital
(` in Thousands)
As at As at
31-03-2018 31-03-2017
Authorised Capital
4,250,000,000 (Previous year - 4,250,000,000) Equity Shares of `2/- each 8,500,000 8,500,000
Issued, Subscribed and Paid-up capital
2,566,538,936 (Previous year - 2,395,036,109) Equity Shares of `2/- each fully paid-up 5,133,078 4,790,072
[refer Schedule 18(1.1)]
Schedule 2 - Reserves and Surplus

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Statutory Reserve
Opening Balance 115,070,523 105,872,325
Additions during the year 689,203 9,198,198
115,759,726 115,070,523
II. Share Premium Account
Opening Balance 170,025,731 166,769,462
Additions during the year 88,122,658 3,256,269
Less: Share issue expenses (257,869) -
257,890,520 170,025,731
III. Investment Reserve Account
Opening Balance - 871,671
Additions during the year 1,034,894 -
Deductions during the year - (871,671)
1,034,894 -
IV. General Reserve
Opening Balance 3,543,100 3,543,100
Additions during the year - -
3,543,100 3,543,100
V. Capital Reserve
Opening Balance 18,656,395 11,100,655
Additions during the year [Refer Schedule 18 (2.2.1)] 1,016,559 7,555,740
19,672,954 18,656,395
VI. Foreign Currency Translation Reserve [Refer Schedule 17 (4.5)]
Opening Balance 997,506 1,020,343
Deductions during the year (84,674) (22,837)
912,832 997,506
VII. Reserve Fund
Opening Balance 58,816 41,294
Additions during the year [Refer Schedule 18 (2.2.2)] 16,158 17,522
74,974 58,816
VIII. Balance in Profit & Loss Account 230,430,518 244,483,275
Total 629,319,518 552,835,346
138
Schedule 3 - Deposits
(` in Thousands)
As at As at
31-03-2018 31-03-2017
A. I. Demand Deposits
(i) From banks 58,821,218 47,949,171
(ii) From others 897,674,284 822,068,294
II. Savings Bank Deposits 1,482,020,475 1,260,482,884
III. Term Deposits
(i) From banks 125,623,957 112,242,565
(ii) From others 1,972,087,289 1,901,044,964
Total 4,536,227,223 4,143,787,878
B. I. Deposits of branches in India 4,513,153,671 4,108,878,428
II. Deposits of branches outside India 23,073,552 34,909,450
Total 4,536,227,223 4,143,787,878
Schedule 4 - Borrowings
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Borrowings in India
(i) Reserve Bank of India 61,000,000 -
(ii) Other banks # 12,017,000 22,265,000
(iii) Other institutions & agencies ** 687,948,202 488,557,527
II. Borrowings outside India $
719,196,244 539,486,167
Total 1,480,161,446 1,050,308,694
Secured borrowings included in I & II above 65,837,380 13,810,898
# Borrowings from other banks include Subordinated Debt of `35.00 crores (previous year `35.00 crores) in the nature of Non-Convertible
Debentures and Perpetual Debt of `50.00 crores (previous year NIL) [Also refer Note 18 (2.1.2)]
** Borrowings from other institutions & agencies include Subordinated Debt of `21,170.00 crores (previous year `16,170.00 crores) in the nature
of Non-Convertible Debentures and Perpetual Debt of `6,950.00 crores (previous year `3,500.00 crores) [Also refer Note 18 (2.1.2)]
$ Borrowings outside India include Upper Tier II instruments of Nil (previous year `389.06 crores) [Also refer Note 18 (2.1.2)]
Schedule 5 - Other Liabilities and Provisions

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Bills payable 49,175,679 39,525,431

II. Inter-office adjustments (net) - -
III. Interest accrued 30,348,683 19,614,831
IV. Proposed dividend (includes tax on dividend) [Refer Schedule 18(2.2.5)] - -
V. Contingent provision against standard assets 22,075,241 23,385,751
VI. Others (including provisions) 160,854,931 180,428,700
Total 262,454,534 262,954,713
139
Schedule 6 - Cash and Balances with Reserve Bank of India

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Cash in hand (including foreign currency notes) 52,580,352 63,579,154

II. Balances with Reserve Bank of India
(i) in Current Account 208,230,225 183,000,236
(ii) in Other Accounts 94,000,000 62,000,000
Total 354,810,577 308,579,390
Schedule 7 - Balances with Banks and Money at Call and Short Notice
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. In India
(i) Balance with Banks
(a) in Current Accounts 1,199,457 1,423,790
(b) in Other Deposit Accounts 30,987,346 19,594,700
(ii) Money at Call and Short Notice
(a) With banks - -
(b) With other institutions - 143,221,545
Total 32,186,803 164,240,035
II. Outside India
(i) in Current Accounts 20,263,092 9,689,155
(ii) in Other Deposit Accounts 11,537,816 14,755,151
(iii) Money at Call & Short Notice 15,750,618 5,298,100
Total 47,551,526 29,742,406
Grand Total (I+II) 79,738,329 193,982,441
Schedule 8 - Investments
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Investments in India in -
(i) Government Securities ## 1,013,545,679 905,980,625
(ii) Other approved securities - -
(iii) Shares 15,255,309 13,227,530
(iv) Debentures and Bonds 306,537,689 264,848,859
(v) Investment in Subsidiaries/Joint Ventures 17,931,421 10,726,865
(vi) Others (Mutual Fund units, CD/CP, PTC etc.) 152,548,130 64,196,202
Total Investments in India 1,505,818,228 1,258,980,081
II. Investments outside India in -
(i) Government Securities (including local authorities) 26,984,150 24,097,852
(ii) Subsidiaries and/or joint ventures abroad 2,995,712 2,995,712
(iii) Others (Equity Shares and Bonds) 2,962,737 1,860,059
Total Investments outside India 32,942,599 28,953,623
Grand Total (I+II) 1,538,760,827 1,287,933,704
## Includes securities costing `27,588.43 crores (previous year `27,179.69 crores) pledged for availment of fund transfer facility, clearing facility
and margin requirements
140
Schedule 9 - Advances
(` in Thousands)
As at As at
31-03-2018 31-03-2017
A. (i) Bills purchased and discounted 128,131,247 67,496,591

(ii) Cash credits, overdrafts and loans repayable on demand 1,381,341,566 1,042,273,019
(iii) Term loans #
2,887,030,232 2,620,923,885
Total 4,396,503,045 3,730,693,495
B. (i) Secured by tangible assets $
3,094,017,064 2,840,548,136
(ii) Covered by Bank/Government Guarantees &&
37,502,934 63,995,186
(iii) Unsecured 1,264,983,047 826,150,173
Total 4,396,503,045 3,730,693,495
C. I. Advances in India
(i) Priority Sector 986,081,073 938,737,979
(ii) Public Sector 48,271,057 29,134,862
(iii) Banks 32,204,558 7,233,845
(iv) Others 2,792,292,698 2,273,892,697
Total 3,858,849,386 3,248,999,383
II. Advances Outside India
(i) Due from banks 78,991,174 26,861,261
(ii) Due from others -
(a) Bills purchased and discounted 32,721,313 25,448,317
(b) Syndicated loans 77,652,080 91,277,687
(c) Others 348,289,092 338,106,847
Total 537,653,659 481,694,112
Grand Total (CI+CII) 4,396,503,045 3,730,693,495
# Net of borrowings under Inter Bank Participation Certificate (IBPC) `1,399.00 crores (previous year Nil), includes IBPC lending `1,303.32 crores
(previous year Nil)
$ Includes advances against book debts
&& Includes advances against L/Cs issued by banks
141
Schedule 10 - Fixed Assets
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Premises
Gross Block
At cost at the beginning of the year 18,330,983 18,289,466
Additions during the year - 41,517
Deductions during the year - -
Total 18,330,983 18,330,983
Depreciation
As at the beginning of the year 1,165,354 860,678
Charge for the year 304,673 304,676
Depreciation to date 1,470,027 1,165,354
Net Block 16,860,956 17,165,629
II. Other fixed assets (including furniture & fixtures)
Gross Block
Deductions during the year (1,165,234) (514,919)
Total 52,204,387 45,796,606
Depreciation
As at the beginning of the year 28,302,892 23,932,741
Charge for the year 5,376,301 4,783,303
Net Block 19,394,928 17,493,714
III. Capital Work-In-Progress (including capital advances) 3,460,908 2,809,582
Grand Total (I+II+III) 39,716,792 37,468,925
Schedule 11 - Other Assets

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Inter-office adjustments (net) - -

II. Interest Accrued 56,655,247 52,440,280
III. Tax paid in advance/tax deducted at source (net of provisions) 17,448,539 4,101,192
IV. Stationery and stamps 3,829 19,790
V. Non banking assets acquired in satisfaction of claims 22,086,151 22,086,151
VI. Others #@
407,572,463 377,371,335
Total 503,766,229 456,018,748
# Includes deferred tax assets of `6,876.35 crores (previous year `5,062.19 crores) [Refer Schedule 18 (2.2.10)]
@ Includes Priority Sector Shortfall Deposits of `21,479.30 crores (previous year `17,107.12 crores)
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Schedule 12 - Contingent Liabilities

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Claims against the Bank not acknowledged as debts 5,169,119 4,702,440

II. Liability for partly paid investments 216,000 -
III. Liability on account of outstanding forward exchange and derivative contracts:
a) Forward Contracts 3,148,018,991 2,681,952,183
b) Interest Rate Swaps, Currency Swaps, Forward Rate Agreement & Interest Rate Futures 1,960,694,522 2,011,141,718
c) Foreign Currency Options 593,425,900 493,833,247
Total (a+b+c) 5,702,139,413 5,186,927,148
IV. Guarantees given on behalf of constituents
In India 762,933,813 763,736,463
Outside India 86,819,823 47,579,859
V. Acceptances, endorsements and other obligations 324,101,256 335,366,639
VI. Other items for which the Bank is contingently liable 471,597,561 357,945,893
Grand Total (I+II+III+IV+V+VI) [Refer Schedule 18 (2.2.15)] 7,352,976,985 6,696,258,442
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SCHEDULES FORMING PART OF THE PROFIT AND LOSS ACCOUNT

Schedule 13 - Interest Earned

(` in Thousands)
31-03-2018 31-03-2017
I. Interest/discount on advances/bills 341,374,719 331,249,593

II. Income on investments 99,833,027 96,228,239
III. Interest on balances with Reserve Bank of India and other inter-bank funds 3,878,262 5,038,389
IV. Others 12,717,115 12,905,358
Total 457,803,123 445,421,579
Schedule 14 - Other Income

(` in Thousands)
31-03-2018 31-03-2017
I. Commission, exchange and brokerage 77,298,752 70,283,094

II. Profit/(Loss) on sale of investments (net) [Refer Schedule 18(2.2.1)] 13,251,603 31,737,897
III. Profit/(Loss) on sale of fixed assets (net) (163,809) (35,506)
IV. Profit on exchange/derivative transactions (net) 14,286,958 10,802,458
V. Income earned by way of dividends etc. from subsidiaries/companies and/or joint venture
abroad/in India 2,560,608 1,832,842
VI. Miscellaneous Income
[including recoveries on account of advances/investments written off in earlier years `182.92
crores (previous year `181.89 crores) and net loss on account of portfolio sell downs/
securitisation `0.64 crores (previous year net profit of `3.79 crores)] 2,436,753 2,292,322
Total 109,670,865 116,913,107
Schedule 15 - Interest Expended

(` in Thousands)
31-03-2018 31-03-2017
I. Interest on deposits 191,735,198 196,396,260

II. Interest on Reserve Bank of India/Inter-bank borrowings 17,982,554 18,358,479
III. Others 61,908,066 49,735,681
Total 271,625,818 264,490,420
Schedule 16 - Operating Expenses

(` in Thousands)
31-03-2018 31-03-2017
I. Payments to and provisions for employees 43,129,556 38,918,640

II. Rent, taxes and lighting 10,017,106 9,345,921
III. Printing and stationery 1,646,269 1,860,164
IV. Advertisement and publicity 1,536,459 1,303,362
V. Depreciation on bank's property 5,680,974 5,087,979
VI. Directors' fees, allowance and expenses 23,344 24,668
VII. Auditors' fees and expenses 18,697 17,976
VIII. Law charges 200,587 109,057
IX. Postage, telegrams, telephones etc. 3,119,630 3,040,845
X. Repairs and maintenance 8,291,777 8,565,421
XI. Insurance 5,535,110 5,014,831
XII. Other expenditure 60,703,889 48,710,189
Total 139,903,398 121,999,053
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17 SIGNIFICANT ACCOUNTING POLICIES

1 Background
Axis Bank Limited (‘the Bank’) was incorporated in 1993 and provides a complete suite of corporate and retail banking
products. The Bank is primarily governed by the Banking Regulation Act, 1949. The Bank has overseas branches at Singapore,
Hong Kong, DIFC - Dubai, Shanghai and Colombo. During the year, the Bank opened an Offshore Banking Unit at International
Financial Service Centre (IFSC), Gujarat International Finance Tec-City (GIFT City), Gandhinagar, India.
2 Basis of preparation
The financial 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 notified under Section 133 of the Companies Act, 2013 read together with
paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Amendment Rules, 2016 to
the extent applicable and practices generally prevalent in the banking industry in India.
3 Use of estimates
The preparation of the financial 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 (including contingent
liabilities) at the date of the financial statements, revenues and expenses during the reporting period. Actual results could differ
from those estimates. The Management believes that the estimates used in the preparation of the financial statements are prudent
and reasonable. Any revisions to the accounting estimates are recognised prospectively in the current and future periods.
4 Significant accounting policies

4.1 Investments
Classification
In accordance with the RBI guidelines, investments are classified 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 classified as HFT securities. As per the RBI guidelines,
HFT securities, which remain unsold for a period of 90 days are reclassified as AFS securities.
Investments that the Bank intends to hold till maturity are classified 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 classified as AFS securities.
However, for disclosure in the Balance Sheet, investments in India are classified under six categories - Government
Securities, Other approved securities, Shares, Debentures and Bonds, Investment in Subsidiaries/Joint Ventures and
Others.
Investments made outside India are classified 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
Profit and Loss Account.
Broken period interest is charged to the Profit and Loss Account.
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Cost of investments is computed based on the weighted average cost method.
Valuation
Investments classified 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 classified 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’)/Financial Benchmark India Private Limited (‘FBIL’), periodically.
Net depreciation, if any, within each category of each investment classification is recognised in the Profit and Loss
Account. The net appreciation if any, under each category of each investment classification is ignored. The depreciation
on securities acquired by way of conversion of outstanding loans is provided in accordance with the RBI guidelines. The
book value of individual securities is not changed consequent to the periodic valuation of investments. Non-performing
investments are identified and provision is made thereon as per RBI guidelines.
Treasury Bills, Exchange Funded Bills, Commercial Paper and Certificate 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:
• the market/fair value of unquoted government securities which are in the nature of Statutory Liquidity Ratio (‘SLR’)
securities included in the AFS and HFT categories is computed as per the Yield-to-Maturity (‘YTM’) rates published
by FIMMDA/FBIL;
• 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/FBIL 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/
FBIL is adopted for this purpose;
• in case of bonds and debentures (including Pass Through Certificates) 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 financials of the
fund. In case the audited financials are not available for a period beyond 18 months, the investments are valued at
`1 per VCF. Investment in unquoted VCF after 23 August, 2006 are categorised under HTM category for the initial
period of three years and valued at cost as per RBI guidelines and
• in case of investments in security receipts on or after 1 April, 2017 which are backed by more than 50 percent of
the stressed assets sold by the Bank, provision for depreciation in value is made at the higher of - provisioning rate
required in terms of net asset value declared by the Reconstruction Company (‘RC’)/Securitisation Company (‘SC’)
or the provisioning rate as per the extant asset classification and provisioning norms as applicable to the underlying
loans, assuming that the loan notionally continued in the books of the bank. All other investments in security receipts
are valued as per the NAV obtained from the issuing RC/SCs.
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.
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Realised gains on investments under the HTM category are recognised in the Profit 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 Profit and Loss Account. Realised gains/losses on investments under the AFS and
HFT category are recognised in the Profit and Loss Account.
All investments are accounted for on settlement date, except investments in equity shares which are accounted for on trade
date.
Repurchase and reverse repurchase transactions

Repurchase and reverse repurchase transactions in government securities and corporate debt securities including those
conducted under the Liquidity Adjustment Facility (‘LAF’) and Marginal Standby Facility (‘MSF’) with RBI are accounted as
collateralised borrowing and lending respectively. Borrowing cost on repo transactions is accounted as interest expense
and revenue on reverse repo transactions is accounted as interest income.
Short Sales
In accordance with the RBI guidelines, the Bank undertakes short sale transactions in Central Government dated securities.
The short positions are reflected in ‘Securities Short Sold (‘SSS’) A/c’, specifically created for this purpose. Such short
positions are categorised under HFT category and netted off from investments in the Balance Sheet. 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 classified into performing and non-performing advances (‘NPAs’) as per the RBI guidelines and are stated
net of bills rediscounted, inter-bank participation certificates, specific provisions made towards NPAs, interest in suspense
for NPAs, claims received from Export Credit Guarantee Corporation, provisions for funded interest on term loan classified
as NPAs, provisions in lieu of diminution in the fair value of restructured assets and floating provisions.
NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by the RBI. Advances held
at the overseas branches that are identified as impaired as per host country regulations for reasons other than record of
recovery, but which are standard as per the RBI guidelines, are classified as NPAs to the extent of amount outstanding
in the host country. 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 specified stages of delinquency (90 days or more
of delinquency) under each type of loan, which satisfies the RBI prudential norms on provisioning. Provisions in respect
of agriculture advances classified into sub-standard and doubtful assets are made at rates which are higher than those
prescribed by the RBI. Provisions for advances booked in overseas branches, which are standard as per the RBI guidelines
but are classified as NPAs based on host country guidelines, are made as per the host country regulations.
Restructured assets are classified and provided for in accordance with the guidelines issued by RBI from time to time. In
addition to the above, the Bank on a prudential basis, makes provision for expected losses against advances or other
exposures to specific assets/industry/sector either on a case-by-case basis or for a group of assets, based on specific
information or general economic environment. These are classified 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.
Amounts recovered against debts written off are recognised in the Profit and Loss Account.
The Bank holds provision in accordance with the RBI guidelines, on assets where change in ownership under Strategic
Debt Restructuring (SDR) scheme/Outside SDR scheme has been implemented or Scheme for Sustainable Structuring of
Stressed Asset (S4A) has been implemented. In respect of borrowers classified as non-cooperative and wilful defaulters,
the Bank makes accelerated provisions as per extant RBI guidelines.
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 classified 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.
147
Under its home loan portfolio, the Bank offers housing loans with certain features involving waiver of Equated Monthly
Installments (‘EMIs’) of a specific period subject to fulfilment of a set of conditions by the borrower. The Bank makes
provision against the probable loss that could be incurred in future on account of waivers to eligible borrowers in respect
of such loans based on actuarial valuation conducted by an independent actuary. This provision is classified 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 classification 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 insignificant, 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 net funded exposure of the Bank
in respect of each country does not exceed 1% of the total assets, no provision is maintained on such country exposure in
accordance with RBI guidelines.
4.4 Securitisation
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 flows to Senior
Pass Through Certificate (‘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 notified under Section 133 of the
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies
(Accounting Standards) Amendment Rules, 2016.
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 Profit 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 notified by Foreign Exchange Dealers Association of India (‘FEDAI’). All profits/losses resulting from year end
revaluations are recognised in the Profit and Loss Account.
Financial statements of foreign branches classified 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
exchange rates notified by FEDAI at the Balance Sheet date.
• 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 on such disposal are recognised in the Profit 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 notified by
FEDAI. The resulting gains or losses on revaluation are included in the Profit 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 notified by FEDAI.
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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 Profit and Loss Account
and correspondingly in other assets (representing positive Mark-to-Market) and in other liabilities (representing negative
Mark-to-Market (MTM)) on a gross basis. For hedge transactions, the Bank identifies 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 financial 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. 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 Profit 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 contracts, the final settlement price is taken as the RBI reference rate on the last
trading day of the futures contracts or as may be specified 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 profit/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 in accordance with AS–9, Revenue Recognition as notified under
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014,
the Companies (Accounting Standards) Amendment Rules, 2016 and the RBI guidelines, except in the case of interest
income on non-performing assets and loans under Strategic Debt Restructuring (SDR) scheme and Scheme for Sustainable
Structuring of Stressed Asset (S4A) of RBI, where it is recognised on receipt basis if overdue for more than 90 days.
Income on non-coupon bearing discounted instruments or low-coupon bearing instruments is recognised over the tenor of
the instrument on a constant yield basis.
Guarantee commission is recognized on a pro-rata basis over the period of the guarantee. Locker rent and annual fees for
credit cards are recognised on a straight-line basis over the period of contract. Arrangership/syndication fee is accounted
for on completion of the agreed service and when right to receive is established. Other fees and commission income are
recognised when due.
Interest income on investments in PTCs is recognized on a constant yield basis.
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.
Fees paid/received for Priority Sector Lending Certificates (‘PSLC’) is amortised on straight-line basis over the tenor of the
certificate.
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 Profit and Loss Account. If the sale is for a value
higher than the net book value, the excess provision is credited to the Profit and Loss Account in the year the amounts are
received.
The Bank deals in bullion business on a consignment basis. The difference between the price recovered from customers
and cost of bullion is accounted for at the time of sale to the customers. The Bank also deals in bullion on a borrowing and
lending basis and the interest paid/received is accounted on an accrual basis.
4.8 Fixed assets and depreciation/impairment
Fixed assets are carried at cost of acquisition less accumulated depreciation and impairment, if any. Cost includes initial
handling and delivery charges, duties, taxes and incidental expenses related to the acquisition and installation of the asset.
149
Capital work-in-progress includes cost of fixed assets that are not ready for their intended use and also includes advances
paid to acquire fixed assets.
Depreciation is provided over the estimated useful life of a fixed asset on the straight-line method from the date of addition.
The management believes that depreciation rates currently used, fairly reflect its estimate of the useful lives and residual
values of fixed assets based on historical experience of the Bank, though these rates in certain cases are different from
lives prescribed under Schedule II of Companies Act, 2013.
Asset Estimated useful life

Owned premises 60 years
Computer hardware including printers 3 years
Application software 5 years
Vehicles 4 years
EPABX, telephone instruments 8 years
CCTV and video conferencing equipment 3 years
Mobile phone 2 years
Locker cabinets/cash safe/strong room door 10 years
Modem, scanner, routers, hubs, switches, racks/cabinets for IT equipment 5 years
UPS, VSAT, fax machines 5 years
Cheque book/cheque encoder, currency counting machine, fake note detector 5 years
Assets at staff residence 3 years
All other fixed assets 10 years
Depreciation on assets sold during the year is recognised on a pro-rata basis to the Profit and Loss Account till the date of
sale.
Profit on sale of premises is appropriated to Capital Reserve Account (net of taxes and transfer to statutory reserve) in
accordance with RBI instructions.
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 flows 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 Non-banking assets
Non-banking assets (‘NBAs’) acquired in satisfaction of claims are carried at lower of net book value and net realizable
value.
4.10 Lease transactions
Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the lease term are
classified as operating lease. Lease payments for assets taken on operating lease are recognised as an expense in the
Profit and Loss Account on a straight-line basis over the lease term.
4.11 Retirement and other employee benefits
Provident Fund
Retirement benefit in the form of provident fund is a defined benefit plan wherein the contributions are charged to the
Profit 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 using the Projected Unit Credit Method
as at 31 March each year to determine the deficiency, if any, in the interest payable on the contributions as compared to
the interest liability as per the statutory rate. Actuarial gains/losses are immediately taken to the Profit and Loss Account
and are not deferred.
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Gratuity
The Bank contributes towards gratuity fund (defined benefit 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. Actuarial gains/losses are immediately taken to the Profit and Loss Account and
are not deferred.
Compensated Absences
The Bank provides for 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 Profit and Loss Account and are not deferred.
Superannuation
Employees of the Bank are entitled to receive retirement benefits under the Bank’s Superannuation scheme either under
a cash-out option through salary or under a defined contribution plan. Through the defined contribution plan, the Bank
contributes annually a specified sum of 10% of the employee’s eligible annual basic salary to LIC, which undertakes to
pay the lump sum and annuity benefit payments pursuant to the scheme. Superannuation contributions are recognised in
the Profit and Loss Account in the period in which they accrue.
New Pension Scheme (‘NPS’)

In respect of employees who opt for contribution to the ‘NPS’, the Bank contributes certain percentage of the total basic
salary of employees to the aforesaid scheme, a defined contribution plan, which is managed and administered by pension
fund management companies. NPS contributions are recognised in the Profit and Loss Account in the period in which they
accrue.
4.12 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.
4.13 Taxation
Income tax expense is the aggregate amount of current tax and deferred tax charge. Current year taxes are determined
in accordance with the relevant provisions of Income Tax Act, 1961. Deferred income taxes reflect 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 assets against
liabilities representing current tax 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 sufficient 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 Profit 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 profits.
151
4.14 Share issue expenses
Share issue expenses are adjusted from Share Premium Account in terms of Section 52 of the Companies Act, 2013.
4.15 Earnings per share
The Bank reports basic and diluted earnings per share in accordance with AS-20, Earnings per Share, as notified under
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and
the Companies (Accounting Standards) Amendment Rules, 2016. Basic earnings per share is computed by dividing the
net profit after tax by the weighted average number of equity shares outstanding for the year.
Diluted earnings per share reflect 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 except where the results are anti-dilutive.
4.16 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 Benefits) 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, if
any, 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.
4.17 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
outflow 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 reflect 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 confirmed 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 outflow 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 outflow of resources is
remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and
if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the
period in which the change occurs.
4.18 Cash and cash equivalents
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and
short notice.
152
18 NOTES FORMING PART OF THE FINANCIAL STATEMENTS

(Currency: In Indian Rupees)
1.1 During the year, the Bank raised additional equity capital through a preferential allotment of 165,328,892 shares at a price of
`525.00 per share. As a consequence, the paid-up share capital of the Bank has increased by `33.07 crores and the reserves
of the Bank have increased by `8,620.73 crores after charging of issue related expenses. Further, the Bank also allotted
45,357,385 convertible warrants carrying a right to the convertible warrant holder to apply for, get issued and allotted one (1)
equity share of the Bank of face value `2 each, for cash, at a price of `565.00 per share against which the Bank has received
an amount of `640.67 crores upfront representing 25% of the warrant price. The convertible warrants are exercisable upto 18
months from the date of allotment. The funds mobilised from the equity raising were utilised for enhancing the capital adequacy
ratio and for general corporate purposes.
2.1 Statutory disclosures as per RBI
2.1.1 ‘Provisions and contingencies’ recognised in the Profit and Loss Account comprise of:
(` in crores)
For the year ended 31 March, 2018 31 March, 2017
Provision for income tax

- Current tax 1,671.19 4,988.90
- Deferred tax (Refer 2.2.10) (1,825.30) (3,200.62)
(154.11) 1,788.28
Provision for non-performing assets (including bad debts written off and write backs) 16,598.71 11,157.06
Provision for restructured assets/strategic debt restructuring/sustainable structuring (307.16) 290.53
Provision towards standard assets (135.00) 348.45
Provision for depreciation in value of investments (211.01) 238.70
Provision for unhedged foreign currency exposure (9.30) (13.88)
Provision for country risk (19.94) 19.94
Provision for other contingencies* (443.39) 76.16
Total 15,318.80 13,905.24
* includes contingent provision for advances/other exposures, legal cases and other contingencies
2.1.2 The capital adequacy ratio of the Bank, calculated as per the RBI guidelines (under Basel III) is set out below:
(` in crores)
31 March, 2018 31 March, 2017
Common Equity Tier I 60,476.35 52,555.81

Tier I 67,476.27 56,039.32
Tier II 18,298.59 14,565.85
Total capital 85,774.86 70,605.17
Total risk weighted assets and contingents 517,630.78 472,313.18
Capital ratios
Common Equity Tier I 11.68% 11.13%
Tier I 13.04% 11.87%
Tier II 3.53% 3.08%
CRAR 16.57% 14.95%
Amount of equity capital raised 33.07* -
Amount of additional Tier I capital raised of which:
Perpetual Non-Cumulative Preference Shares (PNCPS) - -
Perpetual Debt Instruments (PDI) (details given below) 3,500.00 3,500.00
Amount of Tier II capital raised of which:
Debt capital instrument (details given below) 5,000.00 4,230.00
Preferential capital instrument - -
*excluding securities premium of `8,646.70 crores
153
During the year ended 31 March, 2018, the Bank raised debt instruments eligible for Tier-I/Tier-II capital, the details of
which are set out below:
Instrument Capital Date of maturity Period Coupon Amount

Subordinated debt Tier-II 15 June, 2027 120 months 7.66% `5,000 crores
Perpetual debt Additional Tier I -* - 8.75% `3,500 crores
*Call option on expiry of 60 months from the date of allotment

Perpetual debt Additional Tier-I -* - 8.75% `3,500 crores
Subordinated debt Tier-II 27 May, 2026 120 months 8.50% `2,430 crores
Subordinated debt Tier-II 23 November, 2026 120 months 7.84% `1,800 crores
During the year ended 31 March, 2018, the Bank redeemed debt instruments eligible for Tier-I/Tier-II capital, the details
of which are set out below:

Upper Tier-II Tier-II 28 June, 2017* 180 months 7.125% $60 million
* represents call date

Subordinated debt Tier-II 28 June, 2016 120 months 9.10% `104.90 crores
Upper Tier-II Tier-II 11 August, 2016* 180 months 7.25% $150 million
Perpetual debt Tier-I 30 September, 2016* - 10.05% `214.00 crores
Perpetual debt Tier-I 16 November, 2016* - 7.17% $46 million
Upper Tier-II Tier-II 24 November, 2016* 180 months 9.35% `200.00 crores
Upper Tier-II Tier-II 6 February, 2017* 180 months 9.50% `107.50 crores
Subordinated debt Tier-II 30 March, 2017 120 months 10.10% `250.90 crores
2.1.3 The key business ratios and other information is set out below:
As at 31 March, 2018 31 March, 2017
% %
Interest income as a percentage to working funds# 7.15 7.88

Non-interest income as a percentage to working funds# 1.71 2.07
Operating profit as a percentage to working funds# 2.43 3.11
Return on assets (based on working funds#) 0.04 0.65
Business (deposits less inter-bank deposits plus advances) per employee** `14.84 crores `14.00 crores
Profit per employee** `0.47 lacs `6.68 lacs
Net non-performing assets as a percentage of net customer assets* 3.40 2.11
# 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
154
2.1.4 The provisioning coverage ratio of the Bank computed in terms of the RBI guidelines as on 31 March, 2018 was 65.05%
(previous year 64.79%).
2.1.5 Asset Quality

i) Net non-performing advances to net advances is set out below:
31 March, 2018 31 March, 2017

% %
Net non-performing advances as a percentage of net advances 3.64 2.27
ii) Movement in gross non-performing assets is set out below:
(` in crores)
31 March, 2018
Advances Investments Others Total

Gross NPAs as at the beginning of the year 20,045.66 1,234.82 - 21,280.48
Intra Category Transfer (537.85) 537.85 - -
Additions (fresh NPAs) during the year @
31,218.46 2,200.54 - 33,419.00
Sub-total (A) 50,726.27 3,973.21 - 54,699.48
Less:-
(i) Upgradations@ 4,740.13 169.71 - 4,909.84
(ii) Recoveries (excluding recoveries made from
upgraded accounts)# 3,836.02 17.13 - 3,853.15
(iii) Technical/Prudential Write-offs 9,773.94 376.21 - 10,150.15
(iv) Write-offs other than those under (iii) above# 1,499.86 37.84 - 1,537.70
Sub-total (B) 19,849.95 600.89 - 20,450.84
Gross NPAs as at the end of the year (A-B) 30,876.32 3,372.32 - 34,248.64
@ Over the quarters ended 31 December, 2017 and 31 March, 2018, the Bank has changed its practice of
reporting additions and upgradations to NPAs considering the days past due status of an account at the end of
each day as against at the end of each quarter of a financial year, followed hitherto. Accordingly, the additions/
upgradations to NPAs for FY 2017-18 shown above reflect this change prospectively over the respective periods.
# including sale of NPAs
(` in crores)
31 March, 2017
Advances Investments Others* Total
Gross NPAs as at the beginning of the year 5,848.48 239.03 - 6,087.51
Intra Category Transfer (42.23) 45.69 (3.46) -
Additions (fresh NPAs) during the year 19,857.84 1,920.49 3.46 21,781.79
Sub-total (A) 25,664.09 2,205.21 - 27,869.30
Less:-
(i) Upgradations 1,806.53 559.25 - 2,365.78
(ii) Recoveries (excluding recoveries made from upgraded
accounts)# 1,824.79 176.16 - 2,000.95
(iii) Technical/Prudential Write-offs 469.01 35.00 - 504.01
(iv) Write-offs other than those under (iii) above# 1,518.10 199.98 - 1,718.08
Sub-total (B) 5,618.43 970.39 - 6,588.82
Gross NPAs as at the end of the year (A-B) 20,045.66 1,234.82 - 21,280.48
* represents amount outstanding under application money classified as non-performing asset

# including sale of NPAs
155
iii) Movement in net non-performing assets is set out below:
(` in crores)
31 March, 2018

Opening balance at the beginning of the year 8,487.20 139.35 - 8,626.55
Additions during the year 15,539.27 742.22 - 16,281.49
Effect of exchange rate fluctuation (5.70) (1.91) - (7.61)
Reductions during the year (8,202.20) (253.75) - (8,455.95)
Interest Capitalisation – Restructured NPA Accounts 185.85 (38.62) - 147.23
Closing balance at the end of the year# 16,004.42 587.29 - 16,591.71
# net of balance outstanding in interest capitalisation-restructured NPA accounts amounting to `300.98 crores
(` in crores)
31 March, 2017
Additions during the year 10,000.70 1,138.60 - 11,139.30
Effect of exchange rate fluctuation 90.11 (0.64) - 89.47
Reductions during the year (3,977.46) (870.69) - (4,848.15)
Interest Capitalisation – Restructured NPA Accounts (144.74) (131.47) - (276.21)
Closing balance at the end of the year #
8,487.20 139.35 - 8,626.55
# net of balance outstanding in interest capitalisation-restructured NPA accounts amounting to `448.21 crores
iv) Movement in provisions for non-performing assets is set out below:

(` in crores)
31 March, 2018

Intra-Category Transfer (434.71) 434.71 - -
Provisions made during the year 15,543.21 1,561.46 - 17,104.67
Effect of exchange rate fluctuation 5.70 1.91 - 7.61
Transfer from restructuring provision 32.84 - - 32.84
Write-offs/(write back) of excess provision* (11,647.75) (347.14) - (11,994.89)
Closing balance at the end of the year 14,744.08 2,611.87 - 17,355.95
* includes provision utilised for sale of NPAs amounting to `552.14 crores
(` in crores)
31 March, 2017
Intra-Category Transfer (42.23) 45.69 (3.46) -
Provisions made during the year 9,798.09 781.89 3.46 10,583.44
Effect of exchange rate fluctuation (90.11) 0.64 - (89.47)
Transfer from restructuring provision 59.05 - - 59.05
Write-offs/(write back) of excess provision* (1,640.97) (99.70) - (1,740.67)
Closing balance at the end of the year 11,244.79 960.93 - 12,205.72
* includes provision utilised for sale of NPAs amounting to `964.16 crores
156
v) Movement in technical/prudential written off accounts is set out below:
(` in crores)
31 March, 2018 31 March, 2017
Opening balance at the beginning of the year 3,221.08 3,627.15

Add: Technical/Prudential write-offs during the year* 10,150.15 504.01
Sub-total (A) 13,371.23 4,131.16
Less: Recovery made from previously technical/prudential written-off accounts
during the year 91.33 339.29
Less: Sacrifice made from previously technical/prudential written-off accounts
during the year 58.64 570.79
Sub-total (B) 149.97 910.08
Closing balance at the end of the year (A-B) 13,221.26 3,221.08
* includes effect of exchange fluctuation for foreign currency loans written off in earlier years
vi) Total exposure to top four non-performing assets is given below:
(` in crores)
31 March, 2018 31 March, 2017
Total exposure to top four NPA accounts 5,340.06 4,983.87
vii) Sector-wise advances:
(` in crores)
Sr. Sector 31 March, 2018 31 March, 2017
No.
Outstanding Gross % of Gross Outstanding Gross NPAs % of Gross

Total NPAs NPAs Total NPAs to Total
Advances to Total Advances Advances in
Advances that sector
in that
sector
A Priority Sector
1 Agriculture and allied activities 27,636.39 1,086.38 3.93% 25,882.66 840.48 3.25%
2 Advances to industries sector eligible as 23,520.58 870.49 3.70% 20,301.02 630.46 3.11%
priority sector lending
- Chemical & Chemical products 1,942.47 45.17 2.33% -* -* -*
- Basic Metal & Metal Products 2,076.66 56.08 2.70% 1,824.25 54.36 2.98%
- Infrastructure 593.03 29.60 4.99% 549.17 21.95 4.00%
3 Services 17,192.15 583.39 3.39% 15,904.56 428.02 2.69%
- Professional Services -* -* -* 725.40 9.61 1.32%
- Banking and Finance other than NBFCs
and MFs 2,042.63 82.38 4.03% 3,496.52 107.06 3.06%
- Non-banking financial companies (NBFCs) 1,360.01 - - 1,799.13 - -
- Commercial Real Estate 242.44 45.89 18.93% 226.52 6.80 3.00%
- Trade 10,342.95 392.76 3.80% 7,554.33 264.74 3.50%
4 Personal loans 31,643.30 530.51 1.68% 32,903.26 250.29 0.76%
- Consumer Durables 2,883.75 57.72 2.00% 3,801.88 26.00 0.68%
- Housing 24,859.04 248.02 1.00% 23,173.31 123.54 0.53%
- Vehicle Loans 3,226.47 178.07 5.52% -* -* -*
Sub-total (A) 99,992.42 3,070.77 3.07% 94,991.50 2,149.25 2.26%
157
(` in crores)
Sr. Sector 31 March, 2018 31 March, 2017
No.
Outstanding Gross % of Gross Outstanding Gross NPAs % of Gross

Total NPAs NPAs Total NPAs to Total
Advances to Total Advances Advances in
Advances that sector
in that
sector
B Non-Priority Sector
1 Agriculture and allied activities - - - - - -
2 Industry 132,677.65 22,865.46 17.23% 124,556.99 13,294.97 10.67%
- Chemical & Chemical products 13,869.33 778.97 5.62% -* -* -*
- Basic Metal & Metal Products 19,340.99 3,600.93 18.62% 23,650.81 4,103.34 17.35%
- Infrastructure 37,886.52 11,211.30 29.59% 42,621.62 3,405.53 7.99%
3 Services 90,635.98 3,563.69 3.93% 67,039.50 3,688.76 5.50%
- Professional Services -* -* -* 7,719.71 1,594.60 20.66%
- Banking and Finance other than NBFCs
and MFs 31,024.41 - - 11,525.80 - -
- Non-banking financial companies (NBFCs) 10,875.27 5.49 0.05% 8,762.60 - -
- Commercial Real Estate 16,094.85 1,469.12 9.13% 14,022.35 562.33 4.01%
- Trade 12,239.86 514.92 4.07% 11,167.65 332.71 2.98%
4 Personal loans 131,244.78 1,376.40 1.05% 98,135.43 912.68 0.93%
- Consumer Durables 13,577.70 127.72 0.94% 9,712.81 64.05 0.66%
- Housing 59,179.13 785.51 1.33% 51,647.93 370.73 0.72%
- Vehicle Loans 15,010.29 171.63 1.14% -* -* -*
Sub-total (B) 354,558.43 27,805.55 7.84% 289,731.92 17,896.41 6.18%
Total (A+B) 454,550.85 30,876.32 6.79% 384,723.42 20,045.66 5.21%
Classification 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
viii) Divergence in Asset Classification and Provisioning for NPAs
• The Bank classifies advances into performing and non-performing advances (NPAs) as per the RBI guidelines.
NPAs are identified and provided for based on RBI’s Prudential Norms on Income Recognition, Asset
Classification and Provisioning.
• Based on application of RBI’s prudential norms as stated above, the Bank classified and made the prescribed
provisions against the NPAs as at the end of 31 March, 2017.
• As part of its Risk Based Supervision exercise for FY 2016-17 the RBI pointed out certain modifications in the
Banks’ asset classification and provisioning as detailed in the table below:
Sr.No. Particulars (` in crores)
1 Gross NPAs as on 31 March, 2017, as reported by the Bank 21,280.48
2 Gross NPAs as on 31 March, 2017, as assessed by RBI 26,913.28
3 Divergence in Gross NPAs (2-1) 5,632.80
4 Net NPAs as on 31 March, 2017, as reported by the Bank 8,626.55
5 Net NPAs as on 31 March, 2017, as assessed by RBI 12,943.65
6 Divergence in Net NPAs (5-4) 4,317.10
7 Provisions for NPAs as on 31 March, 2017, as reported by the Bank 12,205.72
158
Sr.No. Particulars (` in crores)

8 Provisions for NPAs as on 31 March, 2017, as assessed by RBI 13,521.42
9 Divergence in provisioning (8-7) 1,315.70
10 Reported Net Profit after Tax (PAT) for the year ended 31 March, 2017 3,679.28
11 Adjusted (notional) Net Profit after Tax (PAT) for the year ended 31 March, 2017 after 2,793.95
taking into account the divergence in provisioning
• The Bank has duly considered the impact of the above in the Financial Statements for the year ended 31 March, 2018.
2.1.6 During the years ended 31 March, 2018 and 31 March, 2017; none of the loans and advances held at overseas
branches of the Bank have been classified as NPA by any host banking regulator for reasons other than record of
recovery.
2.1.7 Movement in floating provision is set out below:

(` in crores)
Opening balance at the beginning of the year 3.25 3.25

Provisions made during the year - -
Draw down made during the year - -
Closing balance at the end of the year 3.25 3.25
The Bank has not made any draw down out of the floating provision during the current and the previous year.
2.1.8 Provision on Standard Assets

(` in crores)
31 March, 2018 31 March, 2017
Provision towards Standard Assets [includes `26.57 crores (previous year `37.60
crores) of standard provision on derivative exposures] 2,207.52 2,338.58
2.1.9 Details of Investments are set out below:

i) Value of Investments:
(` in crores)
31 March, 2018 31 March, 2017
1) Gross value of Investments

a) In India 153,247.04 127,248.79
b) Outside India 3,495.44 2,915.37
2) (i) Provision for Depreciation
a) In India (254.54) (409.86)
b) Outside India - -
(ii) Provision for Non-Performing Investments
a) In India (2,410.68) (940.93)
b) Outside India (201.18) (20.00)
3) Net value of Investments
a) In India 150,581.82 125,898.00
b) Outside India 3,294.26 2,895.37
159
ii) Movement of provisions held towards depreciation on investments:

(` in crores)
31 March, 2018 31 March, 2017
Opening balance 409.86 222.62

Add: Provisions made during the year 101.60 316.19
Less: Write offs/write back of excess provisions during the year (256.92) (128.95)
Closing balance 254.54 409.86
iii) Detail of investments category wise

(` in crores)
Particulars 31 March, 2018 31 March, 2017
HTM AFS HFT Total HTM AFS HFT Total

Government
Securities 88,712.15 13,836.13 1,504.70 104,052.98 80,024.33 12,020.61 962.91 93,007.85
Other approved
securities - - - - - - - -
Shares - 1,612.90 - 1,612.90 - 1,326.19 - 1,326.19
Debentures and
Bonds - 24,531.73 6,330.94 30,862.67 - 25,546.34 1,121.10 26,667.44
Subsidiary/Joint
Ventures 2,092.71 - - 2,092.71 1,372.26 - - 1,372.26
Others 6.65 5,932.38 9,315.79 15,254.82 7.56 5,331.11 1,080.96 6,419.63
Total 90,811.51 45,913.14 17,151.43 153,876.08 81,404.15 44,224.25 3,164.97 128,793.37
2.1.10 A summary of lending to sensitive sectors is set out below:

(` in crores)
A. Exposure to Real Estate Sector

1) Direct Exposure
(i) Residential mortgages 102,152.04 89,904.42
- of which housing loans eligible for inclusion in priority sector advances 26,414.52 23,505.73
(ii) Commercial real estate 29,328.94 25,330.23
(iii) Investments in Mortgage Backed Securities (MBS) and other securtised
exposures
a. Residential - -
b. Commercial real estate 75.00 75.00
2) Indirect Exposure
Fund based and non-fund based exposures on National Housing Bank (NHB)
and Housing Finance Companies (HFCs) 20,522.69 11,680.20
Total Exposure to Real Estate Sector 152,078.67 126,989.85
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* 2,510.46 1,429.31
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 4.70 2.94
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 1,649.84 1,346.70
160
(` in crores)
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 3,074.53 4,336.97
5. Secured and unsecured advances to stockbrokers and guarantees issued on
behalf of stockbrokers and market makers 5,001.87 5,104.61
6. 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 6.13 0.19
7. Bridge loans to companies against expected equity flows/issues 6.09 25.20
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 unregistered) 118.16 26.77
Total exposure to Capital Market (Total of 1 to 10) 12,371.78 12,272.69
*e
xcludes investment in equity shares on account of conversion of debt into equity as part of restructuring amounting to `1,838.02 crores
as on 31 March, 2018 (previous year `1,258.11 crores) which are exempted from exposure to Capital Market
2.1.11 As on 31 March, 2018, outstanding receivables acquired by the Bank under factoring stood at `218.73 crores (previous
year `7.10 crores) which are reported under ‘Bills Purchased and Discounted’ in Schedule 9 of the Balance Sheet.
2.1.12 During the years ended 31 March, 2018 and 31 March, 2017 there are no unsecured advances for which intangible
securities such as charge over the rights, licenses, authority etc. have been taken as collateral by the Bank.
2.1.13 Details of Non-SLR investment portfolio are set out below:

i) Issuer composition as at 31 March, 2018 of non-SLR investments*:
(` in crores)
No. Issuer Total Extent of Extent of Extent of Extent of
Amount private “below “unrated” “unlisted”
placement investment securities securities
grade”
securities
(1) (2) (3) (4) (5) (6) (7)
i. Public Sector Units 8,287.85 7,290.45 661.26 - 505.19
ii. Financial Institutions 3,293.83 1,487.28 0.30 - 347.71
iii. Banks 3,951.95 1,537.42 149.40 - 2,875.18
iv. Private Corporates 31,999.97 23,027.05 1,147.71 866.50 12,622.29
v. Subsidiaries 2,092.71 2,092.71 - - 2,092.71
vi. Others 5,761.36 3,662.10 - - 3,757.63
vii. Provision held towards depreciation on
investments (254.30)
viii. Provision held towards non performing
investments (2,611.86)
Total 52,521.51 39,097.01 1,958.67 866.50 22,200.71
Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.
161
Issuer composition as at 31 March, 2017 of non-SLR investments*:
(` in crores)
No. Issuer Total Amount Extent of Extent of Extent of Extent of
private “below “unrated” “unlisted”
placement investment securities securities
grade”
securities
(1) (2) (3) (4) (5) (6) (7)
i. Public Sector Units 8,587.03 7,533.92 175.50 - 6.50
ii. Financial Institutions 5,901.15 4,247.55 0.30 - 3,907.07
iii. Banks 2,421.00 1,582.35 102.84 - -
iv. Private Corporates 17,210.48 14,451.99 1,353.11 751.31 3,951.72
v. Subsidiaries 1,429.44 1,429.44 - - 1,372.26
vi. Others 4,017.00 2,210.18 - - 2,382.22
vii. Provision held towards depreciation on
viii. Provision held towards non performing
Total 38,195.31 31,455.43 1,631.75 751.31 11,619.77
Amounts reported under columns (4), (5), (6) and (7) above are not mutually exclusive.
*excludes investments in non-SLR government securities amounting to `42.54 crores (previous year `604.04 crores)
ii) Movement in non-performing non SLR investments are set out below:
(` in crores)
31 March, 2018 31 March, 2017
Opening balance 1,234.82 239.03

Additions during the year 2,738.39 1,966.18
Reductions during the year (600.89) (970.39)
Closing balance 3,372.32 1,234.82
Total provisions held 2,611.86 960.93
2.1.14 Details of securities sold/purchased (in face value terms) under repos/reverse repos including LAF and MSF transactions:
Year ended 31 March, 2018 (` in crores)

Minimum Maximum Daily Average As at
outstanding outstanding outstanding 31 March,
during the year during the year during the year 2018
Securities sold under repos
i. Government Securities - 12,683.10 3,578.54 6,488.43
ii. Corporate debt Securities - 2,675.00 1,023.42 -
Securities purchased under reverse repos
ii. Corporate debt Securities - 50.00 0.27 -
There have been no defaults in making the same set of securities available at the time of 2nd leg settlement of the Term
Reverse Repo during the year ended 31 March, 2018.
162
Year ended 31 March, 2017 (` in crores)

Minimum Maximum Daily Average As at
outstanding during outstanding during outstanding during 31 March, 2017
the year the year the year
Securities sold under repos
i. Government Securities - 31,372.78 8,220.60 44.46
ii. Corporate debt Securities - 1,365.00 844.78 1,365.00
Securities purchased under reverse repos
ii. Corporate debt Securities - - - -
There have been no defaults in making the same set of securities available at the time of 2nd leg settlement of the Term
Reverse Repo during the year ended 31 March, 2017.
2.1.15 Details of financial assets sold to Securitisation/Reconstruction companies for Asset Reconstruction:
(` in crores)
31 March, 2018 31 March, 2017
Number of accounts* 43^ 39

Aggregate value (net of provisions) of accounts sold 41.91 2,960.40
Aggregate consideration# 67.48 2,475.58
Additional consideration realised in respect of accounts transferred in earlier years - -
Aggregate gain/(loss) over net book value 25.57 (484.82)
* Excludes 5 accounts already written-off (previous year 15 accounts)

^ Includes 1 account where debt has been acquired by Reconstruction company as a part of resolution plan under Insolvency and
Bankruptcy Code
# Value of security receipts received as a part of the consideration has been initially recognised at lower of net book value of the financial
asset or redemption value of the security receipts as per RBI guidelines
In accordance with the RBI guidelines on sale of NPAs, banks have the dispensation of amortising the shortfall on sale
of NPAs to Securitisation/Reconstruction companies, if the sale value is lower than the net book value, over the period
specified therein. The Bank has not amortised any such shortfall arising during the years ended 31 March, 2018 and 31
March, 2017.
(` in crores)
Particulars Backed by NPAs sold by the Backed by NPAs sold by Total
Bank as underlying other banks/financial
institutions/non-banking
financial companies as
underlying
As on 31 As on 31 As on 31 As on 31 As on 31 As on 31
March, 2018 March, 2017 March, 2018 March, 2017 March, 2018 March, 2017
Book value of investments in Security

Receipts (‘SRs’) 2,918.39 1,517.76* 5.58 7.68 2,923.97 1,525.44
*excludes application money of `1,420.35 crores
163
(` in crores)
As at 31 March, 2018
Particulars SRs issued within SRs issued more SRs issued more
past 5 years than 5 years ago than 8 years ago
but within past 8
years
(i) Book value of SRs backed by NPAs sold by the bank
as underlying 2,918.06 0.33 -
Provisions held against (i) - - -
(ii) Book value of SRs backed by NPAs sold by other
banks / financial institutions / non-banking financial
companies as underlying 4.33 1.25 -
Provisions held against (ii) - - -
Total (i) + (ii) 2,922.39 1.58 -
(` in crores)
As at March 31, 2017
Particulars SRs issued within past SRs issued more SRs issued more than
5 years than 5 years ago but 8 years ago
within past 8 years
(i) Book value of SRs backed by NPAs sold by the bank
as underlying 1,517.43 0.33 -
Provisions held against (i) - - -
(ii) Book value of SRs backed by NPAs sold by other
banks / financial institutions / non-banking financial
companies as underlying 7.02 0.66 -
Provisions held against (ii) - - -
Total (i) + (ii) 1,524.45 0.99 -
2.1.16 Details of the Non-Performing Financial Assets sold to other banks (excluding securitisation/reconstruction companies):
(` in crores)
31 March, 2018 31 March, 2017
Number of accounts sold 2 -

Aggregate outstanding* 734.07 -
Aggregate consideration received 615.30 -
*Represents principal outstanding as on date of sale
During the years ended 31 March, 2018 and 31 March, 2017 there were no Non-Performing Financial Assets purchased by the Bank
from other banks (excluding securitisation/reconstruction companies).
2.1.17 Details of securitisation transactions undertaken by the Bank are as follows:

(` in crores)
Sr. Particulars 31 March, 2018 31 March, 2017
No.
1 No. of SPVs sponsored by the bank for securitisation transactions - -
2 Total amount of securitised assets as per books of the SPVs sponsored by the - -
Bank
3 Total amount of exposures retained by the bank to comply with MRR as on the
date of balance sheet
164
(` in crores)
Sr. Particulars 31 March, 2018 31 March, 2017
No.
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 securitizations
First loss - -
Loss - -
ii) Exposure to third party securitisations
First loss - -
Others - -
b) On-balance sheet exposures
i) Exposure to own securitizations
First loss - -
Loss - -
ii) Exposure to third party securitisations
First loss - -
Others - -
2.1.18 The information on concentration of deposits is given below:

(` in crores)
31 March, 2018 31 March, 2017
Total deposits of twenty largest depositors 51,886.56 48,081.76

Percentage of deposits of twenty largest depositors to total deposits 11.44 11.60
2.1.19 The information on concentration of advances* is given below:

(` in crores)
31 March, 2018 31 March, 2017
Total advances to twenty largest borrowers 66,597.41 65,055.41

Percentage of advances to twenty largest borrowers to total advances of the Bank 10.27 11.13
* Advances represent credit exposure (funded and non-funded) including derivative exposure as defined by RBI
2.1.20 The information on concentration of exposure* is given below:
(` in crores)
31 March, 2018 31 March, 2017
Total exposure to twenty largest borrowers/customers 95,610.35 83,229.90

Percentage of exposures to twenty largest borrowers/customers to total exposure on
borrowers/customers 13.21 13.06
* Exposure includes credit exposure (funded and non-funded), derivative exposure, investment exposure (including
underwriting and similar commitments) and deposits placed for meeting short fall in Priority Sector Lending
165
2.1.21 During the year ended 31 March, 2018, the Bank’s credit exposure to single borrower was within the prudential exposure
limits except in one case, where the single borrower limit was exceeded upto an additional exposure of 5% with the
approval of the Committee of Directors. The details of such case are set out below :
Name of the Borrower Reliance Industries Limited

Period August, 2017
Original exposure ceiling 11,865.78 crores
Limit Sanctioned 15,821.03 crores
% of excess limit sanctioned over original ceiling 33.33%
Exposure ceiling as on 31 March, 2018 13,165.49 crores
Exposure as on 31 March, 2018 11,245.72 crores
During the year ended 31 March, 2018, the Bank’s credit exposure to group borrowers was within the Prudential
exposure limits prescribed by RBI.
During the year ended 31 March, 2017, 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:

(` in crores)
Risk Category Exposure (Net) as at Provision Held as at Exposure (Net) as at 31 Provision Held as at 31
31 March, 2018 31 March, 2018 March, 2017 March, 2017
Insignificant - - - -
Low 25,390.99 - 29,144.84 19.94
Moderate 3,049.83 - 2,301.13 -
High 4,095.09 - 4,014.89 -
Very High 573.60 - 338.60 -
Restricted 0.28 - 0.33 -
Off-Credit - - - -
Total 33,109.79 - 35,799.79 19.94
2.1.23 A maturity pattern of certain items of assets and liabilities at 31 March, 2018 and 31 March, 2017 is set out below:
As at 31 March, 2018 (` in crores)
Deposits Advances* Investments Borrowings Foreign Foreign
Currency Currency
Assets Liabilities
1 day 9,306.55 2,662.93 33,116.11 - 4,769.53 216.54
2 days to 7 days 23,249.34 7,040.81 2,267.04 8,303.91 5,671.46 2,729.29
8 days to 14 days 8,090.08 3,311.69 5,607.65 1,245.13 1,560.51 1,517.86
15 days to 30 days 12,937.59 12,192.97 4,062.76 2,771.28 7,776.30 2,854.22
31 days and upto 2 months 24,011.63 10,134.53 5,920.81 6,468.16 4,294.17 7,230.06
Over 2 months and upto 3 months 25,695.76 10,919.63 7,538.01 6,795.99 3,285.83 7,922.85
Over 6 months and upto 1 year 66,959.06 26,028.57 17,063.60 22,631.53 8,759.21 19,517.46
Over 1 year and upto 3 years 35,569.79 74,775.86 16,784.51 30,112.68 14,199.73 21,008.16
Over 3 years and upto 5 years 16,436.37 58,233.50 9,653.42 23,198.99 11,154.08 9,664.45
Over 5 years 196,169.77 215,514.82 43,870.30 26,641.84 26,061.69 2,755.53
Total 453,622.72 439,650.31 153,876.08 148,016.15 94,075.33 92,830.58
166
As at 31 March, 2017 (` in crores)

Deposits Advances* Investments Borrowings Foreign Foreign
Currency Currency
Assets Liabilities
1 day 5,561.09 4,738.06 19,038.68 - 232.94 4,682.66
2 days to 7 days 16,154.59 2,942.50 4,119.70 830.97 1,512.44 1,579.19
8 days to 14 days 8,619.31 2,478.10 2,055.69 828.21 1,036.04 976.21
15 days to 30 days 12,706.72 11,382.78 2,776.60 3,429.24 3,547.41 6,458.97
31 days and upto 2 months 18,899.18 7,713.50 4,002.32 5,050.40 3,810.04 2,795.53
Over 6 months and upto 1 year 67,157.22 23,819.76 14,808.47 19,888.78 20,226.83 8,953.44
Over 1 year and upto 3 years 32,840.70 65,017.59 13,601.13 10,573.26 6,442.15 12,164.41
Over 3 years and upto 5 years 7,036.47 48,160.05 6,943.49 16,806.09 10,226.33 7,933.38
Over 5 years 181,046.37 176,944.78 48,946.28 23,157.79 3,188.15 12,759.54
Total 414,378.79 373,069.35 128,793.37 105,030.87 69,511.02 69,543.96
Classification 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
profile 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 Certificates (‘IBPCs’) and Funded Risk Participation (‘FRPs’) have been classified 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 classified in the respective maturities of the corresponding underlying loans.
2.1.24 Disclosure on Restructured Assets

Details of loans subjected to restructuring during the year ended 31 March, 2018 are given below:
(` in crores)
Type of Restructuring Under CDR Mechanism Under SME Debt Restructuring Mechanism
Asset Classification Standard Sub- Doubtful Loss Total Standard Sub- Doubtful Loss Total
Standard Standard
Restructured accounts as on April 1 No. of borrowers 15 - 16 9 40 - - - - -
of the FY (Opening Balance)
Amount Outstanding –
Restructured facility 1,099.10 - 1,546.18 418.83 3,064.11 - - - - -
Other facility 441.95 - 358.33 328.55 1,128.83 - - - - -
Provision thereon 36.67 - 48.89 - 85.56 - - - - -
Movement in balance for accounts No. of borrowers - - - - - - - - - -
appearing under opening balance
Restructured facility 11.69 - (108.80) 0.77 (96.34) - - - - -
Other facility (67.22) - 13.72 - (53.50) - - - - -
Provision thereon (15.79) - (30.09) - (45.88) - - - - -
Fresh Restructuring during the year 1,2 No. of borrowers - - - - - - - - - -
Restructured facility - - - - - - - - - -
Other facility 49.99 - - - 49.99 - - - - -
Provision thereon - - - - - - - - - -
167
(` in crores)
Standard Standard
Upgradation to restructured standard No. of borrowers 1 - (1) - - - - - - -
category during the FY
Restructured facility 35.65 - (35.65) - - - - - - -
Other facility 31.13 - (31.13) - - - - - - -
Restructured Standard Advances No. of borrowers (2) (2) - -
which cease to attract higher
provisioning and/or additional risk
Restructured facility (22.41) (22.41) - -
weight at the end of FY
Other facility - - - -
Provision thereon (0.03) (0.03) - -
Downgradation of restructured No. of borrowers (7) - 8 1 2 - - - - -
accounts during the FY3
Restructured facility (621.74) - 785.22 (137.78) 25.70 - - - - -
Other facility (162.27) - 165.82 3.42 6.97 - - - - -
Provision thereon (9.57) - 9.57 - - - - - - -
Write-offs of restructured accounts No. of borrowers - - (5) (4) (9) - - - - -
during the FY4,5,6
Restructured facility (74.49) - (816.16) (157.17) (1,047.82) - - - - -
Other facility (14.25) - (156.43) (297.87) (468.55) - - - - -
Restructured accounts as on March No. of borrowers 7 - 18 6 31 - - - - -
31 of the FY (closing figures)
Restructured facility 427.80 - 1,370.79 124.65 1,923.24 - - - - -
Other facility 279.33 - 350.31 34.10 663.74 - - - - -
(` in crores)
Type of Restructuring Others Total
Standard Standard
Restructured accounts as on April 1 No. of borrowers 350 3 373 91 817 365 3 389 100 857
of the FY (Opening Balance)
Restructured facility 4,522.92 417.74 728.67 693.13 6,362.46 5,622.02 417.74 2,274.85 1,111.96 9,426.57
Other facility 1,259.47 0.04 155.56 302.82 1,717.89 1,701.42 0.04 513.89 631.37 2,846.72
Provision thereon 39.14 22.03 10.80 - 71.97 75.81 22.03 59.69 - 157.53
Movement in balance for accounts No. of borrowers - - - - - - - - - -
appearing under opening balance
Restructured facility (230.72) 5.28 (17.76) (0.57) (243.77) (219.03) 5.28 (126.56) 0.20 (340.11)
Other facility 357.60 - (4.56) (7.38) 345.66 290.38 - 9.16 (7.38) 292.16
Provision thereon (6.22) (12.66) (6.48) - (25.36) (22.01) (12.66) (36.57) - (71.24)
168
(` in crores)
Standard Standard
Fresh Restructuring during the year1,2 No. of borrowers 401 15 - - 416 401 15 - - 416
Restructured facility 328.36 40.58 - - 368.94 328.36 40.58 - - 368.94
Other facility 19.69 - - - 19.69 69.68 - - - 69.68
Upgradation to restructured standard No. of borrowers 1 - (1) - - 2 - (2) - -
Restructured facility 206.74 - (206.74) - - 242.39 - (242.39) - -
Other facility 14.44 - (14.44) - - 45.57 - (45.57) - -
Restructured Standard Advances No. of borrowers (23) (23) (25) (25)
which cease to attract higher
provisioning and/or additional risk
Restructured facility (187.01) (187.01) (209.42) (209.42)
weight at the end of FY
Other facility (34.90) (34.90) (34.90) (34.90)
Provision thereon (2.29) (2.29) (2.32) (2.32)
Downgradation of restructured No. of borrowers (167) 1 188 63 85 (174) 1 196 64 87
accounts during the FY3
Restructured facility (3,770.90) (418.21) 3,891.70 335.05 37.64 (4,392.64) (418.21) 4,676.92 197.27 63.34
Other facility (1,327.62) 0.29 1,325.39 2.25 0.31 (1,489.89) 0.29 1,491.21 5.67 7.28
Provision thereon (23.28) (9.37) 32.65 - - (32.85) (9.37) 42.22 - -
Write-offs of restructured accounts No. of borrowers (46) (1) (369) (67) (483) (46) (1) (374) (71) (492)
during the FY4,5,6
Restructured facility (112.06) (40.84) (492.91) (875.71) (1,521.52) (186.55) (40.84) (1,309.07) (1,032.88) (2,569.34)
Other facility (19.86) - (71.90) (293.94) (385.70) (34.11) - (228.33) (591.81) (854.25)
Restructured accounts as on March No. of borrowers 516 18 191 87 812 523 18 209 93 843
31 of the FY (closing figures)
Restructured facility 757.33 4.55 3,902.96 151.90 4,816.74 1,185.13 4.55 5,273.75 276.55 6,739.98
Other facility 268.82 0.33 1,390.05 3.75 1,662.95 548.15 0.33 1,740.36 37.85 2,326.69
Provision thereon 7.35 - 36.97 - 44.32 18.63 - 65.34 - 83.97
Amount outstanding under restructuring facilities and other facilities is as on 31 March, 2018
1. Amount reported here represents outstanding as on 31 March, 2018. Actual amount subjected to restructuring determined as on
the date of approval of restructuring proposal is `366.76 crores for the FY 2017-18
2. Includes `51.07 crores of fresh/additional sanction to existing restructured accounts (`0.02 crores under restructured facility and
`51.05 crores under other facility)
3. Includes accounts which were not attracting higher provisioning and/or additional risk weight at the beginning of FY
4. Includes accounts partially written-off during the year
5. Amount outstanding under restructuring facilities and other facilities is as on the date of write-off in the books
6. Includes `363.46 crores of reduction from existing restructured accounts by way of sale/recovery (`299.57 crores from
restructured facility and `63.89 crores from other facility)
7. The cumulative value of net restructured advances after reducing the provision held for diminution in fair value and balance in
interest capitalization account upto 31 March, 2018 aggregated `1,087.10 crores
8. Information appearing under substandard, doubtful and loss category also include accounts slipped into NPAs from restructured
standard advances along with restructured NPAs
169
Details of loans subjected to restructuring during the year ended 31 March, 2017 are given below:
(` in crores)
Standard Standard
Restructured accounts No. of borrowers 37 - 10 6 53 - - - - -
as on April 1 of the FY
(Opening Balance)
Restructured facility 3,522.19 - 601.54 97.88 4,221.61 - - - - -
Amount Outstanding – Other
facility 1,170.57 - 48.63 26.64 1,245.84 - - - - -
Movement in balance No. of borrowers - - - - - - - - - -
for accounts appearing
under opening balance
Restructured facility (365.88) - 0.75 (0.03) (365.16) - - - - -
facility 44.51 - 0.01 - 44.52 - - - - -
Provision thereon (39.55) - (16.67) - (56.22) - - - - -
Fresh Restructuring No. of borrowers - - - - - - - - - -
during the year 1,2
facility 60.55 - - - 60.55 - - - - -
Upgradation to No. of borrowers - - - - - - - - - -
restructured standard
facility - - - - - - - - - -
Restructured Standard No. of borrowers (7) (7) - -
Advances which
cease to attract higher
Restructured facility (311.73) (311.73) - -
provisioning and/or
additional risk weight at Amount Outstanding – Other
the end of FY facility (28.33) (28.33) - -
Provision thereon (7.81) (7.81) - -
Downgradation of No. of borrowers (15) - 12 5 2 - - - - -
restructured accounts
during the FY3
Restructured facility (1,567.82) - 1,444.96 339.06 216.20 - - - - -
facility (682.50) - 401.62 302.57 21.69 - - - - -
Provision thereon (38.47) - 38.46 - (0.01) - - - - -
Write-offs of restructured No. of borrowers - - (6) (2) (8) - - - - -
accounts during the
FY4,5,6
Restructured facility (177.66) - (501.07) (18.08) (696.81) - - - - -
facility (122.85) - (91.93) (0.66) (215.44) - - - - -
170
(` in crores)
Standard Standard
Restructured accounts as No. of borrowers 15 - 16 9 40 - - - - -
on March 31 of the FY
(closing figures)
Restructured facility 1,099.10 - 1,546.18 418.83 3,064.11 - - - - -
facility 441.95 - 358.33 328.55 1,128.83 - - - - -
(` in crores)
Standard Standard
Restructured accounts No. of borrowers 821 1 281 31 1,134 858 1 291 37 1,187
as on April 1 of the FY Amount
(Opening Balance) Outstanding –
Restructured facility 5,211.23 0.04 785.07 68.48 6,064.82 8,733.42 0.04 1,386.61 166.36 10,286.43
Amount
Outstanding –
Other facility 1,216.63 - 123.10 10.88 1,350.61 2,387.20 - 171.73 37.52 2,596.45
Provision thereon 61.51 - 17.20 - 78.71 184.01 - 44.30 - 228.31
Movement in balance No. of borrowers - - - - - - - - - -
for accounts appearing Amount
under opening balance Outstanding –
Restructured facility 35.18 - (0.43) 0.03 34.78 (330.70) - 0.32 - (330.38)
Amount
Outstanding –
Other facility 429.67 0.01 (0.12) 0.01 429.57 474.18 0.01 (0.11) 0.01 474.09
Provision thereon (15.94) - (13.39) - (29.33) (55.49) - (30.06) - (85.55)
Fresh Restructuring No. of borrowers 43 2 1 - 46 43 2 1 - 46
during the year1,2 Amount
Outstanding –
Restructured facility 597.63 417.73 33.59 - 1,048.95 597.63 417.73 33.59 - 1,048.95
Amount
Outstanding –
Other facility 161.56 - 0.01 - 161.57 222.11 - 0.01 - 222.12
Provision thereon - 22.03 0.56 - 22.59 - 22.03 0.56 - 22.59
Upgradation to No. of borrowers - - - - - - - - - -
restructured standard Amount
category during the FY Outstanding –
Amount
Outstanding –
Other facility - - - - - - - - - -
Restructured Standard No. of borrowers (225) (225) (232) (232)
Advances which Amount
cease to attract higher Outstanding –
provisioning and/or Restructured facility (349.16) (349.16) (660.89) (660.89)
additional risk weight at
Amount
the end of FY
Outstanding –
Other facility (171.75) (171.75) (200.08) (200.08)
Provision thereon - - (7.81) (7.81)
171
(` in crores)
Standard Standard
Downgradation of No. of borrowers (203) - 165 67 29 (218) - 177 72 31
restructured accounts Amount
during the FY3 Outstanding –
Restructured facility (821.74) (0.03) 208.83 646.91 33.97 (2,389.56) (0.03) 1,653.79 985.97 250.17
Amount
Outstanding –
Other facility (335.61) 0.03 43.68 292.11 0.21 (1,018.11) 0.03 445.30 594.68 21.90
Provision thereon (6.43) - 6.43 - - (44.90) - 44.89 - (0.01)
Write-offs of No. of borrowers (86) - (74) (7) (167) (86) - (80) (9) (175)
restructured accounts Amount
during the FY4,5,6 Outstanding –
Restructured facility (150.22) - (298.39) (22.29) (470.90) (327.88) - (799.46) (40.37) (1,167.71)
Amount
Outstanding –
Other facility (41.03) - (11.11) (0.18) (52.32) (163.88) - (103.04) (0.84) (267.76)
Restructured accounts No. of borrowers 350 3 373 91 817 365 3 389 100 857
as on March 31 of the Amount
FY (closing figures) Outstanding –
Restructured facility 4,522.92 417.74 728.67 693.13 6,362.46 5,622.02 417.74 2,274.85 1,111.96 9,426.57
Amount
Outstanding –
Other facility 1,259.47 0.04 155.56 302.82 1,717.89 1,701.42 0.04 513.89 631.37 2,846.72
Provision thereon 39.14 22.03 10.80 - 71.97 75.81 22.03 59.69 - 157.53
Amount outstanding under restructuring facilities and other facilities is as on 31 March, 2017:
1.
Amount reported here represents outstanding as on 31 March, 2017. Actual amount subjected to restructuring determined as on the date
of approval of restructuring proposal is `1,001.35 crores for the FY 2016-17
2. Includes `213.53 crores of fresh/additional sanction to existing restructured accounts (`3.56 crores under restructured facility and
`209.97 crores under other facility)
3. Includes accounts which were not attracting higher provisioning and/or additional risk weight at the beginning of FY
4. Includes accounts partially written-off during the year
5. Amount outstanding under restructuring facilities and other facilities is as on the date of write-off in the books
6. Includes `881.83 crores of reduction from existing restructured accounts by way of sale/recovery (`716.59 crores from restructured
facility and `165.24 crores from other facility)
7. The cumulative value of net restructured advances after reducing the provision held for diminution in fair value and balance in interest
capitalization account upto 31 March, 2017 aggregated `5,379.10 crores
8. Information 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 on Flexible Structuring of existing loans
(` in crores)
Particulars Year ended Year ended
31 March, 2018 31 March, 2017
No. of borrowers taken up for flexible structuring 3 8

Amount of loans taken up for flexible structuring #
- Classified as Standard* 682.18 1,066.14

- Classified as NPA* 290.36 803.79
Exposure weighted average duration of loans taken up for flexible structuring (years)
- Before applying flexible structuring 9.43 9.22
- After applying flexible structuring 19.25 20.72
#
represents outstanding as on date of sanction of the proposal
* asset classification represents position as on 31 March of the respective year
172
2.1.26 Disclosure on Strategic Debt Restructuring Scheme (accounts which are currently under the stand-still period)
(` in crores)
Particulars As at As at
31 March, 2018 31 March, 2017
No. of accounts where SDR has been invoked - 19

Amount outstanding #
- Classified as Standard - 3,807.18

- Classified as NPA - 322.40
Amount outstanding with respect to accounts where conversion of debt to equity is pending
- Classified as Standard - 846.10
Amount outstanding with respect to accounts where conversion of debt to equity has taken
place#
- Classified as Standard - 2,961.08
#
includes outstanding under equity investments post conversion under SDR
2.1.27 Disclosure on Change in Ownership outside SDR Scheme (accounts which are currently under the stand-still period)
(` in crores)
As at As at
Particulars
31 March, 2018 31 March, 2017
No. of accounts where banks have decided to effect change in ownership - -

Amount outstanding
- Classified as Standard - -
- Classified as NPA - -
Amount outstanding with respect to accounts where conversion of debt to equity/invocation
of pledge of equity shares is pending
Amount outstanding with respect to accounts where conversion of debt to equity/invocation
of pledge of equity shares has taken place
Amount outstanding with respect to accounts where change in ownership is envisaged by
issuance of fresh shares or sale if promoters equity
2.1.28 Disclosure on Change in Ownership of Projects under Implementation (accounts which are currently under the stand-still period)
(` in crores)
31 March, 2018 31 March, 2017
No. of project loan accounts where banks have decided to effect change in ownership - 1
Amount outstanding
- Classified as Standard - 98.87
- Classified as standard restructured - -
173
2.1.29 Disclosure on Scheme for Sustainable Structuring of Stressed Assets (S4A)

(` in crores)
31 March, 2018 31 March, 2017
No. of accounts where S4A has been applied 5 2

Aggregate amount outstanding
- Classified as Standard 486.24 323.46
- Classified as NPA 647.52 -
Amount outstanding in Part A
Amount outstanding in Part B
Provision Held
2.1.30 D
isclosure in respect of Interest Rate Swaps (‘IRS’), Forward Rate Agreement (‘FRA’) and Cross Currency Swaps (‘CCS’)
outstanding is set out below:
A ‘FRA’ is a financial contract between two parties to exchange interest payments for ‘notional principal’ amount on settlement
date, for a specified period from start date to maturity date. Accordingly, on the settlement date cash payments based on
contract rate and the settlement rate, which is the agreed bench-mark/reference rate prevailing on the settlement date, are
made by the parties to one another. The benchmark used in the FRA contracts of the Bank is London Inter-Bank Offered Rate
(LIBOR) of various currencies.
An ‘IRS’ is a financial contract between two parties exchanging or swapping a stream of interest payments for a ‘notional
principal’ amount on multiple occasions during a specified period. The Bank deals in interest rate benchmarks like Mumbai
Inter-Bank Offered Rate (MIBOR), Indian Government Securities Benchmark Rate (INBMK), Mumbai Inter-Bank Forward Offer
Rate (MIFOR) and LIBOR of various currencies.
A ‘CCS’ is a financial contract between two parties exchanging interest payments and principal, wherein interest payments
and principal in one currency would be exchanged for an equally valued interest payments and principal in another currency.
(` in crores)
Sr. As at As at
Items
No. 31 March, 2018 31 March, 2017
i) Notional principal of swap agreements 196,069.45 197,871.67

ii) Losses which would be incurred if counterparties failed to fulfill their obligations
under the agreements 2,872.20 2,558.71
iii) Collateral required by the Bank upon entering into swaps 826.23 903.93
iv) Concentration of credit risk arising from the swaps
Maximum single industry exposure with Banks (previous year with Banks)
- Interest Rate Swaps/FRAs 2,695.48 2,379.59
- Cross Currency Swaps 2,947.91 2,086.53
v) Fair value of the swap book (hedging & trading)
- Interest Rate Swaps/FRAs (804.12) (410.81)
- Currency Swaps 1,228.65 1,056.44
174
The nature and terms of the IRS as on 31 March, 2018 are set out below:
(` in crores)
Nature Nos. Notional Principal Benchmark Terms
Hedging 33 11,698.91 LIBOR Fixed Receivable v/s Floating Payable
Trading 4 275.00 INBMK Fixed Receivable v/s Floating Payable
Trading 250 36,726.98 LIBOR Fixed Receivable v/s Floating Payable
Trading 319 22,201.66 MIBOR Fixed Receivable v/s Floating Payable
Trading 350 17,107.00 MIFOR Fixed Receivable v/s Floating Payable
Trading 21 1,659.00 INBMK Floating Receivable v/s Fixed Payable
Trading 294 41,559.60 LIBOR Floating Receivable v/s Fixed Payable
Trading 353 17,553.49 MIBOR Floating Receivable v/s Fixed Payable
Trading 181 9,741.00 MIFOR Floating Receivable v/s Fixed Payable
Trading 28 5,116.24 LIBOR Floating Receivable v/s Floating Payable
Trading 5 229.07 LIBOR Pay Cap
Trading 5 229.07 LIBOR Receive Cap
1,843 164,097.02
The nature and terms of the IRS as on 31 March, 2017 are set out below:
(` in crores)
Hedging 2 907.90 LIBOR Floating Receivable v/s Fixed Payable
Trading 6 325.00 INBMK Fixed Receivable v/s Floating Payable
Trading 467 29,645.28 MIBOR Fixed Receivable v/s Floating Payable
Trading 341 16,724.00 MIFOR Fixed Receivable v/s Floating Payable
Trading 25 1,909.00 INBMK Floating Receivable v/s Fixed Payable
Trading 476 25,709.54 MIBOR Floating Receivable v/s Fixed Payable
Trading 225 12,223.00 MIFOR Floating Receivable v/s Fixed Payable
Trading 28 4,669.20 LIBOR Floating Receivable v/s Floating Payable
Trading 3 66.14 LIBOR Pay Cap
Trading 1 197.11 LIBOR Pay Cap/Receive Floor
Trading 1 197.11 LIBOR Pay Floor/Receive Cap
Trading 3 66.14 LIBOR Receive Cap
2,180 173,823.09
The nature and terms of the FRA as on 31 March, 2018 are set out below:
(` in crores)
Hedging 1 325.88 LIBOR Floating Receivable v/s Fixed Payable
1 325.88
175
The nature and terms of the FRA as on 31 March, 2017 are set out below:
(` in crores)
2 2,107.63
The nature and terms of the CCS as on 31 March, 2018 are set out below:
(` in crores)
Trading 84 9,787.05 Principal & Fixed Payable v/s Fixed Receivable
Coupon Swap
Trading 6 2,445.14 LIBOR/MIFOR/ Floating Receivable v/s Floating Payable
MIBOR
Trading 37 3,613.89 Principal Only Fixed Receivable
Trading 20 2,691.67 Principal Only Fixed Payable
282 31,646.55
The nature and terms of the CCS as on 31 March, 2017 are set out below:
(` in crores)
Principal &
Trading 85 5,095.10 Fixed Payable v/s Fixed Receivable
Coupon Swap
LIBOR/MIFOR/
Trading 3 1,011.29 Floating Receivable v/s Floating Payable
MIBOR
Trading 40 3,858.99 Principal Only Fixed Receivable
Trading 6 1,081.11 Principal Only Fixed Payable
254 21,940.95
Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March, 2018 are set out below:
(` in crores)
Sr. Particulars As at
No. 31 March, 2018
i) Notional principal amount of exchange traded interest rate derivatives undertaken during the year
679GS2027 - 6.79% GOI 2027 1,269.52
697GS2026 - 6.97% GOI 2026 356.60
759GS2026 - 7.59% GOI 2026 29.72
EDM7 - 90 Day Euro Future - June 2017 1,629.38
EDU7 - 90 Day Euro Future - September 2017 3,258.75
EDU8 - 90 Day Euro Future - September 2018 3,258.75
FFF8 - 30 Days FED Funds - January 2018 3,258.75
TUM7 - 2 Years Treasury Note - June 2017 130.35
TUU7 - 2 Years Treasury Note - September 2017 260.70
TYM7 - 10 Years US Note - June 2017 162.93
TYU7 - 10 Years US Note - September 2017 239.84
FVZ7 - 5 Years US Note - December 2017 130.35
FVH8 - 5 Years US Note - March 2018 130.35
TYH8 - 10 Years US Note - March 2018 82.12
176
No. 31 March, 2018
TUH8 - 2 Years US Note - March 2018 260.70

FVM8 - 5 Years US Note - June 2018 130.35
16,218.54
ii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March, 2018 Nil
iii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March, 2018 N.A.
and “not highly effective”
iv) Mark-to-market value of exchange traded interest rate derivatives outstanding as on 31 March, 2018 and N.A.
“not highly effective”
Details of Exchange Traded Interest Rate Derivatives for the year ended 31 March, 2017 are set out below:
(` in crores)
No. 31 March, 2017
i) Notional principal amount of exchange traded interest rate derivatives undertaken during the year
697GS2026 - 6.97% GOI 2026 152.38
759GS2026 - 7.59% GOI 2026 4,678.12
759GS2029 - 7.59% GOI 2029 186.98
761GS2030 - 7.61% GOI 2030 0.10
768GS2023 - 7.68% GOI 2023 2.00
772GS2025 - 7.72% GOI 2025 3,219.84
788GS2030 - 7.88% GOI 2030 1,531.36
EDH7 - 90 Day Euro Future - March 2017 12,970.00
EDH8 - 90 Day Euro Future - March 2018 12,970.00
EDQ6 - 90 Day Euro $ Future - August 2016 1,297.00
EDZ6 - 90 Day Euro Future - December 2016 9,662.65
EDZ7 - 90 Day Euro Future - December 2017 907.90
FVH7 - 5Years US Note - March 2017 64.85
FVM6 - 5 Years US Note - June 2016 2,042.78
FVU6 - 5 Years US Note - September 2016 1,725.01
TUM6 - 2 Years Treasury Note - June 2016 2,983.10
TUM7 - 2 Years Treasury Note - June 2017 259.40
TUU6 - 2 Years Treasury Note - September 2016 3,761.30
TYH7 - 10 Years US Note - March 2017 453.95
TYM6 - 10 Years US Note - June 2016 4,344.95
TYM7 - 10 Years US Note - June 2017 136.19
TYU6 - 10 Years US Note - September 2016 12,133.43
TYZ6 - 10 Years US Note - December 2016 911.79
93,904.58
ii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March, 2017
3,242.50
iii) Notional principal amount of exchange traded interest rate derivatives outstanding as on 31 March, 2017 N.A.
and “not highly effective”
iv) Mark-to-market value of exchange traded interest rate derivatives outstanding as on 31 March, 2017 and N.A.
“not highly effective”
The Bank has not undertaken any transactions in Credit Default Swaps (CDS) during the year ended 31 March, 2018 and 31
March, 2017.
177
2.1.31 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 financial 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. 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 Office, Treasury Mid Office and Treasury Back Office to
undertake derivative transactions. The customer and interbank related derivative transaction are originated by Transaction
Banking-Derivative sales and Treasury Front Office team respectively which ensures compliance with the trade origination
requirements as per the bank’s policy and the RBI guidelines. The derivative transactions are originated by Treasury Front
Office, 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 identifies 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 Office undertakes
activities such as trade confirmation, settlement, ISDA documentation, accounting, valuation and other MIS reporting.
The derivative transactions are governed by the derivative policy, market risk management policy, hedging policy and the
Asset Liability Management (ALM) policy of the Bank as well as by the extant RBI guidelines. The Bank has also implemented
policy on customer suitability & appropriateness approved by the Board to ensure that derivatives transactions entered into
are appropriate and suitable to the customer. The Bank has also put in place a detailed process flow on documentation
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 dealt with in accordance with board approved Risk Appetite Statement. 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 flow 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 fixed rate and floating rate coupon or foreign currency assets/
liabilities. Transactions for hedging and market making purposes are recorded separately. For hedge transactions, the
Bank identifies 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
178
the resulting gain/loss is recorded in the Profit 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, FRAs, futures and options which are disclosed as contingent liabilities. Trading
swaps/FRAs/futures/options are revalued at the Balance Sheet date with the resulting unrealised gain or loss being
recognised in the Profit and Loss Account and correspondingly in other assets or other liabilities respectively. Hedged
swaps are accounted for as per the RBI guidelines. In accordance with RBI guidelines, any receivables (crystallised
receivables and positive MTM) under derivatives contracts, which remain overdue for more than 90 days, are reversed
through the Profit 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$:

(` in crores)
Currency Derivatives Interest rate
Derivatives
Sr. Particulars Forward CCS Options
No. Contracts^
1 Derivatives (Notional Principal Amount)
a) For hedging 40,335.85 - - 12,024.79
b) For trading 274,466.05 31,646.55 59,342.59 152,398.11
2 Marked to Market Positions#
a) Asset (+) 2,182.90 1,734.30 1,488.58 1,130.94
b) Liability (-) (2,464.30) (505.64) (1,390.53) (1,685.31)
3 Credit Exposure@ 13,074.02 4,799.22 1,670.63 2,991.32
4 Likely impact of one percentage change in
interest rate (100*PV01) (as at 31 March, 2018)
a) on hedging derivatives 8.84 - - 58.15
b) on trading derivatives 7.32 3.68 97.84 47.27
5 Maximum and Minimum of 100*PV01
observed during the year
a) on hedging
i) Minimum 0.10 - - 51.35
ii) Maximum 12.84 5.32 - 85.73
b) on Trading
i) Minimum 0.31 1.75 8.50 45.98
ii) Maximum 10.19 3.68 108.73 64.71
Only on trading derivatives
#
@
Includes accrued interest
^
Excluding Tom/Spot contracts
179
(` in crores)
Currency Derivatives Interest rate
Derivatives
Sr. Particulars Forward CCS Options
No. Contracts^
1 Derivatives (Notional Principal Amount)
a) For hedging 27,154.50 - - 15,194.36
b) For trading 241,040.72 21,940.95 49,383.32 160,736.36
2 Marked to Market Positions #
a) Asset (+) 5,435.98 1,537.28 1,540.08 988.93

b) Liability (-) (5,429.65) (480.84) (1,374.76) (1,361.16)
3 Credit Exposure @
15,606.43 4,079.81 1,793.32 3,015.89
4 Likely impact of one percentage change in interest rate
(100*PV01) (as at 31 March, 2018)
a) on hedging derivatives 2.33 - - 249.77
b) on trading derivatives 2.15 1.81 12.35 63.12
5 Maximum and Minimum of 100*PV01 observed during
the year
a) on hedging
i) Minimum 4.15 - - 128.43
ii) Maximum 1.05 3.77 - 272.71
b) on Trading
i) Minimum 0.01 0.96 4.08 27.55
ii) Maximum 13.03 3.68 94.91 97.29
#
Only on trading derivatives
@
Includes accrued interest
^
Excluding Tom/Spot contracts

$
only Over The Counter derivatives included
The outstanding notional principal amount of Exchange Traded Currency Options as at 31 March, 2018 was Nil (previous
year Nil) and the mark-to-market value was Nil (previous year Nil).
2.1.32 Details of penalty/stricture levied by RBI during the year ended 31 March, 2018 is as under:
Amount Reason for stricture issued/ levy of penalty by RBI Date of payment
(` in crores) of penalty
3.00 Non-compliance of RBI guidelines on income Recognition and Asset Classification (IRAC) norms. 7 March, 2018
Penalty was imposed in terms of Section 47A(1)(c) read with Section 46(4)(i) of the Banking
Regulation Act, 1949
Details of penalty/stricture levied by RBI during the year ended 31 March, 2017 is as under:
Amount Reason for stricture issued/ levy of penalty by RBI Date of payment of
(` in crores) penalty
- Warning issued by RBI on 27 July, 2016 for certain lapses in adherence to KYC/AML guidelines -
on monitoring of transactions in customer accounts and FEMA provisions
180
2.1.33 Disclosure of customer complaints

(a) Disclosure of customer complaints relating to Bank’s customers on Bank’s ATMs
31 March, 2018 31 March, 2017
a. No. of complaints pending at the beginning of the year 143 208

b. No. of complaints received during the year 51,096 35,009
c. No. of complaints redressed during the year 50,955 35,074
d. No. of complaints pending at the end of the year 284 143
(b) Disclosure of customer complaints relating to Bank’s customers on other bank’s ATMs
31 March, 2018 31 March, 2017
a. No. of complaints pending at the beginning of the year 1,233 934

d. No. of complaints pending at the end of the year 2,360 1,233
(c) Disclosure of customer complaints other than ATM transaction complaints
31 March, 2018 31 March, 2017
a. No. of complaints pending at the beginning of the year 40,808 8,357

(d) Total customer complaints
31 March, 2018 31 March, 2017
a. No. of complaints pending at the beginning of the year 42,184 9,499

The above information does not include complaints redressed within 1 working day and is as certified by the Management
and relied upon by the auditors.
2.1.34 Disclosure of Awards passed by the Banking Ombudsman

31 March, 2018 31 March, 2017
a. No. of unimplemented awards at the beginning of the year - -

b. No. of awards passed by the Banking Ombudsman during the year - -
c. No. of awards implemented during the year - -
d. No. of unimplemented awards at the end of the year - -
The above information is as certified by the Management and relied upon by the auditors.
181
2.1.35 Draw Down from Reserves

During the year ended 31 March, 2018 the Bank has not undertaken any draw down from reserves, except towards issue
expenses incurred for the equity raising through the preferential issue, which have been adjusted against the share premium
account.
During the year ended 31 March, 2017 the Bank has made a draw down out of the Investment Reserve account towards
depreciation on investments in AFS and HFT categories in terms of RBI guidelines.
2.1.36 Letter of Comfort

The Bank has not issued any Letter of Comfort (LoC) on behalf of its subsidiaries during the current and previous year.
2.1.37 Disclosure on Remuneration

Qualitative disclosures
a) Information relating to the bodies that oversee remuneration:
v Name, composition and mandate of the main body overseeing remuneration:
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 co-ordination with the Risk
Management Committee of the Bank, in order to achieve effective alignment between remuneration and risks.
As at 31 March, 2018, the Nomination and Remuneration Committee comprises of the following Non-Executive
Directors:
1. Shri Prasad R. Menon - Chairman
2. Shri Rohit Bhagat
3. Shri Rakesh Makhija
4. Shri Som Mittal
In respect of Remuneration/HR matters, the Nomination and Remuneration Committee of the Board, functions with
the following main objectives:
a. 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 fixed 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.
b. 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.
c. Recommend to the Board the compensation payable to the Chairman of the Bank.
d. 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.
e. 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.
182
f. Review and recommend to the Board for approval:
Ø the creation of new positions one level below MD & CEO
Ø appointments, promotions and exits of senior managers one level below the MD & CEO
g. Set the goals, objectives and performance benchmarks for the Bank and for MD & CEO, the other WTDs for
the financial year and over the medium to long term.
h. Review the performance of the MD & CEO and other WTDs at the end of each year.
i. Review organisation health through feedback from employee surveys conducted on a regular basis.
j. 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.
v External consultants whose advice has been sought, the body by which they were commissioned, and in what areas
of the remuneration process:
The Nomination and Remuneration Committee has commissioned McLagan Aon Hewitt, a globally renowned
compensation benchmarking firm, to conduct market benchmarking of employee compensation. The Bank
participates in the salary benchmarking survey conducted by Aon Hewitt every year. Aon Hewitt collects data from
multiple private sector peer banks across functions, levels and roles which is then used by the Bank to assess market
competitiveness of remuneration offered to Bank employees.
v A description of the scope of the Bank’s remuneration policy, including the extent to which it is applicable to foreign
subsidiaries and branches:
The Committee monitors the remuneration policy for both domestic and overseas branches of the Bank on behalf of
the Board. However, it does not oversee the compensation policy for subsidiaries of the Bank.
v A description of the type of employees covered and number of such employees:
Employees are categorised into following three categories from remuneration structure and administration standpoint:
Category 1
MD & CEO and WTDs. This category includes 4 employees.
Category 2
All the employees in the Grade of Vice President and above engaged in the functions of Risk Control and Compliance.
This category includes 28 employees.
Category 3: Other Staff
‘Other Staff’ has been defined as a “group of employees who pose a material risk”. This category includes 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. This category includes 34 employees.
b) Information relating to the design and structure of remuneration processes:
v An overview of the key features and objectives of 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:
- Affordability: Pay to reflect productivity improvements to retain cost-income competitiveness
183
- Maintain competitiveness on fixed pay in talent market
- Pay for performance to drive meritocracy through variable pay
- Employee Stock Options for long-term value creation
- Benefits and perquisites to remain aligned with market practices and provide flexibility
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) 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
b) Establish the linkage of compensation with individual performance as well as achievement of the corporate
objectives of the Bank
c) Include a significant 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
d) Encourage attainment of long term shareholder returns through inclusion of equity linked long-term incentives
as part of compensation
Compensation is structured in terms of fixed pay, variable pay and employee stock options (for selective employees),
with a strong linkage of variable pay to performance. The compensation policy of the Bank is approved by the
Nomination and Remuneration Committee. Additional approval from Shareholders and RBI is obtained specifically
for compensation of MD & CEO and WTDs.
v Whether the remuneration committee reviewed the firm’s remuneration policy during the past year, and if so, an
overview of any changes that were made:
The Nomination and Remuneration committee reviews the Bank’s remuneration policy every year. There were no
major changes made in the remuneration policy during the year.
v A discussion of how the Bank ensures that risk and compliance employees are remunerated independently of the
businesses they oversee:
The Bank ensures that risk and compliance employees are remunerated independently of the businesses they oversee
and is guided by the individual employee performance. The remuneration is determined on the basis of relevant
risk measures included in the Balanced Scorecard / key deliverables of staff in these functions. The parameters
reviewed for performance based rewards are independent of performance of the business area they oversee and
commensurate with their individual role in the Bank. Additionally, the ratio of fixed and variable compensation is
weighed towards fixed compensation.
184
c) Description of the ways in which current and future risks are taken into account in the remuneration
processes:
v An overview of the key risks that the Bank takes into account when implementing remuneration measures:
The business activity of the Bank is undertaken within the limits of the following risk measures to achieve the financial
plan:
• NPA - net slippages
• Ratio of Risk Weighted Assets to Total Assets
• Liquidity Coverage Ratio
v An overview of the nature and type of key measures used to take account of these risks, including risk difficult to
measure:
The Bank has a robust system of measuring and reviewing these risks. The risk parameters are a part of the Balanced
Scorecard used for setting of performance objectives and for measuring performance which includes, besides
financial performance, adherence to internal processes, compliance and people perspectives. Weightage is placed
on not only financial or quantitative achievement of objectives but also on qualitative aspects detailing how the
objectives were achieved.
v A discussion of the ways in which these measures affect remuneration:
The relevant risk measures are included in the scorecards of MD & CEO and WTDs. Inclusion of the above
mentioned measures ensures that performance parameters are aligned to risk measures at the time of performance
evaluation. The Nomination and Remuneration Committee takes into consideration all the above aspects while
assessing organisational and individual performance and making compensation related recommendations to the
Board.
v A discussion of how the nature and type of these measures have changed over the past year and reasons for the
changes, as well as the impact of changes on remuneration:
During FY 2017-18, the risk measures were reviewed and certain additional metrics pertaining to stressed loans
were incorporated in the Balanced Scorecards, in view of the asset quality challenges faced by the Banking industry
in recent years.
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 the robust goal setting process to ensure alignment of individual objectives to support the achievement of
business strategy, financial and non-financial goals across and through the organisation. The non-financial goals for
employees includes customer service, process improvement, adherence to risk and compliance norms, operations and
process control, learning and knowledge development.
v An overview of main performance metrics for Bank, top level business lines and individuals:
The Bank follows a Balanced Scorecard approach for measuring performance for the Bank, top business lines
and individuals. The approach broadly comprises financial, customer, internal processes, compliance and people
perspectives and includes parameters on revenue and profitability, business growth, customer initiatives, operational
efficiencies, regulatory compliance, risk management and people management.
v A discussion of how amounts of individual remuneration are linked to the Bank-wide and individual performance:
185
The Bank’s remuneration practices are underpinned by principles of meritocracy and fairness. The remuneration system
strives to maintain the ability to attract, retain, reward and motivate the talent in order to enable the Bank to attain its
strategic objectives within the increasingly competitive context in which it operates. The Bank’s pay-for-performance
approach strives to ensure both internal and external equity in line with emerging market trends. However, the business
model and affordability form the overarching boundary conditions.
The Bank follows a Balanced Scorecard approach for measuring individual performance at Senior levels. The Balanced
scorecard parameters for individuals are cascaded from the Bank’s Balanced Scorecard. The Management Committee or
the Nomination and Remuneration Committee reviews the achievements against the set of parameters which determines
the performance of the individuals. For all other employees, performance appraisals are conducted annually and initiated
by the employee with self-appraisal. The immediate supervisor reviews the appraisal ratings in a joint consultation meeting
with the employee and assigns the performance rating. The final ratings are discussed by a Moderation Committee
comprising of senior officials of the Bank. Both relative and absolute individual performances are considered for the
moderation process. Individual fixed pay increases, variable pay and ESOPs are linked to the final performance ratings.
In addition, the fixed pay increase is also influenced by an employee’s position in the salary range.

v A discussion of the measures the Bank will in general implement to adjust remuneration in the event that performance
metrics are weak:
In cases where the performance metrics are weak or not well defined to measure the performance effectively, the Bank uses
discretion to reward such employees. The remuneration is then influenced by the operational performance parameters of
the Bank along with individual performance achievement.
Whilst determining fixed and variable remuneration, relevant risk measures are included in scorecards of senior employees.
Identified risk parameters that are taken into account are as under:
• NPA – net slippages
• Ratio of Risk Weighted Assets to Total Assets
• Liquidity Coverage Ratio
As a prudent measure, a portion of variable pay if it exceeds a certain threshold is deferred and is paid proportionately
over a period of 3 years. The deferred variable pay amount of reference year would be held back in case of any
misrepresentation or gross inaccuracy resulting in a wrong risk assessment.
e) Description of the ways in which the Bank seeks to adjust remuneration to take account of the longer
term performance:
v A discussion of the Bank’s policy on deferral and vesting of variable remuneration and, if the fraction of variable
remuneration that is deferred differs across employees or groups of employees, a description of the factors that
determine the fraction and their relative importance:
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 fixed 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 balanced scorecard / key deliverables of staff in this function
186
- 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 fixed and variable compensation will be weighed towards fixed compensation
- Percentage of variable pay to be capped at 70% of fixed pay
- Appropriate deferral structure as approved by the Nomination and Remuneration Committee will be applicable
to this category of employees
Category 3: Other Staff
- Variable Pay will be paid on the basis of performance against key deliverables and overall business
performance for the financial year
- Percentage of variable pay to be capped at 70% of fixed pay
- Appropriate deferral structure as approved by the Nomination and Remuneration Committee will be applicable
to this category of employees
v A discussion of the Bank’s policy and criteria for adjusting deferred remuneration before vesting and (if permitted
by national law) after vesting through claw back arrangements:
The deferred portion of the variable pay may be delayed in the event of an enquiry determining gross negligence
or breach of integrity. The deferred portion is withheld by the Bank till the completion of such enquiries, if any. As
a result, no claw back arrangements are made on the deferred portion of the variable pay.
f) Description of the different forms of variable remuneration that the Bank utilizes and the rationale
for using these different forms:
v An overview of the forms of variable remuneration offered:
• 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
• Employee Stock Options (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 deferred vesting design which helps in
directing long term performance orientation among employees
v A discussion of the use of different forms of variable remuneration and, if the mix of different forms of variable
remuneration differs across employees or group of employees, a description of the factors that determine the mix
and their relative importance:
Variable pay in the form of performance based bonus is paid out annually and is linked to performance achievement
against balanced performance measures and aligned with the principles of meritocracy. The proportion of variable
pay in total pay shall be higher at senior management levels. The payment of all forms of variable pay is governed
by the affordability of the Bank and based on profitability and cost income ratios. At senior management levels (and
for certain employees with potential to cause material impact on risk exposure), a portion of variable compensation
may be paid out in a deferred manner in order to drive prudent behaviour as well as long term & sustainable
performance orientation. Long term variable pay is administered in the form of ESOPs with an objective of enabling
employee participation in the business as an active stakeholder and to usher in an ‘owner-manager’ culture. The
quantum of grant of stock options is determined and approved by the Nomination and Remuneration Committee, in
terms of the said Regulations and in line with best practices, subject to the approval of RBI. The current ESOP design
has an inbuilt deferral intended to spread and manage risk.
Quantitative disclosures
a) The quantitative disclosures pertaining to the MD & CEO, Whole Time Directors and other risk takers for the year ended
31 March, 2018 and 31 March, 2017 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.
187
31 March, 2018 31 March, 2017
a. i) Number of meetings held by the Remuneration Committee (main body

overseeing remuneration) during the financial year 8 7
ii) Remuneration paid to its members (sitting fees) `15,00,000 `13,50,000
Number of employees having received a variable remuneration award during
b. the financial year 33* 38*
c. Number and total amount of sign-on awards made during the financial year N.A. N.A.
d. Number and total amount of guaranteed bonus awarded during the financial
year, if any N.A. N.A.
e. Details of severance pay, in addition to accrued benefits, if any N.A. N.A.
f. Total amount of outstanding deferred remuneration, split into cash, shares and `0.34 crores `0.99 crores
share-linked instruments and other forms (cash bonus) (cash bonus)
g. Total amount of deferred remuneration paid out in the financial year `0.65 crores `0.65 crores
h. Breakdown of amount of remuneration awards for the financial year to show Fixed - Fixed -
fixed and variable, deferred and non-deferred, different forms used `41.00 crores# `38.19 crores#
Variable - Variable -
`9.78 crores* `11.22 crores*
Deferred - Nil Deferred - Nil
Non-deferred - `9.78 Non-deferred -
crores* `11.22 crores*
Number of stock Number of stock
options granted options granted
during the financial during the financial
year - 3,067,750 year - 3,491,000
i. Total amount of outstanding deferred remuneration and retained remuneration
exposed to ex post explicit and/or implicit adjustments N.A. N.A.
j. Total amount of reductions during the financial year due to ex- post explicit
adjustments N.A. N.A.
k. Total amount of reductions during the financial year due to ex- post implicit
adjustments N.A. N.A.
*p
ertains to FY 2016-17 paid to other risk takers (previous years pertains to MD & CEO, WTDs and other risk takers for
FY 2015-16)
#
F ixed Remuneration includes basic salary, fixed allowance, leave fare concession, house rent allowance, location pay,
super annuation allowance, certain other allowances and contribution towards provident fund
b) Disclosure for compensation of Non-executive Directors (Except Part-time Chairman):
(` in crores)
31 March, 2018 31 March, 2017
a. Amount of remuneration paid during the year (pertains to preceding year) 1.02 0.90
188
2.1.38 T he details of fees / brokerage earned in respect of insurance broking, agency and bancassurance business undertaken by
the Bank are as under:
(` in crores)
Sr. Nature of Income* 31 March, 2018 31 March, 2017
No.
1. For selling life insurance policies 539.49 558.24

2. For selling non-life insurance policies 56.40 32.95
3. For selling mutual fund products 388.46 317.44
4. Others (wealth advisory, RBI and other bonds etc.) 88.48 88.57
Total 1,072.83 997.20
*includes receipts on account of marketing activities undertaken on behalf of bancassurance partners
2.1.39 T he Bank has not sponsored any special purpose vehicle which is required to be consolidated in the consolidated financial
statements as per accounting norms.
2.1.40 Amount of total assets, non-performing assets and revenue of overseas branches is given below:
(` in crores)
Total assets 61,007.58 54,252.62

Total NPAs 4,311.02 4,695.18
Total revenue 2,380.67 2,636.36
2.1.41 During the year ended 31 March, 2018 the value of sales/transfers of securities to/from HTM category (excluding one-time
transfer of securities and sales to RBI under OMO auctions) did not exceed 5% of the book value of investments held in HTM
category at the beginning of the year.
During the year ended 31 March, 2017 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 `11,558.20 crores.
Market value of investments held in HTM category Excess of book value over market value for which provision is not
made
`82,665.92 crores Nil
2.1.42 Disclosure on transfers to Depositor Education and Awareness Fund (DEAF)

(` in crores)
Opening balance of amounts transferred to DEAF 64.90 41.57

Add : Amounts transferred to DEAF during the year 34.07 24.23
Less : Amounts reimbursed by DEAF towards claims (1.83)* (0.90)*
Closing balance of amounts transferred to DEAF 97.14 64.90
*includes `0.39 crores (previous year `0.21 crores) of claim raised and pending settlement with RBI
189
2.1.43 Disclosure on Intra-Group Exposures

(` in crores)
Total amount of intra-group exposures 4,954.82 3,232.20

Total amount of top-20 intra-group exposures 4,954.80 3,232.20
Percentage of intra-group exposures to total exposure of the Bank on borrowers/customers 0.68 0.51
During the years ended 31 March, 2018 and 31 March, 2017, the intra-group exposures were within the limits specified by
RBI.
2.1.44 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/renewals, 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 financial
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 predefined 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, 2018, there is a write back of `9.30 crores (previous year write back of `13.88 crores) in
provision for un-hedged foreign currency exposures. As on 31 March, 2018, the Bank held incremental capital of `220.11
crores (previous year `300.05 crores) towards borrowers having un-hedged foreign currency exposures.
2.1.45 Disclosure on provisioning pertaining to fraud accounts

(` in crores)
31 March, 2018 31 March, 2017
Number of frauds reported during the year* 521 205

Amounts involved 353.97 72.92
Provisions held at the beginning of the year 125.49 48.63
Provisions made during the year 228.48 24.29
Provisions held at the end of the year 353.97 72.92
Unamortised provision debited from ‘other reserves’ as at the end of the year - -
*Excluding 2 cases (previous year 4 cases) amounting to `98.96 crores (previous year `407.73 crores) reported as fraud
during the year and subsequently prudentially written off
2.1.46 Detail of Priority Sector Lending Certificates (PSLC) purchased by the Bank are set out below:
(` in crores)
Category 31 March, 2018 31 March, 2017
PSLC – General 9,416.00 600.00

PSLC – Micro Enterprises 300.00 -
PSLC – Small/Marginal Farmers - 5,000.00
Total 9,716.00 5,600.00
During the years ended 31 March, 2018 and 31 March, 2017, the Bank has not sold any Priority Sector Lending Certificates.
190
2.1.47 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 computes LCR on a daily basis and in accordance with RBI guidelines the quarterly disclosures of LCR contains data
on the simple average calculated on daily observations over a period of 90 days.
The Bank follows the criteria laid down by RBI for calculation of High Quality Liquid Assets (HQLA), gross outflows and inflows
within the next 30-day period. HQLA predominantly comprises Government securities 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.
The Bank monitors the concentration of funding sources from significant counterparties, significant 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 outflows and inflows are calculated for outstanding contracts in accordance with laid down valuation
methodologies. Cash flows, if any, from collaterals posted against derivatives are not considered.
Apart from the LCR position in all currencies put together, the Bank monitors the LCR in US Dollar currency which qualifies as
a significant currency 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
profile 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 significant outflows and inflows determined in accordance with RBI guidelines are included in the prescribed LCR
computation template.
Quantitative disclosure
(` in crores)
Quarter ended Quarter ended Quarter end Quarter ended
31 March, 2018 31 December, 2017 30 September, 2017 30 June, 2017
Total Total Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Unweighted Weighted Value (average) Value (average) Value (average) Value (average) Value (average) Value (average)
Value Value
(average) (average)
High Quality Liquid Assets

1 Total High Quality Liquid Assets (HQLAs) 79,973.26 73,116.53 71,834.98 71,379.76
Cash Outflows
2 Retail Deposits and deposits from small
business customers, 238,884.37 21,478.87 231,420.68 20,762.31 225,670.59 20,248.80 222,834.02 19,970.18
of which:
(i) Stable Deposits 48,191.37 2,409.57 47,595.16 2,379.76 46,365.18 2,318.26 46,264.28 2,313.21
(ii) Less Stable Deposits 190,693.00 19,069.30 183,825.52 18,382.55 179,305.41 17,930.54 176,569.74 17,656.97
3 Unsecured wholesale funding, 134,036.28 71,532.35 136,167.50 68,709.21 129,994.35 64,211.05 125,377.35 63,394.94
of which:
(i) Operational deposits (all counterparties) 40,656.37 10,158.50 44,378.91 11,089.40 40,099.06 10,019.37 36,389.68 9,091.82
191

Total Total Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Unweighted Weighted Value (average) Value (average) Value (average) Value (average) Value (average) Value (average)
Value Value
(average) (average)
(ii) Non-operational deposits (all
counterparties) 93,379.91 61,373.85 91,788.59 57,619.81 89,895.29 54,191.68 88,987.67 54,303.12
(iii) Unsecured debt - - - - - - - -
4 Secured wholesale funding 805.00 478.26 673.91 618.13
5 Additional requirements, of which 37,389.88 28,299.66 49,195.82 38,150.38 34,403.02 22,945.12 30,661.83 22,632.38
(i) Outflows related to derivative exposures
and other collateral requirements 26,614.31 26,614.31 33,064.39 33,064.39 21,302.10 21,302.10 21,433.96 21,433.97
(ii) Outflows related to loss of funding on
debt products 311.69 311.69 2,981.08 2,981.08 186.50 186.50 162.21 162.21
(iii) Credit and liquidity facilities 10,463.88 1,373.66 13,150.35 2,104.91 12,914.42 1,456.52 9,065.66 1,036.20
6 Other contractual funding obligations 4,128.51 4,038.52 4,003.84 3,913.84 4,035.69 3,945.69 3,591.80 3,501.80
7 Other contingent funding obligations 224,085.43 8,718.93 222,696.55 8,685.97 211,371.82 8,181.74 205,149.55 7,942.22
8 Total Cash Outflows 134,873.33 140,699.97 120,206.31 118,059.65
Cash Inflows
9 Secured lending
(eg. reverse repo) 673.75 - 673.52 - 1,323.93 - 2,799.40 -
10 Inflows from fully performing exposures 36,820.48 22,956.72 35,799.85 21,898.49 30,901.05 20,233.70 30,430.62 19,018.98
11 Other cash inflows 26,488.54 26,488.54 33,485.59 33,289.34 21,315.71 21,315.72 21,412.85 21,412.85
12 Total Cash Inflows 63,982.77 49,445.26 69,958.96 55,187.83 53,540.69 41,549.42 54,642.87 40,431.83
Total adjusted Value Total adjusted Value Total adjusted Value Total adjusted Value
21 Total HQLA 79,973.26 73,116.53 71,834.98 71,379.76
22 Total Net Cash Outflows 85,428.07 85,512.14 78,656.89 77,627.82
23 Liquidity Coverage Ratio% 93.61% 85.50% 91.33% 91.95%
Note: 1) Average for all the quarters is simple average of daily observations for the quarter.
2) Classification of inflows and outflows for determining the run off factors 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.
(` in crores)
Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Value (average) Value (average) Value (average) Value (average) Value (average) Value (average) Value (average) Value (average)
High Quality Liquid Assets
1 Total High Quality Liquid Assets 69,068.02 73,485.84 62,071.82 57,911.67
(HQLAs)
Cash Outflows
2 Retail Deposits and deposits from
small business customers, 223,062.16 19,876.45 227,335.01 20,322.23 214,721.91 19,443.96 206,725.61 18,700.11
of which:
(i) Stable Deposits 48,595.25 2,429.76 48,225.63 2,411.29 40,564.79 2,028.25 39,449.20 1,972.47
(ii) Less Stable Deposits 174,466.91 17,446.69 179,109.38 17,910.94 174,157.12 17,415.71 167,276.41 16,727.64
3 Unsecured wholesale funding, 114,310.99 57,658.68 105,538.02 51,751.28 107,610.78 51,052.33 104,027.70 52,853.63
of which:
(i) Operational deposits (all
counterparties) 31,269.64 7,812.33 33,120.72 8,275.36 35,890.75 8,967.75 32,443.10 8,105.92
192

Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted Total Unweighted Total Weighted
Value (average) Value (average) Value (average) Value (average) Value (average) Value (average) Value (average) Value (average)
(ii) Non-operational deposits (all
counterparties) 83,041.35 49,846.35 72,417.30 43,475.92 71,720.03 42,084.58 71,584.60 44,747.71
(iii) Unsecured debt - - - - - - - -
4 Secured wholesale funding 462.22 500.00 1,014.84 1,752.55
5 Additional requirements, 33,918.61 26,359.82 30,613.59 22,523.69 22,670.54 15,707.75 24,332.56 13,495.84
of which
(i) Outflows related to derivative
exposures and other collateral
requirements 24,578.76 24,578.76 19,194.47 19,194.47 14,927.66 14,927.67 12,354.13 12,354.13
(ii) Outflows related to loss of funding on
debt products 864.71 864.71 2,388.52 2,388.52 - - - -
(iii) Credit and liquidity facilities 8,475.14 916.35 9,030.60 940.70 7,742.88 780.08 11,978.43 1,141.71
6 Other contractual funding obligations 3,696.81 3,606.81 3,505.93 3,415.93 3,777.42 3,687.42 3,046.03 2,956.03
7 Other contingent funding obligations 199,879.47 7,735.28 196,561.11 7,658.97 181,755.53 7,110.29 180,297.54 6,994.77
8 Total Cash Outflows 115,699.26 106,172.10 98,016.59 96,752.93
Cash Inflows
9 Secured lending (eg. reverse repo) 7,332.28 - 9,101.00 - 2,570.67 - - -
10 Inflows from fully performing
exposures 23,518.10 18,575.43 27,200.87 18,767.80 26,214.48 17,804.76 24,594.96 17,307.41
11 Other cash inflows 24,605.83 24,605.83 19,063.95 19,063.95 14,913.06 14,913.06 12,401.32 12,401.32
12 Total Cash Inflows 55,456.21 43,181.26 55,365.82 37,831.75 43,698.21 32,717.82 36,996.28 29,708.73
Total adjusted Value Total adjusted Value Total adjusted Value Total adjusted Value
21 Total HQLA 69,068.02 73,485.84 62,071.82 57,911.67
22 Total Net Cash Outflows 72,518.00 68,340.35 65,298.77 67,044.20
23 Liquidity Coverage Ratio % 95.24% 107.53% 95.06% 86.38%
Note: 1) Average for quarter ended 31 March, 2017 is simple average of daily observations for the quarter. Average for
other quarters represents simple average of monthly observations for the respective quarters.
2) Classification of inflows and outflows for determining the run off factors 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.
2.2 Other disclosures
2.2.1 During the year, the Bank has appropriated `101.65 crores (previous year `755.57 crores) to the Capital Reserve, net of taxes
and transfer to statutory 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 `1.62 crores (previous year `1.75 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.
193
2.2.3 Earnings Per Share (‘EPS’)

The details of EPS computation is set out below:
31 March, 2018 31 March, 2017
Basic and Diluted earnings for the year (Net profit after tax) (` in crores) 275.68 3,679.28
Basic weighted average no. of shares (in crores) 244.51 238.93
Add: Equity shares for no consideration arising on grant of stock options under ESOP (in 0.75 0.94
crores)
Diluted weighted average no. of shares (in crores) 245.26 239.87
Basic EPS (`) 1.13 15.40
Diluted EPS (`) 1.12 15.34
Nominal value of shares (`) 2.00 2.00
Dilution of equity is on account of 7,517,504 (previous year 9,429,479) 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 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/five 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 eligible employees and Whole Time Directors of the subsidiary companies.
246,272,950 options have been granted under the Scheme till the previous year ended 31 March, 2017.
On 15 May, 2017, the Bank granted 6,885,700 stock options (each option representing entitlement to one equity share of
the Bank) to its eligible employees/directors of the Bank/subsidiary companies at a price of `503.00 per option.
Stock option activity under the Scheme for the year ended 31 March, 2018 is set out below:
Options Range of exercise Weighted Weighted average

outstanding prices (`) average remaining
exercise price contractual life
(`) (Years)
Outstanding at the beginning of the year 29,711,124 217.33 to 535.00 383.16 3.98
Granted during the year 6,885,750 503.00 503.00 -
Forfeited during the year (810,120) 306.54 to 535.00 470.15 -
Expired during the year (57,910) 217.33 to 289.51 275.32 -
Exercised during the year (6,173,935) 217.33 to 535.00 270.47 -
Outstanding at the end of the year 29,554,909 217.33 to 535.00 432.45 4.22
Exercisable at the end of the year 16,062,159 217.33 to 535.00 378.40 2.85
The weighted average share price in respect of options exercised during the year was `524.51
194
Options Range of exercise Weighted average Weighted average

outstanding prices (`) exercise price (`) remaining contractual
life (Years)
The weighted average share price in respect of options exercised during the year was `507.67.
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 profit and EPS would be as follows:
31 March, 2018 31 March, 2017
Net Profit (as reported) (` in crores) 275.68 3,679.28

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) (102.86) (101.47)
Net Profit (Proforma) (` in crores) 172.82 3,577.81
Earnings per share: Basic (in ` )
As reported 1.13 15.40
Proforma 0.71 14.97
Earnings per share: Diluted (in `)
Proforma 0.70 14.92
During the years ended, 31 March, 2018 and 31 March, 2017, no cost has been incurred by the Bank on ESOPs issued to
the employees of the Bank and employees of subsidiaries under the intrinsic value method.
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:
31 March, 2018 31 March, 2017
Dividend yield 1.16% 1.29%

Expected life 2.57-4.57years 2.57-4.57 years
Risk free interest rate 6.55% to 6.82% 7.15% to 7.39%
Volatility 31.80% to 33.56% 32.92% to 35.75%
195
Volatility is the measure of the amount by which a price has fluctuated or is expected to fluctuate 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, 2018 is `155.53 (previous year
`153.66).
2.2.5 Proposed Dividend

After making mandatory appropriations to Statutory Reserve, Investment Reserve, Reserve Fund and Capital Reserve, no
profits are available for distribution as dividend for the year ended 31 March, 2018. Accordingly, no dividend has been
recommended by the Board of Directors for the year ended 31 March, 2018.
Dividend paid during the year, represents dividend (`5 per equity share) for the year ended 31 March, 2017 paid pursuant
to approval of shareholders at Annual General Meeting held on 26 July, 2017.
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 identified 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.
Segment Principal Activities

Treasury 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.
Retail Banking 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, financial 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.
Unallocated assets and liabilities All items which are reckoned at an enterprise level are classified under this segment such as deferred
tax, money received against share warrants, tax paid in advance net of provision etc.
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 classified 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.
196
Segmental results are set out below:

(` in crores)
31 March, 2018
Corporate/ Other
Retail
Treasury Wholesale Banking Total
Banking
Banking Business
Segment Revenue
Gross interest income (external customers) 11,825.78 14,607.46 19,347.07 - 45,780.31
Other income 3,088.74 2,812.03 3,988.73 1,077.59 10,967.09
Total income as per Profit and Loss Account 14,914.52 17,419.49 23,335.80 1,077.59 56,747.40
Add/(less) inter segment interest income 49,386.08 5,402.38 17,298.22 - 72,086.68
Total segment revenue 64,300.60 22,821.87 40,634.02 1,077.59 128,834.08
Less: Interest expense (external customers) 13,305.80 810.02 13,046.76 - 27,162.58
Less: Inter segment interest expense 45,761.40 12,352.62 13,972.08 0.58 72,086.68
Less: Operating expenses 383.64 3,731.86 9,753.64 121.20 13,990.34
Operating profit 4,849.76 5,927.37 3,861.54 955.81 15,594.48
Less: Provision for non-performing assets/others* 1,759.93 11,852.41 1,860.57 - 15,472.91
Segment result 3,089.83 (5,925.04) 2,000.97 955.81 121.57
Less: Provision for tax (154.11)
Extraordinary profit/loss -
Net Profit 275.68
Segment assets 228,322.23 223,754.56 229,710.81 690.55 682,478.15
Unallocated assets 8,851.43
Total assets 691,329.58
Segment liabilities 230,818.80 132,836.77 263,380.50 25.08 627,061.15
Unallocated liabilities 823.17
Total liabilities 627,884.32
Net assets (2,496.57) 90,917.79 (33,669.69) 665.47 63,445.26
Capital expenditure for the year 15.15 225.30 501.71 15.14 757.30
Depreciation on fixed assets for the year 11.36 169.01 376.37 11.36 568.10
(` in crores)
31 March, 2017
Treasury Corporate/ Retail Banking Other Banking Total
Wholesale Business
Banking
Segment Revenue
Other income 4,642.18 2,958.55 3,088.44 1,002.14 11,691.31
Less: Interest expense (external customers) 12,484.43 663.30 13,301.31 - 26,449.04
197
31 March, 2017
Wholesale Business
Banking
Less: Provision for non-performing assets/others* 1,233.89 10,041.75 841.32 - 12,116.96

Segment result 2,858.71 (1,876.33) 3,600.86 884.32 5,467.56
Less: Provision for tax 1,788.28
Net Profit 3,679.28
Segment assets 209,865.71 198,331.45 186,937.38 746.92 595,881.46
Unallocated liabilities 3.61
Net assets 14,878.55 79,991.08 (45,394.61) 704.92 55,762.54
Capital expenditure for the year 26.75 210.64 417.94 13.37 668.71
*represents material non-cash items other than depreciation
Geographic Segments
(` in crores)
Domestic International Total
31 March, 2018 31 March, 2017 31 March, 2018 31 March, 2017 31 March, 2018 31 March, 2017
Revenue 54,366.73 53,597.11 2,380.67 2,636.36 56,747.40 56,233.47

Assets 630,322.00 547,215.05 61,007.58 54,252.62 691,329.58 601,467.67
Capital Expenditure
incurred 754.29 667.83 3.01 0.88 757.30 668.71
Depreciation
provided 565.53 506.00 2.57 2.80 568.10 508.80
2.2.7 Related party disclosure

The related parties of the Bank are broadly classified as:
a) Promoters
The Bank has identified the following entities as its Promoters.
• Administrator of the Specified 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
• Ms. Shikha Sharma (Managing Director & Chief Executive Officer)

• Mr. V. Srinivasan (Deputy Managing Director)
• Mr. Rajiv Anand [Executive Director (Retail Banking)]
• Mr. Rajesh Dahiya [Executive Director (Corporate Centre)]
198
c) Relatives of Key Management Personnel

Mr. Sanjaya Sharma, Ms. Usha Bharadwaj, Mr. Tilak Sharma, Ms. Tvisha Sharma, Dr. Sanjiv Bharadwaj, Dr. Prashant
Bharadwaj, Dr. Brevis Bharadwaj, Dr. Reena Bharadwaj, Ms. Gayathri Srinivasan, Mr. V. Satish, Ms. Camy Satish,
Ms. Ananya Srinivasan, Ms. Anagha Srinivasan, Ms. Geetha N., Ms. Chitra R., Ms. Sumathi N., Mr. S. Ranganathan,
Mr. R. Narayan, Ms. Gitanjali Anand, Ms. Tara Anand, Ms. Nandita Anand, Mr. P.L. Narain, Mr. P. Srinivas, Ms. Ratna
Rao Shekar, Ms. P. Kamashi, Ms. Hemant Dahiya, Ms. Arooshi Dahiya, Ms. Mallika Dahiya, Ms. Jal Medha, Ms. Pooja
Rathi, Mr. Jai Prakash Dahiya.
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
• A.Treds Limited
• Accelyst Solutions Private Limited with effect from 6 October, 2017
• Freecharge Payment Technologies Private Limited with effect from 6 October, 2017
e) Step down subsidiary companies

• Axis Capital USA LLC with effect from 2 August, 2017
Based on RBI guidelines, details of transactions with step down subsidiaries are not disclosed since there is only one
entity/party in this category.
The details of transactions of the Bank with its related parties during the year ended 31 March, 2018 are given below:
(` in crores)
ITEMS/RELATED PARTY Relatives
Key
of Key
Promoters Management Subsidiaries Total
Management
Personnel
Personnel
Dividend paid 343.52 1.08 - - 344.60

Dividend received - - - 256.06 256.06
Interest paid 545.58 0.22 0.19 15.48 561.47
Interest received 0.02 0.77 - 29.92 30.71
Investment of the Bank - - - 325.00 325.00
Investment in non-equity instruments of related party 393.00 - - 100.00 493.00
Investment of related party in the Bank 1,200.00 33.75 - - 1,233.75
Investment of related party in Hybrid capital/Bonds
of the Bank - - - - -
Redemption of Hybrid capital/Bonds of the Bank - - - - -
Purchase of investments 188.69 - - - 188.69
Sale of investments 868.73 1.12 - - 869.85
Management contracts - 12.18 - 15.63 27.81
Contribution to employee benefit fund 16.16 - - - 16.16
Placement of deposits 0.05 - - - 0.05
Non-funded commitments (issued) 0.20 - - 0.05 0.25
199

Key
of Key
Management
Personnel
Personnel
Call/Term lending to related party - - - 311.94 311.94

Swaps/Forward contracts - - - 131.65 131.65
Advance granted (net) - 7.99 - 858.24 866.23
Advance repaid 6.50 0.04 - - 6.54
Purchase of loans - - - 18.17 18.17
Sell down of loans (including undisbursed loan
commitments) - - - 64.87 64.87
Receiving of services 105.28 - - 785.10 890.38
Rendering of services 17.42 0.05 - 264.40 281.87
Sale of foreign exchange currency to related party - 1.29 - - 1.29
Refund of Share Capital from related party - - - - -
Other reimbursements from related party - - - 8.11 8.11
Other reimbursements to related party 0.75 - - 3.73 4.48
The balances payable to/receivable from the related parties of the Bank as on 31 March, 2018 are given below:
(` in crores)
Items/Related Party Promoters Key Relatives Subsidiaries Total
Management of Key
Personnel Management
Personnel
Call/Term lending to related party - - - 312.84 312.84

Deposits with the Bank 6,213.80 4.33 3.46 381.55 6,603.14
Advances 7.07 18.31 0.04 1,016.33 1,041.75
Investment of the Bank - - - 2,092.71 2,092.71
Investment in non-equity instruments of related party 205.70 - - - 205.70
Investment of related party in the Bank 135.29 0.50 - - 135.79
Non-funded commitments 3.35 - - 0.05 3.40
of the Bank 4,300.00 - - - 4,300.00
Payable under management contracts - 3.70 - - 3.70
Other receivables (net) - - - 35.52* 35.52
Other payables (net) - - - 51.85 51.85
200
The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 2018
are given below:
(` in crores)
Key
of Key
Management
Personnel
Personnel

Advances 16.76 18.31 0.09 1,402.57 1,437.73
Investment in non-equity instruments of the Bank 393.00 - - 100.00 493.00
Call lending - - - 312.89 312.89
Investment of related party in Hybrid Capital/Bonds
of the Bank 4,300.00 - - - 4,300.00
Other receivables (net) - - - 54.31 54.31
The details of transactions of the Bank with its related parties during the year ended 31 March, 2017 are given below:
(` in crores)
Management of Key
Personnel
Dividend paid 354.69 0.70 - - 355.39

Dividend received - - - 183.28 183.28
Interest paid 666.31 0.14 0.16 24.90 691.51
Interest received 1.61 0.55 - 14.51 16.67
Investment of the Bank - - - 116.75 116.75
Investment of related party in the Bank - 46.45 - - 46.45
of the Bank 1,050.00 - - - 1,050.00
Redemption of Hybrid capital/Bonds of the Bank 70.00 - - - 70.00
Purchase of investments - - - - -
Sale of investments 758.78 3.52 0.11 - 762.41
Management contracts - 11.35 - 16.91 28.26
Contribution to employee benefit fund 15.75 - - - 15.75
Purchase of fixed assets - - - - -
Sale of fixed assets - - - - -
201

Management of Key
Personnel
Placement of deposits - - - - -
Repayment of deposits - - - - -
Non-funded commitments (issued) 0.05 - - 31.00 31.05
Call/Term borrowing - - - - -
Call/Term lending - - - 10.05 10.05
Advance granted (net) 0.67 - - - 0.67
Advance repaid - 0.20 - 97.18 97.38
Advance to related party against rendering of
services - - - - -
Receiving of services 100.67 - - 610.55 711.22
Rendering of services 2.43 0.05 - 137.91 140.39
Purchase of equity shares from related party - - - - -
Refund of Share Capital from related party - - - 8.36 8.36
Other reimbursements from related party - - - 10.38 10.38
Other reimbursements to related party 0.41 - - 0.18 0.59
(` in crores)
Management of Key
Personnel
Borrowings from the Bank - - - - -

Call/Term lending to related party - - - - -
Advances 13.57 10.35 0.02 162.44 186.38
Non-funded commitments 3.14 - - - 3.14
of the Bank 4,300.00 - - - 4,300.00
Other receivables (net) - - - 50.58* 50.58
Swap/Forward contracts - - - - -
202
The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31 March, 2017
are given below:
(` in crores)
Management of Key
Personnel
Deposits with the Bank 9,003.33 10.82 3.53 1,874.66 10,892.34

Advances 25.70 10.52 0.08 1,327.66 1,363.96
Investment in non-equity instruments of the Bank 110.00 - - 347.32 457.32
Call borrowing - - - - -
Call lending - - - 67.75 67.75
Investment of related party in Hybrid Capital/Bonds 4,355.00 - - - 4,355.00
of the Bank
Other receivables (net) - - - 71.04 71.04
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 floated 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 defined under the Accounting Standard 18, Related Party Disclosure, as notified 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.
The significant transactions between the Bank and related parties during the year ended 31 March, 2018 and 31 March,
2017 are given below. A specific related party transaction is disclosed as a significant related party transaction wherever it
exceeds 10% of the aggregate value of all related party transactions in that category:
(` in crores)

31 March, 2018 31 March, 2017
Dividend paid
Life Insurance Corporation of India 165.04 174.43
Administrator of the Specified Undertaking of the Unit Trust of India 137.42 137.42
Dividend received
Axis Finance Limited 121.28 94.94
Axis Capital Limited 102.90 51.45
203

31 March, 2018 31 March, 2017
Axis Securities Limited 19.51 17.70

Axis Trustee Services Limited 12.38 12.38
Interest paid
Interest received
Axis Bank UK Limited 12.47 8.89
Life Insurance Corporation of India - 1.48
Investment of the Bank
Accelyst Solutions Private Limited 100.00 N.A.
Freecharge Payment Technologies Private Limited 100.00 N.A.
A.Treds Limited - 16.75
Investment in non-equity instruments of related party
United India Insurance Co. Limited 393.00 -
National Insurance Co. Limited - 110.00
Investment of related party in the Bank
Life Insurance Corporation of India 1,200.00 -
Ms. Shikha Sharma 17.36 29.66
Mr. V. Srinivasan 8.03 12.03
Investment of related party in Hybrid capital/Bonds of the Bank
Life Insurance Corporation of India - 1,000.00
United India Insurance Co. Limited - 50.00
Redemption of Hybrid capital/Bonds of the Bank
General Insurance Corporation Co. Limited - 50.00
Purchase of investments
Sale of investments
New India Assurance Co. Limited 421.03 200.00
General Insurance Corporation Co. Limited 230.00 390.00
United India Insurance Co. Limited 157.44 55.09
National Insurance Co. Limited 35.00 50.00
Management contracts
Axis Trustee Services Limited 3.10 3.43
204

31 March, 2018 31 March, 2017
Axis Finance Limited - 2.99

Contribution to employee benefit fund
Placement of deposits
Life Insurance Corporation of India 0.05 -
Call/Term lending to related party
Swaps/Forward contracts
Advance granted (net)
Axis Finance Limited 848.20 -
Advance repaid
Axis Finance Limited - 97.17
Purchase of loans
Axis Bank UK Limited 18.17 -
Sell down of loans (including undisbursed loan commitments)
Axis Bank UK Limited 64.87 -
Receiving of services
The Oriental Insurance Co. Limited 66.42 75.00
Rendering of services
Axis Asset Management Company Limited 249.67 121.38
Sale of foreign exchange currency to related party
Ms. Shikha Sharma 1.29 -
Refund of Share Capital from related party
Axis Securities Europe Limited N.A. 8.36
Other reimbursements from related party
Axis Asset Management Company Limited 2.55 3.05
Axis Bank UK Limited - 0.41
Other reimbursements to related party
Accelyst Solutions Private Limited 0.47 N.A.
205
2.2.8 Leases
Disclosure in respect of assets taken on operating lease
This comprise of office premises/ATMs, cash deposit machines, staff quarters, electronic data capturing machines and IT
equipment.
(` in crores)
31 March, 2018 31 March, 2017
Future lease rentals payable as at the end of the year:

- Not later than one year 718.43 682.25
- Later than one year and not later than five years 2,224.30 2,110.88
- Later than five years 1,844.71 1,446.88
Total of minimum lease payments recognised in the Profit and Loss Account for the year 800.26 756.48
Total of future minimum sub-lease payments expected to be received under non-cancellable
subleases 4.25 3.80
Sub-lease payments recognised in the Profit and Loss Account for the year 0.60 0.49
The Bank has sub-leased certain of its properties taken on lease.
There are no provisions relating to contingent rent.
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 & fixtures)
The movement in fixed assets capitalised as application software is given below:
(` in crores)
At cost at the beginning of the year 1,059.56 852.85

Additions during the year 232.10 206.75
Deductions during the year (0.02) (0.04)
Accumulated depreciation as at 31 March (857.75) (691.66)
Closing balance as at 31 March 433.89 367.90
Depreciation charge for the year 166.09 130.88
2.2.10 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under:
(` in crores)
Deferred tax assets on account of provisions for loan losses 6,626.72 4,732.25
Deferred tax assets on account of amortisation of HTM investments 11.28 12.80
Deferred tax assets on account of provision for employee benefits 92.73 97.45
Deferred tax assets on account of other items 273.64 311.17
Deferred tax assets 7,004.37 5,153.67
Deferred tax liabilities on account of depreciation on fixed assets 103.10 91.48
Deferred tax liabilities on account of other items 24.92 -
Deferred tax liabilities 128.02 91.48
Net Deferred tax assets 6,876.35 5,062.19
206
2.2.11 Employee Benefits

Provident Fund
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 deficiency shall be made good by the
Bank. Based on an actuarial valuation conducted by an independent actuary, there is no deficiency as at the Balance Sheet
date.
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and funded
status and amounts recognised in the Balance Sheet for the Provident Fund benefit plan.

Profit and Loss Account
Net employee benefit expenses (recognised in payments to and provisions for employees)
(` in crores)
31 March, 2018 31 March, 2017
Current Service Cost 88.53 76.80

Interest on Defined Benefit Obligation 127.95 115.68
Expected Return on Plan Assets (171.00) (135.93)
Net Actuarial Losses/(Gains) recognised in the year 43.05 20.25
Total included in “Employee Benefit Expense” [Schedule 16(I)] 88.53 76.80
Actual Return on Plan Assets 140.05 136.51

Balance Sheet
Details of provision for provident fund
(` in crores)
31 March, 2018 31 March, 2017
Fair Value of Plan Assets 2,004.57 1,687.15

Present Value of Funded Obligations (2,004.57) (1,687.15)
Net Asset - -
Amounts in Balance Sheet
Liabilities - -
Assets - -
Net Asset (included under Schedule 11 – Other Assets) - -

Changes in the present value of the defined benefit obligation are as follows:
(` in crores)
31 March, 2018 31 March, 2017
Change in Defined Benefit Obligation

Opening Defined Benefit Obligation 1,687.15 1,437.90
Interest Cost 127.95 115.68
Actuarial Losses/(Gains) 12.10 20.83
207
31 March, 2018 31 March, 2017
Employees Contribution 200.77 181.16

Liability transferred from/to other companies (14.62) (22.88)
Benefits Paid (97.31) (122.34)
Closing Defined Benefit Obligation 2,004.57 1,687.15

Changes in the fair value of plan assets are as follows:
(` in crores)
31 March, 2018 31 March, 2017
Change in the Fair Value of Assets

Opening Fair Value of Plan Assets 1,687.15 1,437.90
Expected Return on Plan Assets 171.00 135.93
Actuarial Gains/(Losses) (30.95) 0.58
Employer contribution during the period 88.53 76.80
Employee contribution during the period 200.77 181.16
Assets transferred from/to other companies (14.62) (22.88)
Closing Fair Value of Plan Assets 2,004.57 1,687.15

Experience adjustments*
(` in crores)
31 March, 2018 31 March, 2017 31 March, 2016 31 March, 2015 31 March, 2014
Defined Benefit Obligations 2,004.57 1,687.15 1,437.90 1,240.83 1,013.25

Plan Assets 2,004.57 1,687.15 1,437.90 1,240.83 1,013.25
Surplus/(Deficit) - - - - -
Experience Adjustments on Plan
Liabilities 12.10 20.83 12.08 (1.78) 53.03
Assets (30.95) 0.58 (6.16) (3.99) 41.42
* information provided to the extent available with the Bank
Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets
31 March, 2018 31 March, 2017
% %
Government securities 53.75 53.74
Bonds, debentures and other fixed income instruments 42.16 43.47
Equity shares 3.79 1.66
Others 0.30 1.13
208
31 March, 2018 31 March, 2017
Discount rate for the term of the obligation 7.95% 7.40%

Average historic yield on the investment portfolio 8.90% 9.11%
Discount rate for the remaining term to maturity of the investment portfolio 7.68% 6.93%
Expected investment return 9.17% 9.58%
Guaranteed rate of return 8.55% 8.65%
The contribution to the employee’s provident fund (including Employee Pension Scheme) amounted to `148.98 crores (previous
year `133.67crores) for the year.
Superannuation
The Bank contributed `15.91 crores (previous year `15.33 crores) to the employees’ superannuation plan for the year.
National Pension Scheme (NPS)
During the year, the Bank has contributed `3.82 crores (previous year `2.45 crores) to the NPS for employees who had opted
for the scheme.
Leave Encashment
The actuarial liability of compensated absences of accumulated privileged leave of the employees of the Bank is given below:
(` in crores)
31 March, 2018 31 March, 2017
Actuarial Liability – Privilege Leave 243.82 247.46

Total Expense included in Schedule 16(I) 47.33 79.87
Assumptions
Discount rate 7.95% p.a. 7.40% p.a.
Salary escalation rate 7.00% p.a. 7.00% p.a.
Gratuity
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account and funded
status and amounts recognised in the Balance Sheet for the Gratuity benefit plan.

(` in crores)
31 March, 2018 31 March, 2017

Net Actuarial Losses/(Gains) recognised in the year (16.24) 25.32
Past Service Cost 28.33 -
209

Balance Sheet

Details of provision for gratuity
(` in crores)
31 March, 2018 31 March, 2017
Fair Value of Plan Assets 323.72 279.65

Present Value of Funded Obligations (342.56) (284.83)
Net Asset (18.84) (5.18)
Liabilities (18.84) 5.18
Assets - -
Net Asset (included under Schedule 11 – Other Assets) (18.84) (5.18)

(` in crores)
31 March, 2018 31 March, 2017

Opening Defined Benefit Obligation 284.83 232.55
Actuarial Losses/(Gains) (11.65) 23.68
Past service cost 28.33 -
Closing Defined Benefit Obligation 342.56 284.83

(` in crores)
31 March, 2018 31 March, 2017

Opening Fair Value of Plan Assets 279.65 232.56
Actuarial Gains/(Losses) 4.59 (1.64)
Contributions by Employer 38.63 54.75
Closing Fair Value of Plan Assets 323.72 279.65

Experience adjustments
(` in crores)
Defined Benefit Obligations 342.56 284.83 232.55 206.96 157.72

Plan Assets 323.72 279.65 232.56 209.49 163.35
Surplus/(Deficit) (18.84) (5.18) 0.01 2.53 5.63
Liabilities 4.39 6.64 2.78 1.06 7.67
Assets 4.59 (1.64) (5.36) 1.27 2.33
210

31 March, 2018 31 March, 2017
% %
Money market instruments 19.71 8.66
Others 0.22 2.54

Principal actuarial assumptions at the Balance Sheet date:
31 March, 2018 31 March, 2017
Discount Rate 7.95% p.a. 7.40% p.a.

Expected Rate of Return on Plan Assets 7.50% p.a. 7.50% p.a.
Salary Escalation Rate 7.00% p.a. 7.00% p.a.
Employee Turnover
- 18 to 30 (age in years) 20.00% 20.00%
- 31 to 44 (age in years) 10.00% 10.00%
- 45 to 59 (age in years) 5.00% 5.00%
The estimates of future salary increases considered in actuarial valuation take account of inflation, 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 certified 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:
(` in crores)
31 March, 2018 31 March, 2017

Reductions on account of payments during the year (0.15) -
Reductions on account of reversals during the year (0.27) (3.89)
211
b) Other liabilities include provision for reward points made on actuarial basis, the movement of which is set out below:
(` in crores)
31 March, 2018 31 March, 2017
Opening provision at the beginning of the year 110.45 127.38

Provision made during the year 89.05 32.17
Closing provision at the end of the year 143.94 110.45
c) Movement in provision for other contingencies is set out below:
(` in crores)
31 March, 2018 31 March, 2017

Provision made during the year 342.25 1,036.59
The above provision includes contingent provision for advances/other exposures, legal cases and other contingencies.
2.2.13 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.
2.2.14 Corporate Social Responsibility (CSR)
a) Amount required to be spent by the Bank on CSR during the year `186.82 crores (previous year `196.44 crores).
b) Amount spent towards CSR during the year and recognized as expense in the statement of profit and loss on CSR related
activities is `133.77 crores (previous year `135.39 crores), which comprise of following -
(` in crores)
31 March, 2018 31 March, 2017
In cash Yet to be paid Total In cash Yet to be paid Total

in cash (i.e. in cash (i.e.
provision) provision)
Construction/ acquisition of any asset 2.22 - 2.22 2.80 10.40 13.20
On purpose other than above 124.28 7.27 131.55 106.78 15.41 122.19
2.2.15 Description of contingent liabilities

a) Claims against the Bank not acknowledged as debts
These represent claims filed 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 `42.70 crores as on 31 March, 2018 (previous year `26.23 crores)
towards claims assessed as probable.
b) Liability for partly paid investments
This represents amounts remaining unpaid towards liability for partly paid investments.
212
c) 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 flows by way of
interest/principal in two currencies, based on ruling spot rates. Interest rate swaps are commitments to exchange fixed
and floating interest rate cash flows. Interest rate futures are standardised, exchange-traded contracts that represent a
pledge to undertake a certain interest rate transaction at a specified price, on a specified 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 specified amount of currency at a specific price within a specified time period or at a specified
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 specified 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 specified price.
d) 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 fulfill
its financial or performance obligations.
e) 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.
f) 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,
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, through one of its overseas branches, had arranged Trade Credit (Buyers Credit loans) against Letters of
Undertaking (LOUs) issued by Punjab National Bank (PNB), which were subsequently alleged as fraudulent by PNB. Prior
to this declaration by PNB, such buyer’s credit loans were sold down in the secondary market by the overseas branch to
various participating banks under Risk Participation Agreements. As on 31 March, 2018, there is no funded exposure
outstanding in the overseas branch pursuant to such sell down. PNB has repaid the aggregate amount of all LOUs due
upto 31 March 2018, pursuant to an undertaking issued to PNB, and made remittance to the overseas branch which has
been passed on for onward payment to the participating banks. Based on the facts and circumstances of the case, internal
findings and legal opinion, the Bank does not expect PNB has any valid right at this point in time, for refund by the Bank
of the aggregate amount paid by PNB towards LOUs due upto 31 March, 2018 . However, as a matter of prudence, the
aggregate amount of LOUs issued by PNB to the overseas branch against which buyer’s credit was extended, aggregating
to `3,847.26 crores has been disclosed as part of Contingent Liabilities in the Balance Sheet.
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 financial statements, where applicable.
2.2.16 Previous year figures have been regrouped and reclassified, where necessary to conform to current year’s presentation.
For Axis Bank Ltd.
Sanjiv Misra
Chairman
Samir K. Barua S. Vishvanathan Rakesh Makhija Shikha Sharma

Director Director Director Managing Director & CEO

213
INDEPENDENT AUDITOR’S REPORT

Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of Axis Bank Limited (hereinafter referred to as ”the Bank”),
its subsidiaries (the Holding Company and its subsidiaries together referred to as “the Group”), comprising of the consolidated
Balance Sheet as at March 31, 2018, the consolidated Statement of Profit and Loss and consolidated Cash Flow Statement for the
year then ended, and a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the
consolidated financial statements”).
Management’s Responsibility for the Consolidated Financial Statements

The Bank’s Board of Directors is responsible for the preparation of these consolidated financial statements in terms of the requirement
of the Companies Act, 2013 (“the Act”) that give a true and fair view of the consolidated financial position, consolidated financial
performance and consolidated cash flows of the Group in accordance with accounting principles generally accepted in India, including
the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014, the
Companies (Accounting Standards) Amendment Rules, 2016, the provisions of Section 29 of the Banking Regulation Act,1949 and
the circulars, guidelines and directions issued by the Reserve Bank of India (‘RBI’) from time to time. The respective Board of Directors
of the companies included in the Group are responsible for 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; the
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 financial controls, that were operating effectively for ensuring the
accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give
a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of
preparation of the consolidated financial statements by the Directors of the Bank, as aforesaid.
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. While conducting the 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 specified 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 financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement
of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
financial control relevant to the Bank’s preparation of the consolidated financial statements that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of the accounting estimates made by the Bank’s Board of Directors, as well as evaluating the
overall presentation of the consolidated financial statements. We believe that the audit evidence obtained by us and the audit evidence
obtained by the other auditors in terms of their reports referred to in paragraph (a) of the Other Matters paragraph below, is sufficient
and appropriate to provide a basis for our audit opinion on the consolidated financial statements.
Opinion
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid consolidated financial
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 consolidated state of affairs of the Group, as at March 31, 2018, their
consolidated profit, and their consolidated cash flows for the year ended on that date.
Report on Other Legal and Regulatory Requirements

As required by section 143 (3) of the Act, we report, to the extent applicable, that:
(a) The other auditors whose reports we have relied upon 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 of the aforesaid consolidated financial
statements;
(b) In our opinion proper books of account as required by law relating to preparation of the aforesaid consolidation of the financial
statements have been kept so far as it appears from our examination of those books and reports of the other auditors;
214
(c) The consolidated Balance Sheet, consolidated Statement of Profit and Loss, and consolidated Cash Flow Statement dealt with by
this Report are in agreement with the books of account maintained for the purpose of preparation of the consolidated financial
statements;
(d) In our opinion, the aforesaid consolidated financial statements comply with the Accounting Standards specified under section
133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment
Rules, 2016;
(e) On the basis of the written representations received from the directors of the Bank as on March 31, 2018 taken on record by the
Board of Directors of the Bank and the reports of the statutory auditors who are appointed under Section 139 of the Act, of its
subsidiary companies incorporated in India, none of the directors of the Group’s companies, incorporated in India is disqualified
as on March 31, 2018 from being appointed as a director in terms of Section 164 (2) of the Act.
(f) With respect to the adequacy and the operating effectiveness of the internal financial controls over financial reporting of the
Bank and its subsidiary companies incorporated in India, refer to our separate report in “Annexure 1” to this report;
(g) 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:
i. The consolidated financial statements disclose the impact of pending litigations on its consolidated financial position of the
Group - Refer Schedule 12.I, 18.2.1.14 (a) and 18.2.1.14 (f) to the consolidated financial statements;
ii. Provision has been made in the consolidated financial statements, as required under the applicable law or accounting
standards, for material foreseeable losses, if any, on long-term contracts including derivative contracts - Refer Schedule
18.2.1.14 (f) to the consolidated financial statements in respect of such items as it relates to the Group; and
iii. There has been no delay in transferring amounts, required to be transferred, to the Investor Education and Protection Fund
by the Bank, its subsidiaries, incorporated in India during the year ended March 31, 2018.
Other Matter
(a) The accompanying consolidated financial statements include total assets of Rs.8,628 crores as at March 31, 2018, and total
revenues and net cash inflows of Rs.1,464 crores and Rs.112 crores respectively for the year ended on that date, in respect of
subsidiaries, which have been audited by other auditors, which financial statements, other financial information and auditor’s
reports have been furnished to us by the management. Our opinion, in so far as it relates amounts and disclosures included in
respect of these subsidiaries, and our report in terms of sub-sections (3) of Section 143 of the Act in so far as it relates to the
aforesaid subsidiaries, is based solely on the reports of such other auditors.
Our opinion above on the consolidated financial statements, and our report on Other Legal and Regulatory Requirements above, is
not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditors and
the financial statements.

per Viren H. Mehta

Partner

Date: 16 May 2018
215
INDEPENDENT AUDITOR’S REPORT (CONT.)

ANNEXURE TO THE INDEPENDENT AUDITOR’S REPORT OF EVEN DATE ON THE CONSOLIDATED FINANCIAL
STATEMENTS OF AXIS BANK LIMTED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143 of the Companies Act,
2013 (“the Act”)
In conjunction with our audit of the consolidated financial statements of Axis Bank Limited as of and for the year ended March 31,
2018, we have audited the internal financial controls over financial reporting of Axis Bank Limited (hereinafter referred to as the
“Bank”) and its subsidiary companies, which are companies incorporated in India, as of that date.
Management’s Responsibility for Internal Financial Controls

The respective Board of Directors of the Bank, its subsidiary companies which are companies incorporated in India, are responsible for
establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the
Bank considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over
Financial Reporting issued by the Institute of Chartered Accountants of India (the “Guidance Note”). These responsibilities include the
design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly
and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation
of reliable financial information, as required under the Act, in so far as they apply to the Bank and Guideline issued by the Reserve
Bank of India
Our responsibility is to express an opinion on the Bank's internal financial controls over financial reporting based on our audit. We
conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued
by the Institute of Chartered Accountants of India (the “Guidance Note”) and the Standards on Auditing, both, issued by Institute of
Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit
of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and
perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was
established and maintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over
financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining
an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing
and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend
on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to
fraud or error.
We believe that the audit evidence we have obtained and the audit evidence obtained by the other auditors in terms of their reports
referred to in the Other Matters paragraph below, is sufficient and appropriate to provide a basis for our audit opinion on the internal
financial controls system over financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding
the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures
that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company
are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could
have a material effect on the financial statements.
216
Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper
management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any
evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial
control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the
policies or procedures may deteriorate.
Opinion
In our opinion, the Bank, its subsidiaries, which are companies incorporated in India, has maintained in all material respects, an
adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were
operating effectively as at March 31, 2018, based on the internal control over financial reporting criteria established by the Bank
considering the essential components of internal control stated in the Guidance Note.
Other Matters
Our report under Section 143(3)(i) of the Act on the adequacy and operating effectiveness of the internal financial controls over
financial reporting of the Bank, insofar as it relates to 3 subsidiaries companies which are incorporated in India, is based on the
corresponding report of the auditor of such subsidiary incorporated in India.

per Viren H. Mehta

Partner

Date: 16 May 2018
217
CONSOLIDATED BALANCE SHEET

(` in Thousands)
Schedule As at As at
No. 31-03-2018 31-03-2017
Capital and Liabilities
Capital 1 5,133,078 4,790,072
Reserves & Surplus 2 636,941,012 559,013,433
Minority Interest 2A 695,129 613,066
Deposits 3 4,556,577,642 4,149,826,752
Borrowings 4 1,557,670,924 1,124,547,615
Other Liabilities and Provisions 5 280,015,886 275,829,172
Total 7,037,033,671 6,114,620,110
Assets
Cash and Balances with Reserve Bank of India 6 354,810,648 308,579,478
Balances with Banks and Money at Call and Short Notice 7 84,297,483 201,081,701
Investments 8 1,530,367,120 1,290,183,496
Advances 9 4,498,436,451 3,811,646,673
Fixed Assets 10 40,488,204 38,102,336
Other Assets 11 528,633,765 465,026,426
Total 7,037,033,671 6,114,620,110
Contingent Liabilities 12 7,391,397,673 6,731,485,692
Bills for Collection 495,656,026 810,553,648
Schedules referred to above form an integral part of the Consolidated Balance Sheet


Date : 16 May, 2018 Girish V. Koliyote Jairam Sridharan V. Srinivasan B. Baburao

Place: Mumbai Company Secretary Chief Financial Officer Deputy Managing Director Director
218
CONSOLIDATED PROFIT & LOSS ACCOUNT

(` in Thousands)
Schedule Year ended Year ended
No. 31-03-2018 31-03-2017
I Income
Interest earned 13 466,140,592 451,750,929
Other income 14 118,626,154 124,216,034
Total 584,766,746 575,966,963
II Expenditure
Interest expended 15 276,036,927 267,893,474
Operating expenses 16 147,883,644 127,256,277
Provisions and contingencies 18 (2.1.1) 156,205,947 141,146,907
Total 580,126,518 536,296,658
III Net Profit For The Year 4,640,228 39,670,305
Minority interest (82,063) (140,020)
IV Consolidated Net Profit Attributable To Group 4,558,165 39,530,285
Balance in Profit & Loss Account brought forward from previous year 248,815,549 240,026,960
V Amount Available For Appropriation 253,373,714 279,557,245
VI Appropriations:
Transfer to Statutory Reserve 689,203 9,198,198
Transfer to Reserve Fund u/s 45 IC of RBI Act, 1934 418,800 330,600
Transfer to/(from) Investment Reserve 1,034,894 (871,671)
Transfer to Capital Reserve 1,016,558 7,555,740
Transfer to General Reserve 80,595 68,737
Transfer to/(from) Reserve Fund 16,158 17,522
Dividend paid (includes tax on dividend) 18 (2.1.6) 14,574,034 14,442,570
Balance in Profit & Loss Account carried forward 235,543,472 248,815,549
Total 253,373,714 279,557,245
VII Earnings Per Equity Share 18 (2.1.4)
(Face value `2/- per share) (Rupees)
Basic 1.86 16.54
Diluted 1.86 16.48
Schedules referred to above form an integral part of the Consolidated Profit and Loss Account



219
CONSOLIDATED CASH FLOW STATEMENT

(` in Thousands)

31-03-2018 31-03-2017
Cash flow from operating activities
Net profit before taxes 5,576,753 59,398,037
Adjustments for:
Depreciation on fixed assets 5,905,799 5,266,715
Depreciation on investments (2,076,781) 2,441,831
Amortisation of premium on Held to Maturity investments 2,853,172 1,401,509
Provision for Non Performing Assets (including bad debts) 166,305,686 111,570,646
Provision on standard assets (1,243,679) 3,643,427
(Profit)/Loss on sale of fixed assets (net) 167,090 38,846
Provision for country risk (199,434) 199,434
Provision for restructured assets/strategic debt restructuring (3,071,587) 2,905,233
Provision on unhedged foreign currency exposure (93,000) (138,800)
Provision for other contingencies (4,433,847) 657,383
169,690,172 187,384,261
Adjustments for:
(Increase)/Decrease in investments (77,302,723) 126,928,387
(Increase)/Decrease in advances (833,046,826) (465,397,348)
Increase /(Decrease) in deposits 406,750,890 566,804,821
(Increase)/Decrease in other assets 20,390,878 (102,041,288)
Increase/(Decrease) in other liabilities & provisions (37,559,206) 61,623,469
Direct taxes paid (32,826,167) (53,216,114)
Net cash flow from operating activities (383,902,982) 322,086,188
Cash flow from investing activities
Purchase of fixed assets (8,549,837) (7,737,105)
(Increase)/Decrease in Held to Maturity investments (88,085,436) (116,759,648)
Purchase of Freecharge business (3,954,556) -
Proceeds from sale of fixed assets 120,499 65,195
Net cash used in investing activities (100,469,330) (124,431,558)
220
(` in Thousands)

31-03-2018 31-03-2017
Cash flow from financing activities
Proceeds from issue of subordinated debt, perpetual debt & upper Tier II instruments (net of 81,109,364 55,458,748
repayment)
Increase/(Decrease) in borrowings (excluding subordinated debt, perpetual debt & upper Tier II 258,473,945 (69,388,454)
instruments)
Proceeds from issue of share capital 343,006 24,409
Proceeds from share premium (net of share issue expenses) 87,986,544 3,256,270
Payment of dividend (14,574,034) (14,442,570)
Increase in minority interest 82,063 222,520
Net cash generated from financing activities 413,420,888 (24,869,077)
Effect of exchange fluctuation translation reserve (43,096) (152,465)
Net cash and cash equivalents taken over on acquisition of Freecharge Business 441,472 -
Net increase in cash and cash equivalents (70,553,048) 172,633,088
Cash and cash equivalents at the beginning of the year 509,661,179 337,028,091
Notes to the Cash Flow Statement:
1. Cash and cash equivalents includes the following
Cash and Balances with Reserve Bank of India (Refer Schedule 6) 354,810,648 308,579,478
Balances with Banks and Money at Call and Short Notice (Refer Schedule 7) 84,297,483 201,081,701



221
SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

Schedule 1 - Capital
(` in Thousands)
As at As at
31-03-2018 31-03-2017
Authorised Capital
4,250,000,000 (Previous year - 4,250,000,000) Equity Shares of `2/- each 8,500,000 8,500,000
Issued, Subscribed and Paid-up capital
2,566,538,936 (Previous year - 2,395,036,109) Equity Shares of `2/- each fully paid-up [refer 5,133,078 4,790,072
Schedule 18 (1) (a)]
Schedule 2 - Reserves and Surplus

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Statutory Reserve
Opening Balance 115,070,523 105,872,325
Additions during the year 689,203 9,198,198
115,759,726 115,070,523
II. Share Premium Account
Opening Balance 170,128,129 166,871,859
Less: Share issue expenses (136,114) -
258,114,673 170,128,129
III. Investment Reserve Account
Opening Balance - 871,671
Additions during the year 1,034,894 -
Deductions during the year - (871,671)
1,034,894 -
IV. General Reserve
Additions during the year 80,595 68,737
3,944,169 3,863,574
V. Capital Reserve
Opening Balance 18,656,395 11,100,655
19,672,953 18,656,395
VI. Foreign Currency Translation Reserve [Refer Schedule 17 (4.5)]
1,520,651 1,563,747
VII. Reserve Fund
74,974 58,816
VIII. Reserve Fund u/s 45 IC of RBI Act, 1934
1,275,500 856,700
IX. Balance in Profit & Loss Account 235,543,472 248,815,549
Total 636,941,012 559,013,433
222
Schedule 2A - Minority Interest

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Minority Interest
Increase during the year 82,063 222,520
Closing Minority Interest 695,129 613,066
Schedule 3 - Deposits
(` in Thousands)
As at As at
31-03-2018 31-03-2017
A. I. Demand Deposits
(i) From banks 58,788,628 47,922,195
(ii) From others 896,457,745 817,318,279
II. Savings Bank Deposits 1,482,021,884 1,260,484,706
III. Term Deposits
(i) From banks 125,623,957 112,242,565
(ii) From others 1,993,685,428 1,911,859,007
Total 4,556,577,642 4,149,826,752
B. I. Deposits of branches in India 4,509,338,193 4,100,577,380
II. Deposits of branches/subsidiaries outside India 47,239,449 49,249,372
Total 4,556,577,642 4,149,826,752
Schedule 4 - Borrowings
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Borrowings in India
(i) Reserve Bank of India 61,000,000 -
(ii) Other banks# 25,850,612 39,285,727
(iii) Other institutions & agencies** 720,233,294 513,644,605
II. Borrowings outside India$ 750,587,018 571,617,283
Total 1,557,670,924 1,124,547,615
Secured borrowings included in I & II above 90,657,346 30,134,771
# Borrowings from other banks include Subordinated Debt of `35.60 crores (previous year `35.00 crores) in the nature of Non-Convertible
Debentures and Perpetual Debt of `50.00 crores (previous year Nil) [Also refer Note 18 (2.1.2)]
** Borrowings from other institutions & agencies include Subordinated Debt of `21,669.40 crores (previous year `16,370.00 crores) in the nature
of Non-Convertible Debentures and Perpetual Debt of `6,950.00 crores (previous year `3,500.00 crores) [Also refer Note 18 (2.1.2)]
$ Borrowings outside India include Upper Tier II instruments of Nil (previous year `389.06 crores) [Also refer Note 18 (2.1.2)]
223
Schedule 5 - Other Liabilities and Provisions

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Bills payable 49,175,679 39,525,430

II. Inter-office adjustments (net) - -
III. Interest accrued 32,174,199 20,893,390
IV. Proposed dividend (includes tax on dividend) [Refer Schedule 18 (2.1.6)] - -
V. Contingent provision against standard assets 22,482,485 23,678,835
VI. Others (including provisions) 176,183,523 191,731,517
Total 280,015,886 275,829,172
Schedule 6 - Cash and Balances with Reserve Bank of India

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Cash in hand (including foreign currency notes) 52,580,423 63,579,242

II. Balances with Reserve Bank of India:
(i) in Current Account 208,230,225 183,000,236
(ii) in Other Accounts 94,000,000 62,000,000
Total 354,810,648 308,579,478
Schedule 7 - Balances with Banks and Money at Call and Short Notice
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. In India
(i) Balance with Banks
(a) in Current Accounts 1,313,367 2,250,573
(b) in Other Deposit Accounts 33,925,743 21,371,450
(ii) Money at Call and Short Notice
(a) With banks - -
(b) With other institutions - 143,221,546
Total 35,239,110 166,843,569
II. Outside India
(i) in Current Accounts 24,898,340 12,531,206
(ii) in Other Deposit Accounts 8,409,416 14,755,151
(iii) Money at Call & Short Notice 15,750,617 6,951,775
Total 49,058,373 34,238,132
Grand Total (I+II) 84,297,483 201,081,701
224
Schedule 8 - Investments
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Investments in India in -
(i) Government Securities## 1,013,546,179 905,980,625
(ii) Other approved securities - -
(iii) Shares 15,255,309 13,228,030
(iv) Debentures and Bonds 306,537,689 265,277,040
(v) Investment in Joint Ventures - -
(vi) Others (Mutual Fund units, CD/CP, PTC etc.) 156,958,643 69,969,442
Total Investments in India 1,492,297,820 1,254,455,137
II. Investments outside India in -
(i) Government Securities (including local authorities) 29,224,533 26,340,917
(ii) Subsidiaries and/or joint ventures abroad - -
(iii) Others (Equity Shares and Bonds) 8,844,767 9,387,442
Total Investments outside India 38,069,300 35,728,359
Grand Total (I+II) 1,530,367,120 1,290,183,496
##
Includes securities costing `27,588.43 crores (previous year `27,179.69 crores) pledged for availment of fund transfer facility, clearing facility
and margin requirements
Schedule 9 - Advances
(` in Thousands)
As at As at
31-03-2018 31-03-2017
A. (i) Bills purchased and discounted 128,131,247 67,496,591

(ii) Cash credits, overdrafts and loans repayable on demand 1,374,894,067 1,043,804,891
(iii) Term loans# 2,995,411,137 2,700,345,191
Total 4,498,436,451 3,811,646,673
B. (i) Secured by tangible assets$ 3,196,305,855 2,913,893,698
(ii) Covered by Bank/Government Guarantees&& 40,004,436 66,920,973
(iii) Unsecured 1,262,126,160 830,832,002
Total 4,498,436,451 3,811,646,673
C. I. Advances in India
(i) Priority Sector 986,081,073 938,737,979
(ii) Public Sector 48,271,057 29,134,862
(iii) Banks 30,575,770 5,612,644
(iv) Others 2,851,146,051 2,317,656,723
Total 3,916,073,951 3,291,142,208
II. Advances Outside India
(i) Due from banks 78,991,174 26,861,261
(ii) Due from others -
(a) Bills purchased and discounted 32,721,313 25,448,317
(b) Syndicated loans 89,146,565 103,681,545
(c) Others 381,503,448 364,513,342
Total 582,362,500 520,504,465
Grand Total [CI+CII] 4,498,436,451 3,811,646,673
# Net of borrowings under Inter Bank Participation Certificate (IBPC) `1,399.00 crores (previous year Nil), includes lending under IBPC `1,303.32
crores (previous year Nil)
$ Includes advances against book debts
&& Includes advances against L/Cs issued by banks
225
Schedule 10 - Fixed Assets
(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Premises
Gross Block
Additions during the year - 41,517
Total 18,331,432 18,331,432
Depreciation
As at the beginning of the year 1,165,371 860,688
Charge for the year 304,680 304,683
Net Block 16,861,381 17,166,061
II. Other fixed assets (including furniture & fixtures)
Gross Block
Additions on acquisition 100,697 -
Deductions during the year (1,204,850) (558,943)
Total 53,911,389 47,067,750
Depreciation
As at the beginning of the year 29,052,426 24,543,452
Additions on acquisition 54,155 -
Charge for the year 5,601,119 4,962,032
Net Block 20,108,905 18,015,324
III. Capital Work-in-Progress (including capital advances) 3,517,918 2,920,951
Grand Total (I+II+III) 40,488,204 38,102,336
Schedule 11 - Other Assets

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Inter-office adjustments (net) - -

II. Interest Accrued 56,936,207 52,743,566
III. Tax paid in advance/tax deducted at source (net of provisions) 18,590,140 5,279,496
IV. Stationery and stamps 3,829 19,790
V. Non banking assets acquired in satisfaction of claims 22,086,151 22,086,151
VI. Others #@$
431,017,438 384,897,423
Total 528,633,765 465,026,426
# Includes deferred tax assets of `6,911.32 crores (previous year `5,071.86 crores) [Refer Schedule 18 (2.1.11)]
@ Includes Priority Sector Shortfall Deposits of `21,479.30 crores (previous year `17,107.12 crores)
$ Includes goodwill on consolidation of `293.01 crores (previous year Nil) [Refer Schedule 18 (1) (b)]
226
Schedule 12 - Contingent Liabilities

(` in Thousands)
As at As at
31-03-2018 31-03-2017
I. Claims against the Group not acknowledged as debts 5,219,729 4,753,308

II. Liability for partly paid investments 216,000 -
III. Liability on account of outstanding forward exchange and derivative contracts :
a) Forward Contracts 3,148,018,991 2,681,952,184
b) Interest Rate Swaps, Currency Swaps, Forward Rate Agreement & Interest Rate Futures 1,991,159,249 2,031,704,307
c) Foreign Currency Options 593,425,899 493,833,247
Total (a+b+c) 5,732,604,139 5,207,489,738
IV. Guarantees given on behalf of constituents
In India 762,933,313 763,736,463
Outside India 86,944,398 47,592,829
V. Acceptances, endorsements and other obligations 324,145,235 335,475,904
VI. Other items for which the Group is contingently liable 479,334,859 372,437,450
Grand Total (I+II+III+IV+V+VI) [Refer Schedule 18 (2.1.14)] 7,391,397,673 6,731,485,692
227
SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT

Schedule 13 - Interest Earned

(` in Thousands)
31-03-2018 31-03-2017
I. Interest/discount on advances/bills 349,097,316 336,946,444

II. Income on investments 100,199,824 96,749,715
III. Interest on balances with Reserve Bank of India and other inter-bank funds 3,910,598 5,057,855
IV. Others 12,932,854 12,996,915
Total 466,140,592 451,750,929
Schedule 14 - Other Income

(` in Thousands)
31-03-2018 31-03-2017
I. Commission, exchange and brokerage 87,962,084 78,897,946

II. Profit/(Loss) on sale of investments (net) 13,648,999 32,285,565
III. Profit/(Loss) on sale of fixed assets (net) (167,089) (38,846)
IV. Profit on exchange/derivative transactions (net) 14,636,525 10,890,953
V. 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
`182.92 crores (previous year `181.89 crores) and profit on account of portfolio
sell downs/securitisation `20.50 crores (previous year net profit of `3.79 crores)] 2,545,635 2,180,416
Total 118,626,154 124,216,034
Schedule 15 - Interest Expended

(` in Thousands)
31-03-2018 31-03-2017
I. Interest on deposits 191,943,949 196,406,526

II. Interest on Reserve Bank of India/Inter-bank borrowings 18,600,259 18,800,730
III. Others 65,492,719 52,686,218
Total 276,036,927 267,893,474
Schedule 16 - Operating Expenses

(` in Thousands)
31-03-2018 31-03-2017
I. Payments to and provisions for employees 54,144,397 47,420,971

II. Rent, taxes and lighting 10,342,353 9,599,482
III. Printing and stationery 1,694,433 1,895,987
IV. Advertisement and publicity 1,663,688 1,411,326
V. Depreciation on Group's property 5,905,799 5,266,715
VI. Directors' fees, allowance and expenses 35,374 33,774
VII. Auditors' fees and expenses 30,140 27,710
VIII. Law charges 201,921 110,127
IX. Postage, telegrams, telephones etc. 3,286,013 3,197,397
X. Repairs and maintenance 8,780,643 8,805,331
XI. Insurance 5,544,398 5,022,726
XII. Other expenditure 56,254,485 44,464,731
Total 147,883,644 127,256,277
228
17 SIGNIFICANT ACCOUNTING POLICIES


1 Principles of Consolidation
The consolidated financial statements comprise the financial statements of Axis Bank Limited (‘the Bank’) and its subsidiaries,
which together constitute ‘the Group’. The Bank has overseas branches at Singapore, Hong Kong, DIFC - Dubai, Shanghai and
Colombo. During the year, the Bank opened an Offshore Banking Unit at International Financial Service Centre (IFSC), Gujarat
International Finance Tec-City (GIFT City), Gandhinagar, India.
The Bank consolidates its subsidiaries in accordance with AS 21, Consolidated Financial Statements notified under Section 133
of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies
(Accounting Standards) Amendment Rules, 2016 on a line-by-line basis by adding together the like items of assets, liabilities,
income and expenditure. All significant inter-company accounts and transactions are eliminated on consolidation.
2 Basis of preparation
a) The financial 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 notified under Section 133 of the Companies Act, 2013
read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards)
Amendment Rules, 2016 to the extent applicable and practices generally prevalent in the banking industry in India.
b) The consolidated financial statements present the accounts of Axis Bank Limited with its following subsidiaries:
Name Relation Country of Ownership

Incorporation Interest
Axis Capital Ltd. Subsidiary India 100.00%
Axis Private Equity Ltd. Subsidiary India 100.00%
Axis Trustee Services Ltd. Subsidiary India 100.00%
Axis Mutual Fund Trustee Ltd. Subsidiary India 75.00%
Axis Asset Management Company Ltd. Subsidiary India 75.00%
Axis Finance Ltd. Subsidiary India 100.00%
Axis Securities Ltd. Subsidiary India 100.00%
Freecharge Payment Technologies Pvt. Ltd. Subsidiary India 100.00%
Accelyst Solutions Pvt. Ltd. Subsidiary India 100.00%
A.Treds Ltd. Subsidiary India 67.00%
Axis Bank UK Ltd. Subsidiary U.K. 100.00%
Axis Capital USA LLC Step down subsidiary USA 100.00%
c) The audited financial statements of the above subsidiaries and the unaudited financial statements of the step down
subsidiary have been drawn up to the same reporting date as that of the Bank, i.e. 31 March, 2018.
d) Axis Securities Europe Ltd., a wholly owned subsidiary of the Bank, has been liquidated during the year ended 31 March,
2018.
e) Axis Private Equity Ltd., is in the process of amalgamation with Axis Finance Ltd. and has submitted application for
amalgamation before the National Company Law Tribunal on 13 October, 2017.
f) On 27 March, 2018, the Board of Directors of Accelyst Solutions Pvt. Ltd (‘ASPL’) and Freecharge Payment Technologies
Pvt. Ltd. (‘FCPTL’) approved a scheme for amalgamation of ASPL into and with FCPTL. ASPL and FCPTL have submitted
applications for amalgamation before the National Company Law Tribunal. The appointed date for amalgamation is 7
October, 2017 and the effect of merger will be given on this date.
229
3 Use of estimates
The preparation of the financial 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 (including contingent
liabilities) at the date of the financial statements, revenues and expenses during the reporting period. Actual results could differ
from those estimates. The Management believes that the estimates used in the preparation of the financial statements are prudent
and reasonable. Any revisions to the accounting estimates are recognised prospectively in the current and future periods.
4 Significant accounting policies

4.1 Investments
Axis Bank Ltd.
Classification

Investments that are held principally for sale within a short period are classified as HFT securities. As per the RBI guidelines,
HFT securities, which remain unsold for a period of 90 days are reclassified as AFS securities.
subsidiaries/joint ventures are categorised as HTM in accordance with the RBI guidelines.
All other investments are classified as AFS securities.
However, for disclosure in the Balance Sheet, investments in India are classified under six categories - Government
Securities, Other approved securities, Shares, Debentures and Bonds, Investment in Subsidiaries/Joint Ventures and
Others.
Investments made outside India are classified 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
Broken period interest is charged to the Profit and Loss Account.
Cost of investments is computed based on the weighted average cost method.
Valuation
Investments classified 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 classified 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’)/ Financial Benchmark India Private Limited (‘FBIL’), periodically.
Net depreciation, if any, within each category of each investment classification is recognised in the Profit and Loss
Account. The net appreciation if any, under each category of each investment classification is ignored. The depreciation
on securities acquired by way of conversion of outstanding loans is provided in accordance with the RBI guidelines. The
book value of individual securities is not changed consequent to the periodic valuation of investments. Non-performing
investments are identified and provision is made thereon as per RBI guidelines. Treasury Bills, Exchange Funded Bills,
Commercial Paper and Certificate 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:
230
• the market/fair value of unquoted government securities which are in the nature of Statutory Liquidity Ratio (‘SLR’)
securities included in the AFS and HFT categories is computed as per the Yield-to-Maturity (‘YTM’) rates published
by FIMMDA/ FBIL
• 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/FBIL 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/
FBIL is adopted for this purpose;
• in case of bonds and debentures (including Pass Through Certificates) 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 financials of the
fund. In case the audited financials are not available for a period beyond 18 months, the investments are valued at
`1 per VCF. Investment in unquoted VCF after 23 August, 2006 are categorised under HTM category for the initial
period of three years and valued at cost as per RBI guidelines and
• In case investments in security receipts on or after 1 April, 2017 which are backed by more than 50 percent of the
stressed assets sold by the Bank, provision for depreciation in value is made at the is higher of - provisioning rate
required in terms of net asset value declared by the Reconstruction Company (‘RC’)/Securitisation Company (‘SC’)
or the provisioning rate as per the extant asset classification and provisioning norms as applicable to the underlying
loans, assuming that the loan notionally continued in the books of the bank. All other investments in security receipts
are valued as per the NAV obtained from the issuing RC/SCs.
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 Profit 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 Profit and Loss Account. Realised gains/losses on investments under the AFS and
HFT category are recognised in the Profit and Loss Account.
All investments are accounted for on settlement date, except investments in equity shares which are accounted for on trade
date.
Repurchase and reverse repurchase transactions

Repurchase and reverse repurchase transactions in government securities and corporate debt securities including those
conducted under the Liquidity Adjustment Facility (‘LAF’) and Marginal Standby Facility (‘MSF’) with RBI are accounted as
collateralised borrowing and lending respectively. Borrowing cost on repo transactions is accounted as interest expense
and revenue on reverse repo transactions is accounted as interest income.
Short Sales
In accordance with the RBI guidelines, the Bank undertakes short sale transactions in Central Government dated securities.
The short positions are reflected in ‘Securities Short Sold (‘SSS’) A/c’, specifically created for this purpose. Such short
positions are categorised under HFT category and netted off from investments in the Balance Sheet. 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 are initially recognised at cost which comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties.
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 classified as current investments. All other investments are classified as long term investments.
231
Current investments are carried in the financial 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
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.
net of bills rediscounted, inter-bank participation certificates, specific provisions made towards NPAs, interest in suspense
for NPAs, claims received from Export Credit Guarantee Corporation, provisions for funded interest on term loan classified
as NPAs, provisions in lieu of diminution in the fair value of restructured assets and floating provisions.
NPAs are classified into sub-standard, doubtful and loss assets based on the criteria stipulated by the RBI. Advances held
at the overseas branches that are identified as impaired as per host country regulations for reasons other than record of
recovery, but which are standard as per the RBI guidelines, are classified as NPAs to the extent of amount outstanding
in the host country. 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 specified stages of delinquency (90 days or more
of delinquency) under each type of loan, which satisfies the RBI prudential norms on provisioning. Provisions in respect
of agriculture advances classified into sub-standard and doubtful assets are made at rates which are higher than those
prescribed by the RBI. Provisions for advances booked in overseas branches, which are standard as per the RBI guidelines
but are classified as NPAs based on host country guidelines, are made as per the host country regulations.
Restructured assets are classified and provided for in accordance with the guidelines issued by RBI from time to time.
In addition to the above, the Bank on a prudential basis, makes provision for expected losses against advances or other
exposures to specific assets/industry/sector either on a case-by-case basis or for a group of assets, based on specific
information or general economic environment. These are classified 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.
Amounts recovered against debts written off are recognised in the Profit and Loss account.
The Bank holds provision in accordance with the RBI guidelines, on assets where change in ownership under Strategic
Debt Restructuring (SDR) scheme/Outside SDR scheme has been implemented or Scheme for Sustainable Structuring of
Stressed Asset (S4A) has been implemented. In respect of borrowers classified as non-cooperative and willful defaulters,
the Bank makes accelerated provisions as per extant RBI guidelines.
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 classified 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 specific period subject to fulfilment of a set of conditions by the borrower. The Bank makes
provision against the probable loss that could be incurred in future on account of waivers to eligible borrowers in respect
of such loans based on actuarial valuation conducted by an independent actuary. This provision is classified under
Schedule 5 – Other Liabilities in the Balance Sheet.
Axis Finance Ltd.
net of specific provisions made towards NPAs. Further, NPAs are classified into sub-standard, doubtful and loss assets
based on the criteria stipulated by the RBI. Provisions for NPAs are made at rates as prescribed by the RBI.
Non-performing loans are written off / provided for, as per management estimates, subject to the minimum provision
required as per Non-Banking Financial Company - Systemically Important Non-Deposit taking Company and Deposit
taking Company (Reserve Bank) Directions, 2016.
Provision on Standard Assets i.e. loans and advances is made at 0.40%.
232
4.3 Country risk

Axis Bank Ltd.
In addition to the provisions required to be held according to the asset classification 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 insignificant, 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 net funded exposure of the Bank
in respect of each country does not exceed 1% of the total assets, no provision is maintained on such country exposure in
accordance with RBI guidelines.
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 flows to Senior
Pass Through Certificate (‘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 notified under Section 133 of the
Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and the Companies
(Accounting Standards) Amendment Rules, 2016.
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 Profit 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 notified by Foreign Exchange Dealers Association of India (‘FEDAI’). All profits/losses resulting from year end
revaluations are recognised in the Profit and Loss Account.
Financial statements of foreign branches classified 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
exchange rates notified by FEDAI at the Balance Sheet date.
• 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 on such disposal are recognised in the Profit 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 notified by
FEDAI. The resulting gains or losses on revaluation are included in the Profit 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 notified 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 Profit and
Loss Account.
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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 Profit and Loss Account and
correspondingly in other assets (representing positive Mark-to-Market) and in other liabilities (representing negative
Mark-to-Market (MTM)) on a gross basis . For hedge transactions, the Bank identifies 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 financial 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. Pursuant to the RBI guidelines any receivables under derivative contracts comprising of crystallised receivables as
well as positive MTM in respect of future receivables which remain overdue for more than 90 days are reversed through
the Profit 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 final settlement price is taken as the RBI reference rate on the last trading day
of the futures contract or as may be specified 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 profit/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 in accordance with AS–9, Revenue Recognition as notified under
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014,
the Companies (Accounting Standards) Amendment Rules, 2016 and the RBI guidelines except in the case of interest
income on non-performing assets and loans under Strategic Debt Restructuring (SDR) scheme and Scheme for Sustainable
Structuring of Stressed Asset (S4A) of RBI, where it is recognised on receipt basis if overdue for more than 90 days. Income
on non-coupon bearing or low-coupon bearing discounted instruments is recognised over the tenor of the instrument on a
constant yield basis.
Guarantee commission is recognised on a pro-rata basis over the period of the guarantee. Locker rent and annual fees for
credit cards are recognised on a straight-line basis over the period of contract. Arrangership/syndication fee is accounted
for on completion of the agreed service and when right to receive is established. Other fees and commission income are
recognised when due.
Interest income on investments in PTCs is recognized on a constant yield basis.
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.
Fees paid/received for Priority Sector Lending Certificates (‘PSLC’) is amortised on straight-line basis over the tenor of the
certificate.
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 Profit and Loss Account. If the sale is for a value
higher than the net book value, the excess provision is credited to the Profit and Loss Account in the year the amounts are
received.
The Bank deals in bullion business on a consignment basis. The difference between the price recovered from customers
and cost of bullion is accounted for at the time of sale to the customers. The Bank also deals in bullion on a borrowing and
lending basis and the interest paid/received is accounted on an accrual basis.
Subsidiaries
Revenue is recognised to the extent that it is probable that the economic benefits will flow 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.
234
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, financial 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 Trustee Services Limited

Annual Fees for trusteeship services and servicing 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.
Advisory service fees on family office service are recognised as and when the activities defined in the accepted offer letter
are completed.
Axis Asset Management Company Limited

Management fees are recognised on accrual basis at specific 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.
Management fees from Portfolio Management Services, Alternate Investment Fund and Investment advisory fees-offshore
are recognized on an accrual basis as per the terms of the contract with the customers.
Axis Mutual Fund Trustee Limited
Trustee fee is recognised on accrual basis, at the specific rates/amount approved by the Board of Directors of the
Company, within the limits specified under the Deed of Trust, and is applied on the net assets of each scheme of Axis
Mutual Fund.
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 classification 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 subscription 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 fixed percentage of the corpus/fixed 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.
235
A.Treds Ltd.
Onboarding Fee is one time fee and is recognized at the time of onboarding of Buyer, Seller or financier. Transaction fee
is recurring in nature and is recognised on time proportion basis over the period of tenure of transaction.
Freecharge Payment Technologies Private Ltd.
Revenue from commission income
Merchant Discount Rate (MDR) Revenue from wallet transaction is recognised on the basis of successful pay-out of wallet
usage to the respective merchants. The transactions are settled on a daily basis with the merchant, net of MDR revenue.
The taxes (Service tax / GST) collected on behalf of the government are not economic benefits flowing to the Company,
hence, excluded from revenue.
Revenue from payment and storage service
The revenue from payment & storage service is recognised for providing PG aggregation service and as a payments
platform for transactions of the merchant executed through payment gateway. The Company collects revenue on the basis
of the payment gateway transactions routed through its payment platform on a monthly basis.
Other operating revenue
Revenues from ancillary activities like convenience fee, commission income etc, are recognised upon rendering of services.
Accelyst Solutions Private Ltd.
Revenue from commission income
Revenues from operating an internet portal providing recharge and bill payment services is recognised upon successful
recharge / payment confirmation for the transactions executed. The taxes collected by company on behalf of the
government are not economic benefits flowing to the Company, hence, excluded from revenue.
Other operating revenue
Revenues from ancillary activities e.g. freefund code generation fees, convenience fee, sale of coupons and vendor’s
application installation etc. is recognised upon rendering of services. Upon expiry of validity of freefund codes sold by
company, income is recognised to the extent of value of such codes.
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 Profit and Loss Account.
New fund offer expenses

Expenses relating to new fund offer of Axis Mutual Fund are charged to the Profit 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 Profit 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 fixed 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.
Brokerage paid on certain PMS products are amortised over the exit load period. Unamortised portion of brokerage is
carried forward as prepaid expenses.
Brokerage paid on Alternate Investment Fund schemes is amortized over the minimum tenure of the scheme. The
unamortized portion of the brokerage is carried forward as prepaid expense.
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 initial
handling and delivery charges, duties, taxes and incidental expenses related to the acquisition and installation of the
asset.
236
Capital work-in-progress includes cost of fixed assets that are not ready for their intended use and also includes advances
paid to acquire fixed assets.
Depreciation is provided over the estimated useful life of a fixed asset on the straight-line method from the date of addition.
The management believes that depreciation rates currently used fairly reflect its estimate of the useful lives and residual
values of fixed assets based on historical experience of the Group, though these rates in certain cases are different from
lives prescribed under Schedule II of Companies Act, 2013.
Asset Estimated useful life

Owned premises 60 years
Computer hardware including printers 3 years
Application software 5 years
Vehicles 4 years
EPABX, telephone instruments 8 years
CCTV and video conferencing equipment 3 years
Mobile phone 2 years
Locker cabinets/cash safe/strong room door 10 years
Modem, scanner, routers, hubs, switches, racks/cabinets for IT equipment 5 years
UPS, VSAT, fax machines 5 years
Cheque book/cheque encoder, currency counting machine, fake note detector 5 years
Assets at staff residence 3 years
All other fixed assets 10 years
Depreciation on assets sold during the year is recognised on a pro-rata basis to the Profit and Loss Account till the date of
sale.
Profit on sale of premises is appropriated to Capital Reserve account (net of taxes and transfer to statutory reserve) in
accordance with RBI instructions.
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 flows 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.
4.10 Non-banking assets

Non-banking assets (‘NBAs’) acquired in satisfaction of claims are carried at lower of net book value and net realizable
value.
4.11 Lease transactions

Group
Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the lease term are
classified as operating lease. Lease payments for assets taken on operating lease are recognised as an expense in the
Profit and Loss Account on a straight-line basis over the lease term.
4.12 Retirement and other employee benefits

Provident Fund
Axis Bank Ltd.
Retirement benefit in the form of provident fund is a defined benefit plan wherein the contributions are charged to the
Profit 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 using the Projected Unit Credit Method
as at 31 March each year to determine the deficiency, if any, in the interest payable on the contributions as compared to
the interest liability as per the statutory rate. Actuarial gains/losses are immediately taken to the Profit and Loss Account
and are not deferred.
Subsidiaries
Retirement benefit in the form of provident fund is a defined 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.
237
Gratuity
Axis Bank Ltd.
The Bank contributes towards gratuity fund (defined benefit 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. Actuarial gains/losses are immediately taken to the Profit and Loss Account and
are not deferred.
Subsidiaries
Gratuity liability is a defined benefit obligation and is provided for on the basis of an actuarial valuation using Projected
Unit Credit Method made at the end of each financial year. Actuarial gains/losses are immediately taken to the Profit and
Loss Account and are not deferred.
Compensated Absences
Group
The Group provides for 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 Profit and Loss Account and are not deferred.
Superannuation
Axis Bank Ltd.
Employees of the Bank are entitled to receive retirement benefits under the Bank’s Superannuation scheme either under
a cash-out option through salary or under a defined contribution plan. Through the defined contribution plan the Bank
contributes annually a specified sum of 10% of the employee’s eligible annual basic salary to LIC, which undertakes to
pay the lumpsum and annuity benefit payments pursuant to the scheme. Superannuation contributions are recognised in
the Profit and Loss Account in the period in which they accrue.
New Pension Scheme (‘NPS’)

Group
In respect of employees who opt for contribution to the ‘NPS’, the Group contributes certain percentage of the total basic
salary of employees to the aforesaid scheme, a defined contribution plan, which is managed and administered by pension
fund management companies. NPS contributions are recognised in the Profit and Loss Account in the period in which they
accrue.
4.13 Long Term Incentive Plan (LTIP)

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 specified 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.
4.14 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.
4.15 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 relevant provisions of Income tax Act, 1961. In case of overseas subsidiary the local tax laws
prevailing in that country are followed. Deferred income taxes reflect 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 assets against
liabilities representing current tax and the deferred tax assets and deferred tax liabilities relate to the taxes on income
levied by same governing taxation laws.
238
Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient 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 Profit 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 profits.
4.16 Share issue expenses
Group
Share issue expenses are adjusted from Share Premium Account in terms of Section 52 of the Companies Act, 2013.
4.17 Earnings per share
Group
The Bank reports basic and diluted earnings per share in accordance with AS-20, Earnings per Share, as notified under
Section 133 of the Companies Act, 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and
the Companies (Accounting Standards) Amendment Rules, 2016. Basic earnings per share is computed by dividing the
net profit after tax by the weighted average number of equity shares outstanding for the year.
Diluted earnings per share reflect 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 except where the results are anti-dilutive.
4.18 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 Benefits) 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, if
any, 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.
4.19 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 outflow 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 reflect 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 confirmed 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 outflow 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 outflow of resources is
remote, no provision or disclosure is made.
Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and
if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the
period in which the change occurs.
4.20 Cash and cash equivalents
Group
Cash and cash equivalents include cash in hand, balances with RBI, balances with other banks and money at call and
short notice.
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18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS


1 a) During the year, the Bank raised additional equity capital through a preferential allotment of 165,328,892 shares at a
price of `525.00 per share. As a consequence, the paid-up share capital of the Bank has increased by `33.07 crores and
the reserves of the Bank have increased by `8,620.73 crores after charging of issue related expenses. Further, the Bank
also allotted 45,357,385 convertible warrants carrying a right to the convertible warrant holder to apply for, get issued
and allotted one (1) equity share of the Bank of face value `2 each, for cash, at a price of `565.00 per share against
which the Bank has received an amount of `640.67 crores upfront representing 25% of the warrant price. The convertible
warrants are exercisable upto 18 months from the date of allotment. The funds mobilised from the equity raising were
utilised for enhancing the capital adequacy ratio and for general corporate purposes.
b) Pursuant to approval from the Board of Directors of the Bank accorded on 26 July, 2017, the Bank had entered into an
agreement with Jasper Infotech Pvt. Ltd. to acquire 100% stake in its subsidiaries viz. Accelyst Solutions Pvt. Ltd. (ASPL)
and Freecharge Payment Technologies Pvt. Ltd. (FPTL), which together constitute the digital payments business under the
“Freecharge” brand. Post receipt of RBI approval for the arrangement, the Bank acquired 100% stake in ASPL and FPTL
on 6 October, 2017, at an aggregate cash consideration of `395.46 crores and consequently the said companies have
become wholly owned subsidiaries of the Bank.
Upon consolidation of these subsidiaries in the consolidated financial statements, the excess of cost of acquisition of the
subsidiaries over the Group’s share in the networth of these subsidiaries as on acquisition date has been recorded as
goodwill on consolidation, amounting to `293.01 crores.
2 Other Disclosures
2.1.1 ‘Provisions and contingencies’ recognised in the Profit and Loss Account comprise of:
(` in crores)
Provision for income tax

- Current tax 1,951.55 5,188.84
- Deferred tax (Refer 2.1.11) (1,849.69) (3,202.06)
101.86 1,986.78
Provision for non-performing assets
(including bad debts written off and write backs) 16,630.57 11,157.06
Provision for restructured assets/strategic debt restructuring/ sustainable structuring (307.16) 290.53
Provision towards standard assets (124.37) 364.34
Provision for depreciation in value of investments (207.67) 244.18
Provision for unhedged foreign currency exposure (9.30) (13.88)
Provision for country risk (19.94) 19.94
Provision for other contingencies* (443.39) 65.74
Total 15,620.60 14,114.69
* includes contingent provision for advances/other exposures, legal cases and other contingencies
2.1.2 During the year ended 31 March, 2018, the Bank raised debt instruments eligible for Tier-I/Tier-II capital, the details of

Subordinated debt Tier-II 15 June, 2027 120 months 7.66% `5,000 crores
Perpetual debt Additional Tier I -* - 8.75% `3,500 crores
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Perpetual debt Additional Tier-I -* - 8.75% `3,500 crores
Subordinated debt Tier-II 27 May, 2026 120 months 8.50% `2,430 crores
Subordinated debt Tier-II 23 November, 2026 120 months 7.84% `1,800 crores

Upper Tier-II Tier-II 28 June, 2017* 180 months 7.125% $60 million
During the year ended 31 March, 2017, the Bank redeemed debt instruments eligible for Tier-II capital, the details of

Subordinated debt Tier-II 28 June, 2016 120 months 9.10% `104.90 crores
Upper Tier-II Tier-II 11 August, 2016* 180 months 7.25% $150 million
Perpetual debt Tier-I 30 September, 2016* - 10.05% `214.00 crores
Perpetual debt Tier-I 16 November, 2016* - 7.17% $46 million
Upper Tier-II Tier-II 24 November, 2016* 180 months 9.35% `200.00 crores
Upper Tier-II Tier-II 6 February, 2017* 180 months 9.50% `107.50 crores
Subordinated debt Tier-II 30 March, 2017 120 months 10.10% `250.90 crores
2.1.3 Divergence in Asset Classification and Provisioning for NPAs

• The Bank classifies advances into performing and non-performing advances (NPAs) as per the RBI guidelines. NPAs
are identified and provided for based on RBI’s Prudential Norms on Income Recognition, Asset Classification and
Provisioning.
• Based on application of RBI’s prudential norms as stated above, the Bank classified and made the prescribed
provisions against the NPAs as at the end of 31 March, 2017.
• As part of its Risk Based Supervision exercise for FY 2016-17, the RBI pointed out certain modifications in the Banks’
asset classification and provisioning as detailed in the table below:
Sr. No. Particulars (` in crores)
1 Gross NPAs as on 31 March, 2017, as reported by the Bank 21,280.48
2 Gross NPAs as on 31 March, 2017, as assessed by RBI 26,913.28
3 Divergence in Gross NPAs (2-1) 5,632.80
4 Net NPAs as on 31 March, 2017, as reported by the Bank 8,626.55
5 Net NPAs as on 31 March, 2017, as assessed by RBI 12,943.65
6 Divergence in Net NPAs (5-4) 4,317.10
7 Provisions for NPAs as on 31 March, 2017, as reported by the Bank 12,205.72
8 Provisions for NPAs as on 31 March, 2017, as assessed by RBI 13,521.42
9 Divergence in provisioning (8-7) 1,315.70
10 Reported Net Profit after Tax (PAT) for the year ended 31 March, 2017 3,679.28
11 Adjusted (notional) Net Profit after Tax (PAT) for the year ended 31 March, 2017 after taking into
account the divergence in provisioning 2,793.95
• The Bank has duly considered the impact of the above in the Financial Statements for the year ended 31 March,
2018.
241
2.1.4 Earnings Per Share (‘EPS’)
The details of EPS computation is set out below:

Basic and Diluted earnings for the year (Net profit after tax) (` in crores) 455.82 3,953.03
Basic weighted average no. of shares (in crores) 244.51 238.93
Add: Equity shares for no consideration arising on grant of stock options under ESOP 0.75 0.94
(in crores)
Diluted weighted average no. of shares (in crores) 245.26 239.87
Basic EPS (`) 1.86 16.54
Diluted EPS (`) 1.86 16.48
Nominal value of shares (`) 2.00 2.00
Dilution of equity is on account of 7,517,504 (previous year 9,429,479) 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/five 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.
246,272,950 options have been granted under the Scheme till the previous year ended 31 March, 2017.
On 15 May, 2017, the Bank granted 6,885,700 stock options (each option representing entitlement to one equity share
of the Bank) to its eligible employees/directors of the Bank/subsidiary companies at a price of `503.00 per option.
Options Range of Weighted Weighted

outstanding exercise prices average average
(`) exercise price (`) remaining
contractual life
(Years)
242
Options Range of exercise Weighted Weighted

outstanding prices (`) average exercise average
price (`) remaining
contractual life
(Years)
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 profit and EPS would be as follows:
31 March, 2018 31 March, 2017
Net Profit (as reported) (` in crores) 455.82 3,953.03

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) (102.86) (101.47)
Net Profit (Proforma) (` in crores) 352.96 3,851.56
Earnings per share: Basic (in ` )
Proforma 1.44 16.12
Earnings per share: Diluted (in `)
Proforma 1.44 16.06
During the years ended, 31 March, 2018 and 31 March, 2017, no cost has been incurred by the Bank on ESOPs issued
to the employees of the Bank and employees of subsidiaries under the intrinsic value method.
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:
31 March, 2018 31 March, 2017
Dividend yield 1.16% 1.29%

Expected life 2.57-4.57 years 2.57-4.57 years
Risk free interest rate 6.55% to 6.82% 7.15% to 7.39%
Volatility 31.80% to 33.56% 32.92% to 35.75%
Volatility is the measure of the amount by which a price has fluctuated or is expected to fluctuate 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, 2018 is `155.53 (previous year
`153.66).
243
2.1.6 Proposed Dividend

After making mandatory appropriations to Statutory Reserve, Investment Reserve, Reserve Fund and Capital Reserve, no
profits are available for distribution as dividend for the year ended 31 March, 2018. Accordingly, no dividend has been
recommended by the Board of Directors for the year ended 31 March, 2018.
Dividend paid during the year, represents dividend (`5 per equity share) for the year ended 31 March, 2017 paid
pursuant to approval of shareholders at Annual General Meeting held on 26 July, 2017.
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 identified 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 Principal Activities
Treasury 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.
Retail Banking 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, financial 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.
Unallocated assets and All items which are reckoned at an enterprise level are classified under this segment such as deferred
liabilities tax, money received against share warrants, tax paid in advance net of provision etc.
Business segments in respect of operations of the subsidiaries have been identified and reported taking into account the
customer profile, 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 classified
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, 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, 2018
Treasury Corporate/ Retail Other Total

Wholesale Banking Banking
Banking Business
Segment Revenue
Other income 2,867.70 3,365.49 4,196.21 1,433.22 11,862.62
244
(` in crores)
31 March, 2018
Treasury Corporate/ Retail Other Total

Wholesale Banking Banking
Banking Business
Less: Interest expense (external customers) 13,375.62 1,155.22 13,072.85 - 27,603.69
Less: Provision for non-performing assets/ 1,763.26 11,894.90 1,860.58 - 15,518.74
others*
Segment result 2,818.50 (5,240.75) 2,003.60 984.54 565.89
Less: Provision for tax 101.86
Net Profit before minority interest and 464.03
earnings from Associate
Less: Minority Interest 8.21
Add: Share of Profit in Associate -
Net Profit 455.82
Segment assets 227,258.49 236,010.17 230,592.20 813.36 694,674.22
Unallocated liabilities(1) 941.60
Net assets (6,812.88) 97,575.17 (35,260.54) 618.11 64,207.41
Capital Expenditure for the year 16.70 235.20 523.89 18.99 794.78
(1) Includes minority interest of `69.51 crores

* represents material non-cash items other than depreciation
(` in crores)
31 March, 2017

Wholesale Business
Banking
Segment Revenue
Other income 4,467.90 3,421.50 3,239.84 1,292.36 12,421.60
Less: Interest expense (external customers) 12,531.94 949.39 13,308.00 0.01 26,789.34
Less: Provision for non-performing assets/ 1,228.96 10,057.64 841.32 - 12,127.92
others*
Segment result 2,664.87 (1,321.79) 3,659.43 951.29 5,953.80
Less: Provision for tax 1,986.77
245
(` in crores)
31 March, 2017

Wholesale Business
Banking
Net Profit before minority interest and 3,967.03
earnings from Associate
Less: Minority Interest 14.00
Add: Share of Profit in Associate -
Net Profit 3,953.03
Segment assets 209,880.80 207,804.80 187,276.45 782.46 605,744.51
Unallocated liabilities(1) 78.42
Net assets 11,733.94 84,797.75 (46,418.93) 628.51 56,380.35
Capital Expenditure for the year 26.76 215.57 436.60 18.60 697.53
Includes minority interest of `61.31 crores
(1)
* represents material non-cash items other than depreciation

Geographic Segments
(` in crores)
Particulars Domestic International Total
31 March, 31 March, 31 March, 31 March, 31 March, 31 March,
2018 2017 2018 2017 2018 2017
Revenue 55,799.56 54,750.01 2,677.12 2,848.68 58,476.68 57,596.69

Assets 635,920.35 551,877.12 67,783.02 59,584.89 703,703.37 611,462.01
Capital Expenditure for the year 785.35 696.65 9.43 0.88 794.78 697.53
Depreciation on fixed assets for the
year 585.77 521.32 4.81 5.35 590.58 526.67
2.1.8 Related party disclosure

The related parties of the Group are broadly classified as:
a) Promoters
The Bank has identified the following entities as its Promoters.
• Administrator of the Specified 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
• Ms. Shikha Sharma (Managing Director & Chief Executive Officer)
• Mr. V. Srinivasan (Deputy Managing Director)
• Mr. Rajiv Anand [Executive Director (Retail Banking)]
• Mr. Rajesh Dahiya [Executive Director (Corporate Centre)]
246
c) Relatives of Key Management Personnel

Mr. Sanjaya Sharma, Ms. Usha Bharadwaj, Mr. Tilak Sharma, Ms. Tvisha Sharma, Dr. Sanjiv Bharadwaj, Dr.
Prashant Bharadwaj, Dr. Brevis Bharadwaj, Dr. Reena Bharadwaj, Ms. Gayathri Srinivasan, Mr. V. Satish, Ms.
Camy Satish, Ms. Ananya Srinivasan, Ms. Anagha Srinivasan, Ms. Geetha N., Ms. Chitra R., Ms. Sumathi N., Mr.
S. Ranganathan, Mr. R. Narayan, Ms. Gitanjali Anand, Ms. Tara Anand, Ms. Nandita Anand, Mr. P.L. Narain, Mr.
P. Srinivas, Ms. Ratna Rao Shekar, Ms. P. Kamashi, Ms. Hemant Dahiya, Ms. Arooshi Dahiya, Ms. Mallika Dahiya,
Ms. Jal Medha, Ms. Pooja Rathi, Mr. Jai Prakash Dahiya.
The details of transactions of the Bank with its related parties during the year ended 31 March, 2018 are given
below:
(` in crores)
Items/Related Party Promoters Key Relatives of Key Total
Management Management
Personnel Personnel
Dividend paid 343.52 1.08 - 344.60
Interest paid 545.58 0.22 0.19 545.99
Interest received 0.02 0.77 - 0.79
Investment in non-equity instrument of related party 393.00 - - 393.00
Investment of related party in the Bank 1,200.00 33.75 - 1,233.75
Investment of related party in Hybrid capital/Bonds - - - -
of the Bank
Redemption of Hybrid capital/Bonds of the Bank - - - -
Purchase of investments 188.69 - - 188.69
Sale of investments 868.73 1.12 - 869.85
Management contracts - 12.18 - 12.18
Contribution to employee benefit fund 16.16 - - 16.16
Placement of deposits 0.05 - - 0.05
Non-funded commitments (issued) 0.20 - - 0.20
Advance granted (net) - 7.99 - 7.99
Advance repaid 6.50 0.04 - 6.54
Receiving of services 105.28 - - 105.28
Rendering of services 17.42 0.05 - 17.47
Sale of foreign exchange currency to related party - 1.29 - 1.29
Other reimbursements from related party - - - -
Other reimbursements to related party 0.75 - - 0.75
(` in crores)
Personnel Personnel
Borrowings from the Bank - - - -
Deposits with the Bank 6,213.80 4.33 3.46 6,221.59
Advances 7.07 18.31 0.04 25.42
Investment in non-equity instruments of related party 205.70 - - 205.70
Investment of related party in the Bank 135.29 0.50 - 135.79
Non-funded commitments 3.35 - - 3.35
Investment of related party in Hybrid capital/ Bonds 4,300.00 - - 4,300.00
of the Bank
Payable under management contracts - 3.70 - 3.70
Other receivables (net) - - - -
Other payables (net) - - - -
247
The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31
March, 2018 are given below:
(` in crores)
Personnel Personnel
Advances 16.76 18.31 0.09 35.16
Investment in non-equity instrument of the Bank 393.00 - - 393.00
Investment of related party in Hybrid Capital/Bonds 4,300.00 - - 4,300.00
of the Bank
The details of transactions of the Bank with its related parties during the year ended 31 March, 2017 are given
below:
(` in crores)
Personnel Personnel
Dividend paid 354.69 0.70 - 355.39
Interest paid 666.31 0.14 0.16 666.61
Interest received 1.61 0.55 - 2.16
Investment in non-equity instrument of related party 110.00 - - 110.00
Investment of related party in the Bank - 46.45 - 46.45
Investment of related party in Hybrid capital/Bonds 1,050.00 - - 1,050.00
of the Bank
Redemption of Hybrid capital/Bonds of the Bank 70.00 - - 70.00
Purchase of investments - - - -
Sale of investments 758.78 3.52 0.11 762.41
Management contracts - 11.35 - 11.35
Contribution to employee benefit fund 15.75 - - 15.75
Purchase of fixed assets - - - -
Sale of fixed assets - - - -
Placement of deposits - - - -
Repayment of deposits - - - -
Non-funded commitments (issued) 0.05 - - 0.05
Advance granted (net) 0.67 - - 0.67
Advance repaid - 0.20 - 0.20
Receiving of services 100.67 - - 100.67
Rendering of services 2.43 0.05 - 2.48
Other reimbursements from related party - - - -
Other reimbursements to related party 0.41 - - 0.41
248
(` in crores)
Personnel Personnel
Advances 13.57 10.35 0.02 23.94
Investment in non-equity instruments of related party 56.10 - - 56.10
Investment of related party in Hybrid capital/ Bonds 4,300.00 - - 4,300.00
of the Bank
The maximum balances payable to/receivable from the related parties of the Bank during the year ended 31
March, 2017 are given below:
(` in crores)
Personnel Personnel
Advances 25.70 10.52 0.08 36.30
Investment in non-equity instrument of the Bank 110.00 - - 110.00
Investment of related party in Hybrid Capital/Bonds 4,355.00 - - 4,355.00
of the Bank
The significant transactions between the Bank and related parties during the year ended 31 March, 2018 and
31 March, 2017 are given below. A specific related party transaction is disclosed as a significant related party
transaction wherever it exceeds 10% of the aggregate value of all related party transactions in that category:
(` in crores)
Dividend paid
Interest paid
249
(` in crores)
Interest received
Mr. Rajiv Anand 0.73 0.54
Investment in non-equity instruments of related party
National Insurance Co. Limited - 110.00
Investment of related party in the Bank
Life Insurance Corporation of India 1,200.00 -
Investment of related party in Hybrid capital/Bonds of the Bank
Life Insurance Corporation of India - 1,000.00
Redemption of Hybrid capital/Bonds of the Bank
General Insurance Corporation Co. Limited - 50.00
Purchase of investments
Sale of investments
General Insurance Corporation Co. Limited 230.00 390.00
United India Insurance Co. Limited 157.44 55.09
National Insurance Co. Limited 35.00 50.00
Management contracts
Mr. Rajiv Anand 2.44 1.50
Mr. Rajesh Dahiya 1.78 1.08
Contribution to employee benefit fund
Placement of deposits
Advance granted (net)
Mr. Rajesh Dahiya 7.77 -
Advance repaid
Mr. Rajesh Dahiya - 0.16
Receiving of services
250
(` in crores)
Rendering of services
Sale of foreign exchange currency to related party
Ms. Shikha Sharma 1.29 -
Other reimbursements to related party
2.1.9 Leases
Disclosure in respect of assets taken on operating lease
This comprise of office premises/ATMs, cash deposit machines, electronic data capturing machines and IT
equipment.
(` in crores)
31 March, 2018 31 March, 2017
Future lease rentals payable as at the end of the year:

- Not later than one year 742.66 700.14
- Later than one year and not later than five years 2,303.58 2,175.20
- Later than five years 1,874.37 1,470.68
Total of minimum lease payments recognised in the Profit and Loss Account for 823.91 775.41
the year
There are no provisions relating to contingent rent.

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 & fixtures)
The movement in fixed assets capitalised as application software is given below:
(` in crores)
At cost at the beginning of the year 1,100.49 887.14

Deductions during the year (0.03) (0.04)
Accumulated depreciation as at 31 March (892.94) (719.32)
Closing balance as at 31 March 455.21 381.17
Depreciation charge for the year 173.62 136.56
251
2.1.11 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under:
(` in crores)
Deferred tax assets on account of provisions for doubtful debts 6,637.49 4,739.05
Deferred tax assets on account of amortisation of HTM investments 11.28 12.80
Deferred tax assets on account of provision for employee benefits 121.38 98.36
Deferred tax assets on account of other items 280.44 314.77
Deferred tax assets 7,050.59 5,164.98
Deferred tax liability on account of depreciation on fixed assets 103.46 92.01
Deferred tax liabilities on account of other items 35.81 1.11
Deferred tax liabilities 139.27 93.12
Net deferred tax asset 6,911.32 5,071.86
2.1.12 Employee Benefits

Group
Provident Fund
The contribution to the employee’s provident fund (including Employee Pension Scheme) of the Group amounted to
`175.11 crores for the year ended 31 March, 2018 (previous year `154.12 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
deficiency shall be made good by the Bank. Based on an actuarial valuation conducted by an independent actuary,
there is no deficiency as at the Balance Sheet date for the Bank.
The following tables summarise the components of net benefit expenses recognised in the Profit and Loss Account
and funded status and amounts recognised in the Balance Sheet for the Provident Fund benefit plan.

(` in crores)
31 March, 2018 31 March, 2017

Net Actuarial Losses/(Gains) recognised in the year 43.05 20.25
252
Balance Sheet
Details of provision for provident fund
(` in crores)
31 March, 2018 31 March, 2017
Fair Value of Plan Assets 2,004.57 1,687.15

Present Value of Funded Obligations (2,004.57) (1,687.15)
Net Asset - -
Liabilities - -
Assets - -
Net Asset (included under Schedule 11 – Other Assets) - -
(` in crores)
31 March, 2018 31 March, 2017

Opening Defined Benefit Obligation 1,687.15 1,437.90
Actuarial Losses/(Gains) 12.10 20.83
Employees Contribution 200.77 181.16
Liability transferred from/to other companies (14.62) (22.88)
Closing Defined Benefit Obligation 2,004.57 1,687.15
(` in crores)
31 March, 2018 31 March, 2017

Opening Fair Value of Plan Assets 1,687.15 1,437.90
Actuarial Gains/(Losses) (30.95) 0.58
Employer contribution during the period 88.53 76.80
Employee contribution during the period 200.77 181.16
Assets transferred from/to other companies (14.62) (22.88)
Closing Fair Value of Plan Assets 2,004.57 1,687.15
Experience adjustments*
(` in crores)
31 March, 31 March, 31 March, 31 March, 31 March,
2018 2017 2016 2015 2014
Defined Benefit Obligations 2,004.57 1,687.15 1,437.90 1,240.83 1,013.25

Plan Assets 2,004.57 1,687.15 1,437.90 1,240.83 1,013.25
Surplus/(Deficit) - - - - -
Experience Adjustments on Plan 12.10 20.83 12.08 (1.78) 53.03
Liabilities
Experience Adjustments on Plan Assets (30.95) 0.58 (6.16) (3.99) 41.42
* information provided to the extent available with the Bank
253
31 March, 2018 31 March, 2017
% %
Others 0.30 1.13
Principal actuarial assumptions at the balance sheet date:
31 March, 2018 31 March, 2017
Discount rate for the term of the obligation 7.95% 7.40%

Average historic yield on the investment portfolio 8.90% 9.11%
Discount rate for the remaining term to maturity of the investment portfolio 7.68% 6.93%
Expected investment return 9.17% 9.58%
Guaranteed rate of return 8.55% 8.65%
Superannuation
The Bank contributed `16.12 crores to the employee’s superannuation plan for the year ended 31 March, 2018
(previous year `15.69 crores).
National Pension Scheme (NPS)
During the year, the Bank has contributed `3.82 crores (previous year `2.45 crores) to the NPS for employees who
had opted for the scheme.
Group
Leave Encashment
The actuarial liability of compensated absences of accumulated privileged leave of the employees of the Group is
given below.
(` in crores)
31 March, 2018
Actuarial Total Expenses Assumptions

liability - included under
Privilege Leave Schedule 16(I) Discount Rate Salary
escalation rate
Axis Bank Ltd. 243.82 47.33 7.95% p.a. 7.00% p.a.
Axis Capital Ltd. 0.10 Nil 7.68% p.a. 7.00% p.a.
Axis Securities Ltd. 0.66 0.66 6.60% p.a. 7.00% p.a.
Axis Asset Management Co. Ltd. 1.17 0.64 7.50% p.a. 12.00% p.a.
Axis Finance Ltd. 0.41 0.05 7.73% p.a. 7.00% p.a.
A.Treds Ltd. 0.05 0.05 7.80% p.a. 7.00% p.a.
FreeCharge Payment Technologies Pvt. Ltd. 2.68 0.81 7.10% p.a. 10.50% p.a.
Accelyst Solutions Pvt. Ltd. 0.25 0.19 7.10% p.a. 10.50% p.a.
254
(` in crores)
31 March, 2017
Actuarial liability - Total Expenses Assumptions
Privilege Leave included under
Schedule 16(I) Discount Rate Salary escalation
rate
Axis Bank Ltd. 247.46 79.87 7.40% p.a. 7.00% p.a.
Axis Capital Ltd. 0.11 0.12 6.82% p.a. 7.00% p.a.
Axis Securities Ltd. 0.27 0.36 6.15% p.a. 7.00% p.a.
Axis Asset Management Company Ltd. 0.62 0.28 6.82% p.a. 9.00% p.a.
Axis Finance Ltd. 0.15 0.07 7.39% p.a. 7.00% p.a.
Group
Gratuity
The following tables summarize the components of net benefit expenses recognised in the Profit and Loss Account
and the funded status and amounts recognised in the Balance Sheet for the Gratuity benefit plan.
(` in crores)
31 March, 2018 31 March, 2017

Net Actuarial Losses/(Gains) recognised in the year (15.41) 26.79
Past Service Cost 31.37 0.36
Balance Sheet
Details of provision for gratuity
(` in crores)
31 March, 2018 31 March, 2017
Present Value of Funded Obligations (361.43) (298.44)

Present Value of un-funded Obligations (5.56) (3.01)
Fair Value of Plan Assets 336.33 290.10
Unvested Past Service Cost 0.03 -
Net (Liability)/Asset (30.63) (11.35)
Liabilities (included under Schedule 5 - Other Liabilities) 30.63 11.35
Assets (included under Schedule 11 - Other Assets) - -
Net (Liability)/Asset (30.63) (11.35)
255
(` in crores)
31 March, 2018 31 March, 2017

Opening Defined Benefit Obligation 301.45 246.84
Actuarial Losses/(Gains) (10.56) 25.11
Past Service Cost 31.40 0.19
Liabilities Assumed on Acquisition 1.21 -
Liabilities transferred in 0.57 0.17
Closing Defined Benefit Obligation 366.99 301.45
(` in crores)
31 March, 2018 31 March, 2017
Opening Fair Value of Plan Assets 290.11 243.00

Actuarial Gains/(Losses) 4.85 (1.68)
Contributions by Employer 41.33 56.52
Assets transferred in 0.57 -
Closing Fair Value of Plan Assets 336.33 290.11
Experience adjustments:
(` in crores)
Defined Benefit 366.99 301.45 246.84 219.95 168.99

Obligations
Plan Assets 336.33 290.11 243.00 219.26 171.76
Surplus/(Deficit) (30.66) (11.34) (3.84) (0.69) 2.77
Experience Adjustments 2.90 7.09 2.98 0.76 7.45
on Plan Liabilities
Experience Adjustments (4.91) (1.68) (5.28) 1.39 2.30
on Plan Assets
Axis Bank Ltd.

31 March, 2018 31 March, 2017

% %

Money market instruments 19.71 8.66
Others 0.22 2.54
256
31 March, 2018 31 March, 2017

Expected rate of Return on Plan Assets 7.50% p.a. 7.50% p.a.
Employee Turnover
- 18 to 30 (age in years) 20.00% 20.00%
- 31 to 44 (age in years) 10.00% 10.00%
- 45 to 59 (age in years) 5.00% 5.00%
The estimates of future salary increases considered take into account the inflation, 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 certified by the actuary and relied upon by the auditors.
Axis Capital Ltd.
31 March, 2018 31 March, 2017
The major categories of plan assets* as a percentage of fair value of total plan 100.00 100.00
assets - Insurer Managed Funds
*composition of plan assets is not available
31 March, 2018 31 March, 2017

Employee Turnover 10.00% 7.00%
The estimates of future salary increases, considered in actuarial valuation, take account of inflation, 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 `2.36 crores as gratuity in the year 2017-18 (previous year `1.36 crores).
31 March, 2018 31 March, 2017

Expected rate of Return on Plan Assets N.A. N.A.
257
Axis Securities Ltd.
31 March, 2018 31 March, 2017
The major categories of plan assets* as a percentage of fair value of total plan 100.00 100.00
assets - Insurer Managed Funds
31 March, 2018 31 March, 2017

The estimates of future salary increases considered take into account the inflation, 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 `1.50 crore as gratuity in the year 2017-18 (previous year `1.50 crores)
Axis Finance Ltd.
31 March, 2018 31 March, 2017
The major categories of plan assets* as a percentage of fair value of total 100.00 100.00
plan assets - Insurer Managed Funds
31 March, 2018 31 March, 2017

258
Axis Trustee Services Ltd.
31 March, 2018 31 March, 2017

A.Treds Ltd.
31 March, 2018 31 March, 2017

Discount Rate 7.80% p.a. N.A.
Salary Escalation Rate 7.00% p.a. N.A.
Employee Turnover
- 21 to 30 (age in years) 20.00% N.A.
- 31 to 44 (age in years) 10.00% N.A.
- 45 to 59 (age in years) 5.00% N.A.
Accelyst Solutions Pvt. Ltd.
31 March, 2018 31 March, 2017

Employee Turnover 25.70% N.A.
The Company expects to contribute `0.40 crore as gratuity in the year 2017-18.
FreeCharge Payment Technologies Pvt. Ltd.
31 March, 2018 31 March, 2017

Employee Turnover 25.70% N.A.
259
2.1.13 Provisions and contingencies
a) Movement in provision for frauds included under other liabilities is set out below:
(` in crores)
31 March, 2018 31 March, 2017

Reductions on account of payments during the year (0.15) -
Reductions on account of reversals during the year (0.27) (3.89)
b) Other liabilities include provision for reward points made on actuarial basis, the movement of which is set out
below:
(` in crores)
31 March, 2018 31 March, 2017

Provision made during the year 89.05 32.17
c) Movement in provision for other contingencies is set out below:

(` in crores)
31 March, 2018 31 March, 2017

Provision made during the year 342.25 1,036.59
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 filed 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. Apart from claims assessed as possible, the Group holds provision of `43.28 crores as on 31 March,
2018 (previous year `26.61 crores) towards claims assessed as probable.
b) Liability for partly paid investments
This represents amounts remaining unpaid towards liability for partly paid investments.
c) Liability on account of forward exchange and derivative contracts
The Group 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 flows by way of interest/principal in two currencies, based on ruling spot rates. Interest
rate swaps are commitments to exchange fixed and floating interest rate cash flows. Interest rate futures
are standardised, exchange-traded contracts that represent a pledge to undertake a certain interest rate
transaction at a specified price, on a specified 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 specified amount of currency at a specific price within a specified time period or at a specified future
260
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 specified 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 specified price.
d) 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 fulfill its financial or performance obligations.
e) 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.
f) 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, 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 (DEAF).
The Bank, through one of its overseas branches, had arranged Trade Credit (Buyers Credit loans) against
Letters of Undertaking (LOUs) issued by Punjab National Bank (PNB), which were subsequently alleged as
fraudulent by PNB. Prior to this declaration by PNB, such buyer’s credit loans were sold down in the secondary
market by the overseas branch to various participating banks under Risk Participation Agreements. As on 31
March, 2018, there is no funded exposure outstanding in the overseas branch pursuant to such sell down.
PNB has repaid the aggregate amount of all LOUs due upto 31 March, 2018, pursuant to an undertaking
issued to PNB, and made remittance to the overseas branch which has been passed on for onward payment
to the participating banks. Based on the facts and circumstances of the case, internal findings and legal
opinion, the Bank does not expect PNB has any valid right at this point in time, for refund by the Bank of
the aggregate amount paid by PNB towards LOUs due upto 31 March, 2018 . However, as a matter of
prudence, the aggregate amount of LOUs issued by PNB to the overseas branch against which buyer’s credit
was extended, aggregating to `3,847.26 crores has been disclosed as part of Contingent Liabilities in the
Balance Sheet.
The Group 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 financial
statements, where applicable.
2.1.15 Comparative Figures
Previous year figures have been regrouped and reclassified, where necessary to conform to current year’s
presentation.
For Axis Bank Ltd.
Sanjiv Misra
Chairman
Samir K. Barua S. Vishvanathan Rakesh Makhija Shikha Sharma

Director Director Director Managing Director & CEO

261
FORM AOC 1
262
Statement pursuant to first proviso to Sub-Section (3) of Section 129 read with Rule 5 of Companies (Accounts) Rules, 2014
Statement containing salient features of the financial statements of subsidiaries/associate companies/joint ventures
Part “A”: Subsidiaries (` in crores)

As on/For the year ended 31st March 2018
Axis Axis Axis Axis Axis Asset Axis Bank Axis Axis A. Treds Freecharge Accelyst Axis
Capital Private Trustee Mutual Management UK Ltd. Finance Securities Ltd. Payment Solutions Capital
Ltd. Equity Services Fund Company Ltd. (Refer Ltd. Ltd. Technologies Private USA LLC.
Ltd. Ltd. Trustee Note a) Private Ltd. Ltd. (Refer Note
Ltd. (Refer Note (Refer c)
b) Note b)
Reporting currency N.A. N.A. N.A. N.A. N.A. USD (US$ 1 N.A. N.A. N.A. N.A. N.A. USD (US$ 1
and Exchange rate as = `65.175) = `65.175)
on the last date of the
relevant Financial year
in the case of foreign
subsidiaries
Share capital 73.50 1.50 1.50 0.05 210.11 358.46 480.75 144.50 25.00 581.05 679.68 -
Reserves & surplus 352.53 2.36 58.73 0.31 45.86 202.03 583.89 119.71 (8.54) (450.79) (572.10) (0.37)
Total assets (Fixed Assets 1,361.25 3.96 72.89 0.44 504.51 6,775.42 6,676.51 536.68 19.05 149.70 148.26 0.01
+ Investments + Other
Assets)
Total liabilities (Deposits 935.22 0.10 12.66 0.08 248.54 6,214.93 5,611.87 272.47 2.59 19.44 40.68 0.38
+ Borrowings + Other
Liabilities + Provision)
Investments 100.85 - 8.46 0.37 188.04 812.24 - 13.00 - 63.84 66.54 -
Turnover (Total Income) 434.51 0.17 38.39 0.43 752.51 296.45 721.50 950.54 1.56 19.52 8.35 -
Profit/(Loss) before 214.37 (0.27) 28.48 0.11 57.28 93.17 320.52 92.88 (7.78) (28.13) (36.49) (0.37)
taxation
Provision for taxation 75.58 - 8.29 0.03 14.27 14.11 111.17 32.52 - - - -
Profit/(Loss) after 138.79 (0.27) 20.19 0.08 43.01 79.06 209.35 60.35 (7.78) (28.13) (36.49) (0.37)
taxation
Proposed Dividend 141.77 - 16.28 - - - 145.97 23.48 - - - -
and Tax (including cess
thereon) (Refer Note d)
% of shareholding 100% 100% 100% 75% 75% 100% 100% 100% 67% 100% 100% 100%
The audited financial statements of the above subsidiaries and the unaudited financial statements of the step down subsidiary have been drawn up to the same reporting date as that of the Bank,
i.e. 31 March, 2018.
Notes:
a. Asset/Liability items are stated in INR equivalent of USD ($1 = `65.175 as on 31 March, 2018). Profit and loss items reported in INR based on rates prevailing on the date of transactions.
b. Profit and loss items pertain to the period 7 October, 2017 to 31 March, 2018.
c. Axis Capital USA LLC. is a wholly owned subsidiary of Axis Capital Ltd. (a wholly owned subsidiary of Axis Bank Ltd.), Asset/Liability and Profit and loss items are stated in INR equivalent
of USD ($1 = `65.175 as on 31 March, 2018).
d. Includes interim dividend on equity shares paid during the year. In terms of revised Accounting Standard (AS) 4 ‘Contingencies and Events occurring after the Balance sheet date’ as
notified by the Ministry of Corporate Affairs through amendment to Companies (Accounting Standards) Amendment Rules, 2016, dated 30 March, 2016, proposed dividend has not
been recognised as a liability by the subsidiaries as on 31 March, 2018.
1. Names of subsidiaries which are yet to commence operations: Nil

2. Names of subsidiaries which have been liquidated or sold during the year: Axis Securities Europe Ltd.
Part “B”: Associates and Joint Ventures - Not Applicable

DISCLOSURES UNDER BASEL III

CAPITAL REGULATIONS (CONSOLIDATED) FOR THE YEAR ENDED 31st MARCH 2018
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 3rd December 1993. The Bank is the controlling
entity for all group entities. The consolidated financial statements of the Bank comprise the financial statements of Axis Bank
Limited and its 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 Included Method of Included Method of Reasons for Reasons, if

the Entity/ under Consolidation under Consolidation difference in Consolidated
Country of Accounting Regulatory the Method of under only
Incorporation Scope of Scope of Consolidation one of the
Consolidation Consolidation Scopes of
Consolidation
Axis Asset Yes Consolidated in Yes Consolidated in NA NA
Management accordance with accordance with
Company AS-21- Consolidated AS-21- Consolidated
Limited/India Financial Statements Financial Statements
Axis Bank UK Yes Consolidated in Yes Consolidated in NA NA
Limited/UK accordance with accordance with
AS-21- Consolidated AS-21- Consolidated
Financial Statements Financial Statements
Axis Capital Yes Consolidated in Yes Consolidated in NA NA
Limited/India accordance with accordance with
Axis Finance Yes Consolidated in Yes Consolidated in NA NA
Axis Mutual Yes Consolidated in Yes Consolidated in NA NA
Fund Trustee accordance with accordance with
Limited/India AS-21- Consolidated AS-21- Consolidated
Axis Private Yes Consolidated in Yes Consolidated in NA NA
Equity Limited/ accordance with accordance with
India AS-21- Consolidated AS-21- Consolidated
Axis Securities Yes Consolidated in Yes Consolidated in NA NA
Axis Trustee Yes Consolidated in Yes Consolidated in NA NA
Services accordance with accordance with
Limited/India AS-21- Consolidated AS-21- Consolidated
A.Treds Yes Consolidated in Yes Consolidated in NA NA
AS-21-Consolidated AS-21- Consolidated
263
Name of Included Method of Included Method of Reasons for Reasons, if

the Entity/ under Consolidation under Consolidation difference in Consolidated
Country of Accounting Regulatory the Method of under only
Incorporation Scope of Scope of Consolidation one of the
Consolidation Consolidation Scopes of
Consolidation
FreeCharge Yes Consolidated in Yes Consolidated in NA NA
Payment accordance with accordance with
Technologies AS-21-Consolidated AS-21- Consolidated
Pvt. Limited Financial Statements Financial Statements
Accelyst Yes Consolidated in Yes Consolidated in NA NA
Solutions Pvt. accordance with accordance with
Limited AS-21-Consolidated AS-21- Consolidated
Axis Capital Yes Consolidated in Yes Consolidated in NA NA
USA LLC. (1) accordance with accordance with AS
AS 21-Consolidated 21- Consolidated
* NA – Not Applicable
(1) Step-down subsidiary - Axis Capital Limited, a wholly owned subsidiary of the Bank owns 100% stake in Axis Capital
USA LLC.
There are no group entities that are not considered for consolidation under both the accounting scope of consolidation
and regulatory scope of consolidation.
(ii) Quantitative Disclosures
The list of group entities considered for consolidation as on 31st March 2018 is given below:
(` in millions)
Name of the Entity/Country of Principal Activity of the Entity Total Balance Total Balance
Incorporation Sheet Equity* Sheet Assets
Axis Asset Management Company Asset Management company for Axis 2,101 5,045
Limited/India Mutual Fund
Axis Bank UK Limited/UK Retail Banking, Corporate Banking, 3,585 67,583
Commercial Banking and Treasury (USD 55) (USD 1,028)
Services
Axis Capital Limited/India Merchant Banking, Institutional 735 13,612
Broking and Investment Banking
Business
Axis Finance Limited/India Non-Banking Financial activities 4,808 66,765
Axis Mutual Fund Trustee Limited/ Trustee company for Axis Mutual 1 4
India Fund
Axis Private Equity Limited/India Managing investments, venture 15 40
capital funds and off-shore funds
Axis Securities Limited/India Marketing of Retail Asset Products, 1,445 5,367
Credit Cards and Retail Broking
Axis Trustee Services Limited/ Trusteeship services 15 729
India
A. Treds Limited/India Setting up institutional mechanism 250 191
to facilitate financing of trade
receivables of MSME
264
Name of the Entity/Country of Principal Activity of the Entity Total Balance Total Balance
Incorporation Sheet Equity* Sheet Assets
Freecharge Payment Technologies Operating payment system for semi 5,811 1,514
Private Limited/India closed prepaid payment instrument
Accelyst Solutions Private Limited/ Providing and facilitating online 6,797 1,556
India recharge/ bill payment/ coupon
services, marketing platform for third
parties, distribution of mutual funds
and insurance
Axis Capital USA LLC./USA Broker/dealer for investments NIL 0.13
channeled to Indian equities (USD 0.002)
* Paid up Equity Capital
Note -
There is no capital deficiency in any subsidiary, which is not included in the regulatory scope of consolidation.
As on 31st March 2018, 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 2018 is
10.875% with minimum Common Equity Tier 1 (CET1) of 7.375% (including CCB of 1.875%)
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, profitability 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 2018 is presented below:
(` in millions)
Capital Requirements for various Risks Amount
CREDIT RISK
Capital requirements for Credit Risk
- Portfolios subject to standardized approach 401,540
- Securitisation exposures -
MARKET RISK
Capital requirements for Market Risk
- Standardised duration approach 34,878
- Interest rate risk 24,407
- Foreign exchange risk (including gold) 608
- Equity risk 9,863
265
Capital Requirements for various Risks Amount

OPERATIONAL RISK
Capital requirements for Operational risk
- Basic indicator approach 44,266
Note: - Capital requirement has been computed at 9% of RWA
Capital Adequacy Ratios Consolidated Standalone

Common Equity Tier – 1 CRAR 11.80% 11.68%
Tier – 1 CRAR 13.11% 13.04%
Total CRAR 16.58% 16.57%
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 quantification 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-defined 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:
Board of Directors
Committee of Audit Committee of Risk Management

Executive Risk Management Committees
Directors (COD) the Board (ACB) Committee (RMC)
Functional area Committee

Credit & Investment CRO Credit risk CRMC
Committees Operational risk ORMC
Market risk, Liquidity risk ALCO
Respective teams work Subsidiary risk SGC
under these heads of Reputation risk RRMC
different components of
risk Business continuity risk BCPMC
Outsourcing risk COC
Info Security risk ISSC
The Bank has put in place policies relating to management of credit risk, market risk, operational risk, information security
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.
266
Structure and Organisation
The Chief Risk Officer reports to the Managing Director and CEO. The Risk Management Committee of the Board oversees the
functioning of the Department. The Department has separate teams for individual components of risk i.e. Credit Risk, Market
Risk (including Treasury Mid Office), Operational Risk, Enterprise Risk, Risk Analytics, Risk Data Management and Information
Security Risk. These teams report to the Chief Risk Officer.
IV. CREDIT RISK
Credit risk refers to the deterioration in the credit quality of the borrower or the counter-party adversely impacting the financial
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 financial 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 defined 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 definition
of product criteria, appropriate credit filters 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 specific to
market segments such as large and mid-corporates, SME, financial companies, microfinance companies and project finance 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 profile 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.
Credit Sanction and Related Processes
The guiding principles behind the credit sanction process are as under:
• ‘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.
267
Review and Monitoring
• 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.
• 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.
• Customers with emerging credit problems are identified early and classified 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:
• 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.
• Geographic concentration for real estate exposures.
• Concentration by Industry: Industry analysis plays an important part in assessing the concentration risk within the loan
portfolio. Industries are classified into various categories based on factors such as demand-supply, input related risks,
government policy stance towards the sector and financial 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 financial deterioration are envisaged in order that timely remedial actions may be
initiated. In-depth sector specific studies are undertaken on portfolios vulnerable to extraneous shocks and the results are shared
with the business departments. The Bank has a well-defined stress testing policy in place and periodic stress testing is undertaken
on various portfolios to gauge the impact of stress situations on the health of portfolio, profitability and capital adequacy.
Retail lending portfolio is the blended mix of Consumer Lending and Retail Rural Lending Portfolios. Secured products (like
mortgage, wheels business) commands a major share of the Consumer Lending Portfolio, as the Bank continues to grow the
unsecured lending book (personal loans and credit card business) albeit with prudent underwriting practice. The Bank has
developed a robust risk management framework at each stage of retail loan cycle i.e. loan acquisition, underwriting and
collections.
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.
Definitions and Classification of Non-Performing Assets
Advances are classified into performing and non-performing asset (NPAs) as per RBI guidelines.
A non-performing asset (NPA) is a loan or an advance where;
• interest and/or installment of principal remains overdue for a period of more than 90 days in respect of a term loan,
• the account remains ‘out-of-order’ for a period of more than 90 days in respect of an Overdraft or Cash Credit (OD/CC),
• the bill remains overdue for a period of more than 90 days in case of bills purchased and discounted,
268
• 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,
• 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,
• 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 specified due date for payment,
• 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 classified 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 classified 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 identified by the Bank
or internal or external auditors or during RBI inspection but the amount has not been written off fully.
Definition 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 profit and loss account.
CREDIT RISK EXPOSURES
Total Gross Credit Risk Exposure Including Geographic Distribution of Exposure – Position as on 31st March
2018
(` in millions)
Domestic Overseas Total
(Outstanding) (Outstanding)
Fund Based 5,916,764 662,167 6,578,931
Non Fund Based * 1,154,909 62,666 1,217,575
Total 7,071,673 724,833 7,796,506
* Non-fund based exposures are bank guarantees issued on behalf of constituents and acceptances and endorsements.
Distribution of Credit Risk Exposure by Industry Sector – Position as on 31st March 2018
(` in millions)
Industry Classification Amount
Fund Based Non-Fund Based
Banking and Finance* 554,170 173,002
Infrastructure (excluding Power) 219,698 207,944
- of which Roads and Ports 76,988 20,850
- of which Telecommunications 58,114 87,758
Engineering 98,274 194,099
Chemicals and Chemical products 154,515 128,262
- of which Petro Chemicals 12,645 80,916
- of which Drugs and Pharmaceuticals 80,943 8,392
Trade 223,708 41,476
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(` in millions)
Industry Classification Amount
Fund Based Non-Fund Based
Power Generation & Distribution 182,996 47,091
Commercial Real Estate 168,902 12,355
Iron and Steel 96,474 41,091
Metal and Metal Products 108,589 22,341
NBFCs 97,415 17,375
Cement and Cement Products 90,001 17,167
Food Processing 99,548 5,194
Petroleum, Coal Products and Nuclear Fuels 45,313 57,474
Construction 32,428 47,700
Professional Services 54,397 2,689
Computer Software 33,151 15,785
Vehicles, Vehicle Parts and Transport Equipment 38,247 10,274
Mining and Quarrying (incl. Coal) 43,100 3,301
Cotton Textiles 37,339 3,793
Other Textiles 36,539 3,100
Rubber, Plastic and their Products 30,788 8,563
Shipping Transportation & Logistics 26,340 4,490
Entertainment & Media 18,384 9,356
Gems and Jewellery 19,912 4,585
Edibile oils and Vanaspati 8,726 14,571
Other Industries 262,727 50,020
Residual Exposures 3,797,250 74,477
- of which Other Assets 354,389 38,473
- of which Banking Book Investments 893,280 -
- of which Retail, Agriculture & Others 2,549,582 36,004
Total 6,578,931 1,217,575
* includes Cash, Balances with RBI and Balances with banks and money at call and short notice
As on 31st March 2018, the Bank’s exposure to the industries stated below was more than 5% of the total gross credit exposure
(outstanding):
Sr. No. Industry Classification Percentage of the total gross credit exposure
1. Banking & Finance 9%
2. Infrastructure (Excluding Power) 5%
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Residual Contractual Maturity Breakdown of Assets – Position as on 31st March 2018(1)
(` in millions)
Maturity Bucket Cash Balances Balances Investments Advances Fixed Assets Other assets
with RBI with other
banks(2)
1day 52,580 26,788 27,813 331,161 26,629 - 3,088
2 to 7 days - 94,000 13,947 25,532 72,384 - 30,929
8 to 14 days - 9,713 2,474 56,076 33,423 - 15,227
15 to 30 days - 8,529 170 40,628 132,265 - 45,902
31 days to 2 months - 7,338 1,907 59,208 105,301 - 8,343
Over 2 months and - 5,993 3,126 75,380 114,003 - 2,339
upto 3 months
Over 3 months and - 16,400 14,612 80,913 199,796 - 51,269
upto 6 months
Over 6 months and - 20,325 26,691 171,940 281,231 - 54,797
upto 12 months
Over 1 year and - 20,202 448 173,465 771,988 76 60,811
upto 3 years
Over 3 years and - 6,220 5 98,101 589,792 7 65,109
upto 5 years
Over 5 years - 86,722 - 438,864 2,181,600 40,425 191,697
Total 52,580 302,230 91,193 1,551,268 4,508,412 40,508 529,511

1.
Intra-group adjustments are excluded

2.
Including money at call and short notice
Movement of NPAs (including NPIs) – Position as on 31st March 2018
(` in millions)
Particulars Amount
A. Amount of NPAs (Gross) 342,870
- Substandard 79,304
- Doubtful 1 118,119
- Doubtful 2 98,254
- Doubtful 3 23,047
- Loss 24,146
B. Net NPAs 165,983
C. NPA Ratios
- Gross NPAs (including NPIs) to gross advances (%) 7.38%
- Net NPAs (including NPIs) to net advances (%) 3.69%
D. Movement of NPAs (Gross)
- Opening balance as on 1st April 2017 212,805
- Additions 334,573
- Reductions (204,508)
- Closing balance as on 31 March 2018
st
342,870
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Movement of Specific & General Provision – Position as on 31st March 2018
(` in millions)
Movement of Provisions Specific General
Provisions Provisions
- Opening balance as on 1st April 2017 122,981 24,893
- Provision made in 2017-18 (1)(2) 171,441 -
- Write-offs (119,840) -
- Write-back of excess provision (450) (1,288)
- Closing balance as on 31 March 2018

st 174,132 23,605

1.
Includes release of specific provision of ` 76 million on account of exchange rate fluctuation

2.
Includes impact of exchange rate fluctuation of ` 40 million in general provisions
Details of write-offs and recoveries that have been booked directly to the income statement – for the year
ending 31st March 2018
(` in millions)
Amount
Write-offs that have been booked directly to the income statement 1,939
Recoveries that have been booked directly to the income statement 1,829
NPIs and Movement of Provision for Depreciation on Investments – Position as on 31st March 2018
(` in millions)
Amount
A. Amount of Non-Performing Investments 33,723
B. Amount of Provision held for Non-performing investments 26,119
Movement of provision for depreciation on investments
- Opening balance as on 1st April 2017 4,099
C. - Provision made in 2017-18 1,015
- Write-offs/Write-back of excess provision (2,569)
- Closing balance as on 31st March 2018 2,545
Breakup of NPA by major industries – Position as on 31st March 2018
(` in millions)
Particulars Amount
Gross NPA Specific Provision
Power Generation & Distribution 86,134 37,730
Infrastructure (excluding Power) 47,855 22,739
Iron and Steel 34,751 17,235
Commercial real estate 19,032 9,689
Engineering 13,908 8,817
Chemicals and chemical products 9,827 4,197
Trade 9,130 4,903
Cement and cement products 8,618 4,548
Food Processing 6,940 4,529
Construction 1,287 772
272
(` in millions)
Particulars Amount
Gross NPA Specific Provision
Other metal and metal products 2,026 1,457
Petroleum coal products and nuclear fuels 1,623 663
Banking and Finance 1,569 1,484
Retail, Agri & Other Industries 100,170 55,369
Total 342,870 174,132
Note: Specific provisions include NPA and restructured provisions
General provision in Top 5 industries amounts to ` 5,629 million.
Major industries breakup of specific provision and write-off’s during the current period – for the year
ending 31st March 2018
(` in millions)
Industry Provision Write-offs
Specific Provision in Top 5 industries 42,140 15,716
Geography wise Distribution of NPA and Provision – Position as on 31st March 2018
(` in millions)
Geography Gross NPA Specific Provision General Provision
Domestic 299,376 153,317 19,511
Overseas 43,494 20,815 4,094
Total 342,870 174,132 23,605
Credit Risk: Use of Rating Agency under the Standardised Approach
The RBI guidelines on capital adequacy require banks to use ratings assigned by specified External Credit Assessment Agencies
(ECAIs) namely Brickworks, CARE, CRISIL, ICRA, India Ratings, SMERA and Infomerics 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, SMERA and Infomerics published in the public
domain to assign risk-weights in terms of RBI guidelines. In respect of claims on non-resident corporates and foreign 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 rating is 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 uses 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 used where 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 are directly used to assign risk-weight to all unrated exposures of the same borrower.
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Details of Gross Credit Risk Exposure (Fund based and Non-fund based) based on Risk-Weight – Position
as on 31st March 2018
(` in millions)
Amount
Below 100% risk weight 5,035,841
100% risk weight 1,580,971
More than 100% risk weight 1,171,364
Deduction from capital funds 8,330
V. CREDIT RISK MITIGATION
The Bank uses various collaterals both financial as well as non-financial, guarantees and credit insurance as credit risk mitigants.
The main financial collaterals include deposits with banks, National Savings Certificate/Kisan Vikas Patra/Life Insurance Policy
and gold, while main non-financial 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 reduces its credit exposure to counterparty with the value of eligible financial 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 financial 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 2018
(` in millions)
Amount
Covered by:
- Eligible financial collaterals after application of haircuts 147,481
- Guarantees/credit derivatives 73,761
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 financial 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 profit and loss account. The Bank also provides credit enhancement in the form of cash
collaterals and/or by subordination of cash flows to senior pass through certificate 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’.
The Bank follows the standardized approach prescribed by the RBI for the securitization activities. The Bank uses the ratings
assigned by various external credit rating agencies viz. Brickworks, CARE, CRISIL, ICRA, India Ratings, SMERA and Infomerics
for its securitisation exposures.
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All transfers of assets under securitisation were effected on true sale basis. However, in the year ended 31st March 2018, the
Bank has not securitized any asset.
A. Banking Book
Details of Exposure Securitised by the Bank and subject to Securitisation Framework
(` in millions)
Sr. Type of Securitisation
No.
i Total amount of exposures securitised -
ii Losses recognised by the Bank during the current period -
iii Amount of assets intended to be securitised within a year -
Of which
- Amount of assets originated within a year before securitisation -
iv Amount of exposures securitised
- Corporate Loans -
v Unrecognised gain or losses on sale
- Corporate Loans -
Aggregate amount of Securitisation Exposures Retained or Purchased as on 31st March 2018 is given
below
(` in millions)
Sr. Type of Securitisation On Balance Off Balance
No. Sheet Sheet
i Retained - -
ii Securities purchased - -
iii Liquidity facility - -
iv Credit enhancement (cash collateral) - -
v Other commitments - -
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) - -
275
B. Trading Book
Details of Exposure Securitised by the Bank and subject to Securitisation Framework
(` in millions)
Sr. Type of Securitisation Amount
No.
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
Aggregate amount of Securitisation Exposures Retained or Purchased as on 31st March 2018 is given
below
(` in millions)
Sr. Type of Securitisation On Balance Off Balance
No. Sheet* Sheet
i Retained - -
ii Securities purchased
- Corporate Loans - -
- Lease Rental 2,224 -
- Priority Sector (auto pool & micro finance) 22,853 -
iii Liquidity facility - -
iv Credit enhancement (cash collateral) - -
v Other commitments - -
* includes outstanding balance of PTCs purchased in earlier years also
Risk-weight wise Bucket Details of the Securitisation Exposures on the Basis of Book-Value
(` in millions)
Amount Capital charge
i Exposures subject to Comprehensive Risk Measure for specific risk - -
- Retained - -
- Securities purchased - -
ii Exposures subject to the securitisation framework for specific risk - -
Below 100% risk weight 25,077 721
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) - -
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 volatility risk in the option book. 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:
• Board approved market risk policies and guidelines which are aligned to the regulatory guidelines and based on
276
experiences gained over the years. The policies are reviewed periodically keeping in view regulatory changes, business
requirements and market developments.
• Process manual which are updated regularly to incorporate and document the best practices.
• Market risk identification through elaborate mapping of the Bank’s main businesses to various market risks.
• Statistical measures like Value at Risk (VaR), supplemented by stress tests, back tests and scenario analysis.
• Put in place non-statistical measures/limits on positions, gaps, stop loss, duration and option Greeks etc.
• 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-office 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% confidence 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 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 efficacy 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. Tenor wise duration limits have been set up for different categories within a portfolio. Issuer wise
concentration limits are introduced in case of security 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 means 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 sufficient 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 defines 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 profile of the Bank is
277
analysed on a static basis by tracking all cash inflows and outflows in the maturity ladder based on the actual maturity and
expected occurrence predicted through behavioral analysis - (for non-maturity items) of cash flows. The liquidity profile 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, foreign
banks, co-operative banks, small finance banks and payment banks for determining maximum permissible exposure limits
for counterparties. The key financials, 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 financials 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 profiling, countries are classified under seven categories
i.e. insignificant, low, moderate, high, very high, restricted and off-credit. Risk profiling 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-specific 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, Shanghai and GIFT city branch (International Banking Unit). These country-specific 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 Office.
278
Capital Requirement for Market Risk – Position as on 31st March 2018
(` in millions)
Type Amount of Capital
Required
Interest rate risk 24,407
Foreign exchange risk (including gold) 608
Equity position risk 9,863
VIII. OPERATIONAL RISK
Strategies and Processes
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
defines the roles and responsibilities of the various stakeholders within the Bank. The Bank also has a detailed framework for
operational risk loss data collection, risk and control self-assessment and key risk indicators.
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, Central Outsourcing
Committee, Business Continuity Planning & Management Committee (BCPMC) and IT Security Committee.
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 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 information 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 financial reporting risks. It facilitates capturing of individual risks and the effectiveness of their
controls, tagging of identified risks to processes and products, originates action plans and acts as a repository of all operational
risk events.
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 of the Bank for effective monitoring of key operational
risks. KRIs for the branches has also been launched as a new initiative to help branches to manage operational risk better.
279
The Bank has adopted BCP and IT Disaster Recovery Policy wherein critical activities and system applications have been
defined, 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 Planning & Management Committee (BCPMC) has been formed comprising of senior
functionaries of the Bank, which monitors BCM framework implementation 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 2018.
IX. INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
Interest Rate Risk in the Banking Book is measured and monitored in accordance with the guidelines laid out in the Bank’s Asset
Liability Management (ALM) Policy which is based on the RBI “Guidelines on Banks’ Asset Liability Management Framework
– Interest Rate Risk” dated 4th November 2010. Interest Rate Risk is measured in terms of changes in the value of interest rate
sensitive positions across the whole bank i.e. both in the banking and trading books as described below.
The Bank measures and controls interest risk in the banking book using both Earnings at Risk (EaR) which assesses the sensitivity
of its net interest income to parallel movement in interest rates over the 1 year horizon as well as Market Value of its Equity (MVE)
which measures the sensitivity of the present value of all assets and liabilities to interest rate risk in response to given interest
rate movements. The Bank prepares Interest Rate Sensitivity reports which are reviewed against Regulatory and Internal limits.
Internal limits have been established for (a) Earnings at Risk for a 100 bps parallel shift in interest rates over the horizon of 1
year, and (b) 200 bps parallel shift in interest rates for Market Value of Equity impact. Any review of the internal interest rate
risk limits is approved by the ALCO and is ratified by the Risk Management Committee of the Board.
Bucketing of non-maturity liability items for interest rate risk measurement is based on the behavioral analysis methodology for
identification of core and non-core components. 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 findings of the various IRRBB measures are submitted to the ALCO, the 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 2018 are given below:
Earnings Perspective
(` in millions)
Currency Interest Rate Shock
+200 bps -200 bps
INR 22,056 (22,056)
USD (486) 486
Residual 320 (320)
Total 21,890 (21,890)
280
Economic Value Perspective
(` in millions)
Currency Interest Rate Shock
+200 bps -200 bps
INR 29,618 (29,618)
USD 1,518 (1,518)
Residual (11,111) 11,111
Total 20,025 (20,025)
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.
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 Individual 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 sufficient 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 financial collateral 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-defined 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 Specific 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 specific 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.
281
Quantitative Disclosures
(` in millions)
Particulars IRS/CCS/FRA Options
Gross Positive Fair Value of Contracts 60,756 3,912
Netting Benefits - -
Netted Current Credit Exposure 60,756 3,912
Collateral held (e.g. Cash, G-sec, etc.) - -
Net Derivatives Credit Exposure 60,756 3,912
Exposure amount (under CEM) 207,812 16,706
Notional value of Credit Derivative hedges - -
Credit derivative transactions that create exposures to CCR - -
XI. COMPOSITION OF CAPITAL
(` in millions)
Sr. Particulars Amount Reference No.
No.
Common Equity Tier 1 capital: instruments and reserves
1 Directly issued qualifying common share capital plus related stock surplus (share 263,248 A1 + A2
premium)
2 Retained earnings 377,411 B1+B2+B3+B4
+B5+B6-B7
3 Accumulated other comprehensive income (and other reserves) -
4 Directly issued capital subject to phase out from CET1 (only applicable to non-joint -
stock companies)
5 Common share capital issued by subsidiaries and held by third parties (amount -
allowed in group CET1)
6 Common Equity Tier 1 capital before regulatory adjustments 640,659
Common Equity Tier 1 capital: regulatory adjustments
7 Prudential valuation adjustments 1,190
8 Goodwill (net of related tax liability) 2,930 B8
9 Intangibles (net of related tax liability) -
10 Deferred tax assets 5,400
11 Cash-flow hedge reserve -
12 Shortfall of provisions to expected losses -
13 Securitisation gain on sale -
14 Gains and losses due to changes in own credit risk on fair valued liabilities -
15 Defined-benefit pension fund net assets -
16 Investments in own shares (if not already netted off paid-in capital on reported -
balance sheet)
17 Reciprocal cross-holdings in common equity 785
18 Investments in the capital of banking, financial 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)
19 Significant investments in the common stock of banking, financial 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) -
282
(` in millions)
No.
21 Deferred tax assets arising from temporary differences (amount above 10% threshold, -
net of related tax liability)
22 Amount exceeding the 15% threshold -
23 of which: significant investments in the common stock of financial entities -
24 of which: mortgage servicing rights -
25 of which: deferred tax assets arising from temporary differences -
26 National specific 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-financial subsidiaries -
26c of which: Shortfall in the equity capital of majority owned financial entities which have -
not been consolidated with the bank
26d of which: Unamortized pension funds expenditures -
27 Regulatory adjustments applied to Common Equity Tier 1 due to insufficient Additional -
Tier 1 and Tier 2 to cover deductions
28 Total regulatory adjustments to Common equity Tier 1 10,305
29 Common Equity Tier 1 capital (CET 1) 630,354
Additional Tier 1 capital: instruments
30 Directly issued qualifying Additional Tier 1 instruments plus related stock surplus (share 70,000
premium) (31+32)
31 of which: classified as equity under applicable accounting standards (Perpetual Non- -
Cumulative Preference Shares)
32 of which: classified as liabilities under applicable accounting standards (Perpetual 70,000 C1
debt Instruments)
33 Directly issued capital instruments subject to phase out from Additional Tier 1 -
34 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)
35 of which: instruments issued by subsidiaries subject to phase out -
36 Additional Tier 1 capital before regulatory adjustments 70,000
Additional Tier 1 capital: regulatory adjustments
37 Investments in own Additional Tier 1 instruments -
38 Reciprocal cross-holdings in Additional Tier 1 instruments 1
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)
40 Significant investments in the capital of banking, financial and insurance entities that -
are outside the scope of regulatory consolidation (net of eligible short positions)
41 National specific regulatory adjustments (41a+41b) -
41a Of which: Investments in the Additional Tier 1 capital of unconsolidated insurance -
subsidiaries
41b Of which: Shortfall in the Additional Tier 1 capital of majority owned financial entities -
which have not been consolidated with the bank
42 Regulatory adjustments applied to Additional Tier 1 due to insufficient Tier 2 to cover -
deductions
43 Total regulatory adjustments to Additional Tier 1 capital 1
283
(` in millions)
No.
44 Additional Tier 1 capital (AT1) 69,999
45 Tier 1 capital (T1 = CET1 + AT1) (29 + 44) 700,353
Tier 2 capital: instruments and provisions
46 Directly issued qualifying Tier 2 instruments plus related stock surplus 115,800 C2
47 Directly issued capital instruments subject to phase out from Tier 2 44,550 C2
48 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)
49 of which: instruments issued by subsidiaries subject to phase out -
50 Provisions 24,673 D1+D2+D3+D4
51 Tier 2 capital before regulatory adjustments 185,023
Tier 2 capital: regulatory adjustments
52 Investments in own Tier 2 instruments -
53 Reciprocal cross-holdings in Tier 2 instruments -
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)
55 Significant investments in the capital banking, financial and insurance entities that are -
outside the scope of regulatory consolidation (net of eligible short positions)
56 National specific 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 financial entities which have -
not been consolidated with the bank
57 Total regulatory adjustments to Tier 2 capital -
58 Tier 2 capital (T2) 185,023
59 Total capital (TC = T1 + T2) (45 + 58c) 885,376
60 Total risk weighted assets (60a + 60b + 60c) 5,340,943
60a of which: total credit risk weighted assets 4,461,560
60b of which: total market risk weighted assets 387,537
60c of which: total operational risk weighted assets 491,846
Capital ratios and buffers
61 Common Equity Tier 1 (as a percentage of risk weighted assets) 11.80%
62 Tier 1 (as a percentage of risk weighted assets) 13.11%
63 Total capital (as a percentage of risk weighted assets) 16.58%
64 Institution specific buffer requirement (minimum CET1 requirement plus capital 7.38%
conservation and countercyclical buffer requirements, expressed as a percentage of
risk weighted assets)
65 of which: capital conservation buffer requirement 1.88%
66 of which: bank specific countercyclical buffer requirement -
67 of which: G-SIB buffer requirement -
68 Common Equity Tier 1 available to meet buffers (as a percentage of risk weighted -
assets)
National minima (if different from Basel III)
69 National Common Equity Tier 1 minimum ratio (if different from Basel III minimum) 5.50%
70 National Tier 1 minimum ratio (if different from Basel III minimum) 7.00%
284
(` in millions)
No.
71 National total capital minimum ratio (if different from Basel III minimum) 9.00%
Amounts below the thresholds for deduction (before risk weighting)
72 Non-significant investments in the capital of other financial entities 22,371
73 Significant investments in the common stock of financial entities -
74 Mortgage servicing rights (net of related tax liability) -
75 Deferred tax assets arising from temporary differences (net of related tax liability) 63,694
Applicable caps on the inclusion of provisions in Tier 2
76 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to 24,673
standardised approach (prior to application of cap)
77 Cap on inclusion of provisions in Tier 2 under standardised approach 55,770
78 Provisions eligible for inclusion in Tier 2 in respect of exposures subject to internal NA
ratings-based approach (prior to application of cap)
79 Cap for inclusion of provisions in Tier 2 under internal ratings-based approach NA
Capital instruments subject to phase-out arrangement
(only applicable between March 31, 2017 and March 31, 2022)
80 Current cap on CET1 instruments subject to phase out arrangements NA
81 Amount excluded from CET1 due to cap (excess over cap after redemptions and NA
maturities)
82 Current cap on AT1 instruments subject to phase out arrangements NA
83 Amount excluded from AT1 due to cap (excess over cap after redemptions and NA
maturities)
84 Current cap on T2 instruments subject to phase out arrangements 46,288
85 Amount excluded from T2 due to cap (excess over cap after redemptions and -
maturities)
* NA – Not Applicable
Notes to the Template
Row No. of the Particular (` in million)

template
10 Deferred tax assets associated with accumulated losses -
Deferred tax assets (excluding those associated with accumulated losses) net of Deferred tax 5,400
liability
Total as indicated in row 10 5,400
19 If investments in insurance subsidiaries are not deducted fully from capital and instead considered -
under 10% threshold for deduction, the resultant increase in the capital of the bank
of which: Increase in Common Equity Tier 1 capital -
of which: Increase in Additional Tier 1 capital -
of which: Increase in Tier 2 capital -
26b If investments in the equity capital of unconsolidated non-financial subsidiaries are not deducted
and hence, risk weighted then:
(i) Increase in Common Equity Tier 1 capital -
(ii) Increase in risk weighted assets -

50 Eligible Provisions included in Tier 2 capital 24,673
Eligible Revaluation Reserves included in Tier 2 capital -
Total of row 50 24,673
285
XII. THE RECONCILIATION OF REGULATORY CAPITAL ITEMS AS ON 31st MARCH 2018 IS GIVEN BELOW:
Step 1(` in millions)
Sr. Particulars Balance sheet Balance

No. as in financial sheet under
statements regulatory
scope of
consolidation
A Capital and Liabilities
I Paid-up Capital 5,133 5,133
Reserves & Surplus 636,941 636,941
Minority Interest 695 695
Total Capital 642,769 642,769
II Deposits 4,556,578 4,556,578
of which: Deposits from banks 184,413 184,413
of which: Customer deposits 4,372,165 4,372,165

III Borrowings 1,557,671 1,557,671
i. Borrowings in India 807,084 807,084
(a) From RBI 61,000 61,000
(b) From banks 25,851 25,851
(c) From other institutions & agencies 720,233 720,233
ii. Borrowings Outside India 750,587 750,587

of which: Capital Instruments 282,050 282,050
IV Other liabilities & provisions 280,016 280,016
Total 7,037,034 7,037,034
B Assets
I Cash and balances with Reserve Bank of India 354,811 354,811
Balance with banks and money at call and short notice 84,297 84,297
II Investments 1,530,367 1,530,367
of which:
Government securities 1,042,770 1,042,770
Shares 16,130 16,130
Debentures & Bonds 314,508 314,508
Subsidiaries / Joint Ventures / Associates - -
Others (Commercial Papers, Mutual Funds etc.) 156,959 156,959
III Loans and advances 4,498,436 4,498,436
IV Fixed assets 40,488 40,488
V Other assets 528,635 528,635
of which:
Goodwill and intangible assets 2,930 2,930
Deferred tax assets (Net) 69,094 69,094
VI Goodwill on consolidation - -
VII Debit balance in Profit & Loss account - -
Total Assets 7,037,034 7,037,034
286
Step 2(` in millions)
Sr. Particulars Balance sheet Balance Reference No.

scope of
consolidation
A Capital and Liabilities
I Paid-up Capital 5,133 5,133 A1
Reserves & Surplus 636,941 636,941 -
of which:
Statutory Reserve 115,760 115,760 B1
Share Premium 258,115 258,115 A2
Investment Reserve Account 1,035 1,035 D1
General Reserve 3,944 3,944 B2
Capital Reserve 19,673 19,673 B3
Foreign Currency Translation Reserve 1,521 1,521
of which: considered under capital funds - 1,140 B4
Reserve Fund 1,350 1,350 B5
Balance in Profit/Loss A/c 235,543 235,543 B6
of which: Proposed dividend B7
Minority Interest 695 695 -
of which: amount eligible for CET I -
Total Capital 642,769 642,769 -
II Deposits 4,556,578 4,556,578 -
of which:
Deposits from banks 184,413 184,413 -
Customer deposits 4,372,165 4,372,165 -
III Borrowings 1,557,671 1,557,671 -
i. Borrowings in India 807,084 807,084 -
(a) From RBI 61,000 61,000 -
(b) From banks 25,851 25,851 -
(c) From other institutions & agencies 720,233 720,233 -
ii. Borrowings Outside India 750,587 750,587 -
of which: Capital Instruments 282,050 282,050
of which:
(a) Eligible AT1 capital 70,000 C1
(b) Eligible Tier 2 capital 160,350 C2

IV Other liabilities & provisions 280,016 280,016 -
of which:
Provision for Standard Advances 22,482 22,482 D2
Provision for Unhedged Foreign Currency Exposure 1,123 1,123 D3

Total 7,037,034 7,037,034
287
Sr. Particulars Balance sheet Balance Reference No.

scope of
consolidation
B Assets
I Cash and balances with Reserve Bank of India 354,811 354,811 -
Balance with banks and money at call and short notice 84,297 84,297 -
II Investments 1,530,367 1,530,367 -
of which:
Government securities 1,042,770 1,042,770 -
Shares 16,130 16,130 -
Debentures & Bonds 314,508 314,508 -
Subsidiaries / Joint Ventures / Associates - - -
Others (Commercial Papers, Mutual Funds etc.) 156,959 156,959 -

III Loans and advances 4,498,436 4,498,436 -
floating provision adjusted in loans & advances - 33 D4
IV Fixed assets 40,488 40,488 -
V Other assets 528,635 528,635 -
of which:
Goodwill and intangible assets 2,930 2,930 B8
Deferred tax assets (Net) 69,094 69,094

VI Goodwill on consolidation -
VII Debit balance in Profit & Loss account - - -
Total Assets 7,037,034 7,037,034 -
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:
https://www.axisbank.com/shareholders-corner/regulatory-disclosure/basel-III-disclosures
XVI. EQUITIES – DISCLOSURE FOR BANKING BOOK POSITIONS
The risk oversight relating to the equity portfolio is part of the overall independent risk management structure of the Bank and is
subjected to the risk management processes and policies approved by the Bank.
Investments that are held principally for sale within a short period are classified as HFT securities. As per the RBI guidelines, HFT
securities, which remain unsold for a period of 90 days are reclassified as AFS securities.
subsidiaries/joint ventures are categorized as HTM in accordance with the RBI guidelines. All other investments are classified
as AFS securities.
288
Equity investments carried under the HTM category are carried at acquisition cost. Realised gains on investments under the HTM
category are recognised in the Profit 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 Profit and Loss Account.
The Bank does not have any equity under the Banking Book.
XVII. COMPARISION OF ACCOUNTING ASSETS AND LEVERAGE RATIO EXPOSURE MEASURE AS ON 31st MARCH
2018
(` in millions)
Particulars Amount
Total consolidated assets as per published financial statements 7,037,034
Adjustments for investments in banking, financial, insurance or commercial entities that are consolidated for -
accounting purpose but outside the scope of regulatory consolidation
Adjustments for fiduciary assets recognized on the balance sheet pursuant to the operative accounting framework -
but excluded from the leverage ratio exposure measure
Adjustments for derivative financial instruments 158,712
Adjustment for securities financing transactions(i.e. repos and similar secured lending) -
Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet 919,510
exposures)
Other adjustments (9,115)
Leverage ratio exposure 8,106,141
XVIII. LEVERAGE RATIO COMMON DISCLOSURE TEMPLATE AS ON 31st MARCH 2018
(` in millions)
Particulars Leverage ratio
framework
On-balance sheet exposures
1 On-balance sheet items(excluding derivatives and SFTs, but including collateral) 6,971,228
2 (Asset amounts deducted in determining Basel III Tier 1 capital) (9,115)
3 Total on-balance sheet exposures(excluding derivatives and SFTs)(sum of lines 1 and 2) 6,962,112
Derivative Exposures
4 Replacement cost associated with all derivatives transactions (i.e. net of eligible cash variation margin) 64,668
5 Add-on amounts for PFE associated with all derivatives transactions 159,851
Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the -
6
operative accounting framework
7 (Deductions of receivables assets for cash variation margin provided in derivatives transactions) -
8 (Exempted CCP leg of client-cleared trade exposures) -
9 Adjusted effective notional amount of written credit derivatives -
10 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) -
11 Total derivative exposures (sum of lines 4 to 10) 224,519
Securities financing transaction exposures
12 Gross SFT assets (with no recognition of netting), after adjusting for sale accounting transactions -
13 (Netted amounts of cash payables and cash receivables of gross SFT assets) -
14 CCR Exposure for SFT Assets -
15 Agent transaction exposures -
16 Total securities financing transaction exposures (sum of lines 12 to 15) -
Other off-balance sheet exposures
289
(` in millions)
Particulars Leverage ratio
framework
17 Off-balance sheet exposure at gross notional amount 2,667,006
18 (Adjustments for conversion to credit equivalent amounts) (1,747,496)
19 Off-balance sheet items (sum of lines 17 and 18) 919,510
Capital and total exposures
20 Tier 1 capital 700,353
21 Total exposures (sum of lines 3,11,16 and 19) 8,106,141
Leverage Ratio
22 Basel III leverage ratio 8.64%
XIX. RECONCILIATION OF TOTAL PUBLISHED BALANCE SHEET SIZE AND ON BALANCE SHEET EXPOSURE
(` in millions)
Sr. Particulars Amount
No.
1 Total consolidated assets as per published financial statements 7,037,034
2 Replacement cost associated with all derivatives transactions, i.e. net of eligible cash variation margin (65,806)
3 Adjustment for securities financing transactions (i.e. repos and similar secured lending) -
4 Adjustment for entities outside the scope of regulatory consolidation -
5 On-balance sheet items(excluding derivatives and SFTs, but including collateral) 6,971,228
290
Twenty Fourth Annual Report 2017-18
NOTICE
NOTICE is hereby given that the Twenty Fourth Annual General Meeting of the Members of Axis Bank Limited (the “Bank”) will be
held at 10.00 A.M. on Wednesday, 20th June 2018 at J. B. Auditorium, Ahmedabad Management Association, AMA Complex,
ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad - 380 015, Gujarat, to transact the following businesses:
ORDINARY BUSINESS:
1. To receive, consider and adopt:
a. the audited standalone financial statements of the Bank for the financial year ended 31st March 2018 and the Reports of
the Directors and the Auditors thereon; and
b. the audited consolidated financial statements for the financial year ended 31st March 2018 and the Report of the Auditors
thereon.
2. To appoint a director in place of Shri Rajiv Anand (DIN 02541753), who retires by rotation and being eligible, has offered
himself for re-appointment.
3. To appoint a director in place of Shri Rajesh Dahiya (DIN 07508488), who retires by rotation and being eligible, has offered
himself for re-appointment.
4. To appoint M/s Haribhakti & Co. LLP, Chartered Accountants, Mumbai, (Registration No. 103523W/W100048) as the
Statutory Auditors of the Bank and to consider, and in this connection, if thought fit, to pass with or without modification(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 the relevant rules made thereunder, Section 30 and all other applicable provisions of the Banking Regulation Act,
1949, and the rules, guidelines and circulars issued by the Reserve Bank of India (“RBI”), in this regard, from time to time, and
any other applicable laws (including any statutory amendment(s), modification(s), variation or re-enactment thereof, for the time
being in force), approval of the Members of the Bank be and is hereby accorded to the appointment of M/s Haribhakti & Co.
LLP, Chartered Accountants, Mumbai, having Registration Number 103523W/W100048, issued by the Institute of Chartered
Accountants of India, as the Statutory Auditors of the Bank, in place of M/s S. R. Batliboi & Co. LLP, Chartered Accountants,
Mumbai, the retiring auditors of the Bank and to hold office as such from the conclusion of the Twenty Fourth Annual General
Meeting until the conclusion of the Twenty Eighth Annual General Meeting, subject to the approval of the RBI, and on such terms
and conditions, including remuneration, as may be approved by the Audit Committee of the Board of Directors of the Bank.”
SPECIAL BUSINESS:
5. To consider, and if thought fit, to pass with or without modification(s), the following Resolution, as an Ordinary Resolution:
“RESOLVED THAT pursuant to the provisions of Section 152 and all other applicable provisions of the Companies Act,
2013, read with the relevant rules made thereunder, applicable provisions of the Securities and Exchange Board of India
(Listing Obligations and Disclosure Requirements) Regulations, 2015, Section 10A (2A) and all other applicable provisions
of the Banking Regulation Act, 1949 and the rules, guidelines and circulars issued by the Reserve Bank of India (“RBI”), in
this regard, from time to time, and any other applicable laws (including any statutory amendment(s), modification(s), variation
or re-enactment thereof, for the time being in force) and the provisions of the Articles of Association of Axis Bank Limited (the
“Bank”), Shri Stephen Pagliuca (DIN 07995547), who was appointed as an Additional Non-Executive (Nominee) Director
of the Bank pursuant to the nomination received from BC Asia Investments VII Limited, Intergral Investments South Asia IV and
BC Asia Investment III Limited, with effect from 19th December 2017 and who holds office as such upto the date of this Annual
General Meeting, approval of the Members of the Bank be and is hereby accorded to the appointment of Shri Stephen Pagliuca
as the Non–Executive (Nominee) Director of the Bank, for a period of four (4) consecutive years, with effect from 19th December
2017 AND THAT Shri Stephen Pagliuca shall not be liable to retire by rotation during the said period.”
“RESOLVED THAT pursuant to the provisions of Section 197, Schedule V and all other applicable provisions of the Companies
Act, 2013, read with the relevant rules made thereunder, Section 35B and all other applicable provisions of the Banking
Regulation Act, 1949, and the rules, guidelines and circulars issued by the Reserve Bank of India (“RBI”), in this regard, from
time to time and any other applicable laws (including any statutory amendment(s), modification(s), variation or re-enactment
thereof, for the time being in force) and the provisions of the Articles of Association of Axis Bank Limited (the “Bank”), approval
1
of the Members of the Bank be and is hereby accorded to the remuneration payable to Dr. Sanjiv Misra (DIN 03075797), as
the Non-Executive (Part-Time) Chairman of the Bank, with effect from 18th July 2018, detailed as under, subject to the approval
of the RBI:
Particulars Amount
Remuneration :
` 33,00,000 p.a.
Company Car :
Free use of Bank’s car for official and private purposes.
Touring :
Travelling and official expenses to be borne by the Bank for Board functions as a Chairman of the Bank.
Sitting Fees :
As payable to other Non-Executive Directors for attending meetings of the Board and Committees.
“RESOLVED FURTHER THAT the Directors of the Bank be and are hereby severally authorized to execute all such agreements,
documents, instruments and writings as deemed necessary, file requisite forms or applications with statutory/regulatory
authorities, with the power to settle all questions, difficulties or doubts that may arise in this regard, as he/she may in its sole
and absolute discretion deem fit, and to do all such acts, deeds, matters and things as he/she may consider necessary and
desirable and to delegate all or any of its powers herein conferred to any Director(s)/ Officer(s) of the Bank, to give effect to this
Resolution.”
“RESOLVED THAT pursuant to the provisions of Section 196 and all other applicable provisions of the Companies Act, 2013,
read with the relevant rules made thereunder, Section 35B and all other applicable provisions of the Banking Regulation Act,
1949, and the rules, guidelines and circulars issued by the Reserve Bank of India (“RBI”), in this regard, from time to time and
any other applicable laws (including any statutory amendment(s), modification(s), variation or re-enactment thereof, for the time
being in force) and the provisions of the Articles of Association of Axis Bank Limited (the “Bank”), approval of the Members of
the Bank be and is hereby accorded to the re-appointment of Smt. Shikha Sharma (DIN 00043265) as the Managing Director
& CEO of the Bank, from 1st June 2018 up to 31st December 2018 (both days inclusive).”
“RESOLVED FURTHER THAT pursuant to the provisions of Section 197, Schedule V and all other applicable provisions of
the Companies Act, 2013, read with the relevant rules made thereunder, Section 35B and all other applicable provisions of
the Banking Regulation Act, 1949, and the rules, guidelines and circulars issued by the RBI, in this regard, from time to time
and any other applicable laws (including any statutory amendment(s), modification(s), variation or re-enactment thereof, for the
time being in force) and the provisions of the Articles of Association of the Bank, approval of the Members of the Bank, be and
is hereby accorded to the payment of remuneration by way of salary, allowances and perquisites to Smt. Shikha Sharma (DIN
00043265), as the Managing Director & CEO of the Bank, from 1st June 2018 upto 31st December 2018 (both days inclusive),
detailed as under subject to the approval of the RBI:
Particulars Amount
Salary : ` 3,15,94,000 p.a.
Leave Fare Concession : ` 14,76,000 p.a.
Perquisites
House Rent Allowance : `1,05,38,000 p.a. (in lieu of Bank’s owned/leased accommodation).
Residence : 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,
Provident Fund :
from time to time.
Gratuity : One month’s salary for each completed year of service or part thereof (on a pro-rata basis).
Superannuation : 10% of basic pay p.a.
Travelling Allowances : As per the Bank’s Policy.
(i) Group mediclaim facility as available to the other employees of the Bank.
Medical benefits :
(ii) Reimbursement of full medical expenses for self and family.
Membership of two clubs (excluding life membership fees). All official expenses in connection with such
Club fees :
membership incurred would be reimbursed by the Bank.
Conveyance & Telephone : As per the Bank’s Policy.
2
Particulars Amount
Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and the Personal Accident Policy
Personal Insurance :
as per the Bank’s Rules.
Newspapers & Periodical : As per requirement.
Entertainment : Expenditure on official entertainment would be on the Bank’s account.
Utility Bills : To be reimbursed at actuals up to a limit of ` 3,75,000 p.a.
Furnishing Allowance : At actuals up to a limit of ` 30,00,000 over a period of three years.
Car : As per the Bank’s Policy.
Leave : As per the Bank’s Rule.
Stock options as may be granted by the Nomination and Remuneration Committee, from time to time, subject
Stock Options :
to the approval of the RBI.
Variable Pay : As approved by the Nomination and Remuneration Committee/Board, subject to the approval of the 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.
authorities, with the power to settle all questions, difficulties or doubts that may arise in this regard as he/she may in its sole
and absolute discretion deem fit and to do all such acts, deeds, matters and things as he/she may consider necessary and
Resolution.”
of the Members of the Bank be and is hereby accorded to the revision in the remuneration by way of salary, allowances and
perquisites payable to Shri V. Srinivasan (DIN 00033882), as the Deputy Managing Director of the Bank, with effect from 1st
June 2018, detailed as under, subject to the approval of the RBI:
Particulars Amount
Salary : ` 2,23,56,000 p.a.
Perquisites
House Rent Allowance : ` 55,87,000 p.a. (in lieu of Bank’s owned / leased accommodation).
Provident Fund :
from time to time.
Medical benefits : (i) Group mediclaim facility as available to the other employees of the Bank.

Club fees : Membership of two clubs (excluding life membership fees). All official expenses in connection with such
3
Particulars Amount
Personal Insurance : Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and the Personal Accident Policy
Newspapers & Periodicals : As per requirement.
Furnishing Allowance : At actuals up to a limit of ` 15,00,000 over a period of three years.
Stock options as may be granted by the Nomination and Remuneration Committee, from time to time, subject
Stock Options :
to the approval of the RBI.
Variable Pay : As approved by the Nomination and Remuneration Committee/Board subject to the approval of the RBI.
Loans : Loan facilities to be provided as per the Bank’s policy, at the rate of interest applicable to other employees.
Resolution.”
9. To consider, and if thought fit to, pass with or without modification(s), the following Resolution, as an Ordinary Resolution:
perquisites payable to Shri Rajiv Anand (DIN 02541753), as the Executive Director (Retail Banking) of the Bank, for a period
of one (1) year, with effect from 1st June 2018, detailed as under, subject to the approval of the RBI:
Particulars Amount
Salary : ` 1,64,84,000 p.a.
Perquisites
House Rent Allowance : ` 54,39,720 p.a. (in lieu of Bank’s owned / leased accommodation)
Provident Fund :
from time to time.
Gratuity : One month’s salary for each completed year of service or part thereof (on a pro-rata basis)
Travelling Allowances : As per Bank’s Policy.
(i) Group mediclaim facility as available to the other employees of the Bank.
Medical benefits :
Membership of two clubs (excluding life membership fees). All official expenses in connection with such
Club fees :
4
Particulars Amount
Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and the Personal Accident
Personal Insurance :
Policy as per the Bank’s Rules.
Furnishing Allowance : At actual up to a limit of ` 15,00,000 over a period of three years.
Employees Stock Options Stock options as may be granted by the Nomination and Remuneration Committee from time to time,
:
(ESOP) subject to the approval of the RBI.
Variable Pay : As approved by the Nomination and Remuneration Committee/ Board, subject to the approval of the RBI.
Loans : Loan facilities to be provided as per the Bank’s Policy, at the rate of interest applicable to other employees.
Resolution.”
perquisites payable to Shri Rajesh Dahiya (DIN 07508488), as the Executive Director (Corporate Centre) of the Bank, for a
period of one (1) year, with effect from 1st June 2018, detailed as under, subject to the approval of the RBI:
Particulars Amount
Salary : ` 1,46,50,000 p.a.
Perquisites
House Rent Allowance : ` 48,34,500 p.a. (in lieu of Bank’s owned /leased accommodation)
Provident Fund : 12% of basic pay with equal contribution by the Bank or as may be decided upon by the Board/Trustees
from time to time.
Medical benefits : (i) Group mediclaim facility as available to the other employees of the Bank.

Club fees : Membership of two clubs (excluding life membership fees). All official expenses in connection with such
5
Particulars Amount
Personal Insurance : Shall be covered under the Group Savings Linked Insurance Scheme (GSLI) and the Personal Accident Policy
Furnishing Allowance : At actual up to a limit of ` 15,00,000 over a period of three years.
Employees Stock Options : Stock options as may be granted by the Nomination and Remuneration Committee, from time to time, subject
(ESOP) to the approval of the RBI.
Variable Pay : As approved by the Nomination and Remuneration Committee/ Board, subject to the approval of the RBI.
Loans : Loan facilities to be provided as per the Bank’s Policy, at the rate of interest applicable to other employees.
Resolution.”
11. To consider, and if thought fit to, pass with or without modification(s), the following resolution, as a Special Resolution:
“RESOLVED THAT in supersession of the resolution passed by the Members of Axis Bank Limited (the “Bank”) at the Twenty
First Annual General Meeting of the Bank held on 24th July 2015, and pursuant to the provisions of Section 180(1)(c) and all
other applicable provisions of the Companies Act, 2013, read with the relevant rules made thereunder and any other applicable
laws (including any statutory amendment(s), modification(s), variation or re-enactment thereof, for the time being in force) and
the relevant provisions of the Memorandum of Association and Articles of Association of the Bank, approval of the Members
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, provided however, that apart from deposits of money
accepted from public in the ordinary course of its business, temporary loans repayable on demand or within six months from the
date of the loan, if any, obtained from the Bank’s bankers, the total amount of such borrowings outstanding at any time shall not
exceed ` 200,000 crore (Rupees Two Hundred Thousand crore only) 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, free reserves and securities
premium.”
“RESOLVED FURTHER THAT the Board be and is hereby authorized to do all such acts, deeds, matters and things as it may
consider necessary and desirable and to delegate all or any of its powers herein conferred to any Committee of the Board of
Director(s), and/or Managing Director, and/or Deputy Managing Director, and /or any other officer(s) of the Bank, to give
effect to this Resolution.”
12. To consider, and if thought fit to, pass with or without modification(s), the following resolution, as a Special Resolution:
“RESOLVED THAT pursuant to Section 42 and all other applicable provisions of the Companies Act, 2013, read with the
relevant rules made thereunder, the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations,
2008, the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the
applicable provisions of the Banking Regulation Act, 1949, and the rules, guidelines and circulars issued by the Reserve Bank
of India (“RBI”) and/or the Securities and Exchange Board of India, in this regard, from time to time, and any other applicable
laws (including any statutory amendment(s), modification(s), variation or re-enactment thereof, for the time being in force) and
the relevant provisions of the Memorandum of Association and the Articles of Association of Axis Bank Limited (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), approval of the Members of the Bank be and is hereby accorded for borrowing/raising
of funds denominated in Indian rupees or any other permitted foreign currency, by issue of debt securities including, but not
limited to, long term bonds, green bonds, non-convertible debentures, perpetual debt instruments and Tier II Capital Bonds or
such other debt securities as may be permitted under the RBI guidelines, from time to time, on a private placement basis and/
6
or for making offers and/or invitations thereof, and/or issue(s)/ issuances thereof, on a private placement basis, for a period
of one (1) year from the date hereof, in one (1) or more tranches and/ or series and/ or under one (1) or more shelf disclosure
documents and/ or one (1) or more letters of offer, and on such terms and conditions for each series/ tranches, including the
price, coupon, premium, discount, tenor etc. as deemed fit by the Board of Directors of the Bank (hereinafter referred to as the
“Board”, which term shall be deemed to include any committee(s) constituted/ to be constituted by the Board to exercise its
powers, including the powers conferred by this Resolution), as per the structure and within the limits permitted by the RBI, upto
an amount of ` 35,000 crore (Rupees Thirty Five Thousand crore only) in domestic and/ or overseas market, within the overall
borrowing limits of the Bank.”
“RESOLVED FURTHER THAT the Board be and is hereby authorized to negotiate, modify, finalize the terms and conditions of
the said debt instruments and execute all such agreements, documents, instruments and writings as deemed necessary, including,
the private placement offer letter, information memorandum, disclosure documents, debenture subscription agreement, debenture
trust deed and any other documents as may be required in connection with the offering(s), issuance(s) and/ or allotment(s) of
the said debt instruments on a private placement basis, with the power to settle all questions, difficulties or doubts that may arise
in this regard, as it may in its sole and absolute discretion deem fit, and to do all such acts, deeds, matters and things as it may
consider necessary and desirable and to delegate all or any of its powers herein conferred to any Committee of the Board of
Director(s), and/or Managing Director, and/or Deputy Managing Director, and /or any other officer(s) of the Bank, to give
effect to this Resolution.”
By Order of the Board
Girish V. Koliyote
Place: Mumbai Company Secretary
Date: 16th May 2018 ACS - 14285
Axis Bank Limited

CIN: L65110GJ1993PLC020769
Registered Office:
‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
Law Garden, Ellisbridge, Ahmedabad – 380 006, Gujarat.
Website: www.axisbank.com
Phone No. : +91 – 79 – 6630 6161
Fax No. : +91 – 79 – 2640 9321
7
NOTES:
1. 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. THE INSTRUMENTS APPOINTING 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.
2. Corporate Members intending to send their authorized representatives to attend the Meeting are requested to send to the
Registered Office of the Bank a certified copy of the latest Board Resolution authorizing their representative to attend and vote
at the Meeting on their behalf.
3. Proxy shall not have a right to speak at the Meeting and shall not be entitled to vote except on a poll.
4. A person appointed as Proxy shall act on behalf of not more than 50 Members and holding in aggregate 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.
5. Proxy in prescribed Form No. MGT-11, is enclosed herewith.
6. The Attendance at the Meeting will be regulated through the Attendance Slip and the same will be verified with the records
maintained with the Bank. Members who hold shares in dematerialised form are requested to quote their DP ID and Client ID
number(s) and those who hold shares in physical form are requested to quote their folio number(s) in the Attendance Slip to
facilitate their identification at the Meeting.
7. The relevant explanatory statement pursuant to the provisions of Section 102 of the Companies Act, 2013, as amended (the
“Companies Act”) in respect of item Nos. 5 to 12 of this Notice is annexed herewith.
8. 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 Saturday, 2nd June 2018 to Wednesday, 20th June 2018 (both days inclusive),
for the purpose of annual genral meeting.
9. Members holding shares in physical form are requested to notify any change in their address, if any, to the Registrar and Share
Transfer Agents, Karvy Computershare Private Limited, Hyderabad (Karvy) at their address mentioned below or to the Registered
Office of the Bank, quoting your Folio number(s).
10. Members holding shares in dematerialised form 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).
Any changes effected by the DP will be automatically reflected in the record maintained by the Depositories.
11. Members may avail of the Nomination facility available under Section 72 of the Companies Act, 2013. The relevant Nomination
Form can be downloaded from the website of the Bank or Members may write to the Bank at its Registered Office, for the same.
12. Members seeking any information with regard to the financial statements of the Bank are requested to write to the Bank at its
Registered Office at an early date to enable the Management to clarify the same at the Meeting.
13. SEBI vide its circular dated 20th April 2018 has made it mandatory for the Bank to collect copy of Income Tax Permanent
Account Number (PAN) and bank account details of all securities holders holding securities in physical form. Accordingly, all
Shareholders holding shares in physical form are requested to submit to Karvy, the said documents duly attested.
14. In compliance with the provisions of 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 will be sent by e-mail to those Members
who have registered their email address with their DP (in case of electronic shareholding) or with Karvy (in case of physical
shareholding).
We, therefore request the Members to register their email ID with their DP (in case of electronic shareholding) or with Karvy (in
case of physical shareholding) mentioning your demat account / Folio no(s).
8
However, in case you wish to receive the above documents in physical form, you may write to Karvy at the address mentioned
below or send an email to [email protected], mentioning your demat account details / Folio no(s) to enable Karvy to
record your decision and arrange to send the said documents to your registered address, free of cost.
15. The Shareholders may write to the Company Secretary at the Registered Office or to Karvy regarding transfer of shares held in
physical form or for conveying their grievances, if any, at below mentioned addresses:
Axis Bank Limited Karvy Computershare Private Limited

CIN: L65110GJ1993PLC020769 Unit: Axis Bank Limited
Registered Office: Karvy Selenium Tower B,
‘Trishul’, 3rd Floor, Plot 31-32, Gachibowli,
Opp. Samartheshwar Temple, Financial District, Nanakramguda,
Law Garden, Ellisbridge, Hyderabad – 500 032.
Ahmedabad – 380 006, Gujarat. Phone No. : 1800-345-4001 /+91-40-6716 2222
Website: www.axisbank.com Fax No. : +91-40 – 2300 1153
Phone No. : +91-79-6630 6161 Email: [email protected]
Fax No. : +91-79-2640 9321 Contact Persons:
Email: [email protected] Shri M.R.V.Subrahmanyam, General Manager (RIS)
Smt. Varalakshmi, Assistant General Manager (RIS)
Shri G. Vasanth Rao Chowdhari, Manager (RIS)
16. Remote E-Voting:
I. In compliance with Regulation 44 of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (the “Listing Regulations”) and Section 108 of the Companies Act, 2013, read with
Rule 20 of the Companies (Management and Administration) Rules, 2014, as amended, the Bank is pleased to provide
remote e-voting facility through Karvy, to enable its Members to cast their votes electronically on all the items as set out in
this Notice. Remote e-voting is optional.
II. The Bank has appointed Shri Nimai G. Shah (Membership No. 100932) Partner, Chandabhoy & Jassoobhoy, Chartered
Accountants or failing him Shri Gautam N. Shah (Membership No. 012679) Partner, Chandabhoy & Jassoobhoy,
Chartered Accountants as the Scrutinizer for conducting the remote e-voting process in a fair and transparent manner.
III. The voting rights of the shareholders shall be in proportion of their shareholding to the total issued and paid up equity
share capital of the Bank as on the cut-off date viz. Wednesday, 13th June 2018, subject to the provisions of Section
12 of the Banking Regulation Act, 1949 and RBI Circular No. 97/16.13.100/2015-16 dated 12th May 2016.
IV. A person who is not a Member as on the said cut-off date, will not be entitled to vote and should treat this Notice, for
information purpose only.
V. The instructions for remote e-voting, are as under:
l In case of Members receiving Notice by e-mail:
(i) Enter the login credentials (i.e., User ID & Password) mentioned in the e-mail, your Folio No. / DP ID & Client
ID will be your USER ID. Please note that the password is an initial password.
(ii) Use the following URL for remote e-voting:
From Karvy website: http://evoting.karvy.com
(iii) 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.
(iv) Enter the login credentials. Your Folio No/DP ID & Client ID will be your user ID.
(v) 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
9
(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 number, email ID etc., on first 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 confidential.
(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, as on the said cut-off date. 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 confirmation box will be displayed.
Click OK to confirm else CANCEL to modify. Once you confirm, 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.
(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
[email protected] with a copy marked to [email protected] on or before Tuesday, 19th June
2018.
(xiv) The remote e-voting period shall commence on Saturday, 16th June 2018 (9:00 A.M.) and will end on
Tuesday, 19th June 2018 (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 Wednesday, 13th June 2018, may
cast their vote electronically. The remote e-voting module shall be disabled by Karvy 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 again at the Meeting.
(xv) In case of any queries, you may refer to 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).
l In case of Members receiving Notice by Post/Courier:
(i) Initial password is provided, as below, in the attendance slip of the Meeting.
EVENT USER ID PASSWORD/PIN

(E-Voting Event Number)
(ii) Please follow the steps stated at serial Nos. V (ii) to V (xv) above, to cast your vote by electronic means.
VI. Voting will also be conducted after conclusion of the Meeting by way of Poll, to enable any Shareholder who has not cast
their vote through remote e-voting, in accordance with Rule 20 of the Companies (Management and Administration) Rules,
2014, as amended.
VII. The Scrutinizer shall, immediately after the conclusion of voting at the Meeting, first count the votes cast at the Meeting,
thereafter unblock the votes cast through remote e-voting in the presence of at least two witnesses not in employment of the
Bank and submit not later than 48 hours of the conclusion of the Meeting i.e. not later than Friday, 22nd June 2018,
10
a Consolidated Scrutinizer’s Report of the total votes cast in favor and against, if any, to any one of the Directors duly
authorized by the Board, who shall countersign the same.
VIII. The Results declared along with the Scrutinizer’s Report will be communicated to the Stock Exchanges immediately after
the said Results are declared by any one of the Directors duly authorized by the Board in this regard, not later than
Friday, 22nd June 2018 and will be uploaded on the Bank’s website i.e. www.axisbank.com and Karvy’s website i.e.
www.karvycomputershare.com. The Results will also be displayed at the Registered and Corporate Offices of the Bank in
accordance with the Secretarial Standards -2 on General Meetings issued by the Institute of Company Secretaries of India.
17. All documents referred to in this Notice and the Explanatory Statements setting out material facts in respect of the item nos. 5 to
12 of the Notice and other Statutory Registers are open for inspection by the Members at the Registered Office of the Bank from
11.00 a.m. to 1.00 p.m. on all working days except Saturdays, Sundays, Public Holidays and National Holidays, from the date
hereof upto and including the date of this Meeting.
18. Route Map for the venue of the Meeting is attached herewith, for your ready reference.
Girish V. Koliyote
Date: 16th May 2018 ACS - 14285
11
EXPLANATORY STATEMENT PURSUANT TO SECTION 102 OF THE COMPANIES ACT, 2013 SETTING OUT ALL
MATERIAL FACTS RELATING TO SPECIAL BUSINESS AS SET OUT IN ITEMS NOS. 5 TO 12 OF THIS NOTICE
The following explanatory statement contains the material facts relating to the Special Businesses, as set out in this Notice.
ITEM NO. 5:
Pursuant to the recommendation of the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Bank, the
Board of Directors of the Bank approved the appointment of Shri Stephen Pagliuca as an Additional Non-Executive (Nominee) Director
of the Bank (as a Nominee of entities affiliated to Bain Capital), for a period of four (4) consecutive years, w.e.f. 19th December 2017.
The said appointment was made pursuant to the nomination received from BC Asia Investments VII Limited, Integral Investments South
Asia IV and BC Asia Investment III Limited, who were allotted equity shares and convertible warrants of the Bank on a preferential
basis. Under Section 161 of the Companies Act, 2013, read with Article 91 of the Articles of Association of the Bank, he continues
to hold office as an Additional Non-Executive (Nominee) Director of the Bank, until the conclusion of the ensuing Annual General
Meeting.
The NRC at its Meeting held on 25th April 2018 had determined that Shri Stephen Pagliuca is a fit and proper person to be appointed
as a Director of the Bank, as per the norms prescribed by the Reserve Bank of India (“RBI”), and that he fulfils the conditions specified
in the Companies Act, 2013 and the relevant Rules made thereunder, the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 (the “Listing Regulations”) and other rules, guidelines and circulars issued by the
RBI, in this regard, from time to time.
The brief profile of Shri Stephen Pagliuca, in terms of the Regulation 36 (3) of the Listing Regulations and the Secretarial Standard on
General Meeting (SS-2) issued by the Institute of Company Secretaries of India, and details of his remuneration, have been provided
as Annexure 1 to this Notice.
Shri Stephen Pagliuca does not hold any equity shares in the Bank. Shri Stephen Pagliuca is not related to any other Directors or Key
Managerial Personnel of the Bank.
Shri Stephen Pagliuca, if appointed, shall not be liable to retire by rotation during the said period. He will be paid sitting fees and
profit related commission as approved by the Board and Members, from time to time and within the limits as prescribed under the
Companies Act, 2013, the Banking Regulation Act, 1949 and in terms of the Guidelines issued by RBI, in this regard, from time to
time.
The Board recommends the passing of the resolution, as set out in Item No.5 of this Notice.
Except for Shri Stephen Pagliuca and his relatives, none of the other Directors and the Key Managerial Personnel of the Bank and
their relatives are in any way financially or otherwise concerned or interested in the passing of the resolution as set out in Item No. 5
of this Notice.
ITEM NO. 6:
Dr. Sanjiv Misra was appointed as an Independent Director of Axis Bank Limited (“Bank”), with effect from 12th May 2016 and
thereafter as the Non-Executive (Part-Time) Chairman of the Bank for a period of three (3) years, with effect from 18th July 2016, in
terms of the approval granted by the Reserve Bank of India (“RBI”) and the Members of the Bank.
Dr. Sanjiv Misra has contributed immensely during the deliberations at the meetings of the Board and the Committee held during the
year under reference where he is a Member. He has introduced significant measures to enhance standards of governance at the Bank.
He brings to the Board his rich experience and insights. The Bank continues to benefit immensely from his leadership and guidance.
Taking into account the profits of the Bank for the financial year ended 31st March 2018, the Nomination and Remuneration Committee
(NRC) of the Board of Directors of the Bank, at its meeting held on 25th April 2018, reviewed the remuneration being paid to Dr. Sanjiv
Misra as the Non-Executive (Part-time) Chairman of the Bank, and decided to keep his remuneration unchanged and recommended
the same for the approval of the Board.
The Board of Directors of the Bank at its meeting held on 26th April 2018, accepted the said recommendation made by NRC and
approved the remuneration payable to Dr. Sanjiv Misra as the Non-Executive (Part-time) Chairman of the Bank, for a period of one (1)
year, with effect from 18th July 2018, subject to the approval of the RBI and the Members of the Bank.
The brief profile of Dr. Sanjiv Misra, in terms of the Regulation 36(3) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and Secretarial Standards on General Meetings (SS-2) issued by the Institute of
Company Secretaries of India, and details of his remuneration last drawn, have been provided as Annexure 1 to this Notice. The
details of his proposed remuneration have been set out in resolution no. 6 of this Notice.
12
Dr. Sanjiv Misra does not hold any equity share of the Bank. Dr. Sanjiv Misra is not related to any other Directors or Key Managerial
Personnel of the Bank.
The Board recommends the passing of the resolution as set out in Item No. 6 of this Notice.
Except for Dr. Sanjiv Misra and his relatives, none of the other Directors and Key Managerial Personnel of the Bank and their relatives
are in any way financially or otherwise concerned or interested in the passing of the resolution as set out in Item No. 6 of this Notice.
ITEM NO. 7
The current term of Smt. Shikha Sharma, Managing Director & CEO of the Bank is due to expire on 31st May 2018.
Accordingly, as part of the succession planning process of the Bank, the Nomination and Remuneration Committee (NRC) of the Board
of Directors of the Bank at its meeting held on 7th December 2017, taking into account the leadership and strategic direction provided
by Smt. Shikha Sharma in driving the growth and profitability of the Bank in a complex environment and the overall performance of
the Bank, had considered and approved her re-appointment as the Managing Director & CEO of the Bank, for a further period of 3
years, w.e.f. 1st June 2018 up to 31st May 2021 (both days inclusive) and the terms and conditions relating to the said re-appointment,
including remuneration and recommended the same for the approval of the Board.
Pursuant to the said recommendation, the Board Directors of the Bank at its meeting held on 7th December 2017, had considered and
approved the said re-appointment and the terms and conditions in respect thereof, including remuneration, subject to the approval of
the RBI and the Shareholders of the Bank.
At the meeting of the Board of Directors held on 9th April 2018, Smt. Shikha Sharma requested the Board that the period of her re-
appointment as the Managing Director & CEO of the Bank be revised from 1st June 2018 up to 31st December 2018. The Board
considered her request and approved her re-appointment as the Managing Director & CEO of the Bank from 1st June 2018 up to 31st
December 2018 (both days inclusive) and the terms and conditions relating to the said re-appointment, including remuneration, subject
to approval of the RBI and the Shareholders of the Bank, which would also enable the Bank to manage the transition period and
ensure orderly succession for the said post. The RBI has granted its approval to the said re-appointment and the terms and conditions
in respect thereof, including remuneration.
The NRC, at its meeting held on 16th May 2018, reviewed the remuneration being paid to Smt. Shikha Sharma as the Managing
Director & CEO of the Bank, in comparison with the remuneration of CEOs of peer group Banks and recommended a revision in her
remuneration for the period from 1st June 2018 upto 31st December 2018 (both days inclusive), for the approval of the Board.
Pursuant to the said recommendation, the Board at its meeting held on 16th May 2018 approved the revision in the remuneration
by way of salary, allowances and perquisites payable to Smt. Shikha Sharma as the Managing Director & CEO of the Bank, for the
period from 1st June 2018 up to 31st December 2018 (both days inclusive), subject to the approval of the RBI and the Shareholders
of the Bank.
The brief profile of Smt. Shikha Sharma, in terms of the Regulation 36(3) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards on General Meetings (SS-2) issued by the
Institute of Company Secretaries of India, and details of her remuneration last drawn, have been provided as Annexure 1 to this
Notice. The details of her proposed remuneration have been mentioned in Resolution no. 7 of this Notice.
Smt. Shikha Sharma held 5,75,000 equity shares of ` 2/- each of the Bank as on 31st March 2018, allotted to her under the various
employee stock option scheme(s) of the Bank. Smt. Shikha Sharma is not related to any other Directors or Key Managerial Personnel
of the Bank.
The Board recommends the passing of the resolution, as set out in Item No. 7 of this Notice.
Except for Smt. Shikha Sharma and her relatives, none of the other Directors and the Key Managerial Personnel of the Bank and their
relatives are in any way financially or otherwise concerned or interested in the passing of the resolution, as set out in Item No. 7 of
this Notice.
ITEM NO. 8
Shri V. Srinivasan was appointed as the Deputy Managing Director of the Bank for a period of three years w.e.f. 21st December 2015,
in terms of the approval granted by the RBI and the Members of the Bank.
During the year ended 31st March 2018, under the leadership of Shri V. Srinivasan, the Bank has shown growth in advances and
net interest income. Shri V. Srinivasan has demonstrated his ability to take up higher responsibilities. Shri V. Srinivasan is presently
13
heading the Corporate Banking Portfolio of the Bank which comprises of Corporate Credit, Treasury & Markets, Small and Medium
Enterprise, Business Economic Research, Information Technology & Chief Information Officer, Transaction Banking & International
Retail Department, Financial Institution Group, Corporate Client Coverage Group, Strategic Client Coverage Group, Strategic Initiative
Group, Structured Finance Group & Stressed Assets, Government Coverage Group, New Economy Group, International Banking,
Investor Relations, Finance & Accounts, Business Intelligence Unit, Strategy & New Initiatives.
In light of the above, the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Bank at its meeting held
on 16th May 2018, reviewed the remuneration being paid to Shri V. Srinivasan as the Deputy Managing Director of the Bank in
comparison with the remuneration of Executive Directors of peer group banks and recommended a revision in his remuneration, for
the approval of the Board.
Pursuant to the said recommendation of the NRC, the Board of Directors of the Bank at its meeting held on 16th May 2018, considered
and approved the revision in the remuneration by way of salary, allowance and perquisites payable to Shri V. Srinivasan as the Deputy
Managing Director of the Bank, with effect from 1st June, 2018, subject to the approval of the Members of the Bank and the RBI.
The brief profile of Shri V. Srinivasan, in terms of the Regulation 36(3) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards on General Meetings (SS-2) issued by the Institute of
details of his proposed remuneration have been mentioned in resolution no. 8 of this Notice.
Shri V. Srinivasan held 14,00,000 equity shares of ` 2/- each of the Bank as on 31st March 2018, allotted to him under the various
employee stock option scheme(s) of the Bank. Shri V. Srinivasan is not related to any other Directors or Key Managerial Personnel of
the Bank.
The Board recommends the passing of the resolution, as set out in Item No. 8 of this Notice.
Except for Shri V. Srinivasan and his relatives, none of the other Directors and Key Managerial Personnel of the Bank and their relatives
are in any way financially or otherwise concerned or interested in the passing of the resolution, as set out in Item No. 8 of this Notice.
ITEM NO. 9
Shri Rajiv Anand was appointed as the Executive Director (Retail Banking) of the Bank, for a period of three (3) years, with effect from
4th August 2016, in terms of the approval granted by the RBI and the Members of the Bank.
During the year ended 31st March 2018, under the leadership of Shri Rajiv Anand, there has been a rapid growth in the Retail
businesses of the Bank. Shri Rajiv Anand is presently heading the Retail Banking Portfolio of the Bank, which comprises of Retail
Lending, Cards & Acquiring, Branch Banking, Digital Banking & Customer Experience, Marketing, Affluent & NRI Business, Retail
Liabilities and Investment Products, Digital Circle and BBPAG.
In view of the above, the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Bank at its meeting held
16th May 2018, reviewed the remuneration being paid to Shri Rajiv Anand as the Executive Director (Retail Banking) of the Bank in
comparison with the remuneration of Executive Directors of peer group banks and recommended a revision in his remuneration, for
and approved the revision in the remuneration by way of salary, allowance and perquisites payable to Shri Rajiv Anand as the
Executive Director (Retail Banking) of the Bank, for a period of one year, with effect from 1st June, 2018, subject to the approval of
the Members of the Bank and the RBI.
The brief profile of Shri Rajiv Anand, in terms of the Regulation 36 (3) of the Securities and Exchange Board of India (Listing Obligations
and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards on General Meetings (SS-2), issued by the Institute of
details of his proposed remuneration have been mentioned in resolution no. 9 of this Notice.
Shri Rajiv Anand held 5,00,500 equity shares of ` 2/- each of the Bank as on 31st March 2018, allotted to him under various
employee stock option scheme(s) of the Bank. Shri Rajiv Anand is not related to any other Directors or Key Managerial Personnel of
the Bank.
The Board recommends passing of the resolution, as set out in Item No. 9 of this Notice.
14
Except for Shri Rajiv Anand and his relatives, none of the other Directors and the Key Managerial Personnel of the Bank and their
this Notice.
ITEM NO. 10
Shri Rajesh Dahiya was appointed as the Executive Director (Corporate Centre) of the Bank, for a period of three (3) years, with effect
from 4th August 2016, in terms of the approval granted by the RBI and the Members of the Bank.
During the year ended 31st March 2018, Shri Rajesh Dahiya, effectively managed the broader role as Head - Corporate Centre and
the set of diverse Portfolios which included Internal Audit, Human Resources, Compliance, Company Secretary, Corporate Affairs,
Administration, Corporate Real Estate Services, Chief Business Relations Officer (CBRO), Financial Crime Management, Law and
Retail & Wholesale Banking Operations. In addition, he also oversees the functioning of the Axis Bank Foundation.
In view of the above, the Nomination and Remuneration Committee (NRC) of the Board of Directors of the Bank at its meeting held on
16th May 2018, reviewed the remuneration being paid to Shri Rajesh Dahiya as the Executive Director (Corporate Centre) of the Bank
in comparison with the remuneration of Executive Directors of peer group banks and recommended a revision in his remuneration, for
and approved the revision in the remuneration by way of salary, allowance and perquisites payable to Shri Rajesh Dahiya as the
Executive Director (Corporate Centre) of the Bank, for a period of one year, with effect from 1st June 2018, subject to the approval of
the Members of the Bank and the RBI.
The brief profile of Shri Rajesh Dahiya, in terms of the Regulation 36 (3) of the Securities and Exchange Board of India (Listing
Obligations and Disclosure Requirements) Regulations, 2015 and the Secretarial Standards on General Meetings (SS-2) issued by the
Institute of Company Secretaries of India, and details of his remuneration last drawn, have been provided as Annexure 1 to this
Notice. The details of his proposed remuneration have been mentioned in resolution no.10 of this Notice.
Shri Rajesh Dahiya held 6,000 equity shares of ` 2/- each of the Bank, as on 31st March 2018, allotted to him under the various
employee stock option scheme(s) of the Bank. Shri Rajesh Dahiya is not related to any other Directors or Key Managerial Personnel
of the Bank.
The Board recommends passing of the resolution, as set out in Item No 10 of this Notice.
Except for Shri Rajesh Dahiya and his relatives, none of the other Directors and Key Managerial Personnel of the Bank and their
this Notice.
ITEM NO. 11
The Members at the 21st Annual General Meeting of Axis Bank Limited (“Bank”) held on 24th July 2015 had approved the borrowing
of sums in excess of its paid-up capital, free reserves and securities premium account not exceeding ` 1,50,000 crore under Section
180 (1)(c) of the Companies Act, 2013 and Article 54 of the Articles of Association of the Bank.
The balance sheet size and net worth of the Bank have increased significantly since the last revision of the borrowing limit on 24th July
2015. Considering the substantial growth in business and operations of the Bank and present and future requirements, approval of
the Members is being sought to increase the limit from ` 1,50,000 crore to ` 200,000 crore, for borrowings (apart from deposits of
money accepted from public in the ordinary course of its business, temporary loans repayable on demand or within six months from the
date of the loan, if any, obtained from the Bank’s bankers) by the Bank, from time to time, under Section 180(1)(c) of the Companies
Act, 2013 and Article 54 of the Articles of Association of the Bank. The Board of Directors of the Bank at its meeting held on 26th April
2018 has approved this proposal, subject to the approval 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 passing of the special resolution, as set out in Item No. 11 of this Notice.
None of the Directors and the Key Managerial Personnel of the Bank and their relatives are in any way financially or otherwise
concerned or interested in the passing of the special resolution, as set out in Item No. 11 of this Notice.
15
ITEM NO. 12
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 issue securities, including but not limited to non-convertible debentures (“NCDs”), on a private placement
basis, subject to the condition that the proposed offer of debt securities or invitation to subscribe to debt securities has been previously
approved by the Members of the company, by means of a special resolution, for each of the offers or invitations. It further provides
that in case of an offer or invitation for NCDs, it shall be sufficient if the company passes a special resolution only once in a year for
all offer(s) or invitation(s) for issue of such NCDs on a private placement basis, during the period of one (1) year, from the date of
passing of such special resolution.
Keeping in view the projections of the Bank 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 issue of debt securities denominated in Indian rupees or any other permitted foreign currency (including but not limited to
long term bonds, green bonds, masala bonds, non-convertible debentures, perpetual debt instruments and Tier II capital bonds or such
other debt securities as may be permitted under the Reserve Bank of India (“RBI”) guidelines from time to time), on a private placement
basis and/or for making offers and/or invitations thereof and /or issue(s)/ issuances thereof, on a private placement basis, during the
period of one (1) year, from the date of passing of the special resolution.
Considering the above, the Board of Directors of the Bank at its meeting held on 27th April 2018 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 securities (including, but
not limited to, long term bonds, green bonds, masala bonds, non-convertible debentures, perpetual debt instruments and Tier II capital
bonds or such other debt securities as may be permitted under the RBI guidelines, from time to time) in domestic and/ or overseas
market, in one (1) or more tranches as per the structure and within the limits permitted by the RBI and other regulatory authorities to
eligible investors of an amount not exceeding ` 35,000 crore, on a private placement basis, during a period of one (1) year from
the date of passing of the special resolution. The said debt securities 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,
rates prevailing for risk free instruments, rates on other competing instruments of similar rating and tenor in the domestic or overseas
market, investor appetite for such instruments etc., as would be approved by the Board or Committee of the Board. The said limit of `
35,000 crore shall be within the overall borrowing limit of ` 200,000 crore as may be approved by the Members of the Bank, under
Section 180(1)(c) of the Companies Act, 2013 as set out in Item No. 11 of this Notice.
The Board recommends passing of the special resolution, as set out in Item No.12 of this Notice.
None of the Directors and Key Managerial Personnel of the Bank and their relatives are in any way financially or otherwise concerned
or interested in the passing of the special resolution, as set out in Item No. 12 of this Notice.
Girish V. Koliyote
Date: 16th May 2018 ACS - 14285
Axis Bank Limited

CIN: L65110GJ1993PLC020769
Registered Office:
‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple,
Law Garden, Ellisbridge, Ahmedabad – 380 006, Gujarat.
Phone No. : +91 – 79 – 6630 6161
Fax No. : +91 – 79 – 2640 9321
16
ANNEXURE 1
BRIEF PROFILE OF DIRECTORS BEING APPOINTED / RE-APPOINTED OR WHOSE REMUNERATION IS BEING REVISED,
AS SET OUT IN THIS NOTICE, IN TERMS OF THE REGULATION 36 (3) OF THE SECURITIES AND EXCHANGE BOARD
OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND THE SECRETARIAL
STANDARDS – 2 ON GENERAL MEETINGS, ISSUED BY THE INSTITUTE OF THE COMPANY SECRETARIES OF INDIA.
Shri Stephen Pagliuca
Shri Stephen Pagliuca, 63 years, was appointed as an Additional Non-Executive (Nominee) Director of the Bank, with effect from 19th
December 2017. Shri Pagliuca received a B.A. from Duke University and an M.B.A. from Harvard Business School.
Shri Pagliuca is Co-Chair of Bain Capital, a leading global private investment firm with approximately $75 billion in assets under
management. He also serves as the global head of Bain Capital Private Equity’s technology, media, telecommunications and financial
services vertical.
Since joining the firm in 1989, Shri Pagliuca has played a leading role in a wide spectrum of prominent technology, media,
telecommunications and financial services businesses in which Bain Capital Private Equity has made investments. Prior to joining Bain
Capital, Shri Pagliuca was at Bain & Company where he advised many Fortune 500 companies on business strategy and growth
initiatives.
Shri Pagliuca is a Managing General Partner and co-owner of the Boston Celtics. He is also active in a number of charitable and civic
activities. Shri Pagliuca attended 2 Board Meetings of the Bank during the financial year 2017-18. During the financial year 2017-18,
Shri Pagliuca was paid ` 2 lacs as sitting fees for attending the said Board meetings.
The details of directorship held by Shri Stephen Pagliuca in other companies, as on 31st March 2018, are as under:
Sr. No. Names of the Companies Nature of interest

1. Gartner Inc. (Delaware, USA) Director
2. TWCC Holdings Corp. (Virginia, USA) Director
3. Virgin Cruises Limited (Bermuda) Director
4. Bain Capital, LP (Delaware, USA) Co-Chairman
5. Bain Capital Private Equity, LP (Delaware, USA) Managing Director
Dr. Sanjiv Misra
Dr. Sanjiv Misra, 70 years, was appointed as the Independent Director of the Bank with effect from 12th May 2016 and thereafter
as the Non-Executive (Part-Time) Chairman of the Bank with effect from 18th July 2016. Dr. Sanjiv Misra graduated in Economics
from St. Stephen’s College, Delhi. He has a Master’s degree in Economics from the Delhi School of Economics, a Master’s degree
in Public Administration from the Harvard Kennedy School, USA and a Ph. D from the Jawaharlal Nehru University, New Delhi. At
Harvard University, he was designated as the Lucius N. Littauer Fellow of 1987, in recognition of exceptional academic strengths and
leadership qualities.
Dr. Misra was a member of the Indian Administrative Service for over 35 years during which he held a wide range of key positions
in the federal and state governments, including as Managing Director of the Gujarat Industrial Development Corporation and stints
at senior levels in the Government of India in the Cabinet Office, the Ministry of Petroleum and the Ministry of Finance. He was
a Secretary in the Ministry of Finance till his superannuation in 2008. Subsequently, he served as a Member of the 13th Finance
Commission, a constitutional position with the rank of a Minister of State.
Dr. Misra has been a Member of the Advisory Council of the Asian Development Bank Institute, Tokyo. He was also a Member of the
Committee on Fiscal Consolidation (Kelkar Committee) set up by the Finance Minister in August 2012 to chart out a road map for
fiscal consolidation for the Indian economy. He is currently a Member of the Board of Governors of the Indian Council on Research
in International Economic Relations (ICRIER), an internationally reputed think tank. Dr. Misra has several publications on policy issues
to his credit.
Dr. Misra is a Member of the Risk Management Committee of Directors of the Bank. Dr. Misra attended 9 Board Meetings of the Bank
during the financial year 2017-18. During the financial year 2017-18, Dr. Sanjiv Misra was paid ` 12 lacs sitting fees for attending
17
the meetings of the Board/Committee in addition to ` 1.83 Lacs paid towards profit related commission for the financial year 2016-17.
The details of the remuneration last drawn by Dr. Misra, (other than sitting fees and profit related commission) as approved by the
Reserve Bank of India (“RBI”) and the Members of the Bank, are as under:
Particulars Amount
Remuneration : ` 33,00,000 p.a.
Company Car : Free use of Bank’s car for official and private purposes.
Touring : Travelling and official expenses to be borne by the Bank for Board functions as a Chairman.
Sitting Fees : As payable to other Non-Executive Directors.
The details of directorship held by Dr. Sanjiv Misra in other companies, as on 31st March 2018, are as under:

1. Akzo Nobel India Limited Director
2. Hindustan Unilever Limited Director
The details of Membership in Board Committees held by Dr. Sanjiv Misra in other companies, as on 31st March 2018, are as under:
Sr. No. Names of the Companies Name of the Committee Nature of interest
1. Akzo Nobel India Limited Audit Committee Chairman
2. Hindustan Unilever Limited Audit Committee Member
Smt. Shikha Sharma
Smt. Shikha Sharma, 59 years, is the Managing Director & CEO of Axis Bank, India’s third largest private sector Bank. Smt. Sharma
joined the Bank on 1st June 2009 as the Managing Director & CEO of the Bank. As a leader adept at managing change, she has led
the Bank on a transformation journey from a primarily corporate lender to a Bank with a strong retail deposit franchise and balanced
lending.
Smt. Sharma has done her B.A. (Hons.) in Economics and completed her Post Graduate Diploma in Business Management from the
Indian Institute of Management, Ahmedabad. She has a Post Graduate Diploma in Software Technology from the National Centre for
Software Technology, Mumbai.
Smt. Sharma has more than three decades of experience in the financial sector having begun her career with ICICI Ltd. in 1980.
During her tenure with the ICICI Group, she was instrumental in setting up ICICI Securities. As Managing Director & CEO of ICICI
Prudential Life Insurance Company Ltd., she led the company to become the No. 1 private sector Life Insurance Company in India.
Since 2009, under the leadership of Smt. Sharma as Managing Director & CEO, the Bank’s balance sheet has grown 4 times, with
a focus on granular advances and deposits. The Bank has expanded its branch network from 835 branches to 3,703 branches
(including extension counters) as on 31st March 2018. Retail advances which were 20% of the book in March 2009 now stand at
46% of the book. Smt. Sharma has also focused on building the Bank’s digital capabilities and the Bank is now recognized as a digital
leader. The Bank has also established itself as a leader in debt capital markets, investment banking and is one of the large corporate
lenders in the private sector. In recent years, the Bank is focusing towards building capabilities in transaction banking.
Led by Smt. Sharma, the Bank launched several new businesses. The credit cards business, launched in 2010 has a market share of
11%, ranked 4th in the industry, the broking business launched in 2011 ranks among the top 5 in number of unique customers traded
and Axis Mutual Fund, launched in 2009 ranks among the top 10 mutual funds in India with a market share of over 3%. Axis Capital,
the investment banking arm has maintained its leadership position on equity league table over the last decade.
During the financial years 2011-2017, Axis Bank Foundation, the Bank’s CSR arm, reached out to more than a million participants
taking them to a path of transformation, both economically and socially and is now committed to work with two million households
by the year 2025.
18
As an acknowledgement of her efforts, Harvard Business School has published a case study on Managing Change at Axis Bank in
2013. Smt. Sharma’s achievements in the financial sector have received wide recognition. She is a recipient of many business awards
notably; she has featured in Fortune Magazine’s list of The Most Powerful Women in Business Outside the US – 2017.
Under Smt. Sharma’s leadership, the Bank has won several accolades: IDRBT Banking Technology Excellence Award 2016 - 2017
for Digital Banking among Large Banks, FICCI CSR Award 2016-17 in the Women Empowerment Category, Best Rewards Program
for the third year in a row at the Loyalty Awards 2017, Best Investment Bank in India (won jointly by Axis Bank and Axis Capital) at
the Finance Asia Country Awards 2017, Best Bank 2016 by Business India, Bank of the Year in India by the Banker Awards 2016,
Socially Aware Corporate of the Year by Business Standard’s Corporate Social Responsibility Awards 2016, Excellence in Corporate
Social Responsibility by CII-ITC Sustainability Awards 2016, Best Digital Bank by the Business Today- KPMG survey 2016 and many
more. The Bank has been ranked no. 1 arranger for rupee denominated bonds as per Bloomberg for 10 consecutive years. The Bank
was also conferred the certificate of recognition for excellence in Corporate Governance by the Institute of Company Secretaries of
India (ICSI), for the year 2015.
Smt. Sharma is the Chairperson of Axis Asset Management Company Ltd. and Axis Capital Ltd. She also chairs the CII’s National
Committee on Banking since 2015. She is a member of Visa’s Senior Client Council, APCEMEA (Asia –Pacific, Central Europe, Middle
East & Africa).
She was a member of the Reserve Bank of India (“RBI”)’s Technical Advisory Committee, RBI’s panel on Financial Inclusion, the
Committee on Comprehensive Financial Services for Small Businesses and Low-Income Household etc. She has been the Co-Chairperson
of FICCI’s Banking & Financial Institutions Committee 2013-15.
As on 31st March 2018, Smt. Sharma is the Chairperson of the Committee of Whole-time Directors and the Review Committee of the Board.
She is also a member of the Special Committee of the Board of Directors for Monitoring of Large Value Frauds, Committee of Directors,
Risk Management Committee, Acquisitions, Divestments & Mergers Committee and IT Strategy Committee of Directors of the Bank. Smt.
Shikha Sharma attended 9 Board Meetings of the Bank, during the financial year 2017-18.
The details of directorship held by Smt. Shikha Sharma in other companies, as on 31st March 2018, are as under:

1. Axis Asset Management Company Limited Chairperson
2. Axis Capital Limited Chairperson
Smt. Shikha Sharma is not a Member of any Board Committee in the said companies.
The details of the remuneration last drawn by Smt. Shikha Sharma, as approved by the Members of the Bank and the RBI are as under:
Salary : ` 2,94,53,000 p.a.

House Rent allowance : ` 98,24,000 p.a. (In lieu of Bank's owned/leased accommodation)
All other terms and conditions including perquisites and other allowances being paid to Smt. Shikha Sharma remain unchanged.
Shri V. Srinivasan
Shri V. Srinivasan, 53 years, joined the Bank on 7th September, 2009 as the Executive Director (Corporate Banking). Shri V. Srinivasan
was appointed as the Deputy Managing Director of the Bank, w.e.f. 21st December 2015. Shri V. Srinivasan is an engineer from the
College of Engineering, Anna University, Chennai and completed his Post Graduate Diploma in Business Management, from the Indian
Institute of Management, Calcutta in 1990.
Shri V. Srinivasan has more than two decades of experience in the financial services industry and has worked in the areas of Corporate
Banking, Investment Banking, Treasury and Foreign Exchange Management. He began his career in the financial service industry with
ICICI Ltd., in its Merchant Banking Division in 1990. He was part of the start-up team of ICICI Securities and Finance Company Ltd.
(I-Sec), the joint venture between ICICI Limited and J P Morgan and headed its Fixed Income business.
He has served on various Reserve Bank of India (“RBI”) Committees such as the Technical Advisory Committee, Committee of Repos
and Committee for STRIPS. He has also held the positions of Chairman, Fixed Income Money Market and Derivatives Association of
India (FIMMDA) and Chairman, Primary Dealers Association of India (PDAI). Currently, he is a Member of CII National Council of
19
Services.
Shri V. Srinivasan is a member of the Committee of Directors, Committee of Whole Time Directors and IT Strategy Committee of the
Board of Directors of the Bank. Shri V. Srinivasan attended 9 Board Meetings of the Bank, during the financial year 2017-18.
The details of directorship held by Shri V. Srinivasan in other companies, as on 31st March 2018, are as under:

1 Axis Trustee Services Limited Chairman
2 Axis Finance Limited Chairman
3 Axis Capital Limited Director
4 Axis Private Equity Limited Chairman
5 Axis Bank UK Limited Chairman
6 A.TREDS Limited Chairman
Shri V. Srinivasan is not a Member of any Board Committee in the said companies.
The details of the remuneration last drawn by Shri V. Srinivasan, as approved by the Members of the Bank and the RBI, are as under:
Salary : ` 2,08,62,000 p.a.

All other terms and conditions including perquisites and other allowances being paid to Shri V. Srinivasan remain unchanged.
Shri Rajiv Anand
Shri Rajiv Anand, 52 years, joined the Bank on 1st May 2013 from its asset management arm, Axis Asset Management Co. Ltd., where
he was the Managing Director & CEO. He was appointed as the President (Retail Banking) and was elevated as the Group Executive
(Retail Banking) in 2014. He was appointed as the Executive Director (Retail Banking) of the Bank, w.e.f. 4th August 2016. Shri Rajiv
Anand is a Commerce graduate and a Chartered Accountant by qualification.
Over a career spanning more than 25 years, Shri Rajiv Anand has focused on various facets of the financial services industry having
held key management positions at leading global financial institutions. He is widely recognized for his strengths in capital markets and
successfully building new businesses to scale. He has led an award winning investment management team at the erstwhile Standard
Chartered AMC. He was Business Standard Debt Fund Manager of the year in 2004.
As on 31st March 2018, Shri Rajiv Anand is a Member of the Customer Services Committee, Corporate Social Responsibility Committee,
IT Strategy Committee and the Committee of Whole Time Directors of the Bank. Shri Rajiv Anand attended 9 Board Meetings of the
Bank, during the financial year 2017-18.
The details of directorship held by Shri. Rajiv Anand in other companies, as on 31st March 2018, are as under:

1 National Payments Corporation of India Director
2 Axis Securities Limited Chairman
Shri Rajiv Anand is not a Member of any Board Committee in the said companies.
The details of the remuneration last drawn by Shri Rajiv Anand, as approved by the Members of the Bank and the RBI, are as under:
Salary : ` 1,53,78,368 p.a.

All other terms and conditions including perquisites and other allowances paid to Shri Rajiv Anand remain unchanged.
20
Shri Rajesh Dahiya
Shri Rajesh Dahiya, 50 years, joined the Bank on 1st June 2010. Before joining the Bank, he was associated with Tata Group for 20
years where he handled various responsibilities across functions such as Human Resources, Manufacturing, Exports, Distribution and
Institutional Sales.
Shri Dahiya was appointed as the Executive Director (Corporate Centre) of the Bank, w.e.f. 4th August 2016. He is a qualified engineer
with a Masters in Management from Punjab University.
As on 31st March 2018, Shri Rajesh Dahiya is a Member of the Stakeholders Relationship Committee, Special Committee for
Monitoring of Large Value Frauds, Corporate Social Responsibility and Committee of Whole Time Directors of the Bank. Shri Rajesh
Dahiya attended 9 Board Meetings of the Bank, during the financial year 2017-18.
The details of other directorship of Shri Rajesh Dahiya in other companies, as on 31st March 2018, are as under:

1 Axis Private Equity Limited Director
Shri Rajesh Dahiya is not a Member of any Board Committee in the said company.
The details of the remuneration last drawn by Shri Rajesh Dahiya, as approved by the Members of the Bank and the RBI, are as under:
Salary : ` 1,36,64,082 p.a.

All other terms and conditions including perquisites and other allowances being paid to Shri Rajesh Dahiya remain unchanged.
21
ROUTE MAP TO THE VENUE OF THE AGM

Venue: J. B. Auditorium, Ahmedabad Management Association, AMA Complex, ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad -
380 015, Gujarat.
Landmark: Near Indian Institute of Management, Ahmedabad.
N
IIM
-A Ahmedabad Textile Industries J. B. Auditorium
(0 AMA Complex, ATIRA,
.6 Research Association (ATIRA)
km Dr. Vikram Sarabhai Marg,
)
Ahmedabad - 380 015,
Ahmedabad Management Gujarat.
Association (AMA)
Dr
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am
Sa
ra
bh
ai
M
ar
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(A
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aw
ad Panjarapole
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M Cross Road
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Sahajanand
College
Kamdhenu
Complex Am
Venue Distance from ba
wa
Railway Station 8 km approx di
Airport 14 km approx (1
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22
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, as amended]
CIN L65110GJ1993PLC020769
Name of the Company Axis Bank Limited
Registered Office ‘Trishul’, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad – 380 006. Gujarat.
Phone No.: +91-79-6630 6161; Fax No.: +91-79-2640 9321
Email Address: [email protected];
Website Address: www.axisbank.com
Name of the Shareholder(s):
Registered Address:
E-mail Address:
Folio No. / Client ID: DP ID:
I/We, being the holder(s) of .............................................. equity shares of the above named company, hereby appoint
1. Name:
Address:
E-mail Address:
Signature: or failing him
2. Name:
Address:
E-mail Address:
Signature: or failing him
3. Name:
Address:
E-mail Address:
Signature
as my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 24th Annual General Meeting of the Company,
to be held on Wednesday, 20th June 2018 at 10.00 a.m. at J. B. Auditorium, Ahmedabad Management Association, AMA
Complex, ATIRA, Dr. Vikram Sarabhai Marg, Ahmedabad 380 015, Gujarat and at any adjournment(s) thereof, in respect of the
resolution(s), as indicated below:
Sr. Particulars of Resolutions Sr. Particulars of Resolutions

No. No.
1. To receive, consider and adopt : 2. Appointment of Director in place of Shri Rajiv Anand (DIN
(a) the audited standalone financial statements of the Bank 02541753) who retires by rotation and being eligible, has
for the Financial Year ended 31st March 2018 and the offered himself for re-appointment.
Reports of the Directors and the Auditors thereon; and
(b) the audited consolidated financial statements for the

Financial Year ended 31st March 2018 and the Report of
the Auditors thereon.
3. Appointment of Director in place of Shri Rajesh Dahiya 4. Appointment of M/s. Haribhakti & Co. LLP, Chartered Accountants,
(DIN 07508488), who retires by rotation and being eligible, Mumbai, (Registration Number 103523W/W100048) as the
has offered himself for re-appointment. Statutory Auditors of the Bank and to hold office as such from the
conclusion of 24th Annual General Meeting until the conclusion of
28th Annual General Meeting and payment of remuneration as
may be decided by the Audit Committee of the Board.
Sr. Particulars of Resolutions Sr. Particulars of Resolutions
No. No.
5. Appointment of Shri Stephen Pagliuca as the Non – Executive 6. Payment of remuneration to Dr. Sanjiv Misra (DIN 03075797) as
(Nominee) Director of the Bank, for a period of 4 consecutive the Non-Executive (Part-Time) Chairman of the Bank, for a period
years, w.e.f. 19th December 2017. of one year, w.e.f. 18th July 2018.
7. Re-appointment of Smt. Shikha Sharma (DIN 00043265) as 8. Revision in the remuneration payable to Shri V. Srinivasan (DIN
the Managing Director & CEO of the Bank, from 1st June 2018 00033882) as the Deputy Managing Director of the Bank, w.e.f.
up to 31st December 2018 (both days inclusive) and the terms 1st June 2018.
and conditions relating to the said re-appointment, including
remuneration.
9. Revision in the remuneration payable to Shri Rajiv Anand 10. Revision in the remuneration payable to Shri Rajesh Dahiya
(DIN 02541753) as the Executive Director (Retail Banking) of (DIN 07508488) as the Executive Director (Corporate Centre) of
the Bank, for period of one year, w.e.f. 1st June 2018. the Bank, for period of one year, w.e.f. 1st June 2018.
11. Increase in the borrowing limits of the Bank upto ` 200,000 12. Borrowing / Raising funds in Indian Currency / Foreign Currency
crore, under Section 180 (1) (c) of the Companies Act, 2013. by issue of Debt Securities including but not limited to long term
bonds, green bonds, masala bonds, non-convertible debentures,
perpetual debt instruments and Tier II capital bonds or such other
debt securities as may be permitted under the RBI guidelines, from
time to time, on a private placement basis, for an amount of upto
` 35,000 crore, during a period of one year, from the date of
passing of this Resolution.
Signed this .................. day of ......................... 2018.
Signature of Shareholder: ___________________________________________________ Affix Revenue

Stamp
Signature of Proxy holder: ___________________________________________________
Note: This form of proxy in order to be effective should be duly stamped, signed, completed in all respects and
deposited at the Registered Office of the Bank, not less than 48 hours before the commencement of this Annual
General Meeting.
Notes
291
Notes
292
"Now Papa
drops me to school
every day.
Thank you"
Your support has helped

Axis Bank Foundation create
more than a million livelihoods and
has reunited many families like Appu's.
Registered Office Corporate Office
‘Trishul’, 3rd Floor, ‘Axis House’, C-2, Wadia
Opp. Samartheshwar Temple, International Centre,
Law Garden, Ellisbridge, Pandurang Budhkar Marg,
Ahmedabad - 380 006 Worli, Mumbai - 400 025
Tel. No.: 079-6630 6161 Tel. No.: 022-2425 2525
Fax No.: 079-2640 9321 Fax No.: 022-2425 1800
aicl.in
#Progress is not about Follow us for the latest updates Grab a bucket of popcorn, sit Hop onboard our Instagram
the destination. It’s an on Axis Bank, get irresistible back, relax and watch our ads, community and set sail on a
endless journey from one offers and have your queries product videos, progress stories fun, amazing journey of food,
milestone to the next... resolved. and a lot more! travel and offers!

Annual Report For The Year 2017 2018 PDF

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Annual Report 2017-18

Contents Axis Bank

129-262 K691,330 crores

As we continue our journey, we renew ourselves

STANDALONE FIGURES AS ON/FOR THE YEAR ENDED 31 MARCH 2018

EXPANDING REACHING MORE

BRANCH CLASSIFICATION (%)

As on 31 March 2018 * Including UPI/BHIM transactions

RETAIL TECHNOLOGY AND DIGITAL

CORPORATE CAPITAL RAISE AND CORPORATE SOCIAL

MEASURING OUR PROGRESS

453,623 439,650 206,465

243,852 148,202 95,650

17-18 17-18 17-18

Low cost deposits continue to report healthy growth

691,330 18,618 10,967

OPERATING REVENUE (I IN CRORES) OPERATING PROFIT (I IN CRORES) NET PROFIT (I IN CRORES)

29,585 15,594 276

17-18 17-18 17-18

15-16 15-16 15-16

247.20 3.40 6.77

5-year CAGR 12% y-o-y growth 6% NET NPA GROSS NPA

five equity shares of nominal value of H2 each.

Retail SME Retail Banking SME 2016-17 2017-18

Corporate Transaction Banking Treasury and DCM

A CLOSER LOOK AT OUR

SAVE WITH CONVENIENT AND SUPPORT TO CREATE INSURANCE TO INVEST FOR

RETAIL DEPOSITS INVESTMENT PRODUCTS

K233,186 CRORES We also offer services of placement and

MESSAGE FROM THE

As we enter our 25th year of operations, it gives me

‘Pramila, a housewife from a small village near

India’s banks have evolved tremendously over the last

The branch network of all scheduled commercial

Shikha Sharma 25 YEARS OF PROGRESS

STRATEGIES FOR 2018-19

Continue to move Expect high-quality Focus on enhancing Maintain leadership

CREATING REAL IMPACT

RAISING SAFE BANKING

CONVENIENCE FOR ALL EMPOWERING AGRARIAN SECTOR

CREATING REAL IMPACT

The Bank launched Axis ASAP (savings account

Multi-Currency Forex Card

CREATING REAL IMPACT

CREATING REAL IMPACT

LIVELIHOOD PROMOTING GREEN INCREASING

AWARDS AND RECOGNITION

est Use of Digital and Channels Technology at

Dr. Sanjiv Misra Shikha Sharma P

Som Mittal Rohit Bhagat U

Rakesh Makhija Ketaki Bhagwati B. Babu Rao Stephen Pagliuca

V. Srinivasan Rajiv Anand R

CORE MANAGEMENT TEAM

Jairam Sridharan Statutory Auditors

Akshaya Kumar Panda

Prashant Joshi Website: www.axisbank.com

KEY PERFORMANCE INDICATORS

Interest Income as a percentage of working funds* 7.15% 7.88%

CAPITAL & RESERVES