Axis Bank reports a net profit of Rs 432 crore in 2QFY18 | Financial results | Digital channels | Freecharge acquisition | Outlook | Fundamental analysis | Indianotes.com




Axis Bank reported a net profit of Rs 432 crore in the July-September quarter, well below market estimate.

Axis Bank registered a 1% rise in Interest income to Rs 11235.08 crore in the quarter ended September 2017. A 1% fall in interest expenses to Rs 6695.46 crore saw net interest income (NII) grow 1% to Rs 4539.63 crore.

Other income grew 2% to Rs 2585.54 crore, which took net total income up 1% to Rs 7125.16 crore.

Operating expenses grew 13% to Rs 3347.84 crore, after which OP fell 8% to Rs 3777.32 crore.

Provision and contingencies fell 13% to Rs 3140.41 crore after which PBT jumped 33% to Rs 636.91 crore. As tax expenses grew 29% to Rs 204.53 crore, net profit jumped 36% to Rs 432.38 crore.

Asset Quality


Gross NPA stood at Rs 27402.32 crore as of September 2017 quarter against Rs 22030.87 crore in June 2017 quarter and Rs 16378.65 crore as of September 2016 quarter.

In percentage terms, %GNPA stood at 5.90% as of September 2017 quarter against 5.03% in June 2017 quarter and 4.17% as of September 2016 quarter.

Net NPA stood at Rs 14052.34 crore as of September 2017 quarter against Rs 9765.98 crore in June 2017 quarter and Rs 7761.15 crore as of September 2016 quarter.


In percentage terms, %NNPA stood at 3.12% as of September 2017 quarter against 2.30% in June 2017 quarter and 2.002% as of September 2016 quarter.

Digital channels

Axis Bank’s market position in the mobile banking space improved significantly as it jumped two places in the ranking table to 2nd position, as per the latest RBI data for the month of July 2017. Mobile banking spends in Q2 reported a growth of 78% on a YOY basis.

During the quarter, the card usage witnessed significant growth of 67% YOY in value terms. During the quarter, share of digital transactions remains similar to 67% as in Q1FY18 while ATM and Branch transactions stood at 28% and 5% from 23% and 10% in Q1FY18 respectively.

Freecharge acquisition

Pursuant to RBI approval, the Bank completed its acquisition of 100% stake in Freecharge on 6th Oct’17. Freecharge is one of India’s leading digital payments companies. The acquisition of Freecharge would help Axis Bank to augment its digital capabilities significantly and will help the Bank leapfrog its digital journey by multiple years.

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