Axis Bank Q2 profit surges 10% to ₹5,864 cr

Axis Bank’s net profit in the July-September quarter (Q2) of FY24 surged 10% to ₹5,864 crore on steady growth in net interest margin, fee, and loan portfolios. The bank’s net interest income (NII) grew 19% YoY to ₹12,315 crore, and net interest margin (NIM) at 4.11%, up 15 bps YoY.

Axis Bank's fee income in Q2 grew 31% to ₹4,963 crore. Retail fees increased 38% and constituted 70% of the bank’s total fee income, while the retail cards and payments fee grew 39% on a yearly basis.

Amitabh Chaudhry, MD&CEO, Axis Bank says in spite of a highly volatile global geopolitical landscape, the India story remains strong. "With the upcoming festivities, we are already seeing a surge in demand, which augurs well for business. At Axis Bank, our GPS agenda is on track and we are looking at steady growth for all major business verticals of the Bank."

He adds that the bank is working on both physical reach and digital prowess, while also extending services to the heart of Bharat.

Axis Bank's provisions and contingencies in the said quarter stood at ₹815 crore, while specific loan loss provisions were at ₹1,010 crore. "The bank holds cumulative provisions of ₹11,758 crores at the end of Q2 FY24."

For the first half of the fiscal year, the NII grew 23% to ₹24,273 crore, with fee income growing 30% to ₹9,451 crore. In H1, India's fourth largest private bank reported 23% growth in its net profit at ₹11,661 crore from ₹9,455 crore in the year-ago period.

As on Q2, Axis Bank’s balance sheet grew 13% to ₹13,38,914 crore. The total deposits also surged by 18%, in which savings account deposits increased by 16%; current account deposits by 7%, and term deposits by 22% YoY.

The bank's share of CASA deposits in total deposits stood at 44%, and advances grew 23% to ₹8,97,347 crore as of September 30, 2023. Domestic net loans grew 26%; and retail loans grew 23% to ₹5,19,736 crore, accounting for 58% of the bank's net advances.

The book value of the bank’s investments portfolio as of September 30, 2023, was ₹2,95,691 crore, of which ₹2,35,555 crore was in government securities, while ₹50,811 crore was invested in corporate bonds and ₹9,325 crore in equities, mutual funds, etc.

The bank’s wealth management business, Burgundy, recorded assets under management (AUM) of ₹4,53,096 crore as of Q2. As of September 30, 2023, the Bank’s reported gross non-performing assets (NPA) and net NPA levels were 1.73% and 0.36%, respectively, against 1.96% and 0.41% in the previous quarter.

During the quarter, the bank added 207 branches taking its overall distribution network to 5,152 domestic branches. The Axis Bank stock closed 0.77% down at ₹956.85 on the BSE today.