Private sector lender Axis Bank on Saturday reported a 62 per cent year-on-year (YoY) surge in net profit to ₹3,408 crore for the third quarter ended December 2022, aided by higher net interest income (NII) and a decline in provisions..
The bank’s NII, the difference between interest earned and interest paid, increased by 26 per cent YoY to ₹8,736 crore during the October-December period, driven by loan growth and an improvement in margins..
Net interest margin (NIM), a key measure of profitability for banks, expanded by 21 basis points (bps) to 3.92 per cent in Q3FY23 from 3.71 per cent in Q3FY22..
Total provisions and contingencies fell by 41 per cent to ₹1,964 crore in Q3FY23 from ₹3,313 crore in Q3FY22, primarily due to a reduction in provisions for bad loans..
As a result, the bank’s provisions coverage ratio (PCR) improved to 72.93 per cent as of December 2022 from 70.86 per cent in September 2022..
Axis Bank’s gross non-performing assets (GNPAs) as a percentage of gross advances reduced to 2.27 per cent at the end of Q3FY23 from 2.43 per cent in Q3FY22..
Net NPAs also declined to 0.76 per cent of net advances as of December 2022 from 0.90 per cent in December 2021..
The bank’s retail loans grew by 19 per cent YoY to ₹4.91 lakh crore, while corporate loans increased by 15 per cent to ₹6.32 lakh crore..
Deposits increased by 15 per cent to ₹8.78 lakh crore, with low-cost current account and savings account (CASA) deposits growing by 19 per cent to ₹4.02 lakh crore..
Axis Bank’s capital adequacy ratio (CAR) stood at 17.44 per cent as of December 2022, above the regulatory requirement..
The bank’s shares rose by over 3 per cent in early trade on Monday following the announcement of its Q3 results..
Commenting on the results, Axis Bank’s Managing Director and CEO Amitabh Chaudhry said, .
