Axis Bank Q1 profit up 4% to ₹6,035 cr; NII up 12%

Axis Bank’s net profit stood at ₹6,035 crore in Q1FY25 (April-June) as compared to ₹5,797 crore in Q1FY24, up 4% YoY. Its net interest income (NII) grew 12% to ₹13,448 crore, while net interest margin (NIM) for Q1FY25 stood at 4.05%. Fee income grew 16% to ₹5,204 crore, while retail fees grew 18%, constituting 71% of the bank’s total fee income.

Retail cards and payments fees grew 12%, while retail assets excluding cards and payments fees grew 13%. Provision and contingencies for Q1FY25 stood at ₹2,039 crore, the lender informs via an exchange filing.

As of June 30, 2024, the bank says its balance sheet grew 13% and stood at ₹14,68,163 crore as of June 30, 2024. The total deposits grew 13% on the month-end basis, of which current account deposits grew 12%; total term deposits grew 20%. The bank’s advances grew 14% to ₹9,80,092 crore as of June 30, 2024.

Amitabh Chaudhry, MD&CEO, Axis Bank says the last quarter was crucial in terms of getting all the teams to work together for the last leg of Citi integration. “It was largely seamless given the size and scale of the transition. I am thankful to the teams who worked tirelessly in making this possible, and to our 2 million new customers for keeping their trust and faith in us.”

The bank’s home loans category grew 6%, personal loans grew 29%, credit card advances grew 22%, small business banking (SBB) grew 26%, and rural loan portfolio grew 24%. The book value of the Bank’s investments portfolio as of 30th June 2024, was ₹3,16,851 crore, of which ₹2,47,795 crore was in government securities, while ₹56,384 crore was invested in corporate bonds and ₹12,672 crore in other securities such as equities, mutual funds, etc.

In the wealth management business, Axis Bank says Burgundy's assets under management (AUM) stood at ₹5,99,108 crore as of June 30, 2024, up 40% YoY. Burgundy Private, the bank’s proposition for high and ultra-high-net-worth clients, covers 13,071 families.

The bank’s reported gross NPA and net NPA levels were at 1.54% and 0.34%, respectively, vs 1.43% and 0.31% as of 31st March 2024. The net slippages adjusted for recoveries from the written pool was ₹2,700 crore, of which retail was ₹2,456 crore.

Among subsidiaries, Axis Finance's overall assets under finance grew 37%, while retail books grew 51% and constituted 46% of total loans. Its Q1 PAT was ₹116 crore, up 27% YoY. Axis Capital's Q1 PAT was ₹49 crore, up 220% YoY. Axis Securities revenue grew 118% to ₹426 crore, while PAT surged 171% and stood at ₹121 crore.