Axis Bank Q1FY25: Net profit grows to Rs 6,035 cr; NII grows 12%

However, the profit declined by 15% sequentially from Rs 7,130 crore in the previous quarter.

The bank's asset quality deteriorated on a sequential basis, with gross non-performing assets (GNPA) rising by 11 basis points to 1.54%, and net non-performing assets (NNPA) increasing by 3 basis points to 0.34%.

On a year-on-year basis, Axis Bank's GNPA and NNPA improved by 42 and 7 basis points, respectively.

Net interest income (NII) for the April-June quarter increased 12% to Rs 13,448 crore, compared to Rs 11,959 crore in the same quarter last year. Compared to the previous quarter, this witnessed 3% growth.

The bank's net interest margin (NIM) for Q1FY25 was 4.05%, compared to 4.10% in the previous year.

On the results of the bank, Amitabh Chaudhry, MD&CEO, Axis Bank said: “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."

Fee income for Q1FY25 grew 16% YOY to Rs 5,204 crores.

Retail fees grew 18% YOY; and constituted 71% of the Bank’s total fee income. Retail cards and payments fee grew 12% YOY.

Retail Assets (excluding cards and payments) fee grew 13% YOY. Fees from Third Party Products grew 68% YOY.

The Corporate & Commercial banking fees together grew 12% YOY and 1% QOQ to Rs 1,497 crores.

The trading income gain for the quarter stood at Rs 406 crores; miscellaneous income in Q1FY25 stood at Rs 173 crores.

Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q1FY25 grew 14% YOY to Rs 783 crores.

Provision and contingencies for Q1FY25 stood at `2,039 crores. Specific loan loss provisions for Q1FY25 stood at Rs 2,551 crores. The Bank holds cumulative provisions (standard + additional other than NPA) of `11,732 crores at the end of Q1FY25. 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 1.20% as on 30 th June, 2024.

On an aggregated basis, the bank’s provision coverage ratio (including specific + standard + additional) stands at 150% of GNPA as on 30th June, 2024.

Credit cost (annualized) for the quarter ended 30th June, 2024 stood at 0.97%.

The bank’s balance sheet grew 13% YOY and stood at `14,68,163 crores as on 30th June 2024. The total deposits grew 13% YOY on month end basis, of which current account deposits grew 12% YOY; total term deposits grew 20% YOY and 1% QOQ.

The share of CASA deposits in total deposits stood at 42%.

On QAB basis, total deposits grew 14% YOY and 3% QOQ, within which savings account deposits grew 3% YOY and 3% QOQ, current account deposits grew 8% YOY and 2% QOQ; and total term deposits grew 21% YOY and 4% QOQ.

The bank’s advances grew 14% YOY and 2% QOQ to `9,80,092 crores as on 30 th June 2024. Gross of transfers through Inter Bank Participation Certificates (IBPC), total Bank advances grew 15% YOY and 1% QOQ.

Retail loans grew 18% YOY to Rs 5,85,112 crores and accounted for 60% of the net advances of the Bank. The share of secured retail loans$ was nearly 71%, with home loans comprising 28% of the retail book. Home loans grew 6% YOY, Personal loans grew 29% YOY, Credit card advances grew 22% YOY, Small Business Banking (SBB) grew 26% YOY and 2% QOQ; and rural loan portfolio grew 24% YOY.

SME book remains well diversified across geographies and sectors, grew 20% YOY to `1,04,016 crores.

Corporate loan book (gross of IBPC sold) grew 10% YOY; domestic corporate book grew 7% YOY and 4% QOQ.

Mid-corporate book grew 24% YOY and 2% QOQ. 89% of corporate book is now rated A- and above with 89% of incremental sanctions in Q1FY25 being to corporates rated A- and above.

The book value of the bank’s investments portfolio as on 30th June 2024, was Rs 3,16,851 crores, of which Rs 2,47,795 crores were in government securities, while Rs 56,384 crores were invested in corporate bonds and Rs 12,672 crores in other securities such as equities, mutual funds, etc.

Out of these, 67% are in Held till Maturity (HTM) category, 12% of investments are Available for Sale (AFS), 19% are in Fair Value through Profit & Loss (FVTPL) category and 2% are investments in Subsidiaries and Associate.