Axis Bank Q3 Results: Net Profit Reached Rs 6,071 Cr; NII Grew 9% YoY

At its meeting on Tuesday, January 23, 2024, in Mumbai, the Board of Directors of Axis Bank Limited acknowledged the financial results for the quarter and nine months ended December 31, 2023. The bank's operating profit climbed 6% on a quarter-on-quarter basis to Rs 9,141 crores. While net profit climbed by 4% YoY to Rs 6,071 crores in Q3FY24, core operating profit was Rs 8,850 crores.

As of December 31, 2023, the bank had advances of Rs 9,32,286 crores, up 4% QOQ and 22% YoY. The bank reported Gross Non-Performing Asset (NPA) and Net Non-Performing Asset (NPA) levels of 1.58% and 0.36%, respectively, as of December 31, 2023, compared to 1.73% and 0.36% on September 30, 2023. For the quarter, there were Rs 635 crores in recoveries from written-off accounts. Adjusted for recoveries from the written-off pool, reported net slippages for the quarter came to Rs 482 crores, of which retail accounted for Rs 1,542 crores, CBG for Rs 11 crores, and wholesale for Rs 1,049 crores.

In Q2FY24 and Q3FY23, gross slippages were Rs 3,254 crores and Rs 3,715 crores, respectively, throughout the time frame. The quarter saw Rs 2,598 crores in recoveries and upgrades from non-performing assets. During the quarter, the bank wrote off NPAs of Rs 1,981 crores. The bank's provision coverage as a percentage of gross non-performing assets (NPPAs) was 78% as of December 31, 2023, down from 81% in Q3FY23.

At Rs 12,532 crores, the bank's Net Interest Income (NII) climbed 2% QOQ and 9% YoY. In Q3FY24, the net interest margin (NIM) was 4.01%. For Q3FY24, provision and contingencies totaled Rs 1,028 crores. For Q3FY24, specific loan loss provisions were Rs 691 crores. As of December 31, 2023, the provisional coverage ratio-which includes specific, standard, additional and Covid provisions-amounted to 153% of GNPA. The credit cost was 0.28% for the quarter that ended on December 31, 2023.

As of December 31, 2023, the bank's balance sheet has grown 14% year on year to Rs 13,98,541 crores. On a period-end basis, overall deposits jumped by 18% YoY and 5% QOQ; savings account deposits expanded by 16% YoY, current account deposits jumped by 5% YoY and 1% QOQ, and total term deposits rose by 24% YoY and 9% QOQ, of which retail term deposits gained by 17% YoY and 2% QOQ.

The share of CASA deposits in total deposits stood at 42% during Q3FY24. A total of 18% YOY and 4% QOQ was seen in deposits on a QAB basis; savings account deposits climbed by 16% YoY, current account deposits by 5% YoY and 4% QOQ, and total term deposits by 22% YoY and 6% QOQ.

Amitabh Chaudhry, MD&CEO, Axis Bank said, "The conversations on India are buoyant and it's being looked upon as an important investment destination, evident in discussions at global platforms like the World Economic Forum. The Indian economic momentum has been strong in FY24, and we believe the trend will continue well into FY25. At Axis Bank, our focus has been on sustainable and inclusive growth, with customer taking the centerstage in every discussion. This quarter we celebrated 'Sparsh Week', a week-long agenda focused on educative customer centric activities, with 15 events covering 5000+ branches and retail asset centers, reaching out to 95000+ employees."

The bank expanded its distribution network to 5,252 domestic branches and extension counters spread across 2,910 centers as of December 31, 2022, up from 4,849 domestic branches and extension counters spread across 2,734 centers as of the previous quarter and 350 branches overall in the 9MFY24 period. The bank operated 15,931 ATMs and cash recyclers around the nation as of December 31, 2023. As of December 31, 2023, the bank's Axis Virtual Centre employs approximately 1,500 Virtual Relationship Managers in six centers.