Q2 Results: Axis Bank Ltd on Wednesday reported a net profit of ₹5,863 crore in the second quarter of FY24 registering a 10% growth from ₹5,329.8 crore in the corresponding quarter of last year. Axis Bank share price ended 0.84% down, at ₹955.35 apiece on BSE
Net interest income (NII), which is the difference between interest earned and interest expended, during Q2FY24 rose 18.9% to ₹12,314.56 crore from ₹10,360.26 crore, year-on-year (YoY).
Net interest margin (NIM) for Q2FY24 was 4.11%, up 1 basis point QOQ and 15 basis points YOY, according to Axis Bank’s filing exchange. For Q2FY24, core operating profit increased by 5% QOQ and 12% YoY to ₹8,733 crores
Axis Bank’s asset quality improved sequentially. For the quarter ended September, gross non-performing assets (NPA) stood at ₹16,756.7 crore from ₹18,158.2 crore, down 7.7% in Q1FY24. Net NPA, came in at ₹3,441.3 crore, down 7.1% sequentially.
As of September 30, 2023, gross NPA was 1.73% down by 23 basis points from 1.96% in Q1FY24. Similarly, Net NPA came in at 0.36%, down by 5 basis points QoQ.
As on 30th September, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 79%, as compared to 80% as at 30th September, 2022,” the bank said in its release.
According to the exchange filing, Q2FY24 gross slippage ratio (annualised) at 1.49% declined 39 basis points YOY, net slippage ratio (annualized) at 0.59%
For Q2FY24, provision and contingencies was ₹815 crores. For Q2FY24, specific loan loss provisions were ₹1,010 crores.
On a period-end basis, total deposits increased by 18% YoY and 1% QOQ. Savings account deposits increased by 16% YoY, while current account deposits increased by 7% YoY. Total term deposits increased by 22% YoY and 4% QOQ, of which retail term deposits increased by 15% YoY and 4% QOQ.
Deposits made by CASA accounted for 44% of all deposits.As of September 30, the Bank’s advances had increased by 23% year over year and 5% quarter over quarter to ₹8,97,347 crores.
“In spite of a highly volatile global geopolitical landscape, we believe 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. We have been diligently working on both physical reach and digital prowess, extending our services not just to the metros and urban centres, but to the heart of Bharat which is home to the vast majority of India’s population,” said Amitabh Chaudhry, MD&CEO, Axis Bank.