Axis Bank AR 2022 23 Consolidated Financial Statements

Consolidated Financial Statements
Consolidated Balance Sheet

As on 31 March, 2023
(` in crores)
Schedule As on As on
No. 31-03-2023 31-03-2022
Capital and Liabilities

Capital 1 615.37 613.95
Employees' Stock Options Outstanding 426.09 150.77
Reserves & Surplus 2 128,740.25 117,495.94
Minority Interest 2A 393.39 261.35
Deposits 3 945,824.72 821,164.80
Borrowings 4 206,213.57 199,778.16
Other Liabilities and Provisions 5 62,204.57 56,314.18
Total 1,344,417.96 1,195,779.15
Assets
Cash and Balances with Reserve Bank of India 6 66,117.76 94,034.51
Balances with Banks and Money at Call and Short Notice 7 42,590.17 18,309.00
Investments 8 288,094.83 274,608.13
Advances 9 868,387.54 725,376.14
Fixed Assets 10 4,852.58 4,679.12
Other Assets 11 74,085.84 78,483.01
Goodwill on Consolidation 289.24 289.24
Total 1,344,417.96 1,195,779.15
Contingent Liabilities 12 1,443,666.01 1,293,755.36
Bills for Collection 68,176.55 66,947.44
Significant Accounting Policies and Notes to Accounts 17 & 18
Schedules referred to above form an integral part of the Consolidated Balance Sheet
In terms of our report attached. For Axis Bank Ltd.
For M. P. Chitale & Co. Rakesh Makhija

Chartered Accountants Chairman
ICAI Firm Registration No.: 101851W
Ashutosh Pednekar Rajiv Anand Amitabh Chaudhry

Partner Deputy Managing Director Managing Director & CEO
Membership No.: 041037
For CNK & Associates LLP S. Mahendra Dev Girish Paranjpe T.C. Suseel Kumar
Chartered Accountants Director Director Director
ICAI Firm Registration No.: 101961W/W100036
Manish Sampat Sandeep Poddar Puneet Sharma Meena Ganesh

Partner Company Secretary Chief Financial Officer Director
Date : 27 April, 2023

Place: Mumbai
314 Annual Report 2022-23

Financial Statements
Consolidated Profit & Loss Account

For the year ended 31 March, 2023
(` in crores)
Year ended Year ended
Schedule No.
31-03-2023 31-03-2022
I Income
Interest earned 13 87,448.37 68,846.06
Other income 14 18,706.38 17,268.13
Total 106,154.75 86,114.19
II Expenditure
Interest expended 15 43,389.15 34,922.66
Operating expenses 16 41,227.07 24,824.23
Provisions and contingencies 18 (3.1) 10,685.87 12,202.95
Total 95,302.09 71,949.84
III Net Profit for the year 10,852.66 14,164.35
Share of earnings/(loss) in Associate 65.85 42.54
Consolidated net profit for the year before deducting minorities interest 10,918.51 14,206.89
Minority interest (100.06) (87.60)
IV Consolidated Net Profit Attributable to Group 18.1 10,818.45 14,119.29
Balance in Profit & Loss Account brought forward from previous year 40,604.49 31,466.92
V Amount Available for Appropriation 51,422.94 45,586.21
VI Appropriations:
Transfer to Statutory Reserve 2,394.92 3,256.37
Transfer to Special Reserve 841.00 609.19
Transfer to/(from) Investment Reserve (148.50) 148.50
Transfer to General Reserve 2.46 2.32
Transfer to Capital Reserve 67.84 441.04
Transfer to Reserve Fund u/s 45 IC of RBI Act, 1934 115.83 69.30
Transfer to Investment Fluctuation Reserve 73.00 455.00
Dividend paid 18 (3.6) 307.14 -
Balance in Profit & Loss Account carried forward 47,769.25 40,604.49
Total 51,422.94 45,586.21
VII Earnings Per Equity Share (Face Value ` 2/- Per Share) 18 (3.4)
Basic (in `) 35.20 46.04
Diluted (in `) 35.04 45.91
Significant Accounting Policies and Notes to Accounts 17 & 18
Schedules referred to above form an integral part of the Consolidated Profit and Loss Account




Place: Mumbai
315
Consolidated Cash Flow Statement

(` in crores)

31-03-2023 31-03-2022
Cash flow from operating activities

Net profit before taxes 18,521.12 18,841.86
Adjustments for:
Depreciation and amortisation on fixed assets, intangibles and goodwill (Refer Note 18.1) 13,145.65 1,048.99
Depreciation on investments 595.57 (264.48)
Amortisation of premium on Held to Maturity investments 889.11 823.78
Provision for Non Performing Assets (including bad debts)/restructured assets 6,225.90 7,580.80
Provision on standard assets and other contingencies (421.94) 2,224.17
Profit/(loss) on sale of land, buildings and other assets (net) 7.69 6.11
Employee Stock Option Expense 286.02 150.77
39,249.12 30,412.00
Adjustments for:
(Increase)/Decrease in investments 4,622.29 (24,189.72)
(Increase)/Decrease in advances (149,553.15) (106,571.94)
Increase /(Decrease) in deposits 125,161.20 122,611.53
(Increase)/Decrease in other assets 2,968.61 2,920.04
Increase/(Decrease) in other liabilities & provisions 6,313.23 7,401.45
Direct taxes paid (6,686.52) (4,446.06)
Net cash flow from operating activities 22,074.78 28,137.30
Cash flow from investing activities
Purchase of fixed assets (1,389.42) (1,408.97)
Purchase consideration for acquistion of Citibank India consumer business (Refer Note 18.1) (11,602.54) -
(Increase)/Decrease in Held to Maturity investments (19,714.15) (25,830.38)
Proceeds from sale of fixed assets 11.73 7.25
Net cash used in investing activities (32,694.38) (27,232.10)
Cash flow from financing activities
Proceeds from issue/(Repayment) of subordinated debt, Additional Tier I instruments (net) 6,382.65 (2,377.45)
Increase/(Decrease) in borrowings (other than subordinated debt, Additional Tier I instruments (net)) 52.76 49,906.90
Proceeds from issue of share capital 1.42 1.20
Proceeds from share premium (net of share issue expenses) 378.81 275.83
Payment of dividend (307.14) -
Increase in minority interest 132.04 87.60
Net cash generated from financing activities 6,640.54 47,894.08

(` in crores)

31-03-2023 31-03-2022
Effect of exchange fluctuation translation reserve 343.48 119.87

Net increase in cash and cash equivalents (3,635.58) 48,919.15
Cash and cash equivalents at the beginning of the year 112,343.51 63,424.36
Cash and cash equivalents at the end of the year 108,707.93 112,343.51
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) 66,117.76 94,034.51
Balances with Banks and Money at Call and Short Notice (Refer Schedule 7) 42,590.17 18,309.00
Cash and cash equivalents at the end of the year 108,707.93 112,343.51
2. Amount of Corporate Social Responsibility related expenses spent during the year in cash
`193.53 crores (previous year `128.24 crores)




Place: Mumbai
317
SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

As on 31 March, 2023
Schedule 1 - Capital
(` in crores)
As on As on
31-03-2023 31-03-2022
Authorised Capital
4,250,000,000 (Previous year - 4,250,000,000) Equity Shares of `2/- each 850.00 850.00
Issued, Subscribed and Paid-up capital
3,076,852,012 (Previous year - 3,069,747,836) Equity Shares of `2/- each fully paid-up 615.37 613.95
Schedule 2 - Reserves and Surplus

(` in crores)
As on As on
31-03-2023 31-03-2022
I. Statutory Reserve
Opening Balance 18,055.42 14,799.05
Additions during the year 2,394.92 3,256.37
20,450.34 18,055.42
II. Special Reserve
Opening Balance 609.19 -
Additions during the year 841.00 609.19
1,450.19 609.19
III. Share Premium Account
Less: Share issue expenses (0.07) (0.02)
51,935.78 51,547.87
IV. Investment Reserve Account
Opening Balance 148.50 -
Additions/(Deductions) during the year (148.50) 148.50
- 148.50
V. General Reserve
Opening Balance 428.29 425.97
432.37 428.29
VI. Capital Reserve
3,790.07 3,722.23

(` in crores)
As on As on
31-03-2023 31-03-2022
VII. Foreign Currency Translation Reserve [Refer Schedule 17 (4.7)]

694.58 351.11
VIII. Reserve Fund u/s 45 IC of RBI Act, 1934
435.67 319.84
IX. Investment Fluctuation Reserve
1,782.00 1,709.00
X. Balance in Profit and Loss Account brought forward 47,769.25 40,604.49

Total 128,740.25 117,495.94
Schedule 2A - Minority Interest

(` in crores)
As on As on
31-03-2023 31-03-2022
I. Minority Interest at the date on which the parent-subsidiary relationship came into existence 40.23 8.25
Subsequent increase 353.16 253.10
Closing Minority Interest 393.39 261.35
Schedule 3 - Deposits
(` in crores)
As on As on
31-03-2023 31-03-2022
A. I. Demand Deposits
(i) From banks 4,760.03 4,792.62
(ii) From others 143,543.86 122,154.54
II. Savings Bank Deposits 297,415.99 242,449.27
III. Term Deposits
(i) From banks 36,777.64 21,824.13
(ii) From others 463,327.20 429,944.24
Total (I, II and III) 945,824.72 821,164.80
B. I. Deposits of branches in India 931,486.13 818,558.88
II. Deposits of branches/subsidiaries outside India 14,338.59 2,605.92
Total (I and II) 945,824.72 821,164.80
319
Schedule 4 - Borrowings
(` in crores)
As on As on
31-03-2023 31-03-2022
I. Borrowings in India
(i) Reserve Bank of India 7,769.00 18,102.00
(ii) Other banks1 13,696.28 8,518.11
(iii) Other institutions & agencies2
147,235.52 118,770.87
II. Borrowings outside India 3
37,512.77 54,387.18
Total (I and II) 206,213.57 199,778.16
Secured borrowings included in I & II above 24,053.16 36,709.00
1. Borrowings from other banks include Subordinated Debt of `15.60 crores (previous year `15.60 crores) in the nature of Non-Convertible Debentures
[Also refer Schedule 18 (3.2)(b)]
2. Borrowings from other institutions & agencies include Subordinated Debt of `25,034.40 crores (previous year `14,809.40 crores) nature of Non-
Convertible Debentures and Perpetual Debt amounting to Nil (previous year `3,700.00 crores) [Also refer Schedule 18 (3.2)(b)]
3. Borrowings outside india include Additional Tier I Bonds in the nature of Perpetual Debt amounting to $600 million (`4,930.20 crores); previous year
$600 million (`4,547.55 crores) [Also refer Schedule 18 (3.2)(b)]
Schedule 5 - Other Liabilities and Provisions

(` in crores)
As on As on
31-03-2023 31-03-2022
I. Bills payable 9,543.81 8,499.36

II. Inter-office adjustments (net) - -
III. Interest accrued 4,097.95 4,662.33
IV. Contingent provision against standard assets 7,988.94 7,346.31
V. Others (including provisions) 40,573.87 35,806.18
Total 62,204.57 56,314.18
Schedule 6 - Cash and Balances with Reserve Bank of India

(` in crores)
As on As on
31-03-2023 31-03-2022
I. Cash in hand (including foreign currency notes) 9,665.88 9,840.10

II. Balances with Reserve Bank of India:
(i) in Current Account 43,003.88 36,993.41
(ii) in Other Accounts 13,448.00 47,201.00
Total (I and II) 66,117.76 94,034.51

Schedule 7 - Balances with Banks and Money at Call and Short Notice
(` in crores)
As on As on
31-03-2023 31-03-2022
I. In India
(i) Balance with Banks
(a) in Current Accounts 1,517.10 1,240.04
(b) in Other Deposit Accounts 4,061.40 886.98
(ii) Money at Call and Short Notice
(a) With banks 200.00 -
(b) With other institutions 11,260.03 998.48
Total ( i and ii) 17,038.53 3,125.50
II. Outside India
(i) in Current Accounts 4,930.27 2,722.53
(ii) in Other Deposit Accounts 10,083.06 5,518.38
(iii) Money at Call & Short Notice 10,538.31 6,942.59
Total (i, ii and iii) 25,551.64 15,183.50
Grand Total (I+II) 42,590.17 18,309.00
Schedule 8 - Investments
(` in crores)
As on As on
31-03-2023 31-03-2022
I. Investments in India in -
(i) Government Securities1 219,706.84 219,508.11
(ii) Other approved securities - -
(iii) Shares 1,193.12 1,194.08
(iv) Debentures and Bonds 54,797.65 44,737.83
(v) Associates2 863.74 797.89
(vi) Others (Mutual Fund units, PTC etc.) 2,827.25 2,435.57
Total Investments in India 279,388.60 268,673.48
II. Investments outside India in -
(i) Government Securities (including local authorities) 8,487.64 5,669.76
(ii) Associates - -
(iii) Others (Equity Shares and Bonds) 218.59 264.89
Total Investments outside India 8,706.23 5,934.65
Grand Total (I+II) 288,094.83 274,608.13
321
(` in crores)
As on As on
31-03-2023 31-03-2022
III. Investments in India

(i) Gross value of investments 281,539.72 271,077.85
(ii)
Aggregate of provisions for depreciation (includes provision for non-perfoming (2,151.12) (2,404.37)
investments)
(iii) Net investments 279,388.60 268,673.48
IV. Investments outside India
(i) Gross value of investments 8,965.75 6,180.57
(ii)
Aggregate of provisions for depreciation (includes provision for non-perfoming (259.52) (245.92)
investments)
(iii) Net investments 8,706.23 5,934.65
Grand Total (III+IV) 288,094.83 274,608.13
1. Includes securities costing `85,079.35 crores (previous year `58,436.89 crores) pledged for availment of fund transfer facility, clearing facility and
margin requirements
2. Includes goodwill on acquisition of associates amounting to `368.54 crores (previous year `368.54 crores)
Schedule 9 - Advances
(` in crores)
As on As on
31-03-2023 31-03-2022
A. (i) Bills purchased and discounted 18,422.86 35,575.80

(ii) Cash credits, overdrafts and loans repayable on demand 1
244,470.21 189,787.87
(iii) Term loans 605,494.47 500,012.47
Total (i, ii and iii) 868,387.54 725,376.14
B. (i) Secured by tangible assets 2
622,686.69 539,276.86
(ii) Covered by Bank/Government Guarantees3 5,497.26 14,261.37
(iii) Unsecured 240,203.59 171,837.91
Total (i, ii and iii) 868,387.54 725,376.14
C. I. Advances in India
(i) Priority Sector 306,850.92 254,162.74
(ii) Public Sector 17,719.94 22,195.70
(iii) Banks 1,112.52 2,446.93
(iv) Others 509,024.03 398,233.79
Total (i, ii, iii and iv) 834,707.41 677,039.16
II. Advances Outside India
(i) Due from banks 205.42 560.86
(ii) Due from others -
(a) Bills purchased and discounted 6,954.73 23,888.56
(b) Syndicated loans 150.63 236.56
(c) Others 26,369.35 23,651.00
Total (i and ii) 33,680.13 48,336.98
Grand Total [C.I.+C.II.] 868,387.54 725,376.14
1. Net of borrowings under Inter Bank Participation Certificate (IBPC) `8,593.09 crores (previous year Nil), includes lending under IBPC `2,162.00
crores (previous year `4,925.70 crores)
2. Includes advances against Book Debts
3. Includes advances against L/Cs issued by other banks

Schedule 10 - Fixed Assets
(` in crores)
As on As on
31-03-2023 31-03-2022
I. Premises
At cost as on 31st March of the preceding year 1,706.82 1,623.97
Additions on account of acquisition of Citibank India Consumer Business (Refer Note 18.1) 0.86 -
Intra-category transfer (44.36) 48.54
Deductions during the year - -
Depreciation to date (250.58) (230.09)
Net Block 1,413.01 1,476.73
IA. Premises under construction - -
II. Other fixed assets (including furniture & fixtures and intangibles)
At cost as on 31st March of the preceding year 9,260.42 8,192.32
Additions on account of acquisition of Citibank India Consumer Business (Refer Note 18.1) 11,984.56 -
Additions during the year1 1,451.77 1,277.83
Deductions during the year (252.79) (209.73)
Depreciation to date (Refer Note 18.1) (19,330.70) (6,421.11)
Net Block 3,113.26 2,839.31
IIA. Leased Assets (Premises given on lease)
At cost as on 31st March of the preceding year 165.24 213.78
Additions during the year including adjustments - -
Deductions during the year including provisions - -
Intra-category transfer 44.36 (48.54)
Depreciation to date (25.43) (17.29)
Net Block 184.17 147.95
Grand Total (I,IA,II and IIA) 4,710.44 4,463.99
III. Capital-Work-in progress (including Leased Assets) net of Provisions 142.14 215.13
Grand Total (I,IA,II,IIA and III) 4,852.58 4,679.12
1. includes movement on account of exchange rate fluctuation
323
Schedule 11 - Other Assets

(` in crores)
As on As on
31-03-2023 31-03-2022
I. Inter-office adjustments (net) - -

II. Interest Accrued 10,286.10 8,559.19
III. Tax paid in advance/tax deducted at source (net of provisions) 748.87 783.85
IV. Stationery and stamps 1.33 0.63
V. Non banking assets acquired in satisfaction of claims 1
- -
VI. Deferred Tax assets (net) 6,405.76 7,452.79
VII. Others2 56,643.78 61,686.55
Total 74,085.84 78,483.01
1. Represents balance net of provision of `2,068.24 crores (previous year `2,068.24 crores) on Land held as non-banking asset
2. Includes Priority Sector Shortfall Deposits of `30,564.20 crores (previous year `41,653.61 crores)
Schedule 12 - Contingent Liabilities
(` in crores)
As on As on
31-03-2023 31-03-2022
I. Claims against the Group not acknowledged as debts 2,072.26 1,021.65

II. Liability for partly paid investments 301.03 319.49
III. Liability on account of outstanding forward exchange and derivative contracts :
a) Forward Contracts 604,835.27 517,803.37
b) Interest Rate Swaps, Currency Swaps, Forward Rate Agreement & Interest Rate Futures 582,389.13 542,976.63
c) Foreign Currency Options 40,929.92 47,958.55
Total (a+b+c) 1,228,154.32 1,108,738.55
IV. Guarantees given on behalf of constituents
In India 91,763.78 72,435.86
Outside India 10,613.41 7,313.13
V. Acceptances, endorsements and other obligations 52,361.53 56,941.54
VI. Other items for which the Group is contingently liable 58,399.68 46,985.14
Grand Total (I+II+III+IV+V+VI) [Refer Schedule 18 (3.18)] 1,443,666.01 1,293,755.36

SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT

Schedule 13 - Interest Earned

(` in crores)
31-03-2023 31-03-2022
I. Interest/discount on advances/bills 66,728.52 51,013.36
II. Income on investments (including dividend) 18,224.36 14,658.11
III. Interest on balances with Reserve Bank of India and other inter-bank funds 907.19 1,529.02
IV. Others 1,588.30 1,645.57
Total 87,448.37 68,846.06
Schedule 14 - Other Income

(` in crores)
31-03-2023 31-03-2022
I. Commission, exchange and brokerage 16,642.23 13,446.19
II. Profit/(loss) on sale of land, buildings and other assets (net)1 (7.69) (6.11)
III. Profit/(loss) on exchange/derivative transactions (net) 1,804.00 1,913.42
IV. Profit/(loss) on sale of investments (net) (236.73) 1,158.23
V. Profit/(loss) on revaluation of investments (net) - 264.48
VI. Lease finance income (including management fee, overdue charges and interest on lease rent - -
receivables)
VII. Miscellaneous Income 504.57 491.92
Total 18,706.38 17,268.13
1. includes provision for diminution in value of fixed assets
Schedule 15 - Interest Expended

(` in crores)
31-03-2023 31-03-2022
I. Interest on deposits 31,717.27 26,678.41
II. Interest on Reserve Bank of India/Inter-bank borrowings 2,271.55 1,021.58
III. Others 9,400.33 7,222.67
Total 43,389.15 34,922.66
Schedule 16 - Operating Expenses

(` in crores)
31-03-2023 31-03-2022
I. Payments to and provisions for employees 9,664.96 8,414.06
II. Rent, taxes and lighting 1,481.25 1,376.98
III. Printing and stationery 319.12 234.67
IV. Advertisement and publicity 216.23 147.59
V. Depreciation on Group's property
a) Other than Leased Assets (Refer Note 18.1) 13,143.37 1,045.59
b) On Leased Assets 2.28 3.40
VI. Directors' fees, allowance and expenses 10.07 7.18
VII. Auditors' fees and expenses 7.70 6.61
VIII. Law charges 183.74 213.95
IX. Postage, telegrams, telephones etc. 389.11 308.20
X. Repairs and maintenance 1,595.42 1,449.92
XI. Insurance 1,425.54 1,289.74
XII. Amortisation of Goodwill - -
XIII. Other expenditure (Refer Note 18.1) 12,788.28 10,326.34
Total 41,227.07 24,824.23
325
17 SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. Principles of consolidation
The consolidated financial statements comprise the financial statements of Axis Bank Limited (‘the Bank’), its Subsidiaries
and Associate (together ‘the Group’). As on 31 March, 2023, the Bank has overseas branches at Singapore, DIFC - Dubai
and an Offshore Banking Unit at the International Financial Service Centre (IFSC), Gujarat International Finance Tec-City
(GIFT City), Gandhinagar, India.
The Bank consolidates its Subsidiaries in accordance with Accounting Standard (‘AS’) 21, Consolidated Financial Statements
notified under Section 133 of the Companies Act, 2013 read together with the Companies (Accounts) Rules, 2014 and the
Companies (Accounting Standards) Rules, 2021 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.
Investments in entities where the Bank has the ability to exercise significant influence are accounted for under the
equity method of accounting as prescribed under Accounting Standard 23 “Accounting for investments in Associates
in Consolidated Financial Statements” and the pro-rata share of their profit/(loss) is included in the consolidated Profit
and Loss account.
Effective 1 March 2023, the Bank completed the acquisition of Citibank’s India Consumer Business from Citibank N.A.
(acting through its branch in India) (‘CBNA’) and the NBFC Consumer Business from Citicorp Finance (India) Limited (‘CFIL’)
as going concerns without assigning values to individual assets and liabilities post receipt of statutory and other approvals
and completion of all other conditions as stipulated under the respective Business Transfer Agreements (BTAs).
2. Basis of preparation
a) The consolidated financial statements (‘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, unless otherwise stated by the Reserve Bank of India (‘RBI’), to comply with the statutory requirements
prescribed under the Third Schedule of the Banking Regulation Act, 1949, the circulars, notifications, guidelines
and directives issued by the RBI from time to time and the Accounting Standards notified under Section 133 of the
Companies Act, 2013 read together with the Companies (Accounts) Rules, 2014 and the Companies (Accounting
Standards) Rules, 2021 to the extent applicable and practices generally prevalent in the banking industry in India.
Accounting policies applied have been consistent with the previous year except otherwise stated.
b) The consolidated financial statements present the accounts of the Bank including the following entities:
Country of Ownership
Name Relation
Incorporation Interest
Axis Capital Limited Subsidiary India 100.00%

Axis Trustee Services Limited Subsidiary India 100.00%
Axis Mutual Fund Trustee Limited Subsidiary India 75.00%
Axis Asset Management Company Limited Subsidiary India 75.00%
Axis Finance Limited Subsidiary India 100.00%
Axis Securities Limited Subsidiary India 100.00%
Freecharge Payment Technologies Pvt. Limited Subsidiary India 100.00%
A. Treds Limited Subsidiary India 67.00%
Axis Bank UK Limited Subsidiary U.K. 100.00%
Axis Capital USA LLC Step down subsidiary USA 100.00%
Axis Pension Fund Management Limited Step down subsidiary India 47.27%
(with effect from 17 May, 2022)
Max Life Insurance Company Limited Associate India 12.99%
c) The financial statements of certain subsidiaries have been prepared in accordance with notified Indian Accounting
Standards (‘Ind-AS’). The financial statements of such subsidiaries used for consolidation are special purpose financial
statements prepared in accordance with Generally Accepted Accounting Principles in India (‘GAAP’) specified under
section 133 of the Companies Act, 2013 read together with the Companies (Accounts) Rules, 2014 and the companies
(Accounting Standards) Rules, 2021.

d) The audited financial statements of the above subsidiaries/step-down subsidiaries have been drawn up to the same
reporting date as that of the Bank, i.e. 31 March, 2023.
e) The financial statements of the Bank’s foreign subsidiary, Axis Bank UK Limited (‘the Company’) are prepared in
accordance with UK adopted international accounting standards which have been converted to Indian GAAP for
the purpose of consolidated financial statements of the Group. Following the termination of the Share Purchase
Agreement between OpenPayd Holdings Limited and the Bank for the sale of 100% stake in Axis Bank UK Limited
in August 2022, the Company has initiated the wind down of its operations. Accordingly, the financial statements
of the Company have been prepared on a basis other than that of a going concern. Considering the size and scale of
operations of Axis Bank UK, the impact of the above is not material on the financial statements/position of the Group.
f) The Group’s share of net profit after tax for the year ended 31 March, 2023 as included in the Consolidated Financial
Statements in respect of one Associate is based on management’s best estimate in the absence of financial information
of such Associate.
3. Use of estimates
The preparation of the consolidated 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 and assumptions used in
the preparation of the financial statements are prudent and reasonable. Any revisions, as and when carried out, to the
accounting estimates are recognised prospectively in the current and future periods.
4. Significant accounting policies

4.1 Investments
Axis Bank Limited
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 transferred to 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 and investments under TLTRO guidelines are categorised as HTM in accordance with the
RBI guidelines.
All other investments are classified as AFS securities.
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.
All investments are accounted for on settlement date, except investments in equity shares which are accounted
for on trade date.
Transfer of security between categories
Transfer of security between categories of investments is accounted for as per the RBI guidelines.
Acquisition cost
Costs incurred at the time of acquisition, pertaining to investments, such as brokerage, commission etc. are charged to the
Profit and Loss Account.
Broken period interest is charged to the Profit and Loss Account.
Cost of investments is computed based on the weighted average cost method.
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Valuation
Investments classified under the HTM category: Investments 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. Such amortization of premium is adjusted against interest income under the head ‘Income from Investments’ under
Schedule 13 in Profit and Loss Account. As per the 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: Investments under these 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 the 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. Net depreciation on each type of investments
falling under the residual category of ‘Others’ (i.e. mutual funds, Pass Through Certificates (PTCs), security receipts etc.)
is not offset against gain in another class of investment falling within the ‘Others’ category. Further, in case of standard
investments classified as weak (including certain internally unrated investments) as per the Bank’s internal framework,
the Bank recognizes net depreciation without availing the benefit of set-off against appreciation within the same class of
investments as permitted under the extant RBI circular. The depreciation on securities acquired by way of conversion of
outstanding loans is provided in accordance with the RBI guidelines. Provision for depreciation on investments is classified
under Schedule-14 ‘Other Income’. 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 the RBI guidelines. Provision for
depreciation on such non-performing investments is not set off against the appreciation in respect of other performing
securities as per RBI guidelines. Interest on non-performing investments is not recognized in the Profit and Loss Account
until received.
Treasury Bills, Exchange Funded Bills, Commercial Paper and Certificate of Deposits being discounted instruments, are
valued at carrying cost which includes discount accreted over the period to maturity.
Units of mutual funds are valued at the latest repurchase price/Net Asset Value (‘NAV’) declared by the mutual fund.
Market value of investments where current quotations are not available, is determined in accordance with 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 forming part of the AFS and HFT categories is computed as per the rates published by FIMMDA/ FBIL.
• In case of special bonds issued by the Government of India that do not qualify for SLR purposes, 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/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
category and credit ratings along with residual maturity issued by FIMMDA/FBIL is adopted for this purpose.
• In case of bonds & debentures 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 the RBI.
• PTC and Priority Sector PTCs are valued as per extant FIMMDA guidelines.
• 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 (not older than 18 months). In case the latest Balance Sheet is not available, the
shares are valued at `1 per company.
• Investments in listed instruments of Real Estate Investment Trust (REIT)/Infrastructure Investment Trust (INVIT)
are valued at the closing price on the recognised stock exchange with the highest volumes. In case the instruments
are not traded on any stock exchange, valuation is carried out based on the latest NAV (not older than 1 year)
submitted by the trust.
• Units of Venture Capital Funds (‘VCF’) held under AFS category where current quotations are not available are
valued based on the latest audited financial statements 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 may be
categorized under HTM category for the initial period of three years and are valued at cost as per the RBI guidelines.

• Investments in Security Receipts (SR’s)are valued as per the NAV declared by the issuing Asset Reconstruction
Company (ARC) or net book value of loans transferred or estimated recoverable value based on Bank’s internal
assessment on case to case basis, whichever is lower. In case of investments in SRs which are backed by more than 10
percent of the stressed assets sold by the Bank, the valuation of such SRs is additionally subject to a floor of face value
of the SRs reduced by 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.
Disposal of investments
Investments classified under the HTM category: Realised gains 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.
Investments classified under the AFS and HFT categories: Realised gains/losses are recognised in the Profit and Loss Account.
Short Sales
In accordance with the RBI guidelines, the Bank undertakes short sale transactions in Central Government dated securities.
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
(‘MTM’) 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.
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
Profit and Loss Account.
Long term investments are stated at cost. Provision is made to recognise a decline, other than temporary, in the value of
such investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited
to the Profit and Loss Account.
4.2 Repurchase and reverse repurchase transactions
Axis Bank Limited
Repurchase transactions (‘Repos’)
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 for as collateralised
borrowings. Accordingly, securities given as collateral under an agreement to repurchase them, continue to be held under
the investment account and the Bank continues to accrue the coupon on the security during the repo period. Borrowing
cost on such repo transactions is accounted as interest expense in “Schedule 15 – Interest Expended” in the Profit
and Loss Account.
Reverse repurchase transactions (‘Reverse repos’)
Reverse repurchase transactions with RBI with original maturity upto 14 days from the date of issuance, including
those conducted under the Liquidity Adjustment Facility (‘LAF’) and Standing Deposit Facility (‘SDF’) are accounted for
as collateralised lending under “Schedule 6 - Balances with RBI - in Other Accounts”. Revenue on such reverse repos is
accounted for as interest income under “Schedule 13 – Interest Earned – Interest on balances with Reserve Bank of India
and Other Inter-bank Funds” in the Profit and Loss Account.
Reverse repos with original maturity of more than 14 days from the date of issuance are accounted for as collateralised
lending under “Schedule 9 - Advances”. Revenue on such reverse repos is accounted for as interest income under “Schedule
13 - Interest Earned – Interest/discount on advances/bills” in the Profit and Loss account.
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4.3 Advances
Axis Bank Limited
Classification and measurement of 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 loans classified
as NPAs and floating provisions. Structured collateralised foreign currency loans extended to customers and deposits
received from the same customer are reported on a net basis.
The Bank transfers advances through inter-bank participation with and without risk. In accordance with the RBI guidelines,
in the case of participation with risk, the aggregate amount of the participation issued by the Bank is reduced from advances
and where the Bank is participating, the aggregate amount of the participation is classified under advances. In the case of
participation without risk, the aggregate amount of participation issued by the Bank is classified under borrowings and
where the Bank is participating, the aggregate amount of participation is shown as due from banks under advances.
Non-performing advances and provision on non-performing advances
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. NPAs are upgraded to standard as per the extant RBI guidelines.
Provisions for NPAs are made for sub-standard and doubtful assets at rates as prescribed by the RBI with the exception
of schematic retail advances, agriculture advances and advances to Commercial Banking segment. 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 commercial banking group advances and 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 identified
as impaired as per host country regulations for reasons other than record of recovery, are made as per the host
country regulations.
In case of NPAs referred to the National Company Law Tribunal (‘NCLT’) under the Insolvency and Bankruptcy Code, 2016
(‘IBC’) where resolution plan or liquidation order has been approved by NCLT, provision is maintained at higher of the
requirement under the RBI guidelines or the likely haircut as per resolution plan or liquidation order.
Provision on restructured assets
Restructured assets are classified and provided for in accordance with the guidelines issued by the RBI from time to time.
In respect of advances where resolution plan has been implemented under the RBI guidelines on “Resolution Framework
for COVID-19 related Stress”and “Micro, Small and Medium Enterprises (MSME) Sector – Restructuring of Advances”,
provisions are maintained as per the internal framework of the Bank at rates which are higher than those specified under
the extant RBI circulars. Restructured loans are upgraded to standard as per the extant RBI guidelines.
Provisions held on restructured assets are reported in Schedule 5 – Other Liabilities and Provisions in the Balance Sheet.
Write-offs and recoveries from written-off accounts
Write-offs are provided/written off as per carried out in accordance with the Bank’s policy.
Amounts recovered against debts written off are recognised in the Profit and Loss Account as a credit to Provision
and Contingencies.
Appropriation of funds for standard advances
In case of Equated Monthly Instalment (EMI) based standard retail advances, funds received from customers are
appropriated in the order of principal, interest, penal interest and charges. In case of other standard advances, funds
received from customers are appropriated in the order of charges, penal interest, interest and principal.
In case of portfolio of advances acquired from CBNA and CFIL which continue to be serviced through their respective
source systems, funds received from customers in respect of accounts which are less than 90 days past due are appropriated
in the order of charges, interest and principal. This appropriation logic will be aligned to the Bank’s policy upon completion
of migration of customer accounts to the Bank’s respective source systems.

Other provisions on advances

The Bank recognises additional provisions as per RBI’s guidelines on accounts in default and with aggregate exposure
above the threshold limits as laid down in the said framework where the resolution plan is not implemented within the
specified timelines.
In respect of borrowers classified as non-cooperative or wilful defaulters the Bank makes accelerated provisions as per the
extant RBI guidelines.
In the case of one-time settlements with borrowers that are entered into but not closed as on the reporting date, the
Bank makes provisions which is the higher of (i) the provision required based on asset classification; and (ii) the amount of
contracted sacrifice, on a portfolio basis.
Loans reported as fraud are classified as loss assets, and fully provided for immediately without considering the
value of security.
The Bank makes incremental provisioning (determined based on a time scale and on occurrence of predefined events) on all
outstanding advances and investments relating to borrowers tagged as Red flagged accounts (‘RFA’).
For entities with Unhedged Foreign Currency Exposure (‘UFCE’), provision is made in accordance with the guidelines issued
by the RBI, which requires ascertaining the amount of UFCE, estimating the extent of likely loss and estimating the riskiness
of the unhedged position. This provision is classified under Schedule 5 – Other Liabilities and Provisions in the Balance
Sheet. Further, incremental capital is maintained in respect of such borrower counter parties in the highest risk category, in
line with stipulations by the RBI.
The Bank maintains provisions for incremental exposure of the banking system to specified borrowers beyond the
Normally Permitted Lending Limit (‘NPLL’) in proportion to Bank’s funded exposure to the specified borrowers as per the
RBI guidelines. This provision is classified under Schedule 5 – ‘Other Liabilities and Provisions’ in the Balance Sheet.
The Bank maintains a general provision on standard advances at the rates prescribed by the RBI. The general provision on
corporate standard advances internally rated ‘BB and Below’ or ‘Unrated’ and all Special Mention Accounts-2 (‘SMA-2’)
advances as reported to Central Repository of Information on Large Credits (‘CRILC’), maintained at rates that are higher
than those 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 by the extant RBI guidelines. The Bank also maintains
general provision on positive MTM on derivative transactions at the rates prescribed under the extant RBI guidelines.
The Bank maintains provision on non-funded outstanding in relation to NPAs, prudentially written off accounts, corporate
standard advances internally rated ‘BB and Below’ or ‘Unrated’ and all SMA-2 advances as reported to CRILC. This provision
is classified under Schedule 5 – ‘Other Liabilities and Provisions’ in the Balance Sheet.
Under its home loan portfolio, the Bank offers housing loans with certain features involving waiver of EMIs for a specific
period subject to fulfilment of certain set of conditions by the borrower. The Bank makes provision against the probable loss
that could be incurred in future on account of these waivers to eligible borrowers based on actuarial valuation conducted by
an independent actuary. This provision is classified under Schedule 5 – ‘Other Liabilities and Provisions’ in the Balance Sheet.
As on 31 March, 2023, the Bank continues to hold provisions against the potential impact of COVID-19 (other than
provisions held for restructuring under COVID-19 norms)
Axis Finance Limited
Advances are classified into performing and non-performing advances (‘NPAs’) as per the RBI guidelines and are stated 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 standard assets and NPAs are made at rates as prescribed by the Company policy which is over and above the
minimum requirements under the RBI guidelines.
Axis Bank UK Limited
Loans held for sale are measured at the lower of their carrying amount and fair value less cost to sell.
4.4 Country risk
Axis Bank Limited
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). Such provisions are held only in respect of those
countries where the net funded exposure of the Bank exceeds 1% of its total assets. For this purpose the countries are
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categorized into seven risk categories namely insignificant, low, moderate, high, very high, restricted and off-credit as per
internal parameters in accordance with RBI guidelines. 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. This provision is
classified under Schedule 5 – Other Liabilities and Provisions in the Balance Sheet.
4.5 Securitisation and transfer of assets
Axis Bank Limited
Securitisation of Standard Assets
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 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 the Companies (Accounts) Rules, 2014 and the Companies (Accounting Standards) Rules, 2021.
In accordance with RBI guidelines on Securitisation of Standard Assets, any loss, profit or premium realised at the time of
the sale is accounted in the Profit and Loss Account for the accounting period during which the sale is completed. However,
in case of unrealised gains arising out of sale of underlying assets to the SPV, the profit is recognised in Profit and Loss
Account only when such unrealised gains associated with such income is redeemed in cash.
Transfer of Loan Exposures
In accordance with RBI guidelines on Transfer of Loan exposures, any profit or loss arising because of transfer of loans,
which is realised, is accounted for and reflected in the Profit and Loss Account for the accounting period during which the
transfer is completed. Loans acquired are carried at acquisition cost unless it is more than the outstanding principal at the
time of the transfer, in which case the premium paid is amortised based on a straight line method.
The Company enters into purchase/sale of corporate and retail loans through direct assignment/securitisation. The loans
are recognised/derecognised in the books based on the risk and reward associated with the underlying loans in compliance
with RBI guidelines on ‘Transfer of loan assets’ and ‘Securitization of assets’.
4.6 Priority Sector Lending Certificates
Axis Bank Limited
The Bank enters into transactions for the sale or purchase of Priority Sector Lending Certificates (‘PSLCs’). In the case of
a sale transaction, the Bank sells the fulfilment of priority sector obligation and in the case of a purchase transaction the
Bank buys the fulfilment of priority sector obligation through the RBI trading platform. There is no transfer of loan assets
in PSLC transaction.
4.7 Translation of Foreign Currency items
Group
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’ (FCTR) till
the disposal of the net investments. Any realised gains or losses on such disposal are recognised in the Profit and
Loss Account except for those that relate to repatriation of accumulated profits which are reclassified from FCTR to
‘Balance in Profit and Loss Account’ under Schedule 2 – Reserves and Surplus in the Balance Sheet.

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.
4.8 Foreign exchange and derivative contracts
Axis Bank Limited
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 MTM) and in other liabilities (representing negative 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 the designated asset or liability. Hedge transactions that are
entered after 26 June, 2019 through rupee interest rate derivatives are accounted for as per the guidance note issued by
ICAI on Accounting for Derivative Contracts. 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 a separate suspense account under
Schedule 5 – ‘Other Liabilities and Provisions’.
Premium on options is recognized as income/expense on expiry or early termination of the transaction.
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.
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 using Alternative Reference Rate (‘ARR’) curve and converting the foreign
currency amount using the respective spot rates as notified by FEDAI/FBIL. 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.
The Company enters into forward contracts to hedge the foreign currency risk of firm commitments and highly probable
forecast transactions. Derivatives are initially recognized at fair value at the date the derivative contracts are entered
into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is
recognized in the Statement of Profit and Loss immediately unless the derivative is designated and effective as a hedging
instrument, in which event the timing of the recognition in the Statement of Profit and Loss depends on the nature of the
hedging relationship and the nature of the hedged item.
Cash Flow Hedges
A cash flow hedge is a hedge of the exposure to variability in cash flows that (i) is attributable to a particular risk associated
with a recognized asset or liability or a highly probable forecast transaction or a firm commitment in respect of foreign
currency and (ii) could affect the statement of profit and loss. Under a cash flow hedge, the hedging instrument is measured
at fair value, but any gain or loss that is determined to be an effective hedge is recognized in equity, e.g., cash flow hedge
reserve. The ineffective portion of the gain or loss on the hedging instrument is recognized immediately in Finance Cost in
the statement of profit and loss.
Fair Value Hedges
A fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or liability or an unrecognised
firm commitment, or an identified portion of such an asset, liability or firm commitment, that is attributable to a particular
risk and could affect the statement of profit and loss. When applying fair value hedge accounting, the hedging instrument
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is measured at fair value with changes in fair value recognised in the statement of profit and loss. The hedged item is
remeasured to fair value in respect of the hedged risk even if normally it is measured at cost, e.g., a fixed rate borrowing. Any
resulting adjustment to the carrying amount of the hedged item related to the hedged risk is recognised in the statement
of profit and loss even if normally such a change may not be recognised, e.g., for inventory being hedged for fair value
changes. The fair value changes of the hedged item and the hedging instrument will offset and result in no net impact in the
statement of profit and loss except for the impact of ineffectiveness.
4.9 Revenue recognition
Axis Bank Limited
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 the Companies (Accounts) Rules, 2014, the Companies (Accounting
Standards) Rules, 2021 and the RBI guidelines except in the case of interest income on non-performing assets where it is
recognised on receipt basis as per the income recognition and asset classification norms of RBI. Income on non-coupon
bearing discounted instruments or low-coupon bearing discounted instruments is recognised over the tenor of the
instrument on a constant yield basis.
Commission on guarantees and Letters of Credit (LC) is recognised on a pro-rata basis over the period of the guarantee/LC.
Locker rent is recognized on a straight-line basis over the period of contract. Annual fee for credit cards and debit cards is
recognised on a straight-line basis over the period of service. Arrangership/syndication fee is accounted for on completion
of the agreed service and when the right to receive is established. Other fees and commission income are recognised when
due, where the Bank is reasonably certain of ultimate collection.
Interest income on investments in discounted PTCs is recognized on a constant yield basis.
Dividend income 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 for purchase of PSLCs are amortised on straight-line basis over the tenor of the certificate as ‘Other Expenditure’
under Schedule 16 of the Profit and Loss Account. Fees received on sale of PSLCs are amortised on straight-line basis over
the tenor of the certificate as ‘Miscellaneous Income’ under Schedule 14 of the Profit and Loss Account.
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 for 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 and there is
reasonable certainty of ultimate collection.
Interest income is recognised on an accrual basis.
Dividend income is accounted on an accrual basis when the right to receive the dividend is established.
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, and 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. In the event of non-recovery of fees provision for doubtful debts is made as under.
• Initial acceptance fee
On the expiry of 90 days from the end of the contractual due, the amount of invoice due and not received is provided
for in the quarter from the end of the contractual due date of invoice (i.e. 45 days as per MSMED Act).
• Annual fees
Where the invoices remain unpaid for more than 180 days from the end of the contractual due date, 50% of such
unpaid value is provided for, and 100% of value is provided for where value remain unpaid for more than 365 days
from contractual due date (i.e. 45 days as per MSMED Act).
In case of annual fees due in certain existing cases, which fall under NCLT/stressed cases, 50% of the provision is made on
the expiry of 90 days from the end of the contractual due date and remaining 50% of the unpaid balance is provided for on
the expiry of 180 days from the end of contractual due date (i.e. 45 days as per MSMED Act).
Realised gains and losses on mutual funds are dealt with in the Profit and Loss Account. The cost of units in mutual fund sold
are determined on weighted average basis for the purpose of calculating gains or losses on sale/redemption of such units.
Axis Asset Management Company Limited
Management fees are recognised on accrual basis. 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.
Interest income is recognized on an accrual basis except in the case of interest income on non-performing assets 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.
Front end fees on processing of loans are recognised upfront as income.
Axis Securities Limited
Business sourcing and resource management fees are recognised on accrual basis in accordance with the terms and
contracts entered between the Company and counterparty.
Fees earned for the provision of services are recognised over time as the customer simultaneously receives and consumes
the benefits, as the services are rendered. These include brokerage fees which is fixed at inception irrespective of number of
transactions executed. The revenue for such contracts is recognised on consumption of benefits and the balance unutilized
plan value is recognised on maturity/validity of the 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.
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.
335
A. Treds Limited
Onboarding Fee is a 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 tenure of transaction. The Company follows
recognition of annual fees on time proportion basis over the tenure of one year.
Freecharge Payment Technologies Private Limited
Revenue from commission income
Merchant checkout fee is recognised on the basis of successful pay-out to the respective merchants. Revenues from
operating an internet portal, providing recharge and bill payment services are recognized upon successful recharge/
payment confirmation for the transaction executed. The Company collects Goods and Service Taxes (GST) on behalf of the
government and therefore, these are not economic benefits flowing to the Company. Hence, they are excluded from revenue.
Other operating revenue
Revenues from ancillary activities like convenience fee, merchant monetization fees, issuance fees, system integration,
paid coupon income, marketing fee etc. are recognised upon rendering of services.
Unbilled revenue
Receivables are generally carried at the original invoiced amount, less an allowance for doubtful receivables where there
is objective evidence that balances will not be recovered in full. Unbilled receivables is recognised to the extent for the
services not billed at the reporting date.
Revenue from sale of sound box services
Revenue from services i.e sound box is recognized when the control in services is transferred as per the terms of the
agreement with merchant i.e. as and when services are rendered. Revenues are disclosed net of the Goods and Services
Tax charged on such services.
Axis Pension Fund Management Company Limited
Investment Management Fees
Investment management fees are recognised on an accrual basis on the daily closing assets under management across
respective schemes under pension funds. The investment management fees are presented net of Goods and services Tax in
the Statement of Profit and Loss Account.
Management fees from Schemes defined by the PFRDA are recognized on an accrual basis as per the terms
defined by PFRDA.
Revenue from interest income on debt investments
Interest income on debt investments is recognised on an accrual basis. Amortization of premium or accretion of discount on
debt investments is recognised over the period of maturity/holding of the investments on a straight line basis.
4.10 Scheme expenses
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.
Commission
Claw-backable commission paid by the Company in advance is charged to the Profit and Loss Account over the claw-back
period/tenure of the respective scheme. The unamortized portion of the claw-backable brokerage is carried forward as
prepaid expense.
Upfront commission on close ended and fixed tenure schemes is amortized over the tenure of the respective scheme and in
case of Equity Linked Saving Scheme (ELSS), upfront commission is amortized over 3 years. The unamortized portion of the
commission is carried forward as prepaid expense.
Commission paid on certain PMS products is amortised over the exit load period. Unamortised portion of commission is
carried forward as prepaid expenses.
Commission paid on Alternate Investment Fund schemes is amortized over the minimum tenure of the scheme. The
unamortized portion of the commission is carried forward as prepaid expense.

Axis Pension Fund Management Company Limited

Brokerage
Brokerages on the pension fund management segment paid by the Company are accounted for at the rates stipulated
by the PFRDA.
4.11 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.
Subsequent expenditure incurred on assets put to use is capitalised only when it increases the future economic benefit/
functioning capability from/of such assets.
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 a 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 the historical experience of the Group, though these rates in certain cases are different from
those prescribed under Schedule II of the Companies Act, 2013. Whenever there is a revision of the estimated useful life of
an asset, the unamortised depreciable amount is charged over the revised remaining useful life of the said asset.
Asset Estimated useful life

Leased Land As per the term of the agreement
Owned premises 60 years
Locker cabinets/cash safe/strong room door 10 years
Interiors 9 years
EPABX, telephone instruments 8 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
Application software 5 years
Electronic Data Capture (EDC)/ Point of Sale (POS) machines 5 years
Vehicles 4 years
Computer hardware including printers 3 years
CCTV and video conferencing equipment 3 years
Assets at staff residence 3 years
All other fixed assets 10 years
Assets costing less than `5,000 individually are fully depreciated in the year of purchase.
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.
Gain or losses arising from the retirement or disposal of fixed assets are determined as the difference between the net
disposal proceeds and the carrying amount of assets and are recognised as income or expense in the Profit and Loss
Account. Further, in case of Bank, profit on sale of premises is appropriated to the Capital Reserve Account (net of taxes
and transfer to Statutory Reserve) in accordance with RBI instructions.
The Bank has accounted for the Intangibles and Goodwill, acquired and arising from the acquisition of Citi India Consumer
Business as per the generally accepted accounting principles and Accounting Standard 26 on Intangible Assets which
permits amortization over the best estimate of useful life. During the year, Bank has fully amortized through the Profit and
Loss Account, Intangibles and Goodwill resulting from the acquisition of the Citibank India Consumer Business. The Bank
continues to have access and business use for the Intangible assets.
The carrying amounts of assets are reviewed at each Balance Sheet date to ascertain if there is any indication of impairment
based on internal/external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the asset’s net selling price and value in use. In assessing
value in use, the estimated future cash 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.
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4.12 Non-banking assets

Axis Bank Limited
Non-banking assets (‘NBAs’) acquired in satisfaction of claims include land. In the case of land, the Bank creates provision
and follows the accounting treatment as per specific RBI directions.
4.13 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. Lease income from assets given on operating lease is
recognized as income in the Profit and Loss Account on a straight line basis over the lease term.
4.14 Employee benefits
• Short-term employee benefits
Short-term employee benefits comprise salaries and other compensations payable for services which the employee
has rendered during the period. These are recognized at the undiscounted amount in the Profit and Loss Account.
• Provident Fund
Axis Bank Limited
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 and the shortfall if any due to fluctuations in price or
impairment, in the aggregate asset values of the Trust as compared to the market value. Actuarial gains/losses are
immediately recognized in the Profit and Loss Account and are not deferred.
The Bank makes contribution as required by The Employees’ Provident Funds and Miscellaneous Provisions Act,
1952 to Employees’ Pension Scheme administered by the Regional Provident Fund Commissioner.
The overseas branches of the Bank and its eligible employees contribute a certain percentage of their salary towards
respective government schemes as per local regulatory guidelines. The contribution made by the overseas branches
is recognised in the Profit and Loss Account, as is in the nature of defined contribution.
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.
• Gratuity
Axis Bank Limited
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 the 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. The liability with regard to the gratuity fund is
recognized based on actuarial valuation conducted by an independent actuary using the Projected Unit Credit
Method as at 31 March based on certain assumptions regarding rate of interest, salary growth, mortality and staff
attrition. Actuarial gains/losses are recognized in the Profit and Loss Account and are not deferred.
In respect of employees at overseas branches (other than expatriates), the liability with regard to gratuity is provided
on the basis of a prescribed method as per local laws, wherever applicable.
Subsidiaries
Gratuity liability is a 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 recognized in the
Profit and Loss Account and are not deferred.

• Compensated Absences
Subsidiaries
Accumulated leaves, which are expected to be utilized within the next 12 months, is treated as short-term employee
benefit. The expected cost of such absences is measured as the additional amount that is expected to be paid as a
result of the unused entitlement that has accumulated at the reporting date.
Accumulated leaves that are expected to be carried forward beyond twelve months are treated as long-term
employee benefit for measurement purposes. Such compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the year-end. Actuarial gains/losses are immediately recognised
in the Profit and Loss Account and are not deferred.
• Superannuation
Axis Bank Limited
Employees of the Bank (other than those who moved to the Bank as part Citibank India Consumer Business
acquisition) 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 sum of 10% of the employee’s eligible annual basic salary to Life Insurance corporation
(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.
Eligible employees who moved to the Bank as part of the Citibank India Consumer Business acquisition are entitled
to receive a lumpsum corpus amount under a separate superannuation scheme with vesting criteria of 10 years as a
defined contribution plan. Through the defined contribution plan, the Bank makes a defined contribution annually of
a sum of 25% of such employee’s eligible annual basic salary to a Superannuation Trust, which undertakes to pay the
lump sum payments pursuant to the scheme after the vesting period. Superannuation contributions are recognised
in the Profit and Loss Account in the period in which they accrue.
• National 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 such 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.
• Resettlement Allowance
Axis Bank Limited
The Bank provides for resettlement allowance liability in the form of six months’ pay at the time of separation, for
certain eligible employees who moved to the Bank as part of the Citibank India Consumer Business acquisition.
Provision for this liability is based on an actuarial valuation conducted by an independent actuary using the Projected
Unit Credit Method as at 31 March each year based on certain assumptions regarding discount rate and salary
escalation rate.
• Long term deferred variable pay structure
Axis Capital Limited
As part of its variable pay structure, the Company operates long term deferred variable pay structure plan in which
it defers a part of the entitlement which is to be settled in installments over a period of three years at an amount
which would be equivalent to the prevailing price of equity share of Axis Bank at the time of settlement. The costs of
providing benefits under this plan is determined on the basis of actuarial valuation at the year-end using the projected
unit credit method.
• 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 present value of the obligation under such plan is determined based on
actuarial valuation.
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4.15 Reward points

Axis Bank Limited
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 provision for such loyalty/reward points using an actuarial method at the Balance Sheet
date through an independent actuary, which includes assumptions such as redemption rate, lapse rate, discount rate, value
of reward points etc. Provision for the said reward points is then made based on the actuarial valuation report as furnished
by the said independent actuary.
4.16 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 the Income TaxAct, 1961 and considering the material principles set out in
the Income Computation and Disclosure Standards to the extent applicable. 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.
4.17 Share issue expenses
Group
Share issue expenses are adjusted from the Share Premium Account in terms of Section 52 of the Companies Act, 2013.
4.18 Corporate Social Responsibility
Group
Expenditure towards Corporate Social Responsibility is recognised in Profit and Loss Account in accordance with the
provisions of the Companies Act, 2013.
4.19 Earnings per share
Group
The group 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 the Companies (Accounts) Rules, 2014 and the Companies
(Accounting Standards) Rules, 2021. 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 reflects 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.
4.20 Employee stock option scheme
Axis Bank Limited
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 since been repealed and substituted by the Securities and Exchange Board of

India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The Scheme is in compliance with the said
regulations. Options are granted at an exercise price, which is equal to the fair market price of the underlying equity shares
at the date of the grant. 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.
Further, the 2022 Employees Stock Unit Scheme (‘the ESU Scheme’) provides for grant of stock units convertible into
equivalent number of fully paid-up equity share(s) of the Bank to eligible employees. The ESU Scheme is in accordance
with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 and
in compliance with the said regulations. The stock units are granted at an exercise price as determined by the Bank and
specified at the time of grant which shall not be less than the face value of the equity shares of the Bank.
The Bank followed intrinsic value method to account for its stock based employee compensation plans for all the options
granted till the accounting period ending 31 March, 2021.
As per RBI guidelines, for options/units granted after 31 March, 2021, the Bank follows the fair value method and recognizes
the fair value of such options/units computed using the Black-Scholes model without reducing estimated forfeitures, as
compensation expense over the vesting period. On exercise of the stock options/units, corresponding balance under
Employee Stock Options/Units Outstanding is transferred to Share Premium. In respect of the options/units which expire
unexercised, the balance standing to the credit of Employee Stock Options/Units Outstanding is transferred to the General
Reserve. In respect of Employee Stock Options/Units which are granted to the employees of the subsidiaries, the Bank
recovers the cost from the subsidiaries over the vesting period.
4.21 Provisions, contingent liabilities and contingent assets
Group
In accordance with AS-29 “Provisions, Contingent Liabilities and Contingent Assets” 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 the 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.
4.22 Accounting for dividend
Group
As per AS-4 ‘Contingencies and Events occurring after the Balance sheet date’ as notified by the Ministry of Corporate
Affairs through the Companies (Accounting Standards) Rules, 2021, the group does not account for proposed dividend as
a liability through appropriation from the Profit and Loss Account. The same is recognised in the year of actual payout post
approval of shareholders. However, the Bank considers proposed dividend in determining capital funds in computing the
capital adequacy ratio.
4.23 Cash and cash equivalents
Group
Cash and cash equivalents include cash in hand, rupee digital currency, balances with RBI, balances with other banks and
money at call and short notice.
4.24 Segment Reporting
The disclosure relating to segment information is made in accordance with AS-17: Segment Reporting and relevant
guidelines issued by the RBI.
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18 NOTES FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS

1. Purchase of Citibank’s India Consumer Business

Upon (i) the completion of conditions stipulated in the Business Transfer Agreements (BTAs) executed on 30 March, 2022
as amended from time to time; and (ii) the receipt of requisite statutory and other approvals, the Bank has acquired on
a going concern basis the business assets and business liabilities of Citibank’s India Consumer Business from Citibank
N.A. (acting through its branch in India) (“CBNA”) and the NBFC Consumer Business from Citicorp Finance (India) Limited
(“CFIL”) collectively referred to as Citibank India Consumer Business, effective beginning of day 1 March, 2023 (referred to
as Legal Day One) without values being assigned to individual assets and liabilities.
In accordance with the BTAs, the Bank has on Legal Day One paid an Estimated Adjusted Purchase Price aggregating
`11,602.53 crores based on the position of business assets and business liabilities acquired as at end of day 31st January,
2023, and the Bank without prejudice to any of its rights under the said BTAs estimates a further payable of `346.55 crores
as Purchase Price True Up Amount based on its best estimate of the position of business assets and business liabilities
acquired as at beginning of day 1 March, 2023. The estimated Purchase Price True Up Amount is recorded as a payable to
CBNA at 31 March, 2023. Changes, if any, to the Estimated Adjusted Purchase Price and/or estimated Purchase Price True
Up Amount, which are subject to review by an external firm and the Bank, upon the receipt of the final closing statement
from CBNA and CFIL, shall be accounted for in the period in which the actual settlement occurs.
The Estimated Adjusted Purchase Price and estimated Purchase Price True Up Amount aggregating to `11,949.08 crores
are attributable to (i) various intangible business and commercial rights viz. Customer relationship (including contracts),
Co-branding arrangements, Business processes/information, Non-compete rights (collectively “Intangibles”) and (ii)
Goodwill on acquisition of the Citibank India Consumer Business. Based on the report of an independent valuer, Intangibles
(excluding Goodwill) were recognized at `8,714.24 crores and Goodwill at `3,234.84 crores in the financial statements of
the Bank. Under Section 15 of the Banking Regulation Act 1949, banks are restricted from declaring dividend in the event a
bank carries any intangible assets on its Balance Sheet. As a prudent measure and to protect its ability to pay dividends, the
Bank has fully amortised the said Intangibles and Goodwill through the Profit and Loss account in FY 2022-23, even though
the Bank continues to have access to and business use for the Intangibles. The Bank has chosen not to create any deferred
tax asset on such Intangibles fully amortised through the Profit and Loss Account.
Further, the Bank has fully charged to the Profit and Loss Account (i) `179.27 crores towards one-time stamp duty
costs relating to the acquisition of Citibank India Consumer Business and (ii) `361.47 crores towards harmonization of
provisioning and expense policies and/or estimates used in the preparation of financial statements.
Exceptional items comprise (i) full amortization of Intangibles and Goodwill; (ii) impact of policy harmonisation of operating
expenses and provisions; and (iii) one-time acquisition related expenses. The tables below quantifies and details the nature
of exceptional items and its corresponding impact on Profit after Tax (PAT) for the year ended 31 March 2023.
(` in crores)
Sr.
Description of Exceptional item 31 March, 2023
No.
1 Amortisation of Intangibles and Goodwill in operating expenses 11,949.08
2 Impact of harmonization of policies recognized in provisions and contingencies 232.14
3 Impact of harmonization of policies recognized in operating expenses 129.33
4 One-time acquisition costs recognized in operating expenses 179.27
Total exceptional items 12,489.82
(` in crores)
Sr.
Particulars 31 March, 2023
No.
1 Profit After Tax (PAT) (as per Profit and Loss Account) 10,818.45
2 Add: Exceptional items (net of taxes) 12,353.71
3 PAT (excluding impact of exceptional items net of taxes) 23,172.16
The financial results and relevant disclosures for the year ended 31 March, 2023 with respect to the above are therefore
not comparable with the previous periods.

2. Other notes
2.1 COVID-19
India is emerging from the after effect of COVID-19 virus, a global pandemic that affected the world economy for more
than two years. The extent to which any new wave of COVID-19 will impact the Bank’s operations and asset quality will
depend on the future developments, which are highly uncertain.
The Bank continues to hold provisions aggregating to `5,012 crores as at 31 March, 2023 against the potential impact of
COVID-19 (other than provisions held for restructuring under COVID-19 norms).
2.2 Axis Asset Management Company Ltd. (the Company), a subsidiary of the Bank, had proactively initiated an investigation
by independent external advisors into certain allegations of potential irregularities relating to the conduct of certain
personnel of the said subsidiary. The management of the Company has submitted details of its findings and disciplinary
action of termination of employment taken against the concerned employees, to regulatory authorities and is cooperating
with them as required from time to time. Further, pursuant to its independent investigation, SEBI has passed an ad interim
ex parte order-cum-show-cause notice (Interim Order) against inter alia one of the terminated former employee. Neither
the Company nor any of its existing officers/employees have been named as noticees in the Interim Order, nor any
directions have been passed against them in the Interim Order. As the outcome of the independent investigation by SEBI is
pending on 31 March, 2023, the Company’s statutory auditors have issued a modified opinion, stating that the impact is not
ascertainable. The Company has assessed that there is no impact of this matter on its financial statements for the current or
earlier financial years. Next steps and implications, if any, will be determined basis any change from current position in this
matter. Considering the size and scale of operations of the Axis Bank Group, the impact, if any, on the consolidated financial
results is not expected to be material.
3. Disclosures
3.1 ‘Provisions and contingencies’ recognised in the Profit and Loss Account comprise of:
(` in crores)
For the year ended 31 March, 2023 31 March, 2022
Provision for income tax

- Current tax 6,721.49 4,602.01
- Deferred tax [Refer note 18 (4.11)] 1,047.03 163.10
7,768.52 4,765.11
Provision for non-performing assets (including bad debts written off, write backs and net of 3,340.20 5,212.72
recoveries in written off accounts)1
Provision for restructured assets/strategic debt restructuring/ sustainable structuring (34.82) 0.95
Provision for COVID-19 restructuring & MSME restructuring (599.17) 912.33
Provision towards standard assets 481.96 215.62
Provision for unhedged foreign currency exposures 33.60 (61.82)
Provision for country risk 8.47 18.97
Additional provision for delay in implementation of resolution plan (179.81) 409.62
Provision for probable legal cases 46.75 215.31
Provision for other contingencies (179.82) 514.14
Total 10,685.88 12,202.95
1. includes provision for non-performing advances of `6,040.47 crores (previous year `7,195.39 crores) and non-performing investments of
`186.34 crores (previous year `384.46 crores), net of recoveries from written off accounts of `2,886.61 crores (previous year `2,367.13
crores)
3.2 Capital instruments
a) Share Capital
During the year ended 31 March, 2023 and 31 March, 2022, the Bank has not raised equity capital other than allotment of
equity shares to eligible employees upon exercise of options under Employees Stock Option Scheme.
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b) Other capital instruments

During the year ended 31 March, 2023, the Bank has raised Basel III compliant 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 13 December, 2032 120 months 7.88% `12,000.00 crores
During the year ended 31 March, 2022, the Bank has raised Basel III compliant debt instruments eligible for Tier-I/Tier-II
Perpetual debt Additional Tier-I - - 4.10% $600 million

Above instrument has a call option at expiry of 60 months from the date of allotment
During the year ended 31 March, 2023, the Bank redeemed BASEL III compliant debt instruments eligible for Tier-I/Tier-II
Perpetual debt Additional Tier-I 28 June, 20221 60 months 8.75% `3,500.00 crores
1. Represents call date
During the year ended 31 March, 2022, the Bank has redeemed BASEL III compliant debt instruments eligible for Tier-I/
Tier-II capital, the details of which are set out below:
Subordinated debt Tier-II 20 March, 2022 120 months 9.30% `1,925.00 crores
Perpetual debt Additional Tier-I 14 December, 20211 60 months 8.75% `3,500.00 crores
1. Represents call date
3.3 Divergence in Asset Classification and Provisioning for NPAs

In terms of RBI guidelines, banks are required to disclose the divergences in asset classification and provisioning consequent
to RBI’s annual supervisory process in their notes to accounts to the financial statements. The disclosure is required if
either or both of the following conditions are satisfied: (a) the additional provisioning for NPAs assessed by RBI exceeds
10% of the reported profit before provisions and contingencies for the reference period and (b) the additional Gross NPAs
identified by RBI exceed 10% or 15% of the published incremental Gross NPAs for the reference period ended 31 March,
2022 and 31 March, 2021 respectively.
Based on the above, no disclosure on divergence in asset classification and provisioning for NPAs is required with respect
to RBI’s annual supervisory process for the year ended 31 March, 2022 and 31 March, 2021.
3.4 Earnings Per Share (‘EPS’)
The details of EPS computation is set out below:
31 March, 2023 31 March, 2022

Basic and Diluted earnings for the year (Net profit after tax) (` in crores) 10,818.45 14,119.29
Basic weighted average no. of shares (in crores) 307.30 306.65
Add: Equity shares for no consideration arising on grant of stock options under ESOP (in crores) 1.48 0.92
Diluted weighted average no. of shares (in crores) 308.78 307.57
Basic EPS (`) 35.20 46.04
Diluted EPS (`) 35.04 45.91
Basic EPS (excluding exceptional items, refer note 18.1) (`) 75.41 46.04
Diluted EPS (excluding exceptional items, refer note 18.1) (`) 75.04 45.91
Nominal value of shares (`) 2.00 2.00
Dilution of equity is on account of 14,780,391 stock options (previous year 9,241,401)

3.5 Employee Stock Options/Units

Pursuant to the approval of the shareholders in February 2001, the Bank approved an Employee Stock Option Scheme
under which eligible employees are granted an option to purchase shares subject to vesting conditions. Over the period
till March 2023, pursuant to the approval of the shareholders, the Bank approved ESOP schemes for options aggregating
315,087,000 that vest in a graded manner over 3 years. The options can be exercised within five years from the date of the
vesting as the case may be. Within the overall ceiling of 315,087,000 stock options approved for grant by the shareholders
as stated earlier, the Bank is authorised to issue options to eligible employees and Whole Time Directors (including those of
subsidiary companies).
294,895,841 options have been granted under the Schemes till the previous year ended 31 March, 2022. Pursuant to
the approval of the Nomination and Remuneration Committee on 22 March, 2022 the Bank granted 16,625,592 stock
options (each option representing entitlement to one equity share of the Bank) to eligible employees/directors of the Bank/
subsidiary companies at a grant price of `725.90. Further, during FY 2022-23, the Bank granted stock options (each option
representing entitlement to one equity share of the Bank) to its eligible employees, the details of which are as under :
Date of grant No. of options granted Grant price (` per option)
15 July, 2022 85,000 668.25
Stock option activity under the Scheme for the year ended 31 March, 2023 is set out below:
Weighted Weighted average

Options Range of exercise average remaining
outstanding prices (`) exercise contractual life
price (`) (Years)
Outstanding at the beginning of the year 44,279,611 306.54 to 804.80 609.26 4.29
Granted during the year 16,710,592 668.25 to 725.90 725.61 -
Forfeited during the year (2,676,194) 469.90 to 757.10 693.10 -
Expired during the year (102,145) 306.54 to 535.00 465.48 -
Exercised during the year (7,104,176) 306.54 to 757.10 535.32 -
Outstanding at the end of the year 51,107,688 433.10 to 804.80 653.48 4.37
Exercisable at the end of the year 35,119,021 469.90 to 804.80 620.49 3.46
The weighted average share price in respect of options exercised during the year was `838.11.
Stock option activity under the Scheme for the year ended 31 March, 2022 is set out below:
Weighted Weighted average

Options Range of exercise average remaining
outstanding prices (`) exercise price contractual life
(`) (Years)
Outstanding at the beginning of the year 38,109,654 306.54 to 757.10 544.21 4.22
Granted during the year 13,898,988 697.10 to 804.80 727.80 -
Forfeited during the year (16,71,547) 469.90 to 757.10 645.30 -
Expired during the year (58,300) 306.54 to 535.00 484.45 -
Exercised during the year (59,99,184) 306.54 to 757.10 461.82 -
Outstanding at the end of the year 44,279,611 306.54 to 804.80 609.26 4.29
Exercisable at the end of the year 30,458,322 306.54 to 757.10 589.02 3.36
The weighted average share price in respect of options exercised during the year was `740.25.
Fair Value Methodology
In line with RBI clarification on Guidelines on Compensation of Whole Time Directors/Chief Executive Officers/Material
Risk Takers and Control Function Staff on 30 August, 2021, the Bank has changed its accounting policy from the intrinsic
value method to the fair value method for all share-linked instruments granted after 31 March, 2021 and consequently
recognized the fair value of options computed using the Black-Scholes model, without reducing estimated forfeitures, as
compensation expense over the vesting period. During the year, the Group has recognised ESOP compensation cost of
`285.52 crores for options granted to employees of the Group.
345
The impact on reported net profit and EPS in respect of options granted prior to 31 March, 2021 considering the fair value
based method as prescribed in the Guidance Note on ‘Accounting for Employee Share-based Payments’ issued by the
Institute of Chartered Accountants of India is given below:
31 March, 2023 31 March, 2022

Net Profit (as reported) (` in crores) 10,818.45 14,119.29
Less: Stock based employee compensation expense determined under fair value based (16.01) (61.90)
method (proforma) (` in crores)
Net Profit (Proforma) (` in crores) 10,802.44 14,057.39
Earnings per share: Basic (in ` )
As reported 35.20 46.04
Proforma 35.15 45.84
Earnings per share: Diluted (in `)
As reported 35.04 45.91
Proforma 35.03 45.72
No cost has been incurred by the Bank in respect of ESOPs granted prior to 31 March, 2021 to the employees of the Bank
and subsidiaries which are valued 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, 2023 31 March, 2022
Dividend yield 0.26%-0.43% 0.43%-0.64%

Expected life 2.95-4.95 years 2.28-4.28 years
Risk free interest rate 5.46% to 7.13% 4.71% to 5.67%
Volatility 30.95% to 33.02% 30.91% to 33.93%
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, 2023 is `240.34 (previous year
`209.47).
Pursuant to the approval of the Shareholders in January 2023, the Bank approved the ‘Axis Bank Employees Stock Unit
Scheme, 2022’ under which the Bank is authorized to grant Units not exceeding 5,00,00,000 (Five crores) in number in
aggregate, to or for benefit of ‘Eligible Employees’ in accordance with applicable SEBI Regulations, with each such Unit(s)
exercisable into equity share(s) of the Bank subject to vesting conditions. The Units vest in a graded manner over 3 years
and can be exercised within five years from the date of the vesting at an exercise price as determined in accordance with
applicable laws at the time of grant and on such terms and conditions as contained in the Scheme.
On 24 March, 2023, the Nomination and Remuneration Committee of the Board of Directors of the Bank has approved
the grant of upto 1,31,00,000 stock options and grant of upto 32,00,000 stock units to eligible employees, there have
been no allotments of options/units under this grant. Accordingly, these options/units have not been considered in the
above disclosure.
3.6 Proposed Dividend
The Board of Directors, in their meeting held on 27 April, 2023 have proposed a final dividend of `1 per equity share
amounting to `307.69 crores. The proposal is subject to the approval of shareholders at the Annual General Meeting. 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 the Companies (Accounting Standards) Rules, 2021, such proposed dividend
has not been recognised as a liability as on 31 March, 2023.
During the year, the Bank paid final dividend of `1 per equity share amounting `307.14 crores pertaining to year ended
31 March, 2022.

3.7 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.
Digital Banking (Sub- segment of In accordance with RBI circular DOR.AUT.REC.12/22.01.001/2022-23 dated 7 April 2022 on
Retail Banking) Establishment of Digital Banking Units, the Bank has presented ‘Digital Banking’ as a sub-segment of
the Retail Banking segment.
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, tax paid in advance net of provision, provision for COVID-19 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 by the Bank and relied upon by the Statutory Auditors. 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.
347
Segmental results are set out below:
348
(` in crores)
31 March, 2023
Retail Banking
Corporate/ Other
Treasury Wholesale Digital Other Retail Total Banking Unallocated Total
Banking Banking Banking Retail Business
Business Business Banking
Segment Revenue
Gross interest income (external customers) 20,555.00 22,893.36 6,784.06 37,134.17 43,918.23 81.78 - 87,448.37
Annual Report 2022-23

Other income 1,310.35 4,193.59 5,215.61 4,495.04 9,710.65 3,491.79 - 18,706.38
Total income as per Profit and Loss Account 21,865.35 27,086.95 11,999.67 41,629.21 53,628.88 3,573.57 - 106,154.75
Add/(less) inter segment interest income 3,580.73 8,510.09 4,308.23 33,681.82 37,990.05 - - 50,080.87
Total segment revenue 25,446.08 35,597.04 16,307.90 75,311.03 91,618.93 3,573.57 - 156,235.62
Less: Interest expense (external customers) 13,984.28 1,707.80 3,218.09 24,478.97 27,697.06 0.01 - 43,389.15
Less: Inter segment interest expense 4,318.66 17,509.60 3,578.92 24,673.69 28,252.61 - - 50,080.87
Less: Operating expenses 148.04 5,001.75 6,755.41 16,452.89 23,208.30 611.30 12,257.68 41,227.07
Operating profit 6,995.10 11,377.89 2,755.48 9,705.48 12,460.96 2,962.26 (12,257.68) 21,538.53
1
Less: Provision for non-performing assets/others (47.11) (1,276.51) 1,433.28 2,575.21 4,008.49 0.34 232.14 2,917.35
Segment result 7,042.21 12,654.40 1,322.20 7,130.27 8,452.47 2,961.92 (12,489.82) 18,621.18
Less: Provision for tax 7,768.52
Net Profit before minority interest and earnings 10,852.66
from Associate
Less: Minority Interest 100.06
Add: Share of Profit in Associate 65.85
Extraordinary profit/loss -
Net Profit 10,818.45
Segment assets 443,971.16 365,592.28 75,313.40 449,478.30 524,791.70 2,459.20 7,603.62 1,344,417.96
2
Segment liabilities 224,434.67 222,341.79 87,602.69 677,472.83 765,075.52 189.01 3,021.35 1,215,062.34
Net assets 219,536.49 143,250.49 (12,289.29) (227,994.53) (240,283.82) 2,270.19 4,582.27 129,355.62
Capital Expenditure for the year (Refer note 18.1) 9.53 275.29 169.38 964.30 1,133.68 33.54 11,949.08 13,401.12
Depreciation on fixed assets for the year (Refer 7.75 227.54 139.87 789.40 929.27 30.01 11,949.08 13,145.65
note 18.1)
1. represents material non-cash items other than depreciation
2. includes minority interest of `393.39 crores
(` in crores)
31 March, 2022
Retail Banking
Corporate/ Other
Treasury Wholesale Other Retail Total Banking Unallocated Total
Digital Banking
Banking Banking Retail Business
Business
Business Banking
Segment Revenue
Gross interest income (external customers) 17,930.65 17,271.97 33,627.48 15.96 - 68,846.06
Other income 3,199.14 3,660.38 7,216.77 3,191.84 - 17,268.13
Total income as per Profit and Loss Account 21,129.79 20,932.35 40,844.25 3,207.80 - 86,114.19
Add/(less) inter segment interest income 666.39 6,462.45 32,193.47 - - 39,322.31
Total segment revenue 21,796.18 27,394.80 73,037.72 3,207.80 - 125,436.50
Less: Interest expense (external customers) 9,401.29 1,515.64 23,966.75 38.98 - 34,922.66
Less: Inter segment interest expense 6,810.95 12,309.97 20,200.53 0.86 - 39,322.31
Less: Operating expenses 230.96 4,734.89 19,031.46 826.92 - 24,824.23
Operating profit 5,352.98 8,834.30 9,838.98 2,341.04 - 26,367.30
Less: Provision for non-performing assets/others1 287.76 1,474.12 5,676.22 (0.26) - 7,437.84
Segment result 5,065.22 7,360.18 4,162.76 2,341.30 - 18,929.46
Less: Provision for tax 4,765.11
Net Profit before minority interest and earnings 14,164.35
from Associate
Less: Minority Interest 87.60
Add: Share of Profit in Associate 42.54
Extraordinary profit/loss -
Net Profit 14,119.29
Segment assets 440,150.42 316,036.13 429,461.01 1,596.68 8,534.91 1,195,779.15
Segment liabilities 214,807.66 192,908.74 667,243.16 242.04 2,467.662 1,077,669.26
Net assets 225,342.76 123,127.39 (237,782.15) 1,354.64 6,067.25 118,109.89
Capital Expenditure for the year 9.94 253.75 1,019.82 28.63 - 1,312.14
Depreciation on fixed assets for the year 7.99 200.81 816.35 23.84 - 1,048.99
1. represents material non-cash items other than depreciation
2. includes minority interest of `261.35 crores
349
Geographic Segments
(` in crores)
Domestic International Total
31 March, 31 March, 31 March, 31 March, 31 March, 31 March,
2023 2022 2023 2022 2023 2022
Revenue 104,008.16 85,196.41 2,146.59 917.78 106,154.75 86,114.19

Assets 1,292,510.59 1,137,167.83 51,907.37 58,611.32 1,344,417.96 1,195,779.15
Capital Expenditure for 13,399.93* 1,309.14 1.19 3.00 13,401.12* 1,312.14
the year
Depreciation on fixed assets for 13,139.33* 1,046.81 6.32 2.18 13,145.65* 1,048.99
the year
*includes intangibles and goodwill on acquisition of Citibank India Consumer Business (Refer note 18.1)
3.8 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)
In March 2023, the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI) has made a request to the
Bank to exit SUUTI from “promoter” category and reclassify it to “public” category. In terms of Reg. 31A of the SEBI (Listing
Obligation and Disclosure Requirements) Regulations, 2015 as amended, the said request is subject to the approval of the
Bank’s Board, Stock Exchanges and other Statutory/Regulatory Authorities, if any. The reclassification will be effective
post receipt of the aforesaid approvals.
b) Key Management Personnel
• Mr. Amitabh Chaudhry (MD & CEO)
• Mr. Rajiv Anand (Deputy Managing Director)
• Mr. Rajesh Dahiya [Executive Director (Corporate Centre)] (upto 31 December, 2021)
c) Relatives of Key Management Personnel
Ms. Preeti Chaudhry, Mr. Anagh Chaudhry, Mr. Aruj Chaudhry, Mr. Aryan Chaudhry, Ms. Chhavi Kharb, Mr. Ashok
Kharb, Mr. Om Singh Chaudhry, Ms. Kusum Chaudhry, Ms. Gitanjali Anand, Ms. Tara Anand, Ms. Nandita Anand,
Mr. P.L. Narain, Mr. P. Srinivas, Ms. Ratna Rao Shekar, Ms. P. Kamashi, Ms. Charu Narain, Ms. K Ramalakshmi,
Ms. Hemant Dahiya, Ms. Arooshi Dahiya, Mr. Anshul Avasthi, Ms. Mallika Dahiya, Ms. Jal Medha, Mr. Jai Prakash
Dahiya, Ms. Pooja Rathi, Mr. Gagan Rathi.
d) Associate
Max Life Insurance Company Limited (with effect from 6 April, 2021)
Based on RBI guidelines, details of transactions with Associate are not disclosed since there is only one entity/party in
the said category.

The details of transactions of the Group with its related parties during the year ended 31 March, 2023 are given below:
(` in crores)
Relatives
Key
of Key
Items/Related Party Promoters Management Total
Management
Personnel
Personnel#
Dividend paid 29.14 0.06 -* 29.20

Interest paid 164.98 0.11 0.34 165.43
Interest received -* 0.09 -* 0.09
Investment in non-equity instrument of related party - - - -
Investment of related party in the Bank - 16.38 - 16.38
Redemption of Hybrid capital/Bonds of the Bank 958.00 - - 958.00
Sale of investments - - - -
Remuneration paid - 15.26 - 15.26
Contribution to employee benefit fund 13.76 - - 13.76
Placement of deposits 0.22 - - 0.22
Repayment of deposit - - - -
Advance granted (net) - - - -
Advance repaid -* 7.65 - 7.65
Receiving of services 114.01 - - 114.01
Rendering of services 54.18 0.01 -* 54.19
Sale/Purchase of foreign exchange currency to/from related party - 2.55 0.24 2.79
Other reimbursements from related party 42.79 - - 42.79
Other reimbursements to related party 0.08 - - 0.08
# Details of transactions of the Bank with relatives of KMP are for the period during which the KMP are related parties of the Bank.
*Denotes amount less than `50,000/-
The balances payable to/receivable from the related parties of the Group as on 31 March, 2023 are given below:
(` in crores)
Relatives
Key
of Key
Management
Personnel
Personnel
Deposits with the Bank 5,678.24 1.96 6.61 5,686.81

Placement of security deposits 2.11 - - 2.11
Advances 0.57 1.27 0.03 1.87
Investment in non-equity instruments of related party - - - -
Investment of related party in the Bank 48.97 0.11 -* 49.08
Non-funded commitments 3.25 - - 3.25
Investment of related party in Hybrid capital/Bonds of the Bank 500.00 - - 500.00
Other receivables (net) 2.20 - - 2.20
Other payables (net) 1.32 - - 1.32
351
The maximum balances payable to/receivable from the related parties of the Group during the year ended 31 March, 2023
are given below:
(` in crores)
Relatives
Key
of Key
Management
Personnel
Personnel

Advances 0.57 8.89 0.10 9.56
Investment of related party in the Bank 49.22 0.11 - 49.33
Investment of related party in Hybrid capital/Bonds of the Bank 1,458.00 - - 1,458.00
Other payables (net) 1.32 - - 1.32
The details of transactions of the Group with its related parties during the year ended 31 March, 2022 are given below:
(` in crores)
Relatives
Key
of Key
Management
Personnel
Personnel#
Dividend paid - - - -
Interest paid 173.69 0.24 0.37 174.30
Interest received 0.01 0.32 -* 0.33
Investment of related party in the Bank - 11.07 - 11.07
Redemption of Hybrid capital/Bonds of the Bank - - - -
Sale of investments 584.75 - - 584.75
Remuneration paid - 14.24 - 14.24
Contribution to employee benefit fund 14.19 - - 14.19
Placement of deposits - - - -
Repayment of deposit 0.01 - - 0.01
Advance granted (net) - 7.25 - 7.25
Advance repaid 0.52 2.58 - 3.10
Receiving of services 401.97 - - 401.97
Rendering of services 47.19 -* -* 47.19
Sale/Purchase of foreign exchange currency to/from related party - 0.94 0.17 1.11
Other reimbursements from related party - - - -
Other reimbursements to related party 0.25 - - 0.25
# Details of transactions of the Bank with relatives of KMP are for the period during which the KMP are related parties of the Bank.

The balances payable to/receivable from the related parties of the Group as on 31 March, 2022 are given below:
(` in crores)
Relatives
Key
of Key
Management
Personnel
Personnel
Advances 0.57 8.89 0.08 9.54
Investment in non-equity instruments of related party -* - - -*
Other receivables (net) -* - - -*
The maximum balances payable to/receivable from the related parties of the Group during the year ended 31 March, 2022
are given below:
(` in crores)
Relatives
Key
of Key
Management
Personnel
Personnel
Advances 80.60 10.11 0.13 90.84
Investment in non-equity instrument of related party 0.02 - - 0.02
The significant transactions between the Group and related parties during the year ended 31 March, 2023 and 31 March,
2022 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)
Particulars
31 March, 2023 31 March, 2022
Dividend paid
Administrator of the Specified Undertaking of the Unit Trust of India 4.65 -
Life Insurance Corporation of India 24.49 -
Interest paid
Administrator of the Specified Undertaking of the Unit Trust of India 32.89 32.09
Life Insurance Corporation of India 132.09 132.32
General Insurance Corporation of India N.A. 5.30
Interest received
Mr. Amitabh Chaudhry 0.04 0.17
Mr. Rajiv Anand 0.06 0.07
Mr.Rajesh Dahiya N.A. 0.09
Life Insurance Corporation of India -* -*
353
(` in crores)
Particulars
31 March, 2023 31 March, 2022
Investment of related party in the Bank

Mr.Rajesh Dahiya N.A. 6.58
Redemption of Hybrid Capital/Bonds of the Bank
Sale of investments
The New India Assurance Company Limited N.A. 177.23
United India Insurance Company Limited N.A. 50.05
The Oriental Insurance Company Limited N.A. 30.20
Remuneration paid
Mr. Rajesh Dahiya N.A. 2.90
Contribution to employee benefit fund
Placement of deposits
Repayment of deposits
Life Insurance Corporation of India - 0.01
Advance granted (net)
Mr. Amitabh Chaudhry - 7.25
Advance repaid
Life Insurance Corporation of India -* 0.52
Mr. Amitabh Chaudhry 7.25 -
Mr. Rajesh Dahiya N.A. 2.20
Receiving of services
The Oriental Insurance Company Limited N.A. 177.60
Rendering of services
Sale/ Purchase of foreign exchange currency to/from related party
Ms. Tara Anand - 0.02
Ms. Mallika Dahiya N.A. 0.13
Other reimbursements to related party
Other reimbursements from related party

3.9 Leases
Disclosure in respect of assets taken on operating lease
This comprises of branches, office premises/ATMs, cash deposit machines, currency chests, staff quarters, office
and IT equipments.
(` in crores)
31 March, 2023 31 March, 2022
Future lease rentals payable as at the end of the year:

- Not later than one year 1,100.35 940.01
- Later than one year and not later than five years 3,521.80 3,125.16
- Later than five years 3,363.84 3,187.82
Total of minimum lease payments recognised in the Profit and Loss Account for the year 1,212.07 1,135.18
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.
Disclosure in respect of assets given on operating lease
(` in crores)
31 March, 2023 31 March, 2022
Gross carrying amount of premises at the end of the year 209.60 165.24
Accumulated depreciation at the end of the year 25.43 17.29
Total depreciation charged to profit and loss account for the year 2.28 3.40
Future lease rentals receivable as at the end of the year:
- Not later than one year 28.52 18.09
- Later than one year and not later than five years 106.19 62.34
- Later than five years 66.44 3.20
There are no provisions relating to contingent rent.

3.10 Movement in fixed assets capitalized as application software and intangibles (included in other Fixed Assets)
• Movement of fixed assets capitalized as application software
(` in crores)
Particulars 31 March, 2023 31 March, 2022
At cost at the beginning of the year 2,911.85 2,309.43

Additions during the year1 541.65 612.68
Deductions during the year (9.67) (10.26)
Accumulated depreciation as at 31 March (2,284.89) (1,893.18)
Closing balance as at 31 March 1,158.94 1,018.67
Depreciation charge for the year 399.94 331.22
1. includes movement on account of exchange rate fluctuation
355
• Movement of fixed assets capitalized as intangibles and goodwill (Refer note 18.1)
(` in crores)
At cost at the beginning of the year - N.A.

Additions during the year 11,949.08 N.A.
Deductions during the year - N.A.
Accumulated amortisation as at 31 March 11,949.08 N.A.
Closing balance as at 31 March - N.A.
Amortisation charge for the year 11,949.08 N.A.
3.11 The major components of deferred tax assets and deferred tax liabilities arising out of timing differences are as under:
(` in crores)
As at 31 March, 2023 31 March, 2022
Deferred tax assets on account of provisions for loan losses/doubtful debts 4,775.21 5,299.90
Deferred tax assets on account of provision for employee benefits 30.55 18.06
Deferred tax assets on account of other items 2,019.33 2,332.62
Deferred tax assets 6,825.09 7,650.58
Deferred tax liability on account of depreciation on fixed assets 55.88 43.92
Deferred tax liability on Special Reserve deduction under Income Tax Act [Refer Schedule 2 (II) 363.26 153.32
of Consoldiated Balance Sheet]
Deferred tax liabilities on account of other items 0.19 0.55
Deferred tax liabilities 419.33 197.79
Net deferred tax asset 6,405.76 7,452.79
3.12 Employee Benefits

Group
Provident Fund
The contribution to the employee’s provident fund (including Employee Pension Scheme) of the Group amounted to
`332.41 crores for the year ended 31 March, 2023 (previous year `292.64 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 in the Trust observed 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 (including staff deputed
at subsidiaries).

Profit and Loss Account

Net employee benefit expenses (recognised in payments to and provisions for employees):
(` in crores)
31 March, 2023 31 March, 2022
Current Service Cost 194.84 170.96

Interest on Defined Benefit Obligation 240.46 192.23
Expected Return on Plan Assets (312.24) (259.83)
Net Actuarial Losses/(Gains) recognised in the year 132.03 (66.83)
Losses/(Gains) on Acquisition - -
Effect of the limit in Para 59(b) of Accounting Standard – 15 (60.25) 134.43
Total included in “Employee Benefit Expense” [Schedule 16(I)] 194.84 170.96
Actual Return on Plan Assets 205.50 530.56
Balance Sheet
Details of provision for provident fund:
(` in crores)
31 March, 2023 31 March, 2022
Fair Value of Plan Assets 4,007.93 3,538.64

Present Value of Funded Obligations (3,933.75) (3,404.21)
Net asset 74.18 134.43
Amount not recognized as an asset (limit in Para 59(b) of Accounting Standard – 15) (74.18) (134.43)
Amounts in Balance Sheet
Liabilities - -
Assets - -
Net Asset/(Liability) - -
Changes in the present value of the defined benefit obligation are as follows:
(` in crores)
31 March, 2023 31 March, 2022
Change in Defined Benefit Obligation

Opening Defined Benefit Obligation 3,404.21 2,861.59
Interest Cost 240.46 192.23
Actuarial Losses/(Gains) 25.29 203.90
Employees Contribution 372.64 343.79
Liability transferred from/to other companies 126.97 (26.17)
Benefits Paid (430.66) (342.09)
Closing Defined Benefit Obligation 3,933.75 3,404.21
357
Changes in the fair value of plan assets are as follows:

(` in crores)
31 March, 2023 31 March, 2022
Change in the Fair Value of Assets
Opening Fair Value of Plan Assets 3,538.64 2,861.59
Expected Return on Plan Assets 312.24 259.83
Actuarial Gains/(Losses) (106.74) 270.73
Employer contribution during the period 194.84 170.96
Employee contribution during the period 372.64 343.79
Assets transferred from/to other companies 126.97 (26.17)
Benefits Paid (430.66) (342.09)
Closing Fair Value of Plan Assets 4,007.93 3,538.64
Experience adjustments
(` in crores)
31 March, 31 March, 31 March, 31 March, 31 March,
2023 2022 2021 2020 2019
Defined Benefit Obligations 3,933.75 3,404.21 2,861.59 2,494.37 2,245.71

Plan Assets 4,007.93 3,538.64 2,861.59 2,494.37 2,245.71
Surplus/(Deficit) 74.18 134.43 - - -
Experience Adjustments on Plan Liabilities 17.24 169.83 43.51 4.24 (27.40)
Experience Adjustments on Plan Assets (106.74) 270.73 (12.88) (32.62) (57.29)
Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets
31 March, 2023 31 March, 2022
Government securities 53% 54%

Bonds, debentures and other fixed income instruments 9% 11%
Equity shares 9% 8%
Others 29% 27%
Principal actuarial assumptions at the balance sheet date
31 March, 2023 31 March, 2022
Discount rate for the term of the obligation 7.45% 6.80%

Average historic yield on the investment portfolio 8.47% 8.61%
Discount rate for the remaining term to maturity of the investment portfolio 7.45% 6.90%
Expected investment return 8.47% 8.51%
Guaranteed rate of return 8.15% 8.10%
Superannuation
The Group contributed `13.76 crores (previous year `14.16 crores) to the superannuation plan for the year.
The Bank has also accrued `1.68 crores for the eligible employees of the Bank who had moved to the Bank as part of the
Citibank India consumer business acquisition as they are entitled to receive a lumpsum corpus amount under a separate
Superannuation scheme with vesting criteria of 10 years as a defined contribution plan.
National Pension Scheme (NPS)
During the year, the Group has contributed `10.59 crores (previous year `8.55 crores) to the NPS for employees who have
opted for the scheme.

Group
Leave Encashment
The liability of compensated absences of accumulated privileged leave of the employees of the Group, based on actuarial
valuation is given below:
(` in crores)
31 March, 2023
Total Expenses Assumptions

Liability - Privilege
included under Salary escalation
Leave Discount Rate
Schedule 16(I) rate
Axis Capital Ltd. 0.46 0.08 7.30% p.a. 7.00% p.a.

A.Treds Ltd. 0.36 - 7.40% p.a. 10.00% p.a.
Freecharge Payment Technologies Pvt. Ltd. 4.72 2.37 7.28% p.a. 8.50% p.a.
(` in crores)
31 March, 2022
Total Expenses Assumptions

Liability - Privilege
included under Salary escalation
Leave Discount Rate
Schedule 16(I) rate
Axis Capital Ltd. 0.38 0.08 6.41% p.a. 7.00% p.a.

A.Treds Ltd. 0.36 0.05 6.90% p.a. 10.00% p.a.
Freecharge Payment Technologies Pvt. Ltd. 3.58 1.22 5.15% p.a. 10.50% 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.
Net employee benefit expenses (recognised in payments to and provisions for employees)
(` in crores)
31 March, 2023 31 March, 2022

Interest on Defined Benefit Obligation 43.03 37.75
Expected Return on Plan Assets (41.21) (35.58)
Net Actuarial Losses/(Gains) recognised in the year (8.78) 7.88
Losses/(Gains) on Acquisition (37.36) -
Past Service Cost 1.72 0.77
Total included in “Employee Benefit Expense” [Schedule 16(I)] 39.66 83.45
Actual Return on Plan Assets 22.10 45.30
359
Balance Sheet
Details of provision for gratuity:
(` in crores)
31 March, 2023 31 March, 2022
Present Value of Funded Obligations (711.08) (577.56)

Present Value of un-funded Obligations (4.59) (3.96)
Fair Value of Plan Assets 706.72 585.56
Unrecognised Past Service Cost - -
Net Asset/ (Liability) (8.95) 4.04
Amounts in Balance Sheet
Liabilities (9.18) (8.09)
Assets 0.23 12.13
Net Asset/(Liability) (included under Schedule 11 Other Assets/Schedule 5 – Other Liabilities) (8.95) 4.04
Changes in the present value of the defined benefit obligation are as follows:
(` in crores)
31 March, 2023 31 March, 2022
Change in Defined Benefit Obligation

Opening Defined Benefit Obligation 581.52 545.18
Interest Cost 43.03 37.75
Actuarial Losses/(Gains) (27.89) 17.61
Past Service Cost 1.72 -
Liabilities Assumed on Acquisition 118.96 0.25
Liabilities transferred in/(out) 0.05 0.02
Benefits Paid (83.98) (91.90)
Closing Defined Benefit Obligation 715.67 581.52
Changes in the fair value of plan assets are as follows:

(` in crores)
31 March, 2023 31 March, 2022
Opening Fair Value of Plan Assets 585.56 528.33

Expected Return on Plan Assets 41.21 35.58
Actuarial Gains/(Losses) (19.11) 9.72
Contributions by Employer 25.34 102.66
Assets acquired on acquisition 156.32 -
Assets transferred out/ Divestment 0.07 0.24
Benefits Paid (82.67) (90.97)
Closing Fair Value of Plan Assets 706.72 585.56

Experience adjustments
(` in crores)
31 March, 31 March, 31 March, 31 March, 31 March,
2023 2022 2021 2020 2019
Defined Benefit Obligations 715.67 581.52 545.18 494.21 424.41

Plan Assets 706.72 585.56 528.33 484.98 403.44
Surplus/(Deficit) (8.95) 4.04 (16.85) (9.23) (20.97)
Experience Adjustments on Plan Liabilities 5.20 29.03 (8.34) (10.14) 6.70
Experience Adjustments on Plan Assets (19.11) 9.72 7.92 (7.28) 9.55
Axis Bank Ltd.

Major categories of plan assets (managed by Insurers) as a percentage of fair value of total plan assets
31 March, 2023 31 March, 2022
Government securities 37% 39%

Bonds, debentures and other fixed income instruments 31% 25%
Money market instruments 4% 10%
Equity shares 3% 5%
Balance in bank & others 25%* 21%
*includes plan assets under transfer pursuant to acquisition of Citibank India Consumer Business
Principal actuarial assumptions at the balance sheet date
31 March, 2023 31 March, 2022
Discount Rate 7.45% p.a. 6.80% p.a.

Expected rate of Return on Plan Assets 7.00% p.a. 7.00% p.a.
Salary Escalation Rate 7.00% 7.00%
Employee Turnover
- 21 to 30 (age in years) 24.00% 24.00%
- 31 to 44 (age in years) 14.00% 14.00%
- 45 to 59 (age in years) 8.00% 8.00%
Axis Capital Ltd.

31 March, 2023 31 March, 2022
The major categories of plan assets* as a percentage of fair value of total plan assets – Insurer 100.00% 100.00%
Managed Funds
*composition of plan assets is not available
31 March, 2023 31 March, 2022
Principal actuarial assumptions at the balance sheet date:

Salary Escalation Rate 7.00% p.a. 7.00% p.a.
Employee Turnover 15.00% 15.00%
Axis Asset Management Company Ltd.

31 March, 2023 31 March, 2022
Managed Funds
361
31 March, 2023 31 March, 2022

Expected rate of Return on Plan Assets 7.00% p.a. 7.00%p.a.
Employee Turnover 15.00% - 20.00% 15.00% - 20.00%
Axis Securities Ltd.

31 March, 2023 31 March, 2022
Managed Funds
31 March, 2023 31 March, 2022

Employee Turnover
- 21 to 44 (age in years) (managerial) 25% 22%
- 21 to 44 (age in years) (non managerial) 45% 37%
- 45 to 59 (age in years) (managerial) 22% 35%
- 45 to 59 (age in years) (non managerial) 20% 34%
Axis Finance Ltd.

31 March, 2023 31 March, 2022
Managed Funds
31 March, 2023 31 March, 2022

Employee Turnover
- For service 2 years and below 29.00% p.a.
- For service more than 2 years but upto 4 years 11.00% p.a. 5.00%
- For service above 4 years 2.00% p.a.
Axis Trustee Services Ltd.

31 March, 2023 31 March, 2022

Expected rate of Return on Plan Assets N.A. N.A.

A. Treds Ltd.
31 March, 2023 31 March, 2022
Managed Funds
31 March, 2023 31 March, 2022

Employee Turnover
- 21 to 30 (age in years) 24.00% 24.00%
- 31 to 44 (age in years) 14.00% 14.00%
- 45 to 59 (age in years) 8.00% 8.00%
Freecharge Payment Technologies Pvt. Limited

31 March, 2023 31 March, 2022
Axis Pension Fund Management Limited
31 March, 2023 31 March, 2022
Discount Rate 7.35% p.a. N.A.
Salary Escalation Rate 11.00% p.a. N.A.
Employee Turnover 15.00% - 20.00% N.A.
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.
Resettlement allowance
During the year ended 31 March, 2023, post transfer of provision towards resettlement allowance on acquisition of Citibank
India Consumer Business, the Bank recognised an incremental expense of `Nil towards liability in respect of resettlement
allowance based on actuarial valuation conducted by an independent actuary.
363
Balance Sheet
(` in crores)
31 March, 2023 31 March, 2022
Current liability 0.46 N.A.

Non current liability 3.29 N.A.
Net Liability (included under Schedule 5 – Other Liabilities) 3.75 N.A.
Principal actuarial assumptions at the Balance Sheet date:
31 March, 2023 31 March, 2022
Discount Rate 7.45% p.a. N.A.

Salary Escalation Rate 7.00% p.a. N.A.
Employee Turnover
- 21 to 30 (age in years) 24.00% N.A.
- 31 to 44 (age in years) 14.00% N.A.
- 45 to 59 (age in years) 8.00% N.A.
Provision towards probable impact on account of Code of Social Security 2020

The Code on Social Security 2020 (‘Code’) relating to employee benefits during employment and post-employment received
Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which
the Code will come into effect has not been notified and the final rules/interpretation have also not yet been issued. The
Bank has carried out an impact assessment of the gratuity liability based on an actuarial valuation and on a prudent basis
holds a provision of `228.26 crores as on 31 March, 2023 (`225.30 crores as on 31 March, 2022). This is over and above the
provisions made in normal course based on extant rules and as reported in the above disclosure.
The above information is as certified by the actuary and relied upon by the auditors.
Under the terms of BTAs executed with CBNA and CFIL, the liability as on beginning of 1 March, 2023 (Legal Day One) in
respect of employee benefits for in perimeter employees who have joined the Bank, arising from the enforcement of Code
on Social Security 2020 or any other social security legislation shall be borne by CBNA and CFIL respectively, if such code
is legally enforced within a finite period. Since, the finite period for which CBNA and CFIL are responsible for the liability
has not expired in the current financial year, accordingly, no provision for the said liability has been made in the books of
accounts for the said employees.
3.13 Small and Micro Enterprises
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. Following are the details of
delayed payments to MSMED registered vendors:
Axis Bank Ltd.
For the year ended 31 March, 2023:
(` in crores)
Particulars Principal Interest
The principal amount and the interest due thereon remaining unpaid to any supplier 78.53 0.00*
The amount of interest paid by the buyer in terms of Section 16, along with the amount of the 18.55 1.55
payment made to the supplier beyond the due date
The amount of interest due and payable for the period of delay in making payment (which have N.A. 0.30
been paid but beyond the due date during the year) but without adding the interest specified
under MSMED Act, 2006
The amount of interest accrued and remaining unpaid N.A. 0.30
The amount of further interest remaining due and payable even in the succeeding years, until N.A. 0.30
such date when the interest dues as above are actually paid to the small enterprise, for the
purpose of disallowed as a deductible expenditure under Section 23

For the year ended 31 March, 2022:

(` in crores)
Particulars Principal Interest
The principal amount and the interest due thereon remaining unpaid to any supplier 52.38 0.04
The amount of interest paid by the buyer in terms of Section 16, along with the amount of the 95.61 0.34
The amount of interest due and payable for the period of delay in making payment (which have N.A. 1.57
The amount of interest accrued and remaining unpaid N.A. 1.61
The amount of further interest remaining due and payable even in the succeeding years, until N.A. 1.61
The above is based on the information available with the Bank which has been relied upon by the auditors.
Subsidiaries
(` in crores)
The Principal amount and the interest due thereon remaining unpaid to any supplier 8.23 5.60
The amount of interest paid by the buyer in terms of Section 16, along with the amount of the - 0.00*
The amount of interest due and payable for the period of delay in making payment (which have - -
The amount of interest accrued and remaining unpaid - -
The amount of further interest remaining due and payable even in the succeeding years, until - -
3.14 Corporate Social Responsibility (CSR)

a) Amount required to be spent by the Group on CSR during the year `220.96 crores (previous year `153.11 crores).
b) Amount spent towards CSR during the year and recognized as expense in the statement of profit and loss on CSR related
activities (including capital expenditure) is `223.41 crores (previous year `153.30 crores), which comprise of following: –
(` in crores)
31 March, 2023 31 March, 2022
Yet to be paid Yet to be paid
In cash in cash (i.e. Total In cash in cash (i.e. Total
provision)1 provision)
Construction/acquisition of any asset - - - - - -

On purpose other than above 193.53 29.88 223.41 128.24 25.06 153.30
1. An amount of `29.61 crores has been transferred to the “Axis Bank Limited-Unspent CSR Account for FY 2022-23” to be utilized towards
on-going project(s)/program(s) in line with the provisions of the Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021.
365
3.15 Provisions and contingencies

a) Movement in provision for frauds included under other liabilities is set out below:
(` in crores)
31 March, 2023 31 March, 2022
Opening balance at the beginning of the year 121.99 88.61
Reductions on account of payments/reversals during the year (13.80) (16.85)
Closing balance at the end of the year 178.06 121.99
b) Other liabilities include provision for reward points made on actuarial basis, the movement of which is set out below:
(` in crores)
31 March, 2023 31 March, 2022
Opening provision at the beginning of the year 250.29 305.36
Provision transferred on acquisition of Citibank India Consumer Business 319.62 -
Provision made during the year 298.21 70.35
Reductions during the year (156.58) (125.42)
Closing provision at the end of the year 711.54 250.29
c) Movement in provision for other contingencies is set out below:
(` in crores)
31 March, 2023 31 March, 2022
Opening provision at the beginning of the year 4,156.71 3,022.24

Provision transferred on acquisition of Citibank India Consumer Business 20.24 -
Provision made during the year* 396.45 1,324.53
Reductions during the year (751.01) (190.06)
Closing provision at the end of the year 3,822.39 4,156.71
*includes movement on account of exchange rate fluctuation
Closing provision includes provision for legal cases, additional provision for delay in implementation of resolution plan,
provision for other contingencies and provision for COVID-19.
3.16 Disclosure required as per Ministry of Corporate Affairs notification dated 24 March, 2021
During the year ended 31 March, 2023, other than the transactions undertaken in the normal course of banking business
and in accordance with extant regulatory guidelines and Bank’s internal policies, as applicable:
1. The Bank has not granted any advance/loans or investments or provided guarantee or security to any other person(s)
or entities with an understanding, whether recorded in writing or otherwise, to further lend or invest on behalf of the
Bank or provide guarantee or security or the like to any other person identified by the Bank.
2. The Bank has not received any funds from any person(s) or entities with an understanding, whether recorded in
writing or otherwise, that the Bank shall further lend or invest or provide guarantee or security or the like in any
other person on behalf of and identified by such person(s)/entities.
3.17 Expenses exceeding 1% of the total income
Details of items under other expenditure (Schedule 16 – Operating Expenses) exceeding 1% of total income of the Group
are given below:
Sr. No. Nature of Expense (` in crores)
1. Commission paid to Direct Sales Agents (DSA) 1,677.35

2. Charges paid to Network Partners 1,164.46
3. Cashback charges 1,105.72

Sr. No. Nature of Expense (` in crores)
1. Fees paid for purchase of Priority Sector Lending Certificates 1,246.63

2. Commission paid to Direct Sales Agents (DSA) 1,404.86
3. Fees paid to Collection Agencies 903.40
3.18 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 tax authorities and other statutory authorities which are
disputed by the Group. The Group holds provision of `359.18 crores as on 31 March, 2023 (previous year `298.23
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 including non-deliverable forward (NDF) contracts, currency
options/swaps, exchange traded currency options, non-deliverable options, interest rate/currency futures and
forward rate agreements on its own account and OTC for customers. Forward exchange contracts are commitments
to buy or sell foreign currency at a future date at the contracted rate. A non-deliverable forward contract is a
currency derivatives contract to exchange cash flows between the contracted forward exchange rate and prevailing
spot rates. Currency swaps are commitments between two counterparties to exchange streams of interest payments
and/or principal amounts in different currencies on specified dates over the duration of the swap at a pre-agreed
exchange rate. 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 (FRA) are financial contracts
between two counterparties, in which a buyer will pay or receive, on the settlement date, the difference between
a pre-determined fixed rate (FRA rate) and a reference interest rate, applied on a notional principal amount, for a
specified forward 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. A non-deliverable
option contract is a currency derivatives contract that offers the right, but not the obligation to either purchase or sell
a currency against another currency and the contract is settled at the difference between the contracted exchange
rate and prevailing spot rate on the expiry date. 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. The amount
of contingent liability represents the notional principal of respective forward exchange and derivative contracts.
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. These are stated net of cash margin held with the
Bank as on the reporting date in Schedule 12 – Contingent Liabilities of the Balance Sheet.
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. These are stated net of cash margin held with the Bank as on
the reporting date in Schedule 12 – Contingent Liabilities of the Balance Sheet.
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, contracts for purchase of investments where settlement is due post balance sheet date, contingent
liability relating to undertakings issued towards settlements under resolution plan in respect of non-performing
assets, commitments towards underwriting and investment in equity through bids under Initial Public Offering (IPO)
of corporates and the amount transferred to Depositor Education and Awareness Fund (DEAF).
367
During earlier years, 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) and down sold such loans to other banks
in the secondary market. The LOUs were subsequently alleged as fraudulent by PNB. As on 31 March, 2023, there
is no funded exposure outstanding in the overseas branch as Punjab National Bank (PNB) had repaid the aggregate
amount of all LOUs due based on the undertaking given by the Bank and made remittance to the overseas branch
which was passed on for onward payment to the participating banks. The Bank, in its reasonable and independent
judgment, did not and does not anticipate any valid claim by PNB against the Bank for refund by the Bank of the
amounts paid by PNB towards the LOUs and has classified this amount as a remote liability as on 31 March, 2023 not
warranting any disclosure as a contingent liability.
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.
4. Previous year figures have been regrouped and reclassified, where necessary to conform to current year’s presentation.




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Axis Bank AR 2022 23 Consolidated Financial Statements

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Axis Bank AR 2022 23 Consolidated Financial Statements

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Consolidated Financial Statements

Consolidated Balance Sheet

Capital and Liabilities

In terms of our report attached. For Axis Bank Ltd.

For M. P. Chitale & Co. Rakesh Makhija

Ashutosh Pednekar Rajiv Anand Amitabh Chaudhry

Manish Sampat Sandeep Poddar Puneet Sharma Meena Ganesh

Date : 27 April, 2023

314 Annual Report 2022-23

Consolidated Profit & Loss Account

In terms of our report attached. For Axis Bank Ltd.

For M. P. Chitale & Co. Rakesh Makhija

Ashutosh Pednekar Rajiv Anand Amitabh Chaudhry

Manish Sampat Sandeep Poddar Puneet Sharma Meena Ganesh

Date : 27 April, 2023

Consolidated Cash Flow Statement

Year ended Year ended

Cash flow from operating activities

316 Annual Report 2022-23

Year ended Year ended

Effect of exchange fluctuation translation reserve 343.48 119.87

In terms of our report attached. For Axis Bank Ltd.

For M. P. Chitale & Co. Rakesh Makhija

Ashutosh Pednekar Rajiv Anand Amitabh Chaudhry

Manish Sampat Sandeep Poddar Puneet Sharma Meena Ganesh

Date : 27 April, 2023

SCHEDULES FORMING PART OF THE CONSOLIDATED BALANCE SHEET

Schedule 2 - Reserves and Surplus

318 Annual Report 2022-23

VII. Foreign Currency Translation Reserve [Refer Schedule 17 (4.7)]

X. Balance in Profit and Loss Account brought forward 47,769.25 40,604.49

Schedule 2A - Minority Interest

Schedule 5 - Other Liabilities and Provisions

I. Bills payable 9,543.81 8,499.36

Schedule 6 - Cash and Balances with Reserve Bank of India

I. Cash in hand (including foreign currency notes) 9,665.88 9,840.10

320 Annual Report 2022-23

III. Investments in India

A. (i) Bills purchased and discounted 18,422.86 35,575.80

322 Annual Report 2022-23

Schedule 10 - Fixed Assets

Schedule 11 - Other Assets

I. Inter-office adjustments (net) - -

Schedule 12 - Contingent Liabilities

I. Claims against the Group not acknowledged as debts 2,072.26 1,021.65

324 Annual Report 2022-23

SCHEDULES FORMING PART OF THE CONSOLIDATED PROFIT AND LOSS ACCOUNT

Schedule 13 - Interest Earned

Schedule 14 - Other Income

Schedule 15 - Interest Expended

Schedule 16 - Operating Expenses

17 SIGNIFICANT ACCOUNTING POLICIES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Axis Capital Limited Subsidiary India 100.00%

326 Annual Report 2022-23

4. Significant accounting policies

328 Annual Report 2022-23

330 Annual Report 2022-23

Other provisions on advances

332 Annual Report 2022-23