Axis Bank announced its financial results for the quarter and half year ended September 30, 2021, following the approval of its Board of Directors at a meeting held in Mumbai on October 26, 2021. The bank reported strong growth in profitability, deposits, and digital adoption during the quarter, while continuing to advance its sustainability and financial inclusion initiatives.
For the second quarter of FY22, Axis Bank posted a net profit of ₹3,133 crore, registering an 86% year-on-year increase compared with ₹1,683 crore in the same period last year. Net Interest Income (NII) rose 8% year-on-year to ₹7,900 crore, while the Net Interest Margin stood at 3.39%. Fee income grew 17% year-on-year to ₹3,231 crore, with retail fees accounting for 63% of the total.
The bank’s balance sheet expanded 17% year-on-year to ₹10.5 lakh crore as of September 30, 2021. Deposits grew 18% year-on-year, supported by strong growth in CASA deposits, with the CASA ratio improving to 42%. Advances grew 10% year-on-year to ₹6.21 lakh crore, led by growth in retail, SME, and mid-corporate segments.
Retail loans increased 16% year-on-year and now constitute 56% of the bank’s net advances, with around 80% of the retail portfolio secured. SME loans grew 18% year-on-year, while the mid-corporate loan book expanded 32% year-on-year.
On the digital front, the bank continued to strengthen its digital ecosystem and payments capabilities. Over 91% of financial transactions by individual customers were conducted digitally during the quarter. Mobile banking transaction volumes grew 69% year-on-year, while the bank recorded a 147% increase in total UPI transaction value. Axis Bank also onboarded more than 1.9 million customers on its WhatsApp Banking platform within nine months of launch.
Axis Bank also advanced its sustainability agenda during the quarter. The bank announced a target to lend an additional ₹30,000 crore over the next five years to sectors aligned with climate action and the United Nations Sustainable Development Goals. It also introduced ESG risk assessment frameworks and set a target for 5% of its retail two-wheeler loan portfolio to be electric vehicles by FY2024. Axis Bank became the first financial institution in India to establish a standalone Environmental, Social and Governance Committee at the board level.
During the quarter, the bank also introduced several inclusion initiatives, including the #ComeAsYouAre program to support the LGBTQIA+ community. It further strengthened its digital banking capabilities by expanding open API banking solutions and partnering with BharatPe to grow its merchant acquiring business.
Asset quality showed improvement during the period, with Gross Non-Performing Assets at 3.53% and Net NPAs at 1.08% as of September 30, 2021, compared with 3.85% and 1.20% respectively in the previous quarter. The bank maintained a strong capital position, with a Capital Adequacy Ratio of 20.04% and CET1 ratio of 15.81%.
Commenting on the results, Amitabh Chaudhry, Managing Director and CEO of Axis Bank, said the bank continues to focus on building a comprehensive ESG framework while driving growth across retail, SME and mid-corporate segments. He noted that improved disbursements in secured retail lending and sustained focus on SMEs are supporting the bank’s growth trajectory.
