Axis Bank net income up 18% to Rs 6,918 crore in Q2 of FY25

The Mumbai-based lender reported a net profit of Rs 5,864 crore in the September 2023 quarter, the company said Thursday.
Axis Bank (Photo | EPS)
Axis Bank (Photo | EPS)
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MUMBAI: The third largest private sector lender Axis Bank has reported an 18 percent on-year growth in net income at Rs 6,917.57 crore for the September quarter, driven by higher interest income as its loan sales rose which pushed its net interest income by a healthy 10 percent.

The Mumbai-based lender reported a net profit of Rs 5,864 crore in the September 2023 quarter, the company said Thursday.

The key net interest income grew 11 percent to Rs 26,931 crore from Rs 24,273 crore. Fee income grew 13 percent to Rs 10,711 crore. Total income increased to Rs 37,142 crore from Rs 31,660 crore. In the June quarter, this stood at Rs 35,844 crore, Amitabh Chaudhry, the chief executive, told reporters in a post-earnings concall.

He attributed the good set of numbers to the bank balancing its digital prowess and advancement with physical expansion and proximity to customers. The bank has opened 150 new branches in the last three months, both urban and rural thus strengthening its regional presence, especially in the Eastern markets.

The interest income rose to Rs 30,420 crore during the quarter compared to Rs 26,626 crore a year ago.

The bank reduced its gross non-performing assets (NPAs) to 1.44 percent, down from 1.73 percent a year earlier. Similarly, net NPAs inched down to 0.34 percent from 0.36 percent.

Net interest income grew 9 percent on the back of a strong 3.99 percent net interest margin. Fee income grew 11 percent, and retail fee grew 11 percent.

Total deposits grew 14 percent, term deposits grew 21 percent and Casa grew 4 percent. Net advances grew 11 percent and gross advances rose 12 percent. Of this, retail loans grew 15 percent, SME grew 16 percent and corporate loans grew 6 percent.

The gross slippage ratio was at 1.78, down 19 bps and net slippage ratio at 0.96 down 41 bps. Provision coverage ratio stood at healthy 77 and the same on an aggregated basis stood at 153.

In absolute terms, provision and contingencies stood at Rs 2,204 crore. Specific loan loss provisions stood at Rs 1,441 crore. In addition to specific loan loss provisions, the bank made provisions aggregating to Rs 520 crore under the head provision for other contingencies. Total provisions for (standard + additional other than NPAs) stood at Rs 11,815 crore.

Fee income grew 11 percent to Rs 5,508 crore of which retail fees grew 11 percent and constituted 70 percent of the total fee income. Fees from third party products grew 21 percent and corporate and commercial banking fees together grew 11 percent to Rs 1,631 crore.

The trading income stood at Rs 1,111 crore and miscellaneous income stood at Rs 103 crore, both boosting the overall bottom-line.

Overall, non-interest income (comprising fee, trading and miscellaneous income) grew 34 percent to Rs 6,722 crore.

The bank’s balance sheet grew 12 percent to Rs 15,05,658 crore. Of this, advances grew 11 percent to Rs 9,99,979 crore.

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