Axis Bank posted its fiscal first quarter profit at Rs 6098.95 crore, up 39 per cent in comparison to Rs 4389.22 crore during the corresponding quarter of last year. It posted total interest earned during the quarter in review at Rs 26,245.74 crore, up 36.7 per cent as against Rs 19193.33 crore during Q1FY24. The private sector bank clocked a total income of Rs 31,894.20 crore, up 41 per cent from Rs 22,615.88 crore during Q1FY23. However, total expenses during the quarter stood at Rs 22642.50 crore, up 38.5 per cent in comparison to Rs 16349.01 crore during Q1FY23.
Loan growth during Q1
Axis Bank posted a robust loan growth across all business segments. While the rural loans grew by 22 per cent on-year, small business banking loans posted a 46 per cent growth YoY and mid-corporate book grew 38 per cent YoY. Gaurav Jani, Research Analyst, Prabhudas Lilladher Pvt Ltd, said, “Loan growth came in as expected at 22.4 per cent YoY and 1.6 per cent QoQ while lower deposit growth at 17.2 per cent YoY contributed to better NIM.”
Axis Bank’s Q1 balance sheet
The Bank’s Net Interest Income (NII) grew 27 per cent YoY to Rs 11,959 crore. Net interest margin (NIM) for Q1FY24 stood at 4.10 per cent, up 50 bps YoY. Axis Bank posted consolidated ROA at 1.83 per cent, up 35 bps YoY with 3 bps contributed by subsidiaries. Domestic advances was up 26 per cent on-year, retail was up 21 per cent on-year, SME was up 24 per cent YoY, and corporate was up 25 per cent on-year. Axis Bank posted GNPA at 1.96 per cent, down 80 bps on-year and NNPA for the quarter was at 0.41 per cent posting a decline by 23 bps YoY. During the quarter, Axis Bank issued 1.11 million credit cards.
“Gross slippages, despite a higher base, remained elevated at ~1.9 per cent, largely from the retail book, which was partly offset by healthy recovery/ write-offs that led to an optically better GNPA at ~2 per cent. The sub-investment grade and the restructured portfolio were stable at 0.7 per cent and 0.2 per cent respectively, even as the bank continued to hold surplus provisions,” said Krishnan ASV, Senior Vice President -Research Division, HDFC Securities Limited.
The Bank’s balance sheet grew 13 per cent YOY and stood at Rs 13,02,839 crore as on 30 June 2023. The total deposits grew 17 per cent on-year on period end basis, within which savings account deposits grew 22 per cent, current account deposits grew 23 per cent, and total term deposits grew 13 per cent YoY.
The Bank issued 1.11 million new credit cards in Q1FY24. “The Bank has been one of the highest credit card issuers in the country over the last six quarters and has gained incremental CIF market share of 14 per cent in the last six months,” it said.
Axis Bank’s network
As on June 30, 2023, Axis Bank had a network of 4,945 domestic branches and extension counters situated in 2,754 centres compared to 4,759 domestic branches and extension counters situated in 2,702 centres as at 30 th June, 2022. The Bank had 15,798 ATMs and cash recyclers spread across the country at the end of the June quarter. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 virtual relationship managers.
Axis Bank’s key subsidiaries’ performance
The private bank’s subsidiaries delivered steady performance with Q1FY24 PAT of Rs 303 crore, up 16 per cent YOY. Axis Finance’s overall AUM grew 28 per cent YOY. Retail book grew ~1.5 times and constituted 43 per cent of total loans, up from 6 per cent three years ago. Axis AMC’s overall AUM grew 13 per cent YOY to Rs 2,52,203 crore. Axis Capital completed 14 investment banking transactions in Q1FY24. Axis Securities’ broking revenues for Q1FY24 grew 24 per cent YOY to Rs 195 crore.
