Axis Bank’s net profit rose 10% to ₹5,864 crore in the July-September quarter (Q2) of FY2024 due to steady growth in net interest margin, fees and loan portfolios. The bank’s net interest income (NII) increased 19% YoY to ₹12,315 crore and net interest margin (NIM) stood at 4.11%, up 15 basis points YoY.
Axis Bank’s fee income rose 31% to ₹4,963 crore in the second quarter. Retail fees rose 38% and accounted for 70% of the bank’s total fee income, while retail card and payment fees rose 39% annually.
Amitabh Chaudhry, Managing Director and CEO of Axis Bank, says India’s story remains strong despite the highly volatile global geopolitical situation. “With the festivities approaching, we are already seeing an increase in demand, which bodes well for business. At Axis Bank, our GPS agenda is on track and we expect steady growth across all key business segments of the bank.”
He added that the bank is working on both physical reach and digital capabilities while expanding its services to the heart of Bharat.
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Axis Bank’s provisions and contingent liabilities stood at ₹815 crore in the said quarter, while provisions for specific credit losses stood at ₹1,010 crore. “The bank has accumulated provisions of ₹11,758 crores as at the end of second quarter of fiscal 2024.”
In the first half of the fiscal, NII rose 23% to ₹24,273 crore while fee income rose 30% to ₹9,451 crore. In the first half of the year, India’s fourth-largest private bank reported a 23% rise in its net profit to ₹ 11,661 crore as against ₹ 9,455 crore in the year-ago period.
Like Q2, Axis Bank’s balance sheet grew 13% to ₹13,38,914 crore. Total deposits also increased by 18%, with savings account deposits increasing by 16%; Current account deposits increased by 7% and time deposits increased by 22% compared to the previous year.
The share of the bank’s CASA deposits in total deposits was 44% and loans increased by 23% to ₹8,97,347 crore as of September 30, 2023. Net domestic loans increased by 26%; and retail loans rose 23% to ₹5,19,736 crore, accounting for 58% of the bank’s net loans.
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The book value of the bank’s investment portfolio as of September 30, 2023 was ₹2,95,691 crore, of which ₹2,35,555 crore was invested in government securities, while ₹50,811 crore was invested in corporate bonds and ₹9,325 crore in equities. Mutual funds etc.
The bank’s asset management business, Burgundy, recorded assets under management (AUM) of ₹4,53,096 crore in the second quarter. As of September 30, 2023, the gross non-performing assets (NPA) and net NPA reported by the bank were 1.73% and 0.36%, respectively, compared to 1.96% and 0.41%, respectively, in the previous quarter.
During the quarter, the bank added 207 branches, increasing its total distribution network to 5,152 domestic branches. Shares of Axis Bank closed down 0.77% at ₹956.85 on the BSE today.
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