Axis Bank Q2 Results: Net Profit Rises 10% On YoY To Rs 5,863.6 Cr

Axis Bank, on Wednesday, reported a net profit of Rs 5,863 crore in the second quarter of FY24, reflecting a 10 per cent growth from Rs 5,329.8 crore in the corresponding quarter of the previous year.

The share price of Axis Bank concluded 0.84 per cent lower, at Rs 955.35 apiece on BSE.

Net interest income (NII), which denotes the difference between interest earned and interest expended, during Q2FY24 surged by 18.9 per cent to Rs 12,314.56 crore from Rs 10,360.26 crore, year-on-year (YoY).

The net interest margin (NIM) for Q2FY24 stood at 4.11 per cent, up by 1 basis point QoQ and 15 basis points YOY, according to Axis Bank's filing with the exchange. Additionally, for Q2FY24, the core operating profit rose by 5 per cent QoQ and 12 per cent YoY to Rs 8,733 crores.

Axis Bank's asset quality demonstrated sequential improvement. For the quarter ending September, gross non-performing assets (NPA) were Rs 16,756.7 crore, a decrease from Rs 18,158.2 crore, down by 7.7 per cent in Q1FY24. Net NPA stood at Rs 3,441.3 crore, down by 7.1 per cent sequentially.

As of September 30, 2023, gross NPA was 1.73 per cent, showing a reduction of 23 basis points from 1.96 per cent in Q1FY24. Similarly, Net NPA was at 0.36 per cent, down by 5 basis points QoQ.

"As of 30 September, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs, was at 79 per cent, compared to 80 per cent as of 30th September, 2022," the bank stated in its release.

As per the exchange filing, Q2FY24 gross slippage ratio (annualised) at 1.49 per cent decreased by 39 basis points YoY, while the net slippage ratio (annualised) was at 0.59 per cent.

For Q2FY24, provision and contingencies amounted to Rs 815 crores. Additionally, specific loan loss provisions for Q2FY24 were Rs 1,010 crores.

On a period-end basis, total deposits grew by 18 per cent YoY and 1 per cent QoQ. Savings account deposits increased by 16 per cent YoY, whereas current account deposits rose by 7 per cent YoY. Total term deposits increased by 22 per cent YoY and 4 per cent QoQ, with retail term deposits growing by 15 per cent YoY and 4 per cent QoQ.

Deposits made under CASA accounted for 44 per cent of all deposits. As of September 30, the Bank's advances had increased by 23 per cent year over year and 5 per cent quarter over quarter, amounting to Rs 8,97,347 crores.