Axis Bank Q2FY25 Results: Profit Jumps 18%, NPAs Improve
Axis Bank’s impressive Q2FY25 results, including an 18% jump in net profit, lead to a 5% surge in stock price. Get detailed insights and investment guidance with Liquide.
Stocks in News | On October 18, shares of Axis Bank surged nearly 5%, following an impressive second-quarter performance, where the bank reported an 18% year-on-year increase in net profit, reaching Rs 6,917.57 crore. The significant rise in profit was mainly fuelled by a strong core lending income, underpinned by robust credit demand.
Net Interest Income and Margins See Growth
Axis Bank saw its Net Interest Income (NII) grow by 9%, reaching Rs 12,234 crore, while the Net Interest Margin (NIM) stood solid at 3.99%. The bank also reported a rise in fee income, which climbed 11% year-over-year and 6% quarter-over-quarter.
Overall, the total income escalated to Rs 37,142 crore for the reported period, up from Rs 31,660 crore the previous year.
Deposits and Advances Surge
The lender reported a substantial 14% increase in deposits, reaching Rs 10.87 lakh crore, up from Rs 9.56 lakh crore in the year-ago quarter. Notably, term deposits soared by 21% year-on-year.
Current Account Savings Account (CASA) deposits grew by a modest 4% year-on-year to Rs 4.41 lakh crore.
On the advances front, the bank's net advances increased by 11% year-on-year and 2% quarter-over-quarter.
Stable Financial Health Indicators
Axis Bank's overall Capital Adequacy Ratio (CAR) was reported at 16.61%, with a Common Equity Tier 1 (CET-1) ratio of 14.12%.
The bank also saw an improvement in asset quality, with the Gross Non-Performing Assets (GNPA) ratio declining by 29 basis points year-on-year to 1.44%, and the Net Non-Performing Assets (NNPA) ratio slightly decreasing to 0.34%.
Dominance in UPI Payments
In a significant achievement, Axis Bank secured the number one position in the UPI Payer Payment Service Provider (PSP) space, capturing approximately 31% of the market.
Brokerage Outlook for Axis Bank
Axis Bank's recent performance has prompted a number of brokerages to give positive ratings. Here's a summary of the varying ratings from different brokerages:
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