Axis Bank Q1 Results: Net Profit Grew 4% To Rs 6,035 Cr; Asset Quality Stable

Axis Bank released its financial results for the quarter that ended on June 30, 2024, on Wednesday. The bank's quarterly core operating profit of Rs 9,637 crores climbed 16% year on year. Operating profit improved to Rs 10,106 crores, or 15% YoY. In Q1FY25, net profit jumped 4% year on year to Rs 6,035 crores from Rs 5,797 crores in Q1FY24. At Rs 13,448 crores, the bank's Net Interest Income (NII) climbed 3% QOQ and 12% YoY. In Q1FY25, the net interest margin (NIM) was 4.05%.

For Q1FY25, provision and contingencies totalled Rs 2,039 crores. For Q1FY25, specific loan loss provisions were recorded at Rs 2,551 crores. As of the end of Q1FY25, the bank has cumulative provisions of Rs 11,732 crores. As of June 30, 2024, the bank's balance sheet has grown 13% year on year to Rs 14,68,163 crores. On a month-end basis, overall deposits climbed 13% YoY; current account deposits gained 12% YoY, total term deposits climbed 20% YoY, and QOQ deposits up 1%. 42% of all deposits were CASA deposits.

As of June 30, 2024, the bank had advances of Rs 9,80,092 crores, up 2% QOQ and 14% YoY. Retail loans made up 60% of the bank's net advances and climbed 18% YoY to Rs 5,85,112 crores. According to the bank, as of June 30, 2024, the gross NPA and net NPA amounts were 1.54% and 0.34%, respectively, compared to 1.43% and 0.31% on March 31, 2024.

For the quarter, there were Rs 591 crores in recoveries from written-off accounts. Adjusted for recoveries from the written-off pool, reported net slippages for the quarter were Rs 2,700 crores, of which Rs 2,456 crores were retail, Rs 13 crores were CBG, and Rs 231 crores were wholesale. There were gross slippages of Rs 4,793 crores during the quarter under review, as opposed to Rs 3,471 crores in Q4FY24 and Rs 3,990 crores in Q1FY24. The bank's provision coverage as a percentage of gross non-performing assets (NPAs) as of June 30, 2024, was 78% as against 80% on June 30, 2023, and 79% on March 31, 2024.

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. I am thankful to the teams who worked tirelessly in making this possible, and to our 2 million new customers for keeping their trust and faith in us."

In comparison to 4,945 domestic branches and extension counters and 156 BCBOs spread across 2,754 centres as of June 30, 2023, Axis Bank added 50 branches during the quarter, bringing its total distribution network to 5,427 domestic branches and extension counters along with 182 BCBOs as of June 30, 2024. The bank had 15,014 ATMs and cash recyclers located around the nation as of June 30, 2024.