Axis Bank on Wednesday reported a standalone net profit of Rs 6,035 crore for the quarter ended June 30, 2024, which was up 4% versus Rs 5,797 crore reported by the lender in the year-ago period.
The profit was lower than the Street estimates of Rs 6,348 crore.
The interest income for the reported quarter stood at Rs 30,061 crore, up 18% over Rs 25,557 crore reported in the corresponding quarter of the last financial year.
The interest expended by the lender during the reported quarter stood at Rs 16,613 crore as against Rs 13,598 crore reported in the year-ago period. It was up by 22% on a YoY basis.
Axis Bank’s gross non-performing assets (NPAs) for the reported quarter stood at 1.54% versus 1.43% in Q4FY24 and down from 1.96% in Q1FY24.
The gross NPAs stood at Rs 16,211.34 crore in Q1FY25 up from Rs 15,127.12 crore in Q4FY24 and down from Rs 18,158.23 crore in Q1FY24.
The bank’s net interest income (NII) grew 12% YoY and 3% QoQ to Rs 13,448 crore while the net interest margin (NIM) for the quarter stood at 4.05%.
Advances
The bank’s advances grew 14% YoY and 2% QoQ to Rs 9,80,092 crore as of June 30. The retail loans grew 18% YoY to Rs 5,85,112 crore and accounted for 60% of the net advances of the bank. Meanwhile, home loans grew 6% YoY, personal loans grew 29%, credit card advances grew 22%, Small Business Banking (SBB) grew 26% YoY and 2% QOQ, the bank filing said.The rural loan portfolio grew 24% YoY while the SME book remained well diversified across geographies and sectors growing by 20% YoY to Rs 1,04,016 crore, the filing said.
Asset Quality
Axis Bank’s gross non-performing assets stood at Rs 16,211.34 crore in Q1FY25 up from Rs 15,127.12 crore in Q4FY24 and down from Rs 18,158.23 crore in Q1FY24. In percentage terms, it was reported at 1.54% for Q1FY25 up versus 1.43% in Q4FY24 and down from 1.96% in Q1FY24.
Meanwhile, net NPA ratio was down by 7 bps in Q1FY25 at 0.34% versus 0.41% in Q1FY24.
Deposits
The bank’s balance sheet grew 13% YoY and stood at Rs 14,68,163 crore as of June 30, 2024. The total deposits grew 13% YoY on a month-end basis, of which current account deposits grew 12% YoY while the total term deposits grew 20% YoY and 1% QOQ.The share of CASA deposits in total deposits stood at 42%. On a QAB (quarterly average balance) basis, total deposits grew 14% YoY and 3% QoQ, within which savings account deposits grew 3% YoY and 3% QoQ, current account deposits grew 8% YoY and 2% QoQ. The total term deposits grew 21% YoY and 4% QoQ.
Network
The bank added 50 branches during the quarter, taking its overall distribution network to 5,427 domestic branches and extension counters along with 182 BCBO’s situated across 2,987 centres as of June 30, 2024, compared to 4,945 domestic branches and extension counters, and 156 BCBO’s situated in 2,754 centres as of June 30, 2023.
As of June-end, the bank had 15,014 ATMs and cash recyclers spread across the country. The bank’s Axis Virtual Centre is present across six centres with over ~1,600 Virtual Relationship Managers as of June 30.
Commenting on the results, Axis Bank’s MD & CEO Amitabh Chaudhry said the last quarter was crucial in terms of getting all the teams to work together for the last leg of Citi integration. “I am delighted that the integration is done and it was largely seamless given the size and scale of the transition. I am thankful to the teams who worked tirelessly in making this possible, and to our 2 million new customers for keeping their trust and faith in us,” he added.
