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• Consolidated ROA: 1.92%, improved 9 basis points year-on-year and 22 basis points quarter-on-quarter.

• Consolidated ROE: 18.08%, improved 140 basis points quarter-on-quarter.

• Operating Profit: INR 10,712 crores, year-on-year growth of 24%, quarter-on-quarter growth of 6%.

• Net Interest Margin (NIM): 3.99%.

• Net Interest Income (NII): INR 13,483 crores, year-on-year growth of 9%.

• Fee Income: INR 5,508 crores, year-on-year growth of 11%, quarter-on-quarter growth of 6%.

• Operating Expenses: INR 9,493 crores, year-on-year growth of 9%.

• Profit After Tax (PAT): INR 6,918 crores, increased 18% year-on-year and 15% sequentially.

• Gross NPA: 1.44%, declined 29 basis points year-on-year and 10 basis points sequentially.

• Net NPA: 0.34%, declined 2 basis points year-on-year.

• Common Equity Tier 1 (CET1) Ratio: 16.61%.

• Deposit Growth: 14% year-on-year.

• New Branches Opened: 150 in the last quarter, 200 in the first half of the fiscal year.

• Retail Advances: 71% of total advances, improved 243 basis points year-on-year.

• Axis Finance PAT: INR 327 crores, grew 24% year-on-year.

• Axis AMC AUM: INR 3,12,338 crores, grew 20% year-on-year.

• Warning! GuruFocus has detected 2 Warning Signs with FRA:UZC.

Release Date: October 17, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Axis Bank Ltd (FRA:UZC) reported a consolidated ROE of 18.08%, showing an improvement of 140 basis points quarter-on-quarter.

• The bank's operating profit increased by 24% year-on-year and 6% quarter-on-quarter, driven by healthy operating income growth.

• Axis Bank Ltd (FRA:UZC) achieved a 14% year-on-year growth in deposits and a 24% year-on-year growth in new customer acquisitions.

• The bank's CET1 ratio stands at 14.12%, indicating a strong capital position.

• Axis Bank Ltd (FRA:UZC) continues to expand its branch network, opening 150 new branches in the last quarter and 200 in the first half of the fiscal year.

Negative Points

• The bank's net interest margin declined by 6 basis points quarter-on-quarter, largely due to interest on income tax refund recorded in the previous quarter.

• Retail slippages are largely from unsecured product segments, indicating stress in this area.

• The bank's loan growth of 11% is below the system average, raising concerns about its competitiveness.

• Axis Bank Ltd (FRA:UZC) made provisions aggregating to INR520 crores under the head provision for other contingencies, which are prudent but not for current or future NPAs.

• The bank's CASA ratio has remained flat, indicating challenges in improving the quality of low-cost deposits.