Axis Bank Ltd — Q2 FY25
Axis Bank reported a steady Q2 FY25 with PAT of INR 6,918 crore, up 18% YoY, driven by healthy operating income growth and moderation in operating expenses.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
54%Questions answered3Evaded / deflected12Questions audited
Partial answer
High priority
Plans to accelerate deposit growth given quality achieved?
Asked by Mahrukh Adajania, Nuvama
Management listed ongoing initiatives but did not commit to accelerating growth or changing rates.
no specific acceleration planlisted general initiatives
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Question
So any plans to accelerate deposit growth from now on, given that the quality has been achieved, like increasing rates?
Munish Sharda, Executive Director
We are growing at 200 basis points higher than the industry. ... In the first half, we've grown deposits 14% ... it's our endeavor to continue to push for higher, better, and better quality growth from here.
Answered
Medium priority
IT refund this quarter?
Asked by Mahrukh Adajania, Nuvama
CFO clearly stated there was no IT refund but a tax provision reversal of INR 550 crore.
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Question
If you could call out the IT refund this quarter, like last quarter was INR 200 crore, is what was called out.
Puneet Sharma, CFO
In the current quarter, we have favorable orders from the ITAT ... the aggregated amount of tax provision reversed ... is INR 550 crore.
Answered
Medium priority
Vintage of write-offs?
Asked by Mahrukh Adajania, Nuvama
CFO explained write-offs are from CBG and Retail, with auto write-off rules for fully provisioned accounts.
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Question
If you could explain the vintage of write-offs, right? So these will be old NPLs, right?
Puneet Sharma, CFO
A dominant part of the write-off for the current period has come from our CBG and Retail portfolio.
Answered
Medium priority
Reason for jump in SLR investments?
Asked by Rikin Shah, IIFL Securities
CFO explained the increase is partly due to run-off and advised looking at combined liquidity deployment.
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Question
There was a marked jump sequentially in the SLR investments that we are holding. Is this a function of the higher run-off rates that we have applied on some Retail deposits and to shore up the LCR?
Puneet Sharma, CFO
Please look at overnight placements plus SLR together. ... there will be a net increase ... of roughly about INR 3,800-INR 3,900 crore. ... Yes, there is an increase in the SLR securities on account of the run-off comment.
Partial answer
High priority
Retail slippages: unsecured or other segments?
Asked by Rikin Shah, IIFL Securities
CFO confirmed unsecured but declined to provide further segment breakdown.
refused product-specific details
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Question
If you could provide some additional color as to whether it's coming only from the unsecured or there are other Retail segments which are contributing to that as well.
Puneet Sharma, CFO
Directionally, they are coming from the unsecured product segments. We have never given you product-specific details, so we would not like to start doing that now.
Answered
Medium priority
Recoveries catch-up from Q1?
Asked by Rikin Shah, IIFL Securities
CFO stated recoveries have caught up and normalized.
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Question
While it has improved sequentially, but the shortfall from the 1Q, would you say that there is any further catch-up remaining on that?
Puneet Sharma, CFO
Our recovery from written-off accounts for the quarter are actually up 49% to up 67% sequentially. ... if you add the two quarters together, you pretty much get what we had promised.
Evasive
High priority
Impact of draft RBI norms on subsidiaries?
Asked by Rikin Shah, IIFL Securities
CFO gave no concrete assessment, only said they are reviewing and will wait for final guidelines.
deferred to final guidelinesno specific assessment
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Question
The draft RBI norms ... specific to the subsidiaries are not allowed to do overlapping businesses. So some of your subsidiaries would be in the lending segment, and what is your preliminary assessment or understanding of this guideline?
Puneet Sharma, CFO
The bank is reviewing and evaluating implications ... We will wait for the final guidelines to determine our position ... we will do what's in the best interest of our shareholders.
Partial answer
High priority
Loan growth lagging in home, vehicle, corporate?
Asked by Kunal Shah, Citigroup
Management expects pickup but did not quantify or commit to closing the gap with system growth.
no specific timeline for catch-up
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Question
In few of the segments like home loan, vehicle loans, corporate, we are still lagging significantly to the system average growth. So I think, should we still assume that this might continue for a while?
Arjun Chowdhry, Group Executive
We're expecting to see a pickup in the loan growth in this quarter and the next, but we will continue to calibrate the composition of the loan growth ... in order to optimize the best return.
Partial answer
Medium priority
Cost of deposits outlook?
Asked by Kunal Shah, Citigroup
CFO did not confirm if repricing is done, only said they remain disciplined.
no explicit forward guidance
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Question
So that has still stayed flat this quarter. So how do we say maybe are we largely done with the repricing? ... should we assume that it stays at the current level?
Puneet Sharma, CFO
As long as the market remains disciplined about pricing for deposits, we would expect a reasonable part of the bank book to be repriced. ... we have remained very disciplined on deposit pricing.
Partial answer
Medium priority
Comfortable CD ratio and LCR threshold?
Asked by Nitin Aggarwal, Motilal Oswal
CFO gave no specific target for CD ratio or LCR, only said current level is comfortable.
no specific threshold given
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Question
What is a comfortable, like, number or threshold that you will want to maintain on this? And specifically on LCR, what really driven this increase in outflow rate?
Puneet Sharma, CFO
We will operate in a range. ... Our reported number for the current quarter is a number we are comfortable with at the moment. ... we have revisited the risk rates and operational deposits ... that's the reason why you're seeing outflow rates move up.
Evasive
High priority
CASA growth outlook and rate cut impact?
Asked by Saurabh Kumar, JPMorgan
Management declined to give a CASA growth forecast or comment on rate cut impact.
no forecast givendeferred to general actions
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Question
How would you think about this CASA growth going ahead? ... if rates were to come down by 50 basis points, would you expect the SA growth to go up?
Munish Sharda, Executive Director
Difficult to give a forecast for next quarter ... all the actions that we're taking ... should continue to ensure that we are able to deliver to our objectives.
Evasive
High priority
Have fresh slippages peaked in unsecured?
Asked by Chintan Joshi, Autonomous
Management refused to indicate whether slippages have peaked.
no peak/trough call
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Question
Would you say that fresh slippages have peaked at kind of what we've seen in the last quarter?
Arjun Chowdhry, Group Executive
It's too early into the cycle to take a call either way ... I don't think we would call out a peak or a trough either way.