BANK'S EXPOSURE TO LEVERAGED GROUP

25th January, 2016

Dear Sir(s),

SUB.: ADDITIONAL INFORMATION ON THE BANK'S EXPOSURE TO LEVERAGED GROUPS

REF: EARNINGS CALL - UNAUDITED FINANCIAL RESULTS OF THE BANK FOR THE QUARTER / NINE MONTHS 31ST DECEMBER, 2015

With respect to the earnings call on the Unaudited Financial Results of the Bank for the quarter / nine months ended 31st December, 2015, the Bank had made the following observation:

"Our funded exposure to highly leveraged groups has been stable at around 8% at the end of Q3."

In view of above, the Bank had received queries from the investment community seeking more information on these exposures. Accordingly, we have to inform you as under:

1. The "leveraged groups" referred to here are the 8 large corporate groups that the investment community has identified and have been referring to as "highly leveraged‟. This is not meant to be an Axis Bank specific classification.

2. 8% of our funded exposure to these groups is well distributed, with the largest group exposure forming around 1.5%.

3. Around 70% of the net increase in funded exposure to these groups since 31st March 2014 has been to entities rated A and above as on 31st December 2015. Another 25% is through fresh disbursements on projects sanctioned before 31st March 2014. Projects under implementation are typically rated BBB.

4. No sector has contributed in excess of 20% of the net increase in this period. The top four sectors in terms of incremental disbursements have been Petroleum products, Cement, Power Generation, and Other Metal & Metal Products.

5. Approximately 1.5% of our exposure to these groups is presently classified as NPA, another 5% is restructured and around 4% is under 5/25 scheme.

You are requested to take note of above and arrange to bring it to the notice of all concerned.

Thanking You.

Yours sincerely,

For Axis Bank Limited

Suresh Warrier

Chief Investors Relation Officer