Private sector lender Axis Bank reported a 40% rise in net profit to Rs 5,797.10 crore for the quarter ended June compared to Rs 4,125.26 crore a year ago.

NII and NIM

The bank’s net interest income (NII) grew 27% year-on-year to Rs 11,959 crore. 

Net interest margin (NIM) for Q1FY24 stood at 4.10%, up 50 basis points YoY.

The interest earned in the April-June quarter stood at Rs 25,556.77 crore, up 36% from Rs 18,728.65 in the year-ago quarter.

The interest expended for the reporting quarter stood at Rs 13,598 crore, up 45% from Rs 9,344.64 crore in the year-ago quarter.

The bank’s operating profit grew 50% YoY to Rs 8,814 crore, with core operating profit growing 27% YoY to Rs 8,295 crore.

Asset quality

The bank’s gross non-performing assets (NPAs) declined to 1.96%, compared to 2.76% a year ago.

Net NPA fell to 0.41% compared to 0.64% in the year-ago period.

The bank recovered Rs 554 crore from the written-off accounts.

During the fiscal first quarter ended June, Axis Bank wrote off NPAs aggregating Rs 2,131 crore. 

Reported net slippages in the quarter adjusted for recoveries from the written off pool was Rs 1,131 crore, of which retail was Rs 1,639 crore, CBG was negative 10 crore and wholesale was negative Rs 498 crore.

Gross slippages during the quarter were Rs 3,990 crore compared to Rs 3,375 crore in Q4FY23 and Rs 3,684 crore in Q1FY23. Recoveries and upgrades from NPAs during the quarter were 2,305 crore.

Deposits

Total deposits grew 17% YoY. While savings account deposits grew 22%, current account deposits grew 23% YoY. The lender's total term deposits grew 13% YoY.

The share of CASA (current account savings account) deposits in total deposits stood at 46%, up 182 basis points YoY.

Advances

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

Retail loans grew 21% YoY to Rs 4.97 lakh crore and accounted for 58% of the net advances of the bank.

Axis Bank issued 1.11 million new credit cards in Q1FY24.