Axis Bank has reported 4%
growth in net profit at Rs 6303.77 crore for the quarter ended December 2024
(Q3FY2025). The bank has posted healthy 9% growth in net interest income (NII),
while the core fee income of the bank also improved 6% in Q3FY2025. The Net
Interest Margin (NIM) of the bank eased to 3.93% in Q3FY2025 compared to 4.01% in
the corresponding quarter of previous year.
On business front, the bank has witnessed
moderation in the business volumes growth to 9% end December 2024 with deceleration
in loan growth to 9%. The asset quality of the bank was stable in Q3FY2025, but
the bank has witnessed rise in fresh slippages of loans. Bank has maintained
steady credit to deposit ratio at 92.6% at end December 2024 from 92.7% at end
December 2023. However, the CASA ratio of the bank has declined to 39.5% at end
December 2024 from 42.1% at end December 2023.
Asset quality stable: The bank has maintained stable asset
quality in Q3FY2025.
The fresh slippages of loans stood at
Rs 5432 crore in Q3FY2025 compared with 4443 crore in previous quarter and Rs 3715
crore in the corresponding quarter last year.
The recoveries and upgradations of NPAs
was at Rs 1915 crore and the write-off of loans was at Rs 3133 crore in
Q3FY2025.
The standard restructured loan book of
the bank (net of provisions) declined to Rs 874 crore end December 2024.
Provision coverage ratio declined to 93.00%
at end December 2024 compared to 94.00% a quarter ago and 94.00% a year ago.
The capital adequacy ratio of the bank
stood at 17.0% with Tier I ratio at 15.0% at end December 2024.
The risk weighted assets of the bank
has increased 12% YoY to Rs 1113770 crore end December 2024,
Asset Quality Indicators: Axis Bank
|
|
Dec/24
|
Sep/24
|
Jun/24
|
Mar/24
|
Dec/23
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
15850.27
|
15466.23
|
16211.34
|
15127.12
|
15893.01
|
2
|
5
|
0
|
Net NPA (Rs Crore)
|
3774.79
|
3612.47
|
3552.98
|
3247.47
|
3526.87
|
4
|
16
|
7
|
% Gross NPA
|
1.46
|
1.44
|
1.54
|
1.43
|
1.58
|
2
|
3
|
-12
|
% Net NPA
|
0.35
|
0.34
|
0.34
|
0.31
|
0.36
|
1
|
4
|
-1
|
% PCR
|
93.00
|
94.00
|
94.00
|
94.00
|
94.00
|
-100
|
-100
|
-100
|
% CRAR - Basel III
|
17.01
|
16.61
|
16.65
|
16.63
|
14.88
|
40
|
38
|
213
|
% CRAR - Tier I - Basel III
|
15.01
|
14.12
|
14.06
|
13.74
|
12.43
|
89
|
127
|
258
|
Variation in basis points for figures given in percentages and
in % for figures in Rs crore
|
Business Highlights:
Business growth ease: The business of the bank has increased 9%
YoY to Rs 2110447 crore end December 2024 showing moderation from 13% growth
end September 2024. The loan growth has eased to at Rs 1014564 crore. Deposits
rose at slower pace of 9% to Rs 1095883 crore at end December 2024.
CASA deposits ratio declines: The CASA deposits of the bank rose 2% YoY
to Rs 432855 crore at end December 2024. The current account deposits increased
8% to Rs 143611 crore, while saving account deposits were flat yoy at Rs 289244
crore end December 2024. The CASA ratio declined to 39.5% at end December 2024
compared to 42.1% at end December 2023, while also eased from 40.6% a quarter
ago. The term deposits have increased 14% to Rs 663028 crore end December 2024.
Loan growth ease: Advances growth was driven by retail
loans rising 11% YoY to Rs 605825 crore at end December 2024, while credit to
MSME moved up 15% to Rs 114101 crore at end December 2024. The corporate credit
rose 4% to Rs 265826 crore end December 2024. The overseas credit has declined 1%
to Rs 28812 crore end December 2024.
Investment book of the bank increased 14% YoY to Rs 353283 crore at end
December 2024.
Margins ease: The bank has showed 11 bps YoY jump in
cost of deposits to 5.46%, while the cost of deposit declined only marginally
by 1 bps on qoq basis in Q3FY2025. NIM has fell 8 bps YoY and 6 bps qoq to 3.93%
in Q3FY2025.
Branch expansion: The bank has added 129 branches and
reduced 252 ATMs in Q3FY2025, taking overall tally to 5706 branches and 14476 ATM`s
end December 2024. The employee base of the bank has declined by 1050 to 102350
employees in Q3FY2025 in addition to reduction of 1100 employees in
Q2FY2025.
Book value of the bank stood at Rs 556.7 per share
at end December 2024, while the adjusted book value (net of NNPA and 10% of
restructured advances) was Rs 544.2 per share at end December 2024.
Quarterly Performance
NII rises at steady pace: Bank has recorded 11% increase in the
interest earned at Rs 30953.94 crore, while interest expenses increased 12% to
Rs 17348.09 crore in Q3FY2025. NII improved 9% to Rs 13605.85 crore in the
quarter ended December 2024.
Moderate growth in the core fee income:
Bank has posted 6% growth
in core fee income to Rs 5455 crore, while the treasury income increased 26% to
Rs 368 crore and other income 59% to Rs 149 crore, leading to 8% rise in the
overall non-interest income to Rs 5972.20 crore in the quarter ended December
2024.
Expenses ratio improves: The operating expenses of the bank rose
at slow pace of 1% to Rs 9044.20 crore, as other expenses declined 3% to Rs 6059.59
crore, while employee expenses increased 10% to Rs 2984.61 crore in Q3FY2025. Cost
to income ratio improved 46.2% in Q3FY2025 compared with 49.5% in Q3FY2024, helping
the Operating Profit to increase 15% to Rs 10533.85 crore.
Provisions and contingencies jump: The bank has showed 110% surge in
provisions to Rs 2155.63 crore. The loan loss provisions zoomed 216% to Rs 2185
crore. However, the bank has written back standard asset provisions of Rs 28 crore
and other provisions of Rs 1 crore.
Effective tax rate declined to
24.8% in Q3FY2025
from 25.2% in Q3FY2024. Net Profit rose by 4% YoY to Rs 6303.77 crore during
quarter ended December 2024.
Financial Performance 9MFY2025:
Bank has posted 9% increase in net profit
to Rs 19255.98 crore in the nine months ended December 2024 (9MFY2025). The net
interest income increased 10% to Rs 40537.28 crore, while non-interest income
moved up 18% to Rs 18477.54 crore, pushing up net total income by 12% to Rs 59014.82
crore in 9MFY2025. The operating expenses increased 7% to Rs 27662.26 crore, while
provision and contingencies galloped 122% to Rs 6399.00 crore. Profit before
tax rose 5% to Rs 24953.56 crore in 9MFY2025. The cost-to-income ratio improved
to 46.9% in 9MFY2025 compared to 49.3% in 9MFY2024. An effective tax rate
declined to 22.8% in 9MFY2025 compared to 25.2% in 9MFY2024. The net profit has
increased 9% to Rs 19255.98 crore in 9MFY2025.
Axis Bank: Results
|
Particulars
|
2412 (3)
|
2312 (3)
|
Var %
|
2412 (9)
|
2312 (9)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
Interest Earned
|
30953.94
|
27961.14
|
11
|
91434.53
|
80144.09
|
14
|
109368.63
|
85163.77
|
28
|
Interest Expended
|
17348.09
|
15428.99
|
12
|
50897.25
|
43338.61
|
17
|
59474.15
|
42218.02
|
41
|
Net Interest Income
|
13605.85
|
12532.15
|
9
|
40537.28
|
36805.48
|
10
|
49894.48
|
42945.75
|
16
|
Other Income
|
5972.20
|
5554.82
|
8
|
18477.54
|
15676.17
|
18
|
22441.96
|
16143.42
|
39
|
Net Total Income
|
19578.05
|
18086.97
|
8
|
59014.82
|
52481.65
|
12
|
72336.44
|
59089.17
|
22
|
Operating Expenses
|
9044.20
|
8945.73
|
1
|
27662.26
|
25894.19
|
7
|
35213.28
|
27040.86
|
30
|
Operating Profits
|
10533.85
|
9141.24
|
15
|
31352.56
|
26587.46
|
18
|
37123.16
|
32048.31
|
16
|
Provisions & Contingencies
|
2155.63
|
1028.34
|
110
|
6399.00
|
2877.78
|
122
|
4063.09
|
2652.64
|
53
|
PBT
|
8378.22
|
8112.90
|
3
|
24953.56
|
23709.68
|
5
|
33060.07
|
29395.67
|
12
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
0.00
|
-12489.82
|
-
|
PBT after EO
|
8378.22
|
8112.90
|
3
|
24953.56
|
23709.68
|
5
|
33060.07
|
16905.85
|
96
|
Provision for tax
|
2074.45
|
2041.80
|
2
|
5697.58
|
5977.92
|
-5
|
8198.64
|
7326.17
|
12
|
PAT
|
6303.77
|
6071.10
|
4
|
19255.98
|
17731.76
|
9
|
24861.43
|
9579.68
|
160
|
EPS*(Rs)
|
81.5
|
78.5
|
|
124.4
|
76.4
|
|
77.99
|
74.92
|
|
Adj BV (Rs)
|
544.2
|
454.1
|
|
544.2
|
454.1
|
|
478.3
|
395.5
|
|
* Annualized on current equity
of Rs 619.03 crore. Face Value: Rs 2, Figures in Rs crore
|
Source: Capitaline Corporate
Database
|
|