Axis Bank Ltd — Q3 FY25
Axis Bank reported a steady Q2 FY25 with PAT of INR 6,918 crore, up 18% YoY, driven by healthy operating income and moderated expense growth.
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.
59%Questions answered2Evaded / deflected11Questions audited
Partial answer
High priority
Plans to accelerate deposit growth after quality improvement?
Asked by Mahrukh Adajania, Nuvama
Management described ongoing initiatives but did not commit to a specific acceleration plan or rate increase.
no specific timelineno quantitative target
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Question
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 focused on increasing the momentum of growth in the business. We are going at 200 basis points higher than the industry. We shall endeavor to continue to push for higher, better, and better quality growth from here.
Answered
Medium priority
ITAT refund amount this quarter?
Asked by Mahrukh Adajania, Nuvama
CFO provided the exact amount of INR 550 crores for the tax provision reversal.
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Question
If you could call out the ITAT refund this quarter, like last quarter was INR 200 crores 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 crores.
Answered
Medium priority
Vintage of write-offs in NPA walk?
Asked by Mahrukh Adajania, Nuvama
CFO explained the composition of write-offs by portfolio and rule-based process.
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Question
If you could explain the vintage of write-offs, right? So through the old NPLs, right, the write-offs that you do in the Walk?
Puneet Sharma, CFO
A dominant part of the write-off for the current period has come from our CBD and retail portfolio... dominantly CBD and retail rule-based, with a few wholesale accounts which would have a tail amount that would have been written off post-recovery.
Answered
Medium priority
Reason for jump in SLR investments and LCR impact?
Asked by Rikin Shah, IIFL Securities
CFO explained the combined view and confirmed partial contribution from runoff rates.
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Question
The first one is on the SLR investments. There was a marked jump sequentially in the SLR investments that we are holding. Is this a function of the higher runoff 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 if you add the two lines up by roughly about 3,800-3,900 crores... Yes, there is an increase in the SLR securities on account of the runoff comments.
Partial answer
High priority
Retail slippage segments and recovery catch-up?
Asked by Rikin Shah, IIFL Securities
CFO gave directional answer on unsecured but refused product-level breakdown; recovery catch-up was addressed.
declined product-level detail
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Question
While you've called out that the gross slippages are largely from retail, if you could provide some additional color as to whether it's coming only from the unsecured or there are other retail segments... And a sub-question would be that the recoveries, while they have improved sequentially, would you say that there is still some more catch-up?
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... recoveries from written-off accounts for the quarter are actually up 49%, up 67% sequentially... if you add the two quarters together, you pretty much get what we had promised.
Evasive
High priority
Preliminary assessment of draft RBI norms on subsidiaries?
Asked by Rikin Shah, IIFL Securities
CFO declined to give any preliminary assessment, stating it's too nascent.
deferred to final guidelinesno preliminary assessment given
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Question
The last question that I have is on the draft RBI norms... specific to the subsidiaries not allowed to do overlapping businesses. 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 of the draft circular on our legal and operating model. We do intend to review and make representations... We will wait for the final guidelines to determine our position.
Partial answer
High priority
Loan growth lagging in home, vehicle, corporate; will it continue?
Asked by Kunal Shah, Citigroup
CEO gave qualitative expectation of pickup but no quantitative guidance on lagging segments.
no specific growth targetqualitative only
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Question
Even in terms of the breakup, if we look at it in a 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?
Amitabh Chaudhry, MD and CEO
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, particularly on the retail side, in order to optimize the best return.
Partial answer
Medium priority
Is deposit repricing largely done?
Asked by Kunal Shah, Citigroup
CFO did not directly confirm repricing is done, but indicated rates unlikely to rise.
no explicit confirmationconditional language
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Question
So how do we say maybe are we largely done with the repricing? There has not been much increase in the term deposit rates for us. So 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... it is unlikely for deposit rates to go up.
Partial answer
Medium priority
Comfortable CD ratio and LCR threshold? What drove outflow rate increase?
Asked by Nitin Aggarwal, Motilal Oswal
CFO explained outflow rate change but did not give a specific comfortable CD ratio or LCR threshold.
no specific threshold givenvague on range
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Question
One is on the CD ratio and LCR, if you can indicate what is the comfortable number threshold that you would want to maintain on this. And specifically on LCR, what really driven this increase in outflow rate?
Puneet Sharma, CFO
We have revisited the risk rates on operational deposits. And because we've revisited the risk rates, the outflow rate has changed... We will operate in a range. Our reported number for the current quarter is a number that we are comfortable with at the moment.
Evasive
Low priority
Employee decline despite branch additions; will productivity gains continue?
Asked by Nitin Aggarwal, Motilal Oswal
CFO refused to give forward view on employee count, deflected to overall cost growth metric.
declined to comment on future employee baseredirected to overall cost growth
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Question
There is a very slight decline, 1,100-odd employees this quarter while we added 150 branches. So how are you looking at the expansion going ahead in terms of front-end of the branches' footwork?
Puneet Sharma, CFO
Part of it is productivity gains playing through for some of our previous investments that we have made on the digital index side. I will not offer a comment on individual line items of my cost.
Evasive
High priority
Have fresh slippages peaked in unsecured?
Asked by Chintan Joshi, Autonomous
CEO explicitly declined to say whether slippages have peaked.
no peak/trough calldeferred to cycle uncertainty
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Question
Would you say that fresh slippages have peaked at kind of what we've seen in the last quarter?
Amitabh Chaudhry, MD and CEO
No, 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.
Answered
Medium priority
Why make contingent provisions of INR 520 cr when no pressing asset quality issues?
Asked by Param Subramanian, Nomura
CFO directly explained the rationale as offsetting the tax write-back to strengthen balance sheet.
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Question
I just wanted to ask again, what is the need for making the provisions in this quarter? If we think there are no pressing asset quality issues, why are we making these provisions?
Puneet Sharma, CFO
We did have a one-time write-back of INR 550 crores... we thought it was a fair and opportune time to create a balance sheet strength for which we created the INR 520 crores prudent provision. On a net basis, they broadly equalize.