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Axis Bank gains after Q2 PAT jumps 18% YoY to Rs 6,918 cr

18-Oct-24 10:01 Hrs IST

Net interest income (NII) grew 9% YoY to Rs 13,483 crore during the quarter. Net interest margin (NIM) stood at 3.99% in Q2 FY25 compared with 4.11% posted in same quarter last year.

Profit before tax in September 2024 quarter stood at Rs 8,508.38 crore, registering an increase of 8.84% YoY.

Operating profit before provisions & contingencies jumped 24.10% YoY to Rs 10,712.47 crore for the quarter. The bank's provisions and contingencies zoomed to Rs 2,204.09 crore from Rs 814.56 crore posted in same quarter last year.

The Bank holds cumulative provisions (standard + additional other than NPA) of Rs 11,815 crore at the end of Q2FY25. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to standard asset coverage of 1.20% as on 30 th September 2024. On an aggregated basis, provision coverage ratio (including specific + standard + additional) stands at 153% of GNPA as on 30th September, 2024.

Credit cost for the quarter ended 30 September 2024 stood at at 0.54% as against 0.42% posted in 30 September 2023 quarter.

The bank's gross non-performing assets (NPAs) stood at Rs 15,466.23 crore as on 30 September 2024 as against Rs 16,756.74 crore as on 30 September 2023.

The ratio of gross NPAs reduced to 1.44% as on 30 September 2024 as against 1.73% as on 30 September 2023. The ratio of net NPAs declined to 0.34% as on 30 September 2024 as against 0.36% as on 30 September 2023.

As on 30th September, 2024, the Bank's provision coverage, as a proportion of Gross NPAs stood at 77%, as compared to 79% as at 30th September 2023 and 78% as at 30 th June 2024.

The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 30 th September, 2024 stood at 1,320 crore that translates to 0.12% of the gross customer assets. The Bank carries a provision of around 20% on restructured loans, which is in excess of regulatory limits.

Gross slippages during the quarter were Rs 4,443 crore, compared to Rs 4,793 crore in Q1 FY25 and Rs 3,254 crore in Q2FY24.

The bank's net advances grew 11% YoY to Rs 9,99,979 crore and total deposits jumped 14% YoY to Rs 10,86,744 crore as on September 2024.

As on 30 September 2024, CASA deposits rose 4% YoY to Rs 4,41,053 crore while CASA deposits as % of total deposits stood at 41% as on September 2024 as against 44% as on September 2023.

As on June 2024, capital adequacy ratio (basel III) stood at 16.61%. Tier I was at 14.54% and Tier II at 2.07%.

The bank's return on average assets (ROA) and Return on equity (ROE) stood at 1.84% and 17.58%, respectively in the quarter ended 30 September 2024.

Amitabh Chaudhry, MD&CEO, Axis Bank, said, 'This quarter we balanced digital prowess and advancement with physical expansion and proximity to our customers. We have opened 150 new branches in the last three months, both urban and rural. The Bank strengthened its regional presence by laying the foundation for a new Corporate Office in Kolkata, which will be the hub for all activities in the Eastern region. We also expanded our private banking business 'Burgundy Private' network to 15 new cities increasing its presence to 42 locations across India, offering bespoke wealth management services in India's rapidly evolving Tier 2 markets.'

Axis Bank added 150 branches during the quarter, taking its overall distribution network to 5,577 domestic branches and extension counters along with 182 Business Correspondent Banking Outlets (BCBOs) situated across 3,062 centres and 14,728 ATMs and cash recyclers spread across the country. The Bank's Axis Virtual Centre is present across eight centres with over around 1,000 Virtual Relationship Managers as on 30 September 2024.