Friday, 26 April 2024
- October 17, 2017
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Axis Bank reports Q2 2017 financial results
Results at a Glance
Strong Retail franchise continues to gain strength:
o CASA deposits grew 24% YOY and constituted 50% of total deposits.
o Retail Term Deposits and CASA together contributed 83% of Total Deposits.
o Retail loans grew 23% YOY and accounted for 45% of Net Advances.
o Retail Fee grew 23% YOY and comprised 48% of Total Fee Income.
Digital channels continue to witness strong acceptance by customers:
o Ranked #2 in Mobile Banking Spends as per RBI data
o Mobile banking spends grew 78% YOY, Card Spends grew 67% YOY
o Share of digital transactions remains strong at 67%.
o The Bank completed its acquisition of 100% stake in Freecharge
Loan growth led by pickup across all segments:
o Net Advances grew 16% YOY.
o Retail and SME loan book grew 23% YOY and 15% YOY, respectively.
o Corporate loan growth rebounded to 10% YOY led by working capital up 36% YOY.
Financial performance:
o Net Interest Income for Q2FY18 grew 1% YOY to `4,540 crore, NIM stood at 3.45%.
o Fee income grew 12% YOY and stood at `2,170 crores.
o Operating expenses grew at a slower rate of 13% YOY
o Net profit for Q2FY18 grew 36% YOY to `432 crores and for H1FY18, stood at `1,738 crores.
Asset quality metrics impacted by accelerated recognition of accounts driven by divergence:
o The Bank’s Gross NPA and Net NPA stood at 5.90% and 3.12%, respectively.
o Gross slippages for Q2FY18 stood at `8,936 crores, of which corporate slippages stood at 8,110 crores. Net slippage (before write-offs) in retail and SME stood at `292 crores and `219 crores respectively.
The Bank’s Capital Adequacy Ratio (CAR) remains healthy. Under Basel III, Total CAR & Tier I CAR (including net profit for H1FY18) stood at 16.32% and 12.36%, respectively.
Re-disseminated by The Asian Banker
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