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Informist, Thursday, Jan. 16, 2025

 

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--Axis Bank Oct-Dec net profit INR 63.04 bln
--Analysts saw Axis Bank Oct-Dec net profit INR 64.43 bln
--Axis Bank Oct-Dec net profit INR 63.04 bln vs INR 60.71 bln year ago
--Axis Bank Oct-Dec total income INR 369.26 bln vs INR 335.16 bln year ago
--Axis Bank gross NPA ratio 1.46% as on Dec 31 vs 1.44% quarter ago
--Axis Bank Oct-Dec provisions INR 21.56 bln vs INR 10.28 bln year ago
--Axis Bank net NPA ratio 0.35% as on Dec 31 vs 0.34% quarter ago
--Axis Bank Basel-III capital adequacy ratio 17.01% as on Dec 31
--Axis Bank Apr-Dec net profit INR 192.56 bln vs INR 177.32 bln year ago
--Axis Bank Apr-Dec total income INR 1.10 tln vs INR 958.20 bln year ago
--Axis Bank Oct-Dec net interest income INR 136.06 bln vs INR 125.32 bln year ago
--Axis Bank: Oct-Dec average LCR around 119% vs around 115% Jul-Sept
--Axis Bank Oct-Dec NIM 3.93% vs 3.99% qtr ago, 4.01% year ago
--Axis Bank Oct-Dec specific loan loss provisions INR 21.85 bln
--Axis Bank: Issued 700,000 new credit cards in Oct-Dec
--Axis Bank: Total deposits at INR 10.96 tln as on Dec 31, up 9% on year
--Axis Bank: Net advances at INR 10.15 tln as on Dec 31, up 9% on year
--Axis Bank: Retail advances at INR 6.06 tln as on Dec 31, up 11% on year
--Axis Bank: SME advances at INR 1.14 tln as on Dec 31, up 15% on year
--Axis Bank: Corporate loans at INR 2.95 tln Dec 31 vs INR 2.91 tln Sept 30
--Axis Bank: CASA ratio at 39% as on Dec 31 vs 41% as on Sept 30
--Axis Bank: Oct-Dec cost of deposits 5.13% vs 5.08% qtr ago, 4.94% year ago
--Axis Bank: Oct-Dec cost of funds 5.46% vs 5.45% qtr ago, 5.35% year ago
--Axis Bank: Around 71% of retail loan book is secured
--Axis Bank: Oct-Dec overall credit card spends INR 700.19 bln
--Axis Bank: Oct-Dec credit cost 1.28% vs 0.90% qtr ago, 0.54% year ago
--Axis Bank: Oct-Dec fresh slippages INR 54.32 bln vs INR 37.15 bln year ago
--Axis Bank: Oct-Dec recoveries, upgrades INR 19.15 bln vs INR 25.98 bln year ago
--Axis Bank: Oct-Dec loan write offs INR 31.33 bln vs 19.81 bln year ago
--Axis Bank: Provision coverage ratio at 76% as on Dec 31
 

 

NEW DELHI – Axis Bank posted a mere 3.8% on-year increase in its net profit for the quarter ended December, with weak growth in interest income and doubling of provisions weighing on the bottom line.

 

For the reporting quarter, the private bank said Thursday that its net profit was INR 63.04 billion, missing analysts' estimate of INR 64.43 billion. Shares of the lender ended Thursday at INR 1,038.00 on the National Stock Exchange, 1.1% higher from Wednesday's close. The quarterly results were released post market hours.

 

In Oct-Dec, Axis Bank saw its net interest income rise 8.6% on year to INR 136.06 billion, leading to a 10.2% increase in total income to INR 369.26 billion, as net advances rose 8.8% to INR 10.15 trillion as of Dec. 31. Corporate loan growth was weak at 2.9%, while retail loans were 10.8% higher at the end of December compared with a year ago. Loans to Small and Medium Enterprises were up 15.3% at INR 1.14 trillion. Net interest margin for the quarter was 4.06% for the domestic business and 3.93% for overall operations. While the former was unchanged from Jul-Sept, the overall NIM was down 6 basis points.
 

The bank said that around 71% of its retail portfolio is secured. Home loans, which form the biggest chunk of the retail book, was 3% higher year on year as of Dec. 31. The lender issued around 700,000 new credit cards in the quarter, with total credit card spends rising 14% on year and 15% quarter on quarter to INR 700.19 billion.

 

Apart from weak lending, a huge increase in provisions also dragged down profitability, with provisions and contingencies more than doubling in Oct-Dec from the last quarter of 2023 to INR 21.56 billion. Loan loss provisions, meanwhile, more than tripled from a year ago to INR 21.85 billion on the back of a sharp increase in fresh slippages to INR 54.32 billion from INR 37.15 billion.

 

 

The deterioration in asset quality was visible in the bad loan ratios, with the gross non-performing assets ratio edging up sequentially by 2 bps to 1.46% as of Dec. 31, although it was down from 1.58% last year. The net NPA ratio was up by 1 basis point sequentially at 0.35%, but was down from 0.36% last year. The bank's Provision Coverage Ratio was 76% as at the end of December, compared with 77% a quarter ago and 78% a year ago. Credit cost for Oct-Dec rose to 1.28% from 0.90% in Jul-Sept and 0.54% last year.

 

While fresh slippages jumped in Oct-Dec, loan upgrades and recoveries decreased to INR 19.15 billion from INR 25.98 billion last year, with loan write-offs surging to INR 31.33 billion from INR 19.81 billion.

 

On the deposit front, total deposits were up 9.1% on year at INR 10.96 trillion as of Dec. 31, with the current account, savings account ratio declining to 39% from 41% as of Sept. 30. Consequently, the cost of deposits rose in Oct-Dec to 5.13% from 5.08% in Jul-Sept, with the cost of funds only slightly higher at 5.46% in the reporting quarter. In Jul-Sept, it was 5.45%.

 

The average Liquidity Coverage Ratio in Oct-Dec was around 119%, up from 115% in Jul-Sept. The Basel-III capital adequacy ratio stood at 17.01% as on Dec. 31.

 

For Apr-Dec, the bank's net profit was INR 192.56 billion, up 8.6%, with total income registering a growth of 14.7% to INR 1.10 trillion.  End

 

Reported by Siddharth Upasani

Edited by Akul Nishant Akhoury

 

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