Axis Bank Q3 Results: Net Profit Grew 4% YOY To Rs 6,304 Cr; Asset Quality Stable

At its meeting on Thursday, January 16, 2025, in Mumbai, the Board of Directors of Axis Bank Limited announced the financial results for the quarter and nine months ending December 31, 2024. At Rs 10,534 crores, the bank's operating profit for the quarter increased 15% YoY. In Q3FY25, net profit increased 4% YoY to Rs 6,304 crores, while core operating profit increased 14% year over year to Rs 10,102 crores. The bank's Net Interest Margin (NIM) for Q3FY25 was 3.93%, while its Net Interest Income (NII) jumped 9% YoY to Rs 13,606 crores.

Q3FY25 fee income climbed 6% YoY to Rs 5,455 crores. 71% of the bank's total fee income came from retail fees, which gained 5% year over year. For Q3FY25, the total value of provisions and contingencies was Rs 2,156 crores. As of December 31, 2024, the bank's balance sheet was at Rs 15,25,712 crores, a 9% year-on-year growth. On a month-end basis, the total deposits climbed 9% YoY, with current account deposits growing 8% YoY and savings account deposits remaining flat in Q3FY25. Term deposits surged 14% year on year and 3% quarter on quarter. CASA deposits accounted for 39% of total deposits.

As of December 31, 2024, the bank's advances had gone up 9% year on year and 1% quarter on quarter to Rs 10,14,564 crores. Retail loans, which made up 60% of the bank's net advances, climbed 11% year on year and 1% quarter on quarter to Rs 6,05,825 crores. Home loans made up 28% of the retail book, while secured retail loans made up about 71%. With assets under management (AUM) of Rs 6,34,806 crores as of December 31, 2024, the bank's wealth management division is one of the largest in India, growing 26% year on year and 3% quarter on quarter.

The bank's reported Gross Non-Performing Asset (NPA) and Net Non-Performing Asset (NPA) levels as of December 31, 2024, were 1.46% and 0.35%, respectively, compared to 1.44% and 0.34% on September 30, 2024. The quarter's written-off account recoveries totalled Rs 1,300 crores. The quarter's recorded net slippages, adjusted for recoveries from the written-off pool, came to Rs 2,217 crores, of which Rs 2,928 crores came from retail, Rs 50 crores from CBG, and Rs 761 crores from wholesale.

In comparison to Q2FY25's gross slippages of Rs 4,443 crores and Q3FY24's gross slippages of Rs 3,715 crores, the quarter's gross slippages came to Rs 5,432 crores. During the quarter, Rs 1,915 crores were recovered and upgraded from non-performing assets. During the quarter, the bank wrote down a total of Rs 3,133 crores in non-performing assets.

The bank's provision coverage as a percentage of gross non-performing assets (NPAs) was 76% as of December 31, 2024, compared to 77% on September 30, 2024, and 78% on December 31, 2023. The bank has been one of the nation's largest credit card issuers for the past eleven quarters, issuing almost 0.7 million new credit cards in Q3FY25. The bank is still one of the leading companies in the retail digital banking market.

The bank's distribution network now consists of 5,706 domestic branches and extension counters and 202 Business Correspondent Banking Outlets (BCBOs) spread across 3,122 centres as of December 31, 2024, up from 5,252 domestic branches and extension counters and 156 BCBOs spread across 2,910 centres as of December 31, 2023, thanks to the addition of 130 branches during the quarter under review. The bank operated 14,476 ATMs and cash recyclers nationwide as of December 31, 2024. As of December 31, 2024, the bank's Axis Virtual Centre had eight locations and more than 1,700 Virtual Relationship Managers.