Axis Bank, one of India's leading private sector banks, reported an 18% year-on-year (YoY) rise in net profit, reaching Rs 6,918 crore for the quarter ending September 2024. This growth was primarily driven by strong credit demand, which resulted in higher core lending income, as per the bank's exchange filing on Thursday. In the same period last year, Axis Bank posted a net profit of Rs 5,864 crore.
Key Highlights of Q2 FY24 Results:
- Net Interest Income (NII): Axis Bank recorded a net interest income of Rs 13,533 crore, reflecting a nearly 10% increase compared to Rs 12,315 crore in the September 2023 quarter. This was driven by the robust credit demand witnessed across various sectors.
- Total Income: The bank's total income surged to Rs 37,142 crore in the September 2024 quarter, up from Rs 31,660 crore a year earlier. Sequentially, Axis Bank reported an income of Rs 35,844 crore in the June 2024 quarter, marking steady growth.
- Interest Income: Interest income rose to Rs 30,420 crore, a significant increase from Rs 26,626 crore in the same quarter of the previous fiscal year.
Strategic Expansions and Business Initiatives:
Amitabh Chaudhry, Managing Director & CEO of Axis Bank, emphasized the bank's continued focus on balancing digital innovation with physical expansion. 'In this quarter, we opened 150 new branches across urban and rural areas, strengthening our presence across the country,' Chaudhry said. The bank also laid the foundation for a new corporate office in Kolkata, further reinforcing its regional presence in the eastern region.
In addition, Axis Bank has aggressively expanded its private banking division, ‘Burgundy Private’, into 15 new cities, bringing its wealth management services to 42 locations nationwide. This move aims to cater to the growing affluence in India's Tier 2 markets.
Asset Quality Improvement:
The bank's asset quality improved, with gross non-performing assets (NPAs) reducing to 1.44% of total loans by the end of September 2024, down from 1.73% in the same period last year. Similarly, net NPAs decreased to 0.34% from 0.36% YoY, demonstrating Axis Bank's efforts in managing risk and maintaining a healthy loan portfolio.
Axis Bank's steady profit growth, combined with its strategic expansion into new regions and innovative services, positions the bank for continued success. The bank’s focus on core lending, improving asset quality, and expanding wealth management offerings will likely drive its future growth.
With these results, Axis Bank continues to affirm its position as a major player in India's financial sector, poised for further advancements in both digital and traditional banking avenues.
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