Axis Bank Q2FY19 result: Five massive gains to note
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.
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SBI, ICICI Bank, Axis Bank and HDFC Bank are Nomura stock picks today Private lender Axis Bank during September 2018 quarter posted 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. 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%.
Here's five key things to note from the result.
Asset quality
- Slippages declined 69% YOY to Rs 2,777 crores.
- The Bank’s GNPA and NNPA stood at 5.96% and 2.54%, down from 6.52% and 3.09% QOQ.
- Provision Coverage Ratio of the Bank has improved to 73% from 69%
- 88% of corporate slippages in Q2 came from previously disclosed BB & Below book.
- Outstanding BB & Below corporate loans have reduced by 15% QOQ to Rs 8,860 crores.
Domestic loan growth
- Loan growth during the quarter stood at 15% YOY driven by Retail and SME segments.
- Retail and SME loan book grew 20% and 14% YOY, respectively.
- Retail and SME loans constituted 62% of total loans.
- Working capital loans in the corporate segment grew 21%.
Retail business momentum
- Retail Fee Income grew 24% and constituted 62% of Total Fee Income YOY.
- Retail Advances accounted for 49% of Net Advances.
- Saving deposits on a quarterly average balance (QAB) basis grew 17%.
- CASA deposits QAB basis grew 13% YOY and constituted 45% of total deposits. CASA ratio on Quarter End basis stands at 48%.
Digital space
- Ranked number 1 in Mobile Banking spends as per RBI data.
- Market share in UPI transactions stood at 8% for Q2FY19.
- Mobile banking spends grew 106% YOY, Credit Card spends grew 44% YOY.
Network
- During Q2FY19, the Bank added 103 branches to its network across the country.
- Bank had a network of 3,882 domestic branches, extension counters and RACs situated in 2,269 centres compared to 3,485 domestic branches, extension counters and RACs situated in 2,033 centres last year.
- As on 30th September 2018, the Bank had 12,660 ATMs and 3,280 cash recyclers spread across the country.
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