Axis Bank Q2 Results: NII Grew 9% YOY; Net Profit Climbs 18% To Rs 6,918 Cr

At its meeting on Thursday, October 17, 2024, in Mumbai, the Board of Directors of Axis Bank Limited announced the financial results for the quarter and half year ended September 30, 2024. At Rs 10,712 crores, the bank's operating profit for the quarter jumped by 6% QOQ and 24% YOY. The core operating profit improved to Rs 9,601 crores or 10% YoY. From 11% YOY in Q1FY25 to 9% YOY in Q2FY25, operating cost growth slowed. In Q2FY25, net profit increased by 18% YoY and 15% QOQ to Rs 6,918 crores.

Net Interest Income (NII) of the bank climbed 9% YoY to Rs 13,483 crores. In Q2FY25, Net Interest Margin (NIM) was 3.99%. At Rs 5,508 crores, fee income for Q2FY25 increased by 6% QOQ and 11% YOY. To Rs 6,722 crores, the total non-interest income for Q2FY25 increased 34% YoY. As of September 30, 2024, the bank's balance sheet has grown 12% YoY to a total of Rs 15,05,658 crores. On a month-end basis, overall deposits increased 14% YoY; deposits in current accounts were up 8% YoY, while deposits in savings accounts increased 2% YoY. overall term deposits increased 21% YoY and 4% QOQ.

Total deposits climbed by 14% YoY and 1% QOQ on a QAB basis. Savings account deposits improved by 1% YoY, current account deposits by 13% YoY, and total term deposits by 21% YoY and 2% QOQ during this period. As of September 30, 2024, the bank had advances of Rs 9,99,979 crores, up 2% QOQ and 11% YOY. The bank reported gross non-performing assets (NPA) and net non-performing assets (NPA) of 1.44% and 0.34%, respectively, as of September 30, 2024, compared to 1.54% and 0.34% on June 30, 2024. There were gross slippages of Rs 4,443 crores during the quarter, as opposed to Rs 3,254 crores in Q2FY24 and Rs 4,793 crores in Q1FY25. The quarter saw Rs 2,069 crores in recoveries and upgrades from non-performing assets.

The bank's provision coverage as a percentage of gross non-performing assets (NPAs) as of September 30, 2024, was 77%; this was lower than the percentages of 79% and 78% as of June 30, 2023 and June 30, 2024, respectively.

From Rs 24,273 crores to Rs 26,931 crores in H1FY25, net interest income jumped 11% YoY. Fee income increased to Rs 10,711 crores, a 13% YoY growth. For the H1FY25, operating profit increased from Rs 17,446 crores to Rs 20,819 crores, a 19% growth. From Rs 17,028 crores to Rs 19,238 crores, the core operating profit for H1FY25 increased by 13%. The total amount of provisions for H1FY25 was Rs 4,243 crores. The net profit for the first half of FY25 increased by 11%, from Rs 11,661 crores to Rs 12,952 crores.

Amitabh Chaudhry, MD&CEO, Axis Bank said, 'This quarter we balanced digital prowess and advancement with physical expansion and proximity to our customers. We have opened 150 new branches in the last three months, both urban and rural. The Bank strengthened its regional presence by laying the foundation for a new Corporate Office in Kolkata, which will be the hub for all activities in the Eastern region. We also expanded our private banking business 'Burgundy Private' network to 15 new cities increasing its presence to 42 locations across India, offering bespoke wealth management services in India's rapidly evolving Tier 2 markets.'

As of September 30, 2024, the bank had 182 Business Correspondent Banking Outlets (BCBOs) spread across 3,062 centers and 5,577 domestic branches and extension counters, up from 5,152 domestic branches and extension counters and 156 BCBOs spread across 2,864 centres as of September 30, 2023. Axis Bank added 150 branches during the quarter and operated 14,728 ATMs and cash recyclers around the nation as of September 30, 2024. As of September 30, 2024, the bank's Axis Virtual Centre employs over 1,000 Virtual Relationship Managers and is spread over eight centres.