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Informist, Thursday, Oct. 17, 2024

 

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--Axis Bank Jul-Sept net profit INR 69.18 bln vs INR 58.64 bln year ago 
--Analysts saw Axis Bank Jul-Sept net profit INR 65 bln 
--Axis Bank Apr-Sept net profit INR 129.52 bln vs INR 116.61 bln year ago 
--Axis Bank Jul-Sept total income INR 371.42 bln vs INR 316.60 bln year ago 
--Axis Bank Apr-Sept total income INR 729.86 bln vs INR 623.04 bln year ago 
--Axis Bank Jul-Sept provisions INR 22.04 bln vs INR 8.15 bln year ago 
--Axis Bank gross NPA ratio 1.44% as on Sept 30 vs 1.54% qtr ago 
--Axis Bank net NPA ratio 0.34% as on Sept 30, unch vs qtr ago 
--Axis Bank Basel III capital adequacy ratio 16.61% as on Sept 30 
--Axis Bank Jul-Sept net interest income INR 134.83 bln, up 9% on year 
--Axis Bank Jul-Sept net interest margin at 3.99% 
--Axis Bank Jul-Sept advances INR 9.99 tln as on Sept 30, up 11% on yr 
--Axis Bank Jul-Sept deposits INR 10.87 tln as on Sept 30, up 14% on yr 
--Axis Bank current, savings account ratio 40% as on Sept 30 
--Axis Bank Jul-Sept credit cost 90 bps vs 119 bps in Apr-Jun 
--Axis Bank Jul-Sept fresh slippages at INR 44.43 bln 
--Axis Bank Jul-Sept recoveries, upgrades INR 20.69 bln 
--Axis Bank Wrote off loans worth INR 31.19 bln Jul-Sept 
--Axis Bank Jul-Sept gross slippages 1.78% vs 1.97% a quarter ago 
--Axis Bank MD: Opened 150 new branches in Jul-Sept 
--Axis Bank Jul-Sept liquidity coverage ratio at 115% vs 120% qtr ago 
--Axis Bank: Provided INR 5.20 bln Jul-Sept for other contingencies 

 

By Kshipra Petkar

 

MUMBAI – Axis Bank's net profit for the quarter ended September rose to INR 69.18 billion, up 18% on year. On a sequential basis, the net profit was up 15%. As per the estimates from 14 brokerages, the net profit was expected in the range of INR 61.14-69.47 billion. The rise in net profit was due to a rise in income and a marginal improvement in asset quality.

 

The total income of the bank was up at INR 371.42 billion, up 17.3% on year for the quarter ended September. The net interest income for Jul-Sept was at INR 134.83 billion, up 9% on year. The net interest margin moderated to 3.99% in the reporting quarter from 4.05% a quarter ago.

 

In terms of asset quality, the gross non-performing asset ratio as of Sept. 30 stood at 1.44%, lower than 1.54% seen a quarter ago. The net non-performing asset ratio stood at 0.34% as of Sept. 30, unchanged from a quarter ago.

 

Provisions for the quarter ended September increased to INR 22.04 billion, over 170% on year. On a sequential basis, the provisions were up 8.08%.

 

"In addition to specific loan loss provisions, in the quarter, the bank made provisions aggregating to 520 crores (INR 5.20 billion) under the head provision for other contingencies. These are entirely prudent and not for current or future NPA assets and should not be construed in any manner as the bank’s assessment of its expected asset quality," the bank said in a press release.

 

Fresh slippages during the quarter ended September were INR 44.43 billion, compared to INR 47.93 billion in Apr-Jun and INR 32.54 billion a year ago. Recoveries and upgrades from non-performing assets during the quarter were INR 20.69 billion. The bank in the reporting quarter wrote off non-performing assets worth INR 31.19 billion.

 

Total advances were up 11% on year to INR 9.99 trillion as of Sept. 30 and the deposits were up 14% on year to INR 10.87 trillion.

 

Within total advances, the retail book of the bank was up 15% year to INR 5.98 trillion. Home loans were up 5% on year to INR 1.67 trillion, personal loan book was up 23% on year to INR 754.44 billion and the credit card book was up 22% on year to INR 437.35 billion, as per the bank's investor presentation. The presentation mentioned that 100% of personal loans and 78% of credit card portfolio were for the salaried segment. The bank also said that they are increasing gold loan coverage by adding 500 new branches in Apr-Sept.

 

The corporate book was up merely 3% on year to INR 2.90 trillion as of Sept. 30 and the small and medium enterprise book was up 16% on year at INR 1.10 trillion. 

 

Within deposits, the current, savings account deposits were up 4% on year to INR 4.41 trillion. Current account deposits were up 8% on year to INR 1.42 trillion and the savings account deposits were up 2% on year to INR 2.98 trillion as on Sept. 30. CASA ratio was down to 40% as on Sept. 30 from 43% a year ago. In comparison to this, term deposits were up 21% on year at INR 6.45 trillion. The cost of funds inched up slightly to 5.45% from 5.44% a quarter ago and 5.17% a year ago.

 

The bank added 150 branches during the quarter, taking its overall distribution network to 5,577 domestic branches and extension counters along with 182 business correspondent banking outlets.

 

In terms of credit cards, the bank issued 1.06 million credit cards. The bank has issued nearly 1 million cards for the 11th consecutive year. The increase in the market share in the credit card space, with increasing card issuances, was aided by known-to-bank partnerships. Debit card spends fell to INR 90.36 billion in Jul-Sept from INR 95.89 billion a quarter ago and INR 114.15 billion a year ago.

 

On the National Stock Exchange, shares of Axis Bank closed 1.9% lower at INR 1,131.85 on Thursday. The earnings were announced post market hours.  End

 

Edited by Vidhi Verma

 

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