Axis Bank Q2 profit jumps 10% YoY to Rs. 5,863cr
Axis Bank, a leading private sector financial institution, announced a net profit of Rs. 5,863 crore for the second quarter of FY24, reflecting a 10% growth from Rs. 5,330 crore year-on-year (YoY). The bank experienced a 19% YoY increase in its net interest income (NII), while its net interest margin (NIM) for Q2 FY24 reached 4.11%, a 15 basis point YoY rise. The bank's asset quality improved YoY, with gross non-performing assets (NPA) decreasing to 1.73% from 2.5%.
Provision and contingencies amounted to Rs. 815 crore
During the July-September FY24 quarter, provisions and contingencies for Axis Bank amounted to Rs. 815 crore. Specific loan loss provisions for this period totaled Rs. 1,010 crore. The bank's net NPA for the quarter also improved, dropping to 0.36% from 0.51% on a YoY basis. Recoveries from written-off accounts during the quarter amounted to Rs. 664 crore.
Advances and deposits growth
In the second quarter of FY24, Axis Bank's advances increased by 23% YoY, reaching Rs. 8.97 lakh crore, while deposits rose to Rs. 9.55 lakh crore compared to Rs. 8.11 lakh crore in the same quarter last year. The bank's retail loans expanded by 23% to Rs. 5.19 lakh crore. On October 25, Axis Bank's shares settled at Rs. 955.45 apiece on the NSE, a 0.92% decline.
CEO Amitabh Chaudhry on Axis Bank's performance
"In spite of a highly volatile global geopolitical landscape, we believe the India story remains strong. With the upcoming festivities, we are already seeing a surge in demand, which augurs well for business," said Amitabh Chaudhry, MD & CEO of Axis Bank, in a regulatory filing. "At Axis Bank, our GPS agenda is on track and we are looking at steady growth for all major business verticals of the Bank," he added.
