Axis Bank Q3 net profit rises 4% to ₹6,304 crore

Axis Bank Ltd., the 3rd largest private sector bank, for the third quarter ended 31st December 2024 reported 4% growth in net profit to ₹ 6,304 crore over the year ago period.

The bank’s operating profit for the quarter grew 15% YOY to ₹10,534 crore.

The bank’s Net Interest Income (NII) grew 9% YOY to ₹13,606 crore while Net Interest Margin (NIM) for Q3FY25 stood at 3.93%.

Provision and contingencies for Q3FY25 stood at ₹2,156 crore. Specific loan loss provisions for Q3FY25 stood at ₹2,185 crore.

The bank holds cumulative provisions (standard + additional other than NPA) of ₹11,875 crores at the end of Q3FY25, it said.

Amitabh Chaudhry, MD&CEO, Axis Bank on a conference call said, “We reported healthy operating profit during the quarter and our focuses remained on sustainable profitable growth.”

As on 31 December, 2024 the bank’s reported Gross NPA and Net NPA levels were 1.46% and 0.35% respectively as against 1.44% and 0.34% as on 30th September, 2024.

Recoveries from written off accounts for the quarter was ₹1,300 crore.

Reported net slippages in the quarter adjusted for recoveries from written off pool was ₹2,217 crore of which retail was ₹2,928 crore, CBG was ₹50 crore and Wholesale was negative ₹761 crore.

Gross slippages during the quarter were ₹5,432 crore, compared to ₹4,443 crore in Q2FY25 and ₹3,715 crores in Q3FY24.

Recoveries and upgrades from NPAs during the quarter were ₹1,915 crore. The bank in the quarter wrote off NPAs aggregating ₹3,133 crore.

As on 31 December, 2024, the bank’s provision coverage, as a proportion of Gross NPAs stood at 76%, as compared to

77% as at 30 September, 2024 and 78% as at 31 December, 2023.

The bank’s balance sheet grew 9% YOY and stood at ₹15,25,712 crore as on 31st December 2024.

The total deposits grew 9% YOY on month end basis, of which current account deposits grew 8% YOY and saving account deposits remained flat YOY.

The share of CASA deposits in total deposits stood at 39%.

The bank’s advances grew 9% YOY and 1% QOQ to ₹10,14,564 crore as on 31st December 2024. Retail loans grew 11% YOY and 1% QOQ to ₹6,05,825 crore and accounted for 60% of the net advances of the bank.

Home loans grew 3% YOY, Personal loans grew 17% YOY, Credit card advances grew 8% YOY, Small Business Banking (SBB) grew 20% YOY and 4% QOQ; and rural loan portfolio grew 17% YOY and 4% QOQ. SME book remains well diversified across geographies and sectors, grew 15% YOY and 3% QOQ to ₹1,14,101 crore. Corporate loan book grew 4% YOY