AXIS Bank's Nine-Month Financial Review: Key Insights

The Board of Directors of Axis Bank Limited approved the financial results for the quarter and nine months ending 31st December 2024 during a meeting in Mumbai on 16th January 2025. This quarter, Axis Bank launched several initiatives, including a $500 million climate loan in partnership with IFC to finance green and blue projects, supporting sustainable growth and job creation in India. The bank also enhanced its international business unit at GIFT City to provide a full range of services for global clients.

Additionally, Axis Bank introduced the ARISE Women’s Savings Account, tailored to meet the financial needs of women, offering personalized investments and healthcare benefits. To promote a diverse workforce, the bank started the Young Bankers Program Women’s-Only Cohort in association with the Manipal Academy of BFSI. Axis Bank reached the top position as a UPI payment service provider and partnered with Alliance Network India to improve digital payments and merchant services.

The bank received several awards this quarter, including Best Indian Bank at the Financial Times Bank of the Year 2024 Awards, and various accolades at the IBSi Global FinTech Innovation Awards 2024 for innovative use of AI/ML and digital enhancements. The Axis Bank Foundation won the Gold Award at FICCI's Sustainable Agriculture Summit 2024.

Amitabh Chaudhry, MD & CEO of Axis Bank, expressed that the bank finished 2024 strongly, expanding its services nationwide with many new branches. He emphasized the role of digital, rural, sustainability, and inclusivity as key growth drivers. The new brand campaign, "Har Raah Dil Se Open," reflects the bank's commitment to its customers. The Axis team is optimistic about 2025, aiming for growth in India's emerging economy.

For the quarter, the bank's operating profit grew 15% year-over-year to ₹10,534 crores, and core operating profit increased 14% to ₹10,102 crores. Operating costs grew by only 1%, while net profit rose by 4% to ₹6,304 crores. Net Interest Income (NII) increased 9% to ₹13,606 crores, and the Net Interest Margin (NIM) was 3. 93%. Income from third-party products rose 21%, and various income streams contributed to an overall increase in non-interest income by 8% to ₹5,972 crores.

The provision for contingencies was ₹2,156 crores, with specific loan loss provisions at ₹2,185 crores. Cumulative provisions, including standard and additional provisions, totaled ₹11,875 crores. The asset coverage stood at 1. 2%. The provision coverage ratio was 151% of Gross Non-Performing Assets (GNPA). Credit cost for the quarter was 0. 80%.

The bank's Return on Assets (ROA) was 1. 7% and Return on Equity (ROE) was 16. 43%. For the nine months ending December 2024, NII grew 10% to ₹40,537 crores, and fee income increased 11% to ₹16,166 crores. The total provisions for this period amounted to ₹6,399 crores, with net profit rising 9%.

The balance sheet grew by 9% year-over-year to ₹15,25,712 crores. Total deposits also grew 9%, with current account deposits increasing by 8%. The bank’s wealth management arm managed assets worth ₹6,34,806 crores, growing 26% year-over-year. The Burgundy Private segment served 13,006 families, with AUM of ₹2,14,277 crores.

Shareholders’ funds grew 20% to ₹1,71,279 crores, indicating a robust capital structure. As of 31st December 2024, the reported Gross NPA and Net NPA levels were 1. 46% and 0. 35%, respectively. Recoveries from written-off accounts were ₹1,300 crores, with gross slippages at ₹5,432 crores.

The bank added 130 branches, reaching a total of 5,706 domestic branches, along with 202 business correspondent banking outlets. As of the end of 2024, Axis Bank had 14,476 ATMs and cash recyclers, alongside its Axis Virtual Centre with around 1,700 virtual relationship managers.

Axis Bank’s domestic subsidiaries achieved a combined Profit After Tax (PAT) of ₹1,401 crores, up 26% year-over-year. Axis Finance's assets under finance grew by 25% and maintained strong loan quality. Axis AMC's overall assets grew by 24%, while Axis Capital completed numerous transactions, and Axis Securities saw substantial revenue growth.