Axis Bank Ltd (CHIX:AXBl)
$ 63.1 -0.30 (-0.47%) Market Cap: 39.14 Bil Enterprise Value: 52.83 Bil PE Ratio: 12.26 PB Ratio: 1.76 GF Score: 86/100

Q1 2025 Axis Bank Ltd Earnings Call Transcript

Jul 24, 2024 / 12:45PM GMT
Release Date Price: $72 (-5.01%)

Key Points

Positve
  • Core operating profit increased by 16% year-on-year and 1% quarter-on-quarter, driven by healthy operating income growth and moderation in operating expense growth.
  • The bank's CASA ratio and free to average assets continue to be among the best for peer private banks.
  • Axis Bank Ltd (FRA:UZC) successfully completed the integration of Citibank's consumer business ahead of schedule, ensuring a smooth transition for 2.1 million customers.
  • Retail Savings Account (SA) New-to-Bank (NTB) deposits grew by 20% year-on-year, with new accounts opened up by 8% year-on-year and balances per account up by 11% year-on-year.
  • The bank's proprietary digital capabilities, such as 'open by Axis Bank,' continue to be recognized as top-rated mobile banking apps globally, with a rating of 4.8.
Negative
  • Net credit cost increased to 0.97%, up 47 basis points year-on-year, impacted by timing differences and lower recoveries and upgrades in the corporate loan portfolio.
  • Gross slippage ratios in retail and CBG have declined year-on-year, but the wholesale segment saw an increase in gross slippages due to small value accounts.
  • Operating expenses for the quarter were INR9,125 crores, growing 11% year-on-year, with technology and digital spends increasing by 39% year-on-year.
  • The bank's loan growth was primarily driven by the corporate segment, while retail and SME segments remained virtually flat sequentially.
  • The bank's RWA density increased by 300 basis points due to operational risk true-up and changes in the balance sheet mix, impacting the overall risk-weighted assets.
Operator

Ladies and gentlemen, good day, and welcome to the Axis Bank conference call to discuss the Bank's financial results for the quarter ended June 30, 2024. Participation and this conference call is by invitation only. Axis Bank reserves the right to block access to any person to whom an invitation has not been sent. Unauthorized assimination of the contents or the proceedings of the call is strictly prohibited and had explicit permission and written approval of Axis Bank is imperative. (Operator Instructions) Please note that this conference is being recorded. On behalf of Axis Bank, I once again, welcome all the participants to the conference call.

On the call we have with us, Mr. Amitabh Chaudhry, MD and CEO, and Mr. Puneet Sharma, CFO. And I'll hand the conference over to Mr. Amitabh Chaudhry, MD and CEO. Thank you, and over to you, sir.

Amitabh Chaudhry;Singapore Branch;Chief Executive Officer
Axis Bank Ltd;Managing Director

()- -

Thank you so much [Dheerav]. Apart from Puneet, we have on the call Rajiv Anand,

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