Axis Bank Q2 results: Net profit rises 10% to Rs 5,864 cr, asset quality improves

Axis Bank Ltd reported 10% rise in second-quarter profit on Wednesday, helped by strong growth in loans.

The Mumbai-based private lender's standalone net profit climbed 10% to Rs 5,864 crore in the quarter ending September 30, 2023 from a year earlier.

On Wednesday, Axis Bank's scrip on BSE closed 0.77% lower at Rs 956.85.

The bank's net interest income rose 19% to Rs 12,315 crore in Q2FY24 as against Rs 10,360 crore in Q2FY23. The bank’s gross NPA at 1.73% at the end of September declined by 77 bps year-on-year and 23 bps quarter-on-quarter. Net NPA at 0.36% declined 15 bps year-on-year and 5 bps quarter-on-quarter.

The lender's provisions and contingencies rose 48% to Rs 815 crore in Q2FY24 as against Rs 550 crore in Q2FY23. 

"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 Chaudhary, managing director and chief executive officer of Axis Bank. 

Net interest margin, a barometer of the bank’s profitability, increased to 4.11% in the September quarter, up 15 basis points from a year ago, and up 1 basis point from the earlier quarter.

The advances grew 23% quarter-on-quarter to Rs 8,97,347 crore as of September 30, 2023. The bank’s balance sheet grew 13% year-on-year to Rs 13,38,914 crore at September-end 2023.

Axis Bank's total deposits grew 18% year-on-year.