Axis Bank on Tuesday recorded its third quarter profit at Rs 6493.36 crore, up 4.6 per cent in comparison to Rs 6209.37 crore during the corresponding quarter of last year. The bank’s Net Interest Income (NII) for the quarter grew by 9 per cent on-year to Rs 12,532 crore and the Net Interest Margin (NIM) for Q3FY24 stood at 4.01 per cent.
Fee income for Q3FY24 grew 29 per cent YOY and to Rs 5,170 crore. Retail fees grew 36 per cent YOY, and constituted 72 per cent of the Bank’s total fee income. Retail cards and payments fee grew 52 per cent YOY. Retail Assets (excluding cards and payments) fee grew 26 per cent YOY. The Corporate & Commercial banking fees together grew 15 per cent YOY to Rs 1,471 crore. The trading income gain for the quarter stood at Rs 291 crore; miscellaneous income in Q3FY24 stood at Rs 94 crore. Overall, non-interest income (comprising of fee, trading and miscellaneous income) for Q3FY24 grew 22 per cent YOY to Rs 5,555 crore.
Axis Bank’s Asset Quality
As on 31 st December, 2023, Axis Bank reported Gross NPA and Net NPA levels were 1.58 per cent and 0.36 per cent respectively as against 1.73 per cent and 0.36 per cent as on 30th September, 2023. Recoveries from written off accounts for the quarter was Rs 635 crore.
Reported net slippages in the quarter adjusted for recoveries from written off pool was Rs 482 crore, of which retail was Rs 1,542 crore, CBG was negative Rs 11 crore and Wholesale was negative Rs 1,049 crore. Gross slippages during the quarter were Rs 3,715 crore, compared to Rs 3,254 crore in Q2FY24 and Rs 3,807 crore in Q3FY23. Recoveries and upgrades from NPAs during the quarter were Rs 2,598 crore. As on 31 st December, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 78 per cent, as compared to 81 per cent as at 31st December, 2022.
Axis Bank’s Balance Sheet
The Bank’s balance sheet grew 14 per cent YOY and stood at Rs 13,98,541 crore as on 31 December 2023. The total deposits grew 18 per cent YOY, of which savings account deposits grew 16 per cent, current account deposits grew 5 per cent. The total term deposits grew 24 per cent YOY of which retail term deposits grew 17 per cent. The share of CASA deposits in total deposits stood at 42 per cent.
The Bank’s advances grew 22 per cent YOY to Rs 9,32,286 crore as on 31 December 2023. Gross of transfers through Inter Bank Participation Certificates (IBPC), total Bank advances grew 23 per cent YOY. Domestic net loans grew 25 per cent and retail loans grew 27 per cent to Rs 5,46,999 crore and accounted for 59 per cent of the net advances of the Bank.
The share of secured retail loans was ~ 75 per cent, with home loans comprising 30 per cent of the retail book. Home loans grew 10 per cent YOY, personal loans grew 28 per cent, credit card advances grew 92 per cent, Small Business Banking (SBB) grew 40 per cent, and rural loan portfolio grew 34 per cent.
Axis Bank issued 1.26 million new credit cards in Q3FY24 and has been one of the highest credit card issuers in the country over the last eight quarters.
Axis Bank’s Network
Axis Bank added 100 branches during the quarter and 350 overall in the 9MFY24 period, taking its overall distribution network to 5,252 domestic branches and extension counters situated across 2,910 centres compared to 4,849 domestic 6 branches and extension counters situated in 2,734 centres as at 31 December, 2022. As on 31 December, 2023, the Bank had 15,931 ATMs and cash recyclers spread across the country. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 Virtual Relationship Managers as on 31 st December 2023.
Performance of Key Subsidiaries
Axis Finance: Its overall assets under finance grew 38 per cent YOY. Retail book grew 45 per cent YOY and constituted 44 per cent of total loans, up from 13 per cent three years ago. The focus in its wholesale business continues to be on well rated companies and cash flow backed transactions.
Axis AMC: Axis AMC’s overall QAAUM grew 6 per cent YOY to Rs 2,62,398 crore. Its 9MFY24 PAT stood at Rs 297 crore.
Axis Capital: Axis Capital 9MFY24 PAT stood at Rs 108 crore and completed 71 investment banking transactions in 9MFY24.
Axis Securities: Axis Securities’ broking revenues for 9MFY24 grew 42 per cent YOY to Rs 757 crore. Its 9MFY24 PAT grew 31 per cent YOY and stood at Rs 198 crore.