Axis Bank Ltd.'s Q2 net profit rose YoY to Rs 7,003 crore in the quarter ended Sept. 30, compared with the Bloomberg estimate of Rs 7,180 crore. The net interest income (NII) increased to Rs 15,371 crore, against the Bloomberg estimate of Rs 15,259 crore. The bank had reported NII of Rs 13,744.55 crore in the year-ago quarter.
Gross and net NPA ratios were 1.16% and 0.35%, respectively. Net interest income is at 3.36% versus an estimate of 3.4%. However, NIM excluding the impact of FCNR-B is at 3.47%.
Axis Bank Q2 Earnings (YoY)
- Net profit up 37.6% at Rs 7,003 crore (Bloomberg estimate: Rs 7,180.08 crore; year-ago: Rs 5,089.64 crore)
- Net interest income up 11.8% at Rs 15,371 crore (Bloomberg estimate: Rs 15,259.11 crore; year-ago: Rs 13,744.55 crore)
- Provisions at Rs 1,693.74 crore versus Rs 3,547.04 crore a year ago (Bloomberg estimate: Rs 2,236.85 crore)
Advances grew 22.7% year-on-year and 8.8% sequentially, while deposits increased 20.7% year-on-year and 5.8% quarter-on-quarter. The CASA ratio stood at approximately 36.5%, compared with about 39.8% a year earlier.
Axis Bank reported a net interest margin (NIM) of 3.36%, below the estimate of 3.4%. Excluding the impact of FCNR-B deposits, NIM stood at 3.47%. Fresh slippages declined to Rs 4,762 crore from Rs 5,696 crore a year earlier.
Axis Bank Q2 Management Commentary
Amitabh Chaudhry, MD & CEO, Axis Bank, said, "As customer expectations continue to evolve, our focus remains on building a franchise that combines innovation, trust and execution at scale. This quarter, we built on our leadership in digital payments and secure banking while advancing our technology agenda through AI-driven innovation and strategic partnerships."
"We expanded our reach, enhanced customer propositions, invested in talent, and deepened our contribution to communities. Together, these efforts reflect our commitment to creating long-term value for our customers, stakeholders and the broader economy," he added.
Axis Bank Q2 Earnings (Cons) In A Snapshot
- Net Profit up 37.6% At Rs 7,003 crore Vs Rs 5,090 YoY
- Gross NPA At 1.16% Vs 1.28% QoQ
- Net NPA At 0.35% Vs 0.39% QoQ
- NII up 12% At Rs 15,371 crore Vs Rs 13,745 crore YoY
- Provisions At Rs 1,694 crore Vs Rs 3,547 crore YoY
- Provisions At Rs 1,694 crore Vs Rs 2,223 crore QoQ
- Op Profit [GU] 6.4% At Rs 11083 crore Vs Rs 10413 crore YoY
Axis Bank expanded its digital payments offerings, advanced technology initiatives and strengthened partnerships during the quarter, alongside programmes focused on customer engagement, talent development and sports, the company said in its regulatory filing.
The bank said it became the first Indian bank to offer Apple Pay to credit card customers across the Mastercard and Visa networks. It also expanded its travel-focused offerings through partnerships with Scapia and MakeMyTrip.
As part of its technology programme, Axis Bank launched Express Banking: Digital Banking Point 2.0 and an AI Soundbox in partnership with Hitachi Payment Services. It also implemented the next phase of its AMS 2.0 programme with Cognizant, aimed at improving efficiency and productivity.
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