Yahoo Finance

• Core Operating Profit: Up 14% year on year and 5% quarter on quarter.

• Deposit Growth: 13% year on year and 3% quarter on quarter.

• Loan Growth: Small business, SME, and mid-corporate segments grew 16% year on year and 4% quarter on quarter.

• Consolidated ROA: 1.71% for Q3 FY25.

• Consolidated ROE: 15.8% for Q3 FY25.

• CET1 Ratio: 14.61% with a net accretion of 49 basis points in Q3 FY25.

• Net Interest Income: INR13,606 crores, 9% year on year growth.

• Operating Expenses: INR9,044 crores, 1% year on year growth.

• Net Profit (PAT): INR6,304 crores for the quarter, 4% year on year increase.

• Gross NPA: 1.46%, declined by 12 basis points year on year.

• Net NPA: 0.35%, largely flat year on year.

• Provision Coverage Ratio (PCR): 76%.

• Branches Opened: 130 new branches in the last three months, 330 in the first nine months of the fiscal year.

• Retail Fee Growth: 5% year on year.

• Transaction Banking Fee Growth: 16% year on year.

• Subsidiaries' Contribution: 7 basis points to consolidated annualized ROA and 41 basis points to consolidated annualized ROE.

• Warning! GuruFocus has detected 2 Warning Signs with STU:UZC.

Release Date: January 16, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Axis Bank Ltd (STU:UZC) reported a 14% year-on-year increase in core operating profit, indicating strong operational performance.

• The bank's deposit growth remains healthy, with a 13% year-on-year increase, surpassing industry averages.

• Axis Bank Ltd (STU:UZC) has maintained a strong capital position with a CET1 ratio of 14.61%, reflecting robust capitalization.

• The bank's focus on premiumization is evident with a 26% year-on-year growth in Burgundy assets under management.

• Axis Bank Ltd (STU:UZC) has been recognized with several awards, including the Best Indian Bank at the Financial Times Bank of the Year 2024 Awards, showcasing its service quality.

Negative Points

• The bank's loan growth is slower than some private sector peers, potentially impacting its competitive position.

• Axis Bank Ltd (STU:UZC) is experiencing heightened delinquency levels in unsecured retail products, such as personal loans and credit cards.

• The bank's net interest margin has declined by 6 basis points quarter-on-quarter, indicating pressure on profitability.

• Operating expenses have only moderated slightly, with a 1% year-on-year growth, suggesting room for further cost optimization.

• Axis Bank Ltd (STU:UZC) faces challenges in deposit growth, with some analysts noting it lags behind peers in retail LCR deposit growth.

Q & A Highlights

Q: Axis Bank's deposit growth has been lagging behind some private sector peers. What steps are being taken to improve this without compromising on pricing? A: Munish Sharda, Executive Director, explained that Axis Bank is focused on the quality of deposits, emphasizing granular growth over lumpy deposits. The bank has improved the quality of its deposit book and reduced the cost gap with peers. Initiatives like Project Triumph aim to enhance deposit growth sustainably.