Axis Bank shines in Q2FY19, net profit rises 83%; surpasses analysts estimate

Private lender Axis Bank surpassed analysts estimates during September 2018 quarter by posting a whopping 83% rise in net profit to Rs 790 crore compared to Rs 432.38 crore in the corresponding period of previous year. Axis Bank had recorded net profit of Rs 701.09 crore in Q1FY19. A Bloomberg poll of analysts had predicted Axis Bank's net profit at Rs 759 crore in Q2FY19.

The Bank’s Net Interest Income (NII) grew 15% to Rs 5,232 crores during Q2FY19 as against Rs 4,540 crores a year ago same period. Net interest margin for Q2FY19 stood at 3.36%. 

Provisions of the bank was at Rs 2,927.38 crore, which was surprisingly down by 6.78% compared to Rs 3,140.41 crore in Q2FY18 and below 12.29% from Rs 3,337.70 crore in Q1FY19.

Interestingly, Axis Bank managed to bring down its gross NPA on quarterly basis. It recorded gross NPA of Rs 30,938.33 crore in Q2FY19 compared to Rs 32,662.40 crore in Q1FY19. However, latest gross NPA was above as against Rs 27,402.32 crore in Q2FY18. In percentage terms, Axis Bank's gross NPA was at

Rs 5.96% in Q2FY19 versus 6.52% in Q1FY19 and 5.90% in Q2FY18. 

In its Q2FY19 audit, Axis Bank mentioned that, they has recognised slippages of `2,777 crores during Q2FY19, compared to Rs 4,337 crores in Q1FY19
and Rs 8,936 crores in Q2 FY18. Corporate lending slippages stood at Rs 1,090 crores. 88% of this came from disclosed BB & below accounts. The Bank’s BB and below rated book stood at Rs 8,860 crores. This is 1.7% of the Bank’s Gross Customer Assets, and is down to less than 1/4th of the 7.3% peak reached in Jun-16.

The Bank’s Advances grew 11% YOY to Rs 4,56,121 crores as on 30th September 2018. Domestic loans grew 15% while the overseas book de-grew by 12%.

Retail loans grew 20% YOY to Rs 2,21,710 crores and accounted for 49% of the Net Advances of the Bank. SME loans grew 14% YOY to Rs 60,262 crores.

Corporate loan book continues to pivot towards working capital loans which grew 21% YOY.

Savings Bank Deposits, on a quarterly average balance (QAB) basis grew by 17%. On QAB basis, CASA recorded a growth of 13% YOY and constituted 45% as a proportion of total deposits.

Savings Account Deposits on period end basis grew 14% YOY. CASA Deposits on a period end basis grew 9% YOY and constituted 48% of total deposits as at the end of 30th September 2018. The share of CASA and Retail Term Deposits in the Total Deposits stood at 82% as on 30th September 2018. Total Deposits
grew 15% YOY.

For six months period of FY19, Axis Bank saw net profit of Rs 1,491 crores which was down by 14.22% from Rs 1,737.98 crore in H1FY18. Whereas NII for H1FY19 too rose 14% YOY to Rs 10,399 crores from Rs 9,156 crores in H1FY18.

The share price of Axis Bank finished at Rs 609.95 per piece above Rs 7.60 or 1.26%.