Axis Bank Q2 Results FY2024, Net profit at Rs.5864 crores

On 25th October 2023, Axis Bank announced its quarterly results.

Key Highlights:   

- The Bank’s Net Interest Income (NII) grew 19% YoY and 3% QoQ to Rs.12,315 crores. Net interest margin (NIM) for Q2FY24 stood at 4.11%, up 15 bps YoY and 1 bps QoQ.
- The Bank’s operating profit for the quarter grew 12% YoY to Rs.8,632 crores.
- Core Operating profit for Q2FY24 grew 12% YoY and 5% QoQ to Rs.8,733 crores
- Net profit at Rs.5,864 crores in Q2FY24 grew by 10% YoY
 
 

 Business Highlights:   

- As of September 30, 2023, the Bank’s balance sheet had grown 13% year over year to Rs.13,38,914 crores.
- On a period-end basis, overall deposits increased by 18% YoY and 1% QoQ, with savings account deposits increasing by 16% YoY and current account deposits increasing by 7% YoY.
- Overall term deposits increased by 22% YoY and 4% QoQ, with retail term deposits increasing by 15% YoY and 4% QoQ.
- 44% of all deposits were made up of CASA deposits.
CASA deposits made up 44% of all deposits.
- The total deposits on a QAB basis increased by 16% YoY and 1% QoQ; savings account deposits increased by 17% YoY and 1% QoQ, current account deposits increased by 11% YoY, and total term deposits increased by 17% YoY and 3% QoQ.
- As of September 30, 2023, the Bank's advances have increased by 23% YoY and 5% QoQ to Rs.8,97,347 crores. Domestic net loans increased by 5% QoQ and 26% YoY.
- Retail loans made up 58% of the bank's net advances, growing 23% YoY and 4% QoQ to Rs.5,19,736 crores. About 76% of retail loans were secured, with home loans making up 31% of the total retail book.
- Small Business Banking (SBB) rose 42% YoY and 9% QoQ; the rural loan portfolio grew 24% YoY and 4% QoQ; home loans grew 9% YoY, personal loans grew 25% YoY, and credit card advances grew 72% YoY.
- SME book increased 27% YoY and 9% QoQ to Rs.95,954 crores, maintaining its strong geographic and sectoral diversification.
- The bank's wealth management business is among the largest in India, with assets under management (AUM) of Rs.4,53,096 crores as of September 30, 2023, up 69% year on year and 6% quarter on quarter. 9,639 households are covered by Burgundy Private, the bank's offering for high and ultra-high-net-worth customers. Burgundy Private’s AUM rose 4% QoQ and 76% YoY to Rs.1,66,499 crores.
- The Bank reported gross non-performing assets (NPA) and net non-performing assets (NPA) as of September 30, 2023, respectively, compared to June 30, 2023, figures of 1.96% and 0.41%.
- The Bank opened 207 branches during the quarter, bringing its total distribution network to 5,152 domestic branches and extension counters spread throughout 2,864 centers. As of September 30, 2022, there were 4,760 domestic branches and extension counters spread across 2,676 centers. The Bank operated 15,806 ATMs and cash recyclers around the nation as of September 30, 2023. As of September 30, 2023, the Bank's Axis Virtual Center employs approximately 1,500 Virtual Relationship Managers across six centers.
 
Commenting on the results, Amitabh Chaudhry, MD&CEO, Axis Bank said, “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.”