• Q3 FY24
  • Quarter-3 Results 2023-24

Major Highlights of

Q3FY24

Q3FY24 operating profit `9,141 crores, up 6% QOQ, PAT at ``6,071 crores up 4% QOQ; Consolidated ROE at 18.61%, aided by a balanced sequential deposit and loan growth of 5% and 4% respectively

Healthy operating performance

  • Net Interest Income grew 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
  • Fee income grew 29% YOY and 4% QOQ, granular fee constituted 93% of overall fees, Retail fee grew 36% YOY and 6% QOQ
  • Core operating revenue up 14% YOY and 2% QOQ, operating profit grew 6% QOQ
  • Consolidated ROA (annualized) at 1.84%, with subsidiaries contributing 9 bps

Strong loan growth delivered across all business segments

  • Advances grew 22% YOY and 4% QOQ; Advances (gross of loans sold under IBPC) grew by 23% YOY and 4% QOQ
  • Retail loans grew 27% YOY and 5% QOQ of which Rural loans grew 34% YOY and 7% QOQ, SBB1 book grew 40% YOY and 6% QOQ
  • Corporate loans (gross of IBPC sold) up 15% YOY & 3% QOQ, Mid-Corporate (MC) up 30% YOY & 6% QOQ, SME loans up 26% YOY & 4% QOQ
  • SBB+SME+MC mix at ₹1,986 bn | 21% of total loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

  • On MEB basis, total deposits up 18% YOY & 5% QOQ; On QAB basis, total deposits grew 18% YOY & 4% QOQ
  • On MEB basis, retail term deposits (RTD) grew 17% YOY & 2% QOQ, SA grew 16% YOY, CA grew 5% YOY
  • On QAB basis, RTD grew 15% YOY & 3% QOQ, SA grew by 16% YOY, CA grew 5% YOY & 4% QOQ
  • CASA ratio on both QAB and MEB basis stood at ~42%, among the best in the industry
  • Average LCR during Q3FY24 was ~118%, Average LCR Outflow rates improved by ~600 bps in last 2 years

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

  • Self sustaining capital structure with net organic accretion to CET-1* of 39 bps in 9MFY24, negative impact of regulatory changes on CET-1 of 70 bps
  • Overall capital adequacy ratio (CAR*) stood at 16.63% with CET 1* ratio of 13.71%
  • `5,012 crores of COVID provisions not considered for CAR calculation, provides cushion of 43 bps over the reported CAR
  • Excess SLR of `72,674 crores

Continue to maintain strong position in Payments and Digital space

  • Largest player in Merchant Acquiring business in India with terminal market share of ~19%, incremental share of ~26% in last one year2
  • 1.26 million credit cards acquired in Q3FY24, CIF market share of 14%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 slippages, gross NPA and credit cost

  • GNPA at 1.58% declined by 80 bps YOY and 15 bps QOQ, NNPA at 0.36% declined 11 bps YOY, PCR healthy at 78%
  • Coverage4 ratio at 153%, Standard Covid-19 restructuring implemented loans at 0.16% of GCA and declined 14 bps YOY
  • Net slippage ratio (annualized) at 0.50% declined 43 bps YOY and 9 bps QOQ, Gross slippage ratio (annualized) at 1.62% declined 40 bps YOY
  • Annualized credit cost at 0.28%, declined 37 bps YOY and 14 bps QOQ

Key subsidiaries continue to deliver steady performance

  • Total 9MFY24 PAT of domestic subsidiaries at `1108 crs, up 17% YOY; Return on investments in domestic subsidiaries at 50%
  • Axis Finance 9MFY24 PAT up 25% YOY, ROE at 16.4%, total CAR healthy at 18.8%, asset quality metrics improve with GNPA declining 31 bps YOY to 0.50%
  • Axis AMC’s 9MFY24 PAT at `297 crores, Axis Securities 9MFY24 PAT up 31% YOY
  • Axis Capital 9MFY24 PAT stood at ₹108 crores and executed 71 investment banking deals in 9MFY24

9MFY24 PAT at `17,732 crores up 16% YOY, consolidated ROE at 18.86% up 82 bps YOY

IBPC: Inter Bank Participation Certificates
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 Nov'23
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
4 Coverage Ratio = Aggregate provisions (specific + standard + additional + Covid) / IRAC GNPA
* including profits for 9MFY24, net organic accretion = capital accreted – capital consumed (excluding consumption for regulatory changes in risk weights)

Key Metrics for Q3FY24

Snapshot (As on December 31st, 2023) (in ` Crores)

Profit & Loss Absolute (in ` Crores) QOQ YOY Growth
  Q3FY24 Q2FY24 9MFY24 Q3FY24 Q3FY24 9MFY24
Net Interest Income 12,532 12,315 36,805 2% 9% 18%
Fee Income 5,169 4,963 14,620 4% 29% 29%
Operating Expenses 8,946 8,717 25,894 3% 32% 32%
Operating Profit 9,141 8,632 26,587 6% (1%) 16%
Core Operating Profit 8,850 8,733 25,878 1% - 12%
Profit after Tax 6,071 5,864 17,732 4% 4% 16%
Balance Sheet Absolute (in ` Crores) YOY Growth
  Q3FY24  
Total Assets 13,98,541 14%
Net Advances 9,32,286 22%
Total Deposits 10,04,900 18%
Shareholders' Funds 1,42,984 9%
Key Ratios Absolute (in ` Crores)  
  Q3FY24 / 9MFY24 Q3FY23 / 9MFY23
Diluted EPS (Annualised in `) 77.86 / 76.10 74.60 / 65.90
Book Value per share (in `) 464 425
Standalone ROA (Annualised) 1.75% / 1.77% 1.92% / 1.73%
Standalone ROE (Annualised) 18.07% / 18.46% 19.34% / 17.58%
Cons ROA (Annualised) 1.84% / 1.80% 2.00% / 1.76%
Cons ROE (Annualised) 18.61% / 18.86% 19.81% / 18.04%
Gross NPA Ratio 1.58% 2.38%
Net NPA Ratio 0.36% 0.47%
Basel III Tier I CAR ^ 14.18% 16.15%
Basel III Total CAR ^ 16.63% 19.51%

^ including profit after tax for 9M

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

12% YOY (a) | 13% YOY (b)

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

Advances 22% YOY (c)   23% YOY (d)
Retail
SME
Corporate

27% YOY | 26% YOY | 13% YOY (c) 15% YOY (d)

(c) Overall   (d) Overall (gross of IBPC sold)

Operating Profit (in ` Crores) 16% YOY
  • 9MFY24
    26,587
  • 9MFY23
    22,881
Profit After Tax (in ` Crores) 16% YOY
  • 9MFY24
    17,732
  • 9MFY23
    15,308

 

We have a very well distributed branch network;
added 350 branches in 9MFY24 of which 100 in Q3FY24

Domestic Branch Network*  
  • Dec-23
    5,252
  • 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 9% YOY and 2% QOQ, Net Interest Margin at 4.01%
  • Core Operating revenues grew 14% YOY and 2% QOQ, operating profit grew 6% QOQ
  • Consolidated ROE | ROA at 18.61% | 1.84%, subsidiaries contributed 54 bps | 9 bps respectively

Strong loan growth delivered across all business segments

  • Advances (gross of IBPC sold) up 23% | 4%, Rural loans grew 34% YOY & 7% QOQ
  • Small Business Banking loans grew 40% YOY & 6% QOQ, Mid-Corporate (MC) book grew 30% YOY
  • SBB + SME + MC mix at ₹1,98,553 crores | 21% of loans, up ~620 bps in last 3 years

Retail term deposits gaining traction, CASA ratio among the best in the industry

  • On a QAB1 basis, RTD grew 15% YOY & 3% QOQ, total deposits grew by 18% YOY & 4% QOQ
  • On QAB,CASA grew 13% YOY and 1% QOQ, CASA ratio stood at 42%
  • Average LCR2during Q3FY24 was ~118%, outflow rates improved ~ 600 bps over last 2 years

Well capitalized with self-sustaining capital structure

  • Overall capital adequacy ratio (CAR) including profit stood at 16.63% with CET 1 ratio of 13.71%
  • Self-sustaining capital structure with net organic accretion to CET-1 of 39 bps in 9MFY24
  • COVID provisions of `5,012 crores, not in CAR calculation provides additional cushion of ~43 bps

Continue to maintain strong position in Payments and Digital Banking

  • Axis Mobile & Axis Pay have ~10 mn non-Axis Bank customers
  • 100+ digital partnerships across platforms and ecosystems; ~18.8 mn customers on WhatsApp banking
  • Axis Mobile remains the world’s3 highest rated MB app on Google Play store with rating of 4.8; On the iOS app store our ratings increased from 4.6 to 4.7 during the quarter; ~13 mn MAU4
  • Credit card CIF market share at 14%, Retail Card spends grew 88% YOY and 13% QOQ

Declining slippages, gross NPA and credit cost

  • PCR healthy at 78%; On an aggregated basis5, Coverage ratio at 153%
  • Net slippage ratio6 at 0.50% declined 43 bps YOY & 9 bps QOQ, Gross slippage ratio6 at 1.62%, declined 41 bps YOY
  • Q3FY24 net credit cost6 at 0.28%, declined 14 bps QOQ

Key domestic subsidiaries7 continue to deliver steady performance

  • 9MFY24 profit at `1,108 crores up 17% YOY, with a return on investment in domestic subsidiaries of 50%
  • Axis Finance 9MFY24 PAT grew 25% YOY to `425 crores; asset quality metrics improve, ROE at 16.4%
  • Axis AMC 9MFY24 PAT stood at `297 crores, Axis Securities 9MFY24 PAT grew 31% YOY to `198 crores
  • Axis Capital 9MFY24 PAT stood at `108 crores and executed 71 investment banking deals in 9MFY24

1 QAB – Quarterly Average Balance,
2 Liquidity Coverage Ratio,
3 across 64 global banks, 82 fintechs and 9 neo banks with 2.4 mn+ reviews
4 Monthly active users, engaging in financial and non-financial transactions,
5 (specific+ standard+ additional + COVID)
6 Annualized
7 Figures of subsidiaries are as per Indian GAAP, as used for consolidated financial statements of the Group

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