Last Updated on October 26, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
Axis Bank Limited is the third-largest private sector bank by assets and the fourth-largest by market cap in the country. Formerly known as UTI Bank, the banking and financial services company was founded in 1993. Today, Axis Bank has the largest ATM network among private banks in the country. As of March 31, 2023, it had a network of 4,903 branches and extension counters, 15,952 ATMs, and cash recyclers.
Axis Bank declared its quarterly results for Q2 FY 2023-24 on October 25th, with its net profit surging 10% YoY. Here is a snapshot of its performance during the quarter under review, along with the key financial metrics.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights (Standalone)
- Axis Bank reported a net profit (PAT) of ₹5,863.56 Cr during Q2 FY 2023-24, registering a 10% growth YoY from ₹5,329.77 Cr during the corresponding period last year.
- The Net interest income (NII) rose 18.9% YoY ₹12,314.56 Cr during the period under review from ₹10,360.26 Cr during Q2 FY 2022-23.
- The net interest margin (NIM) for the second quarter of the fiscal year stood at 4.11%, up 1 bp QoQ and 15 bps YoY.
- The core operating profit grew by 5% QoQ and 12% YoY to ₹8,733 Cr.
Axis Bank, for the period under review, reported a healthy operating performance, with its PAT standing at ₹5,863.56 Cr with a consolidated ROE of 18.67%.
Moreover, sequentially, the net interest income (NII) increased by 3%, displaying robust growth. The core operating revenues rose 22% YoY and 6% QoQ, while the core operating profit increased 12% YoY and 5% QoQ, respectively.
Strong Loan Growth Across All Segments
The bank also registered strong loan growth across all business segments. The bank’s advances rose 23% YoY and 5% QoQ to ₹8,97,347 Cr. Axis Bank’s MD and CEO, Mr. Amitabh Chaudhry, opined that the demand would continue to increase in spite of the volatile global geopolitical landscape.
Retail loans surged 23% YoY and 4% QoQ, out of which rural loans increased by 24% YoY and 4% QoQ. Additionally, corporate loans rose 21% YoY and 3% QoQ.
Declining NPAs and Slippages
For the second quarter, the bank’s asset quality improved sequentially, with its gross non-performing assets (NPA) standing at ₹16,756.74 Cr, down 7.7% from ₹18,158.23 Cr during the first quarter of FY 2023-24. The gross NPA declined 7.1% sequentially, standing at ₹3,441.25 Cr. By the end of the September quarter, the gross NPA ratio declined by 23 bps QoQ to 1.73%. On the other hand, the net NPA ratio fell to 0.36% as against 0.41% after the end of Q1 FY 2023-24.
Moreover, the gross slippage ratio (annualised) at 1.49% fell 39 bps YoY and 38 bps QoQ. Meanwhile, the net slippage ratio (annualised) stood at 0.59%. During the period under review, fresh additions to bad loans declined to ₹3,254 Cr, compared to ₹3,990 Cr during the preceding quarter. Recoveries and upgrades from NPAs during Q2 FY 2023-24 were also lower at ₹1,985 Cr as against ₹2,305 Cr the previous quarter (Q1 FY 2023-24).
Also Read: Axis Bank Ltd Share Price
Axis Bank Limited: H1 Standalone Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Interest Earned | ₹38,967.58 Cr | ₹52,182.95 Cr |
| Total Income | ₹45,751.36 Cr | ₹62,304.30 Cr |
| Total Expenditure (Excluding Provisions and Contingencies) | ₹32,148.15 Cr | ₹44,858.08 Cr |
| Operating Profit | ₹13,603.21 Cr | ₹17,446.22 Cr |
| Provisions and Contingencies (Net) | ₹909.14 Cr | ₹1,849.44 Cr |
| Net Profit | ₹9,455.03 Cr | ₹11,660.66 Cr |
Axis Bank Limited: Standalone Financial Figures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Interest Earned | ₹25,556.77 Cr | ₹26,626.18 Cr |
| Total Income | ₹30,644.04 Cr | ₹31,660.26 Cr |
| Total Expenditure (Excluding Provisions and Contingencies) | ₹21,829.68 Cr | ₹23,028.40 Cr |
| Operating Profit | ₹8,814.36 Cr | ₹8,631.86 Cr |
| Provisions and Contingencies (Net) | ₹1,034.88 Cr | ₹814.56 Cr |
| Net Profit | ₹5,797.10 Cr | ₹5,863.56 Cr |
Axis Bank Limited: Profit and Loss (Standalone)
| Particulars | Absolute Figures | QoQ | YoY Growth | |||
| Q2 FY 2023-24 | Q1 FY 2023-24 | H1 FY 2023-24 | Q2 FY 2023-24 | Q2 FY 2023-24 | H1 FY 2023-24 | |
| Net Interest Income | ₹12,315 Cr | ₹11,959 Cr | ₹24,273 Cr | 3% | 19% | 23% |
| Fee Income | ₹4,963 Cr | ₹4,488 Cr | ₹9,451 Cr | 11% | 31% | 30% |
| Operating Expenses | ₹8,717 Cr | ₹8,232 Cr | ₹16,948 Cr | 6% | 34% | 31% |
| Operating Profit | ₹8,632 Cr | ₹8,814 Cr | ₹17,446 Cr | 2% | 12% | 28% |
| Core Operating Profit | ₹8,733 Cr | ₹8,295 Cr | ₹17,028 Cr | 5% | 12% | 19% |
| Profit after Tax | ₹5,864 Cr | ₹5,797 Cr | ₹11,661 Cr | 1% | 10% | 23% |
Axis Bank Limited: Balance Sheet
| Particulars | As of September 30, 2023 | YoY Growth |
| Total Assets | ₹13,38,914 Cr | 13% |
| Net Advances | ₹8,97,347 Cr | 23% |
| Total Deposits | ₹9,55,556 Cr | 18% |
| Shareholders’ Funds | ₹1,36,702 Cr | 10% |
Stock Performance
On the day the bank declared its quarterly results (October 25th) for the second quarter of the fiscal year, Axis Bank’s shares opened at ₹963.45 and fell 0.84% to close at ₹955.35 apiece on BSE.
About the Company
Axis Bank Limited, the third-largest private sector bank in the country, has a large footprint of around 5,000 domestic branches, along with 11,000+ ATMs and cash recyclers in the country. The bank extends a diverse range of financial services to various customer segments, including agriculture, MSME, and retail businesses. Axis Bank also has 9 international offices, with branches in places like Singapore and Hong Kong and representative offices in Dhaka, Sharjah, and Abu Dhabi, to name a few.
Sources:
https://www.axisbank.com/docs/default-source/quarterly-results/press-release-q2fy24.pdf
https://www.axisbank.com/quarterly-results/2023-2024/q2/index.html
https://www.axisbank.com/docs/default-source/quarterly-results/ufr-q2fy24.pdf
