Axis Bank , India's third-largest private sector bank, has announced its financial results for the first quarter, showcasing robust growth in key metrics despite a slight dip in net profit.

Operating Performance

The bank reported a strong 14% year-on-year (YoY) increase in operating profit, which stood at ₹11,515.00 crore for Q1. This growth was primarily driven by higher non-interest income and effective cost control measures. The operating revenue saw an 8% YoY rise, while operating expenses grew by a modest 2% YoY.

Income and Profitability

Axis Bank's net interest income (NII) grew marginally by 1% YoY to ₹13,560.00 crore. However, the bank witnessed a significant 25% YoY jump in non-interest income, with fee income rising by 10% YoY. The bank's net profit for Q1 stood at ₹5,806.00 crore, marking a 4% YoY decrease, primarily due to higher provisions.

Asset Quality and Provisions

The bank's asset quality showed mixed trends:

• Gross Non-Performing Assets (GNPA) ratio: 1.57% (up from 1.28% in the previous quarter)
• Net NPA ratio: 0.45% (up from 0.33% in the previous quarter)
• Provisions: ₹3,948.00 crore (significantly higher than ₹2,039.00 crore in the same quarter of the previous year)

Business Growth

The bank's CASA (Current Account Savings Account) ratio stood at 40% as of the end of the quarter.

Digital Banking and Subsidiaries

Axis Bank continued to strengthen its digital banking offerings, with its mobile banking app rated among the top globally. The bank's subsidiaries also performed well, with the total profit from domestic subsidiaries up 4% YoY to ₹451.00 crore in Q1.

Management Commentary

Amitabh Chaudhry, MD & CEO of Axis Bank, expressed optimism about the bank's future, stating:

"We are optimistic as we step into the new fiscal year. With supportive regulatory conditions, the operative landscape is turning favorable. We believe large, well-capitalized banks like Axis with strong digital capabilities and innovative product suites are best suited to seize the opportunity."

The bank's focus on digital innovation, strategic partnerships, and customer-centric initiatives continues to drive its growth trajectory in an evolving banking landscape.

Axis Bank , one of India's leading private sector banks, has announced its financial results for the first quarter, showcasing robust growth and operational efficiency.

Key Highlights

• Operating profit up 14% year-over-year to ₹11,515.00 crore
• Net Interest Income (NII) grew 1% YoY to ₹13,560.00 crore
• Non-interest income surged 25% YoY, with fee income up 10%
• Advances grew 8% YoY to ₹10,59,724.00 crore
• Deposits increased 9% YoY to ₹11,61,615.00 crore

Strong Operational Performance

Axis Bank demonstrated solid operational performance in Q1. The bank's operating profit rose significantly by 14% year-over-year to ₹11,515.00 crore, driven by higher non-interest income and effective cost control. Operating revenue increased by 8% YoY, while operating expenses grew by a modest 2% YoY, resulting in positive operating jaws.

Income and Profitability

Net Interest Income (NII) for the quarter stood at ₹13,560.00 crore, up 1% compared to the same period last year. The bank's Net Interest Margin (NIM) was reported at 3.80%. Non-interest income saw a substantial increase of 25% YoY, with fee income growing by 10% YoY. Retail fees, which constituted 70% of the bank's total fee income, grew by 9% YoY.

However, net profit for Q1 decreased by 4% YoY to ₹5,806.00 crore. This decline can be attributed to higher provisions and contingencies, which stood at ₹3,948.00 crore for the quarter.

Advances and Deposits

Axis Bank's loan book demonstrated healthy growth, with advances increasing by 8% YoY to ₹10,59,724.00 crore. The retail segment continued to be a significant contributor, accounting for 59% of net advances.

On the liabilities side, total deposits grew by 9% YoY to ₹11,61,615.00 crore. The bank maintained a strong CASA (Current Account Savings Account) ratio of 40% based on month-end balances.

Asset Quality

The bank reported a Gross Non-Performing Asset (GNPA) ratio of 1.57% as of June 30, compared to 1.54% in the same quarter last year. The Net NPA ratio stood at 0.45%, up from 0.34% in Q1 of the previous year. The bank maintains a healthy provision coverage ratio of 71%.

Digital Banking and Payments

Axis Bank continued to strengthen its position in digital banking and payments. The bank maintained its market-leading position in the UPI Payer PSP space with a market share of approximately 32%. It also remains one of the largest players in the merchant acquiring business with a terminal market share of about 19.7%.

Management Commentary

Amitabh Chaudhry, MD & CEO of Axis Bank, commented on the results: "We are optimistic as we step into the new fiscal year. With supportive regulatory conditions, the operative landscape is turning favorable. We believe large, well-capitalized banks like Axis with strong digital capabilities and innovative product suites are best suited to seize the opportunity. At Axis, we have built a robust Digital Bank along with an extensive branch network that ensures smart, seamless banking experience for millions of customers."

Axis Bank's Q1 results reflect its strong fundamentals and strategic focus on growth, digital transformation, and operational efficiency. As the bank continues to leverage its strengths in retail banking, digital services, and corporate banking, it remains well-positioned to capitalize on the evolving opportunities in India's banking sector.

Financial Snapshot

As Axis Bank continues to focus on sustainable growth and digital innovation, investors and stakeholders will be keenly watching its performance in the coming quarters.