Axis Bank Q1 Results: Axis Bank announced its April-June quarter results for fiscal 2024-25 (Q1FY25) on Wednesday, July 24, reporting a rise of four per cent in net profit at ₹6,035 crore, compared to ₹5,797 crore in the corresponding period last year. The private sector lender's net interest income (NII)-the difference between interest earned and paid-rose 12 per cent year-on-year (YoY) to ₹13,448 crore, compared to ₹11,958 crore in the year-ago period.
‘The last quarter was crucial in terms of getting all the teams to work together for the last leg of Citi integration. I am delighted that the integration is done and it was largely seamless given the size and scale of the transition. I am thankful to the teams who worked tirelessly in making this possible, and to our two million new customers for keeping their trust and faith in us,'' said Amitabh Chaudhry, MD&CEO, Axis Bank.
1.P&L Account: Net profit, operating profit
Axis Bank’s operating profit for the quarter stood at ₹10,106 crore, rising 15 per cent YoY. The core operating profit for the June quarter came in at ₹9,637 crore, rising 16 per cent YoY. The net profit stood at ₹6,035 crore in Q1FY25, compared to ₹5,797 crore in Q1FY24, and grew four per cent YoY. The bank’s net interest margin (NIM) for Q1FY25 stood at 4.05 per cent.
Axis Bank’s reported gross non-performing assets (NPA) and net NPA levels were 1.54 per cent and 0.34 per cent respectively compared to 1.43 per cent and 0.31 per cent as on 31st March, 2024. Recoveries from written off accounts for the quarter was ₹591 crore. Reported net slippages in the quarter adjusted for recoveries from written off pool was ₹2,700 crore, of which retail was ₹2,456 crore.
Gross slippages during the quarter were ₹4,793 crore, compared to ₹3,471 crore in Q4FY24 and ₹3,990 crore in Q1FY24. Recoveries and upgrades from NPAs during the quarter were ₹1,503 crore. The bank in the quarter wrote off NPAs aggregating ₹2,206 crore.
Provision and contingencies for Q1FY25 stood at ₹2,039 crore. Specific loan loss provisions for Q1FY25 stood at ₹2,551 crore. The bank holds cumulative provisions (standard + additional other than NPA) of ₹11,732 crore at the end of Q1FY25.
These cumulative provisions translate to a standard asset coverage of 1.20 per cent as on June 30, 2024. On an aggregated basis, the provision coverage ratio (including specific + standard + additional) stands at 150 per cent of GNPA as on 30th June, 2024. Credit cost (annualized) for the quarter ended 30th June, 2024 stood at 0.97 per cent.
Fee income for Q1FY25 grew 16 per cent YOY to ₹5,204 crore. Retail fees grew 18 per cent YoY; and constituted 71 per cent of the bank’s total fee income. Retail cards and payments fee grew 12 per cent YoY. Retail Assets (excluding cards and payments) fee grew 13 per cent YoY. Fees from third party products grew 68 per cent YoY. The corporate and commercial banking fees together grew 12 per cent YoY and one per cent QoQ to ₹1,497 crore.
Axis Bank’s balance sheet grew 13 per cent YoY and stood at ₹14,68,163 crore as on 30th June 2024. The total deposits grew 13 per cent YoY on month end basis, of which current account deposits grew 12 per cent YoY; total term deposits grew 20 per cent YoY and one per cent QoQ. The share of CASA deposits in total deposits stood at 42 per cent.
The bank’s advances grew 14 per cent YoY and two per cent QoQ to ₹9,80,092 crore as on 30th June 2024. Gross of transfers through Inter Bank Participation Certificates (IBPC), total bank advances grew 15 per cent YoY and one per cent QoQ.
