Despite a 5% and 26% increase in net profit and revenue, respectively, in Q3FY24, the third largest private sector bank’s shares declined by 6% YoY.
With a market capitalization of Rs 3.25 lakh crore, the shares of Axis Bank Ltd were trading at Rs 1,056.60 per share, decreasing around 3 percent as compared to the previous closing price of Rs 1,088.90 apiece.
Looking into the company’s Performance, Axis Bank Ltd’s revenue increased by 5 percent on a quarter-on-quarter basis from Rs. 27,418 crores in Q2FY24 to Rs. 28,865 crores in Q3 FY24. Further, revenue increased by 26 percent year on year from Rs. 22,843 crores in Q3FY23 to Rs.28,865 crores in Q3FY24.
Axis Bank Ltd’s net profit increased by 5 percent on a quarter-on-quarter basis from Rs. 6,230 crores in Q2FY24 to Rs. 6,520 crores in Q3FY24. Further, net profit increased by 5 percent year on year from Rs. 6,215 crores in Q3FY23 to Rs.6,520 crores in Q3FY24.
The book value of the Bank’s Investments portfolio as of December 31, 2023, was Rs 3,09,070 crores, with Rs 2,46,356 crores in government securities, Rs 51,958 crores in corporate bonds, and Rs 10,756 crores in other securities like as stocks, mutual funds, and so on.
The Bank’s wealth management division is one of the largest in India, with assets under management (AUM) of Rs 5,05,407 crores as of the end of December 31, 2023, up 78% year on year and 12% quarterly. Burgundy Private’s AUM climbed 79% YoY and 6% QoQ to Rs 1,76,965 crore.
CASA deposits accounted for 42% of total deposits. Total deposits increased by 18% year on year and 4% quarter on quarter, with savings account deposits increasing by 16% year on year, current account deposits increasing by 5% year on year and 4% quarter on quarter, and total term deposits increasing by 22% year on year and 6% quarterly.
Axis Bank is the third-largest private sector bank in India. The Bank provides the full range of financial services to its customers, including large and mid-sized corporations, MSMEs, agriculture, and retail businesses.
Written by:- Abhishek Singh
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