Axis Bank Q2 Results: Net Profit Rises 10% On Year To ₹5,864 Crore

Bhubaneswar :

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and half year ended 30th September 2023 at its meeting held in Mumbai on Wednesday, 25th October 2023.

This quarter, Axis Bank etched a historical milestone with the opening of its 5,000th branch in Ahmedabad, inaugurated by the Hon. Chief Minister of Gujarat. This holds great significance, as the Bank’s very first branch was opened in the same city 29 years ago. Hundred more branches were inaugurated on the same day in different parts of the country.

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.”

Profit & Loss Account: Period ended 30th September 2023

Operating Profit and Net Profit

The Bank’s operating profit for the quarter grew 12% YOY to `8,632 crores. Core Operating profit for Q2FY24 grew 12% YOY and 5% QOQ to `8,733 crores. Net profit at `5,864 crores in Q2FY24 grew by 10% YOY.

Net Interest Income and Net Interest Margin

The Bank’s Net Interest Income (NII) grew 19% YOY and 3% QOQ to `12,315 crores. Net interest margin (NIM) for Q2FY24 stood at 4.11%, up 15 bps YOY and 1 bps QOQ.

Other Income

Fee income for Q2FY24 grew 31% YOY and 11% QOQ to `4,963 crores. Retail fees grew 38% YOY and 11% QOQ; and constituted 70% of the Bank’s total fee income. Retail cards and payments fee grew 39% YOY and 4% QOQ. Retail Assets (excluding cards and payments) fee grew 38% YOY and 17% QOQ. The Corporate & Commercial banking fees together grew 17% YOY and 9% QOQ to `1,468 crores. The trading loss for the quarter stood at `101 crores; miscellaneous income in Q2FY24 stood at `172 crores. Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q2FY24 grew 31% YOY to `5,034 crores.

Provisions and contingencies

Provision and contingencies for Q2FY24 stood at `815 crores. Specific loan loss provisions for Q2FY24 stood at `1,010 crores. The Bank has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions (standard + additional other than NPA) of `11,758 crores at the end of Q2FY24. It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.32% as on 30th September, 2023. On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 150% of GNPA as on 30th September, 2023. Credit cost for the quarter ended 30th September, 2023 stood at 0.42%.

H1FY24 Financial Performance:

Net Interest Income for H1FY24 grew 23% YOY to `24,273 crores from `19,744 crores. Fee income grew 30% YOY to `9,451 crores. Core operating profit for H1FY24 grew by 19% to `17,028 crores from `14,357 crores. Operating profit for H1FY24 grew by 28% to `17,446 crores from `13,603 crores. Total provisions for H1FY24 stood at `1,849 crores. Net Profit for H1FY24 grew 23% to `11,661 crores from `9,455 crores in H1FY23.