Axis Bank Q3-FY24 Conference Operational Highlights

Operational Highlights

Analysis

Net Interest Income: Grew 9% YOY and 2% QOQ, with a Net Interest Margin at 4.01%.

Core Operating Revenues: Grew 14% YOY and 2% QOQ, contributing to a 6% QOQ growth in operating profit.

Consolidated ROE | ROA: Stood at 18.61% | 1.84%, with subsidiaries contributing 54 bps | 9 bps respectively.

Loan Growth: Strong across all segments, with a 23% | 4% increase in advances (gross of IBPC sold).

Retail Term Deposits (QAB1): Grew 15% YOY & 3% QOQ, contributing to an 18% YOY & 4% QOQ growth in total deposits.

CASA Ratio: Stood at 42%, showcasing a robust retail term deposit traction.

Capital Adequacy Ratio (CAR): Overall CAR, including profit, at 16.63%, with CET 1 ratio of 13.71%.

Net Organic Accretion to CET-1 (9MFY24): 39 bps, reflecting a well-capitalized and self-sustaining structure.

COVID Provisions: ₹5,012 crores, not included in CAR calculation, providing an additional cushion of ~43 bps.

Payments and Digital Banking: Strong position with ~10 mn non-Axis Bank customers, 100+ digital partnerships, and significant presence on WhatsApp banking.

Banking Business Operation Performance

Asset Quality: Healthy with PCR at 78%, and a coverage ratio at 153%.

Net Slippage Ratio (Q3FY24): Declined to 0.50%, showing a 43 bps YOY & 9 bps QOQ improvement.

Gross Slippage Ratio (Q3FY24): Declined to 1.62%, reflecting a 41 bps YOY decrease.

Net Credit Cost (Q3FY24): Decreased to 0.28%, down by 14 bps QOQ.

Key Domestic Subsidiaries (9MFY24): Posted a profit of ₹1,108 crores, with a return on investment of 50%.

Axis Finance (9MFY24): PAT grew 25% YOY to ₹425 crores, with improved asset quality metrics and ROE at 16.4%.

Axis AMC (9MFY24): PAT stood at ₹297 crores, while Axis Securities reported a PAT growth of 31% YOY to ₹198 crores.

Axis Capital (9MFY24): PAT at ₹108 crores, executing 71 investment banking deals in 9MFY24.