Axis Bank Q1 Results: Net profit grows 40%, asset quality improves

The bank's net non-performing assets fell to 0.41 percent compared with 0.64 percent last year.

Axis Bank on July 26 reported a 40 percent rise in net profit to Rs 5,790 crore for the April-June FY24 quarter from Rs 4,125 crore last year.

According to a poll of three brokerages conducted by Moneycontrol, the bank was expected to report a net profit of Rs 5,889 crore. The lender missed analyst expectations.

The bank’s net interest income (NII) grew 27 percent year-on-year (YOY) to Rs 11,959 crore. Net interest margin (NIM) for Q1FY24 stood at 4.10 percent, up 50 bps YOY.

The gross non-performing assets (GNPA) of the bank declined to 1.96 percent as compared with 2.76 percent last year.

Also, the net non-performing assets (NNPAs) of the bank fell to 0.41 percent compared with 0.64 percent last year.

In the trading session on July 26, Axis Bank’s shares settled at Rs 976.85 apiece on the BSE, which was 1.46 percent higher than the previous day's close.

The total deposits grew 17 percent YOY, within which savings account deposits increased 22 percent and current account deposits grew 23 percent YOY. The lender's total term deposits grew 13 percent YOY.

The share of current account and savings account (CASA) deposits in total deposits stood at 46 percent, up 182 bps YOY.

The bank’s advances grew 22 percent YOY to Rs 8.58 lakh crore with domestic net loans increasing by 26 percent YOY.

Retail loans of the lender grew by 21 percent YOY to Rs 4.97 lakh crore and accounted for 58 percent of the net advances of the bank.