Axis Bank Q2 Results: Net profit rises 10% on year to Rs.5,863.6 crore, NII up 18.9%

Axis Bank Ltd on Wednesday reported a net profit of ₹5,863 crore in the second quarter of FY24 registering a 10% growth from Rs.5,329.8 crore in the corresponding quarter of last year. Axis Bank share price ended 0.84% down, at Rs. 955.35 apiece on BSE.

Net interest income (NII), which is the difference between interest earned and interest expended, during Q2FY24 rose 18.9% to Rs.12,314.56 crore from Rs.10,360.26 crore, year-on-year (YoY).

Net interest margin (NIM) for Q2FY24 was 4.11%, up 1 basis point QOQ and 15 basis points YOY, according Axis Bank's filing exchange. For Q2FY24, core operating profit increased by 5% QOQ and 12% YoY to Rs.8,733 crores.

Axis Bank's asset quality improved sequentially. For the quarter ended September, gross non-performing assets (NPA) stood at Rs.16,756.7 crore from Rs.18,158.2 crore, down 7.7% in Q1FY24. Net NPA, came in at Rs.3,441.3 crore, down 7.1% sequentially.

As of September 30, 2023, gross NPA was 1.73% down by 23 basis points from 1.96% in Q1FY24. Similarly, Net NPA came in at 0.36%, down by 5 basis points QoQ.

According to the exchange filing, Q2FY24 gross slippage ratio (annualised) at 1.49% declined 39 basis points YOY, net slippage ratio (annualized) at 0.59%.

For Q2FY24, provision and contingencies was ₹815 crores. For Q2FY24, specific loan loss provisions were ₹1,010 crores.

On a period-end basis, total deposits increased by 18% YoY and 1% QOQ. Savings account deposits increased by 16% YoY, while current account deposits increased by 7% YoY. Total term deposits increased by 22% YoY and 4% QOQ, of which retail term deposits increased by 15% YoY and 4% QOQ.

Deposits made by CASA accounted for 44% of all deposits.As of September 30, the Bank's advances had increased by 23% year over year and 5% quarter over quarter to Rs. 8,97,347 crores.