Axis Bank recently disclosed its financial results for the October-December quarter of the fiscal year 2023-24, indicating a net profit of Rs 6,071 crore. This marks a 4 percent increase from the corresponding period in the previous year.
Deviation from Market Estimates
Although the net profit is substantial, it falls slightly short of the market estimate, which was Rs 6,114 crore.
Net Interest Income (NII) and Provisions
The Net Interest Income (NII), representing the difference between interest earned from lending and interest paid to depositors, reached Rs 12,532 crore—almost in line with the market prediction of Rs 12,555 crore. Additionally, the bank made a provision of Rs 182 crore on its entire alternative investment funds (AIF) during the quarter.
Key Financial Ratios
The net interest margin (NIM) for the quarter was reported at 4.01 percent. Furthermore, the gross non-performing asset (NPA) decreased from 2.38 percent in the same quarter last year to 1.58 percent. However, the net NPA remained steady at 0.36 percent year-on-year.
Deposit Growth and Composition
Axis Bank’s total deposits saw a robust growth of 18 percent year-on-year (YOY), amounting to Rs 10.04 lakh crore. Within this, savings and current account (CASA) deposits increased by 16 percent and 5 percent, respectively. The total term deposits grew by 24 percent, with CASA deposits constituting 42 percent of the total.
Loan Portfolio Expansion
The bank’s advances witnessed a 22 percent YOY growth, reaching Rs 9.32 lakh crore. Notably, retail loans surged by 27 percent to Rs 5.46 lakh crore, with secured retail loans accounting for approximately 75 percent. Home loans comprised 30 percent of the retail book.
Market Reaction
Following the financial disclosure, Axis Bank’s shares experienced a decline of nearly 3.41 percent, closing at Rs 1,082.50 apiece on the Bombay Stock Exchange (BSE).
