Axis Bank Q2 Results: Share Prices Up By Nearly 1% After Lender Posts 10% Increase In Net Profits In Second Quarter

Axis Bank share price gained over 1% on Thursday's session. The stock closed at Rs 973.55 per piece on October 26, against previous close at Rs 955.45. Axis Bank share price remained in focus on Thursday as it announced its Q2 results on Wednesday evening.

The bank reported a net profit of Rs 5,863 crore in the second quarter of FY24, marking a 10% increase from Rs 5,329.8 crore in the same quarter of the previous year.

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During the second quarter of FY24, net interest income (NII), representing the variance between interest income and interest costs, increased by 18.9% year-on-year (YoY) to reach Rs 12,314.56 crore, up from Rs 10,360.26 crore.

According to Axis Bank's exchange filing, the net interest margin (NIM) for the second quarter of FY24 stood at 4.11%, showing a marginal increase of 1 basis point sequentially and a notable 15 basis points year-on-year. In the same quarter, the core operating profit surged by 5% quarter-on-quarter and 12% year-on-year, reaching Rs 8,733 crores.

Axis Bank's asset quality demonstrated sequential improvement. For the quarter ending in September, the gross non-performing assets (NPA) decreased from Rs 18,158.2 crore to Rs 16,756.7 crore, marking a 7.7% reduction in Q1FY24. The net NPA also showed improvement, totaling Rs 3,441.3 crore, a 7.1% decrease from the previous quarter.

As of September 30, 2023, the gross NPA stood at 1.73%, which is a decline of 23 basis points from the 1.96% reported in Q1FY24. Similarly, the Net NPA was at 0.36%, marking a 5 basis point reduction compared to the previous quarter.

“As on 30th September, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 79%, as compared to 80% as at 30th September, 2022," the bank said in its release.

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“In spite of a highly volatile global geopolitical landscape, we believe the India story remains strong. With the upcoming festivities, we are already seeing a surge in demand, which augurs well for business. At Axis Bank, our GPS agenda is on track and we are looking at steady growth for all major business verticals of the Bank. We have been diligently working on both physical reach and digital prowess, extending our services not just to the metros and urban centres, but to the heart of Bharat which is home to the vast majority of India’s population," said Amitabh Chaudhry, MD&CEO, Axis Bank.