Axis Bank Q2 Results, Profit Grows: Axis Bank Share Price Rises 5.75%

Axis Bank Q2 Results FY25 reported around 18% year-on-year growth in the standalone net profit. On the Axis Bank Q2 results date which was October 17, 2024, the Axis Bank share price closed at ₹1,131.85. On October 18, 2024, Axis Bank share price closed at ₹1,196.85. So, let’s get into the details of the leading private sector bank’s Q2 FY25 earnings, revenue, and segment updates.

Key Highlights of the Axis Bank Q2 Results FY25

Axis Bank share price has positively reacted to the Q2 results by delivering the returns of 5.75% in the last 1 day (as on October 18, 2024). Here are the key highlights of the Axis Bank results and its YoY growth:

• Standalone Net Profit at ₹6,918 crores, up 18% YoY
• Net Interest Income at ₹13,483 crores, up 9% YoY
• Operating Revenue at ₹20,205 crores, up 16% YoY
• CASA Deposits at ₹4,41,053 crores, up 4% YoY
• Total Assets at ₹15,05,658 crores, up 12% YoY

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*(in ₹ crores)

Axis Bank Q2 Earnings Glance

The Q2 results Axis Bank showed that the bank had remarkable growth in the deposits, advances, liquidity, and asset quality in the FY25 September quarter.

1. Axis Bank Q2 Results: Strong Operating Performance

• Operating profit, up 24% YoY and 6% QoQ
• Operating cost growth was moderate at 9% YoY
• Net Interest Margin at 3.99% on Q2 FY25
• Fee income, up 11% YoY and 6% QoQ
• Consolidated ROA at 1.92%, up 9 bps YoY and 22 QoQ

2. Axis Bank Q2 Results: Growth in Deposits and CASA

• CASA of the Axis Bank is the best in the peer banks industry.
• The CASA ratio was 41% and it was the best in the industry.
• Term Deposits, up 21% YoY
• The average LCR (Liquidity Coverage Ratio) was 115%

3. Axis Bank Q2 Results: Growth in Loans

• Advances, up 11% YoY and 2% QoQ
• Retail loans, up 15% YoY and 2% QoQ
• Small Business Banking loans, up 23% YoY and 6% QoQ
• Mid-Corporate loan book, up 18% YoY and 5% QoQ

4. Axis Bank Q2 Results: High Liquidity and Capitalized Structure

• Capital adequacy ratio (CAR) at 16.61% as posted in the Axis Bank Q2 results FY25.
• ₹5,012 crores of other provisions and excess Statutory Liquidity Reserve of ₹76,769 crores.

5. Axis Bank Q2 Results: Digital Banking Growth

• Axis Bank Q2 earnings for the financial year 2024-25 mentioned that the bank holds a number 1 position in the UPI Payer PSP space with a market share of around 31%.
• Axis Bank’s “open” App had 15 million monthly active users.

6. Axis Bank Q2 Results: High Asset Quality

• GNPA (Gross Non-Performing Assets) at 1.44%, down 29 bps YoY and 10 bps QoQ
• NNPA (Net Non-Performing Assets) at 0.34%, down 2 bps YoY and flat QoQ
• PCR (Provision coverage ratio) at a high of 77%
• Gross slippage ratio at 1.78%, down 19 bps QoQ

7. Axis Bank Q2 Results: Domestic Subsidiaries Shining Performance

• In the Axis Bank Q2 results FY25, the total profit after tax of the domestic subsidiaries was ₹927 crores in the first half (H1) of FY25. The profit had 35% YoY growth with subsidiaries’ ROI at 58%.

8. Axis Bank Q2 Results: Addition to Domestic Branch

Axis Bank Q2 results posted that the bank increased its domestic branch network by adding 150 branches in the Q2 FY25.

Conclusion

Axis Bank Q2 earnings for FY25 showcased that India’s third-largest private sector bank has been raising its game with the digital transformation. The all-new UPI ATM facility, India’s first ultra-luxury credit card (PRIMUS), Neo for merchants, and Bharat Connect for Business are some of the digital innovation steps taken by the bank. In the last 1-year, Axis Bank share price has delivered a return of 20.55% (on October 18, 2024).

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