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Below the Views on Axis Bank Ltd. Q2FY25 Results by Manish Chowdhury, Head of Research, StoxBox

Axis Bank Ltd. Q2FY25 Result First Cut – Decent financial performance, Asset quality stable & steady growth in deposits and advances

-Net Interest Income stood at Rs. 13,483 crores in Q2FY25, showing a growth of 0.26% QoQ / up 9.4% YoY.
- Pre-provision operating profit (PPOP) stood at Rs. 10,712 crores in Q2FY25, up 6.0% QoQ / up 24.1% YoY.
- Provisions were up to Rs. 2,204 crores in Q2FY25 from Rs. 2,039 crores in Q1FY25 and Rs. 815 crores in Q2FY24.
- The bank’s quarterly net profit stood at Rs. 6,918 crores in Q2FY25, up 15.8% QoQ/ up 18% YoY.
- NIM stood at 3.99% in Q2FY25, down 6 bps QoQ / up 3bps YoY.
- Gross NPA stood at 1.44% in Q2FY25, down 10bps QoQ / down 29 bps YoY.
- Net NPA stood at 0.34% in Q2FY25 which was at par with QoQ / down 2 bps YoY.
- Operating cost growth moderated to 9.0% YoY in Q2FY25.
-  Capital Adequacy Ratio stood at 16.61% in Q2FY25 compared to 16.65% in Q1FY25 and 16.56% in Q2FY24.
- Total Deposits showed healthy growth and stood at Rs. 10,86,744 crores in Q2FY25, down 2.28% QoQ / up 15.4% YoY.
- Gross Advances stood at Rs. 9,99,979 crores in Q2FY25, up 2.0% QoQ / up 11.5% YoY, led by strong growth in retail segment & SME Segment.
- CASA further declined to 41.0% in Q2FY25 from 42.0% in Q1FY25 and 44.0% in Q2FY24.
- Return on Assets (RoA) advanced to 1.84% from 1.65% in Q1FY25 and 1.76% in Q2FY24. (annualized)

- The Bank added 150 branches during the quarter, taking its overall distribution network to 5,577 domestic branches and extension counters along with 182 Business Correspondent Banking Outlets (BCBOs) situated across 3,062 centres as at 6 30th September, 2024. Bank achieves no. 1 position in UPI Payer PSP space with a market share of 31.0%

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Axis Bank reported a decent performance for Q2FY25 largely driven by a strong uptick in other income However, Net Interest Margins (NIM) saw a slight decline compared to the previous quarter, and provisions have increased over the same period. The bank’s total advances exhibited encouraging growth, primarily led by the retail and SME segments. Asset quality continued to improve, with slippages on the decline and a reduction in Non-Performing Assets (NPA).  Additionally, Axis Bank expanded its branch network to strengthen customer relationships. The bank continues to lead in the Payments and Digital Banking space, securing the No. 1 position in UPI Payer PSP. Looking ahead, the completed Citibank merger is expected to create synergies that will enhance the bank’s performance in the coming quarters. These factors are likely to support Axis Bank's sustainable growth trajectory while maintaining profitability.
 

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