• Q2 FY24
  • Quarter-2 Results 2023-24

Major Highlights of

Q2FY24

H1FY24 PAT at ` 11,661 crores growing 23% YOY, H1 consolidated ROE at 19.04% up 179 bps YOY, driven by NIMs at 4.11%, 30% YOY fee growth, 23% YOY loan growth, aided by 15% YOY retail term deposit growth

Healthy operating performance

  • Q2FY24 PAT at `5,864 crores with consolidated ROE of 18.67%
  • Net Interest Income grew 19% YOY and 3% QOQ, Net Interest Margin at 4.11%, up by 15 bps YOY
  • Fee income grew 31% YOY and 11% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 38% YOY and 11% QOQ
  • Core operating revenue up 22% YOY and 6% QOQ, Core operating profit grew 12% YOY & 5% QOQ,
  • Consolidated ROA (annualized) at 1.83%, with subsidiaries contributing 7 bps

Strong loan growth delivered across all business segments

  • Advances grew 23% YOY and 5% QOQ; Domestic loan book grew 26% YOY and 5% QOQ
  • Retail loans grew 23% YOY and 4% QOQ of which Rural loans grew 24% YOY and 4% QOQ, SBB1 book grew 42% YOY and 9% QOQ
  • Corporate loans grew 21% YOY and 3% QOQ, Mid-Corporate (MC) up 37% YOY and 9% QOQ, SME loans grew 27% YOY and 9% QOQ
  • SBB+SME+MC mix at ₹1,886 bn | 21% of total loans, up over ~680 bps in last 3 years

Retail term deposits gaining traction, steady growth in granular deposits

  • On MEB basis, retail TD grew 15% YOY & 4% QOQ SA grew 16% YOY, CA grew 7% YOY with CASA ratio at 44%, total deposits up 18% YOY & 1% QOQ;
  • On QAB basis,; term deposits (TD) grew by 17% YOY & 3% QOQ with retail TD up 13% YOY and 4% QOQ
  • On QAB basis, total deposits grew by 16% YOY & 1% QOQ, SA grew by 17% YOY & 1% QOQ, CA grew 11% YOY, CASA ratio stood at 43%
  • Average LCR during Q2FY24 was ~118%, Average LCR Outflow rates improved by ~550 bps in last 2 years

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

  • Self sustaining capital structure with net accretion to CET-1 of 54 bps in H1FY24, 18 bps in Q2 FY24
  • Overall capital adequacy ratio (CAR) stood at 17.84% with CET 1 ratio of 14.56%
  • ` 5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 48 bps over the reported CAR
  • Excess SLR of ` 56,966 crores

Continue to maintain strong position in Payments and Digital space

  • 1.21 million credit cards acquired in Q2FY24, incremental CIF market share of ~15% in last one year 2
  • 2nd largest player in Merchant Acquiring with terminal market share of 18.6%, incremental share of 23% in last one year 2 
  • Axis Mobile app is the world’s highest 3 rated mobile banking app on Google Play store with ratings of 4.8 and ~13 million MAU
  • 400+ APIs hosted on Bank’s API Developer Portal with 285+ Retail APIs

Declining NPAs and slippages, moderate credit costs

  • GNPA at 1.73% declined by 77 bps YOY and 23 bps QOQ, NNPA at 0.36% declined 15 bps YOY and 5 bps QOQ, PCR healthy at 79%
  • Coverage4 ratio at 150%, Standard Covid-19 restructuring implemented loans at 0.19% of GCA and declined 19 bps YOY
  • Gross slippage ratio (annualized) at 1.49% declined 39 bps YOY and 38 bps QOQ, Net slippage ratio (annualized) at 0.59%
  • Annualized credit cost at 0.42%, declined 8 bps QOQ

Key subsidiaries continue to deliver steady performance

  • Total H1FY24 PAT of domestic subsidiaries at ` 689 crs, up 18% YOY; Return on investments in domestic subsidiaries at 53%
  • Axis Finance H1FY24 PAT up 26% YOY, ROE at 15.9%, total CAR healthy at 17.9%, asset quality metrics improve with net NPA declining 11 bps YOY to 0.31%
  • Axis AMC’s H1FY24 PAT at ` 189 crores
  • Axis Securities H1FY24 PAT up 14% YOY, Axis Capital executed 48 investment banking deals in H1FY24

QAB: Quarterly Average Balance
MAU: Monthly Active Users engaging in financial and non-financial transactions
1 SBB : Small Business Banking
2 Based on RBI data as of Sep’23
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.2 mn+ reviews
4 Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA

Key Metrics for Q2FY24

Snapshot (As on September 30th, 2023) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q2FY24 Q1FY24 H1FY24 Q2FY24 Q2FY24 H1FY24
Net Interest Income 12,315 11,959 24,273 3% 19% 23%
Fee Income 4,963 4,488 9,451 11% 31% 30%
Operating Expenses 8,717 8,232 16,948 6% 34% 31%
Operating Profit 8,632 8,814 17,446 (2%) 12% 28%
Core Operating Profit 8,733 8,295 17,028 5% 12% 19%
Profit after Tax 5,864 5,797 11,661 1% 10% 23%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q2FY24  
Total Assets 13,38,914 13%
Net Advances 8,97,347 23%
Total Deposits 9,55,556 18%
Shareholders' Funds 1,36,702 10%
Key Ratios Absolute (in ` Crores)  
  Q2FY24 / H1FY24 Q2FY23 / H1FY23
Diluted EPS (Annualised in `)(Q2/H1) 75.28 / 75.28 68.36 / 61.27
Book Value per share (in `) 444 405
Standalone ROA (Annualised %)(Q2/H1) 1.76 / 1.78 1.80 / 1.62
Standalone ROE (Annualised %)(Q2/H1) 18.30 / 18.72 18.49 / 16.80
Cons ROA (Annualised %) 1.83 / 1.81 1.87 / 1.66
Cons ROE (Annualised %) 18.67 / 19.04 18.90 / 17.25
Gross NPA Ratio 1.73% 2.50%
Net NPA Ratio 0.36% 0.51%
Basel III Tier I CAR ^ 15.08% 15.75%
Basel III Total CAR ^ 17.84% 17.72%

^ including profit after tax for H1

Deposits 18% YOY (a)   16% YOY (b)
CASA

13% YOY (a) | 15% YOY (b)

(a) Period end balances (b) Quarterly average balance

Advances 23% YOY (c)   26% YOY (d)
Retail
SME
Corporate

23% YOY | 27% YOY | 21% YOY (c) 33% YOY (d)

(c) Overall   (d) Domestic book

Core Operating Profit (in ` Crores) 12% YOY
  • Q2FY24
    8,733
  • Q2FY23
    7,802
Profit After Tax (in ` Crores) 10% YOY
  • Q2FY24
    5,864
  • Q2FY23
    5,330

 

We have a very well distributed branch network; added 207 branches in Q2

Domestic Branch Network*  
  • Sep-23
    5,152
  • Mar-23
    4,903
  • Mar-22
    4,758
  • Mar-21
    4,594
  • Mar-20
    4,528

* Includes extension counters

Performance at a Glance

Healthy operating performance

  • Net Interest Income grew 19% YOY and 3% QOQ, Net Interest Margin at 4.11%, up by 15 bps YOY and 1 bps QOQ
  • Core Operating revenues grew 22% YOY and 6% QOQ, Core Operating profit grew 12% YOY and 5% QOQ
  • Consolidated ROE | ROA at 18.67% | 1.83%, subsidiaries contributed 37 bps | 7 bps respectively

Strong loan growth delivered across all business segments

  • Rural loans grew 24% YOY & 4% QOQ, Small Business Banking loans grew 42% YOY & 9% QOQ
  • Mid-Corporate (MC) book grew 37% YOY, SME book grew 27% YOY & 9% QOQ
  • SBB + SME + MC mix at `1,88,573 crores | 21% of loans, up over 680 bps in last 3 years

Retail term deposits gaining traction, steady growth in granular deposits

  • On a QAB1 basis total deposits grew 16% | 1% and retail term deposits grew 13% | 4% on YOY | QOQ basis
  • On QAB, SA grew 17% YOY & 1% QOQ, CA grew 11% YOY, CASA ratio stood at 43%
  • Average LCR2 during Q2FY24 was ~118%, outflow rates improved ~ 550 bps over last 2 years

Well capitalized with self-sustaining capital structure; adequate liquidity buffers

  • Overall capital adequacy ratio (CAR) including profit stood at 17.84% with CET 1 ratio of 14.56%
  • Self-sustaining capital structure with net accretion to CET-1 of 54 bps in H1FY24, 18 bps in Q2 FY24
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of ~48 bps

Retaining strong position in Payments and Digital Banking

  • Axis Mobile & Axis Pay have ~9.2 mn non-Axis Bank customers
  • 100+ digital partnerships across platforms and ecosystems; ~16.5 mn customers on WhatsApp banking
  • Axis Mobile remains the world’s3 highest rated MB app on Google Play store with rating of 4.8; ~13 mn MAU4
  • Credit card CIF market share at 14.1%5, Retail Card spends grew 72% YOY and 4% QOQ

Declining gross NPA’s and slippages

  • Gross NPA at 1.73% declined by 77 bps YOY & 23 bps QOQ, Net NPA at 0.36% declined 15 bps YOY, 5 bps QOQ
  • PCR healthy at 79%; On an aggregated basis6, coverage ratio at 150%
  • Q2FY24 gross slippage ratio (annualized) at 1.49% declined 39 bps YOY, net slippage ratio (annualized) at 0.59%
  • Q2FY24 net credit cost (annualized) at 0.42%, declined 8 bps QOQ

Bank’s domestic subsidiaries7 continue to deliver steady performance

  • H1FY24 profit at `689 crores up 18% YOY, with a return on investment in domestic subsidiaries of 53%
  • Axis Finance H1FY24 PAT grew 26% YOY to `265 crores; asset quality improved, CAR healthy at 17.9%
  • Axis AMC H1FY24 PAT stood at `189 crores, Axis Securities H1FY24 PAT grew 14% YOY to `113 crores
  • Axis Capital executed 48 investment banking deals in H1FY24

1 QAB – Quarterly Average Balance,
2 Liquidity Coverage Ratio, 
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.2 mn+ reviews
4 Monthly active users, engaging in financial and non-financial transactions, 
5 Based on RBI reported data as of Sep’23
6 (specific+ standard+ additional + COVID)      
7 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

Copyright 2023 Axis Bank, India.