Axis Bank Q3 profit surges 62% to ₹5,853 cr; NII up 32%

Beating analyst estimates, Axis Bank has reported a 62% year-on-year rise in its net profit at ₹5,853 crore in the October-December quarter as compared to ₹3,614 crore profit in the same period last year.

The private lender's net interest income (NII) for the quarter jumped 32% YoY to ₹11,459 crore, while its net interest margin (NIM) surged 4.26% in the said quarter, the bank said in a BSE filing. The Axis Bank stock declined 0.059% to ₹930 on the National Stock Exchange (NSE) today.

Axis Bank's other income for the said quarter grew 23% YoY to ₹4,101 crore. Overall, the non-interest income comprising fees, trading profit and miscellaneous income rose 21% YoY and 18% QoQ to ₹4,665 crore.

Axis Bank's provision and contingencies for the quarter stood at ₹1,438 crore, including non-recurring, one-time or prudent provisions of ₹340 crore. The bank's specific "loan loss provisions" for Q3FY23 stood at ₹1,341 crore.

"The Bank has not utilised Covid provisions during the quarter. The bank holds cumulative provisions (standard + additional other than NPA) of ₹5,012 crore at the end of Q3FY23," says Axis Bank.

As on December 31, 2022, the bank’s provision coverage, as a proportion of gross NPAs, stood at 81%, as compared to 72% as on December 31, 2021.

Its gross slippages during the quarter were ₹3,807 crore, as compared to ₹4,147 crore in Q3FY22. Recoveries and upgrades from NPAs during the quarter were ₹2,088 crore. Consequently, the net slippages in NPAs (before write-offs) for the quarter of ₹1,719 crore as compared to ₹860 crore in Q3FY22.

As on December 31, 2022, Axis Bank's balance sheet grew 10% YoY and stood at ₹12,23,509 crore. The total deposits grew by 9% YoY on a quarterly average balance basis and 10% on a YoY basis. The bank’s net advances grew 15% YoY to ₹7,62,075 crore and domestic net loans grew 17% YoY.

For the initial nine months of the financial year, Axis Bank's net profit surged 72% to ₹15,308 crore from ₹8,908 crore in the year-ago period. NII grew 28% YoY to ₹31,204 crore from ₹24,313 crore. Fee income grew 25% YoY to ₹11,540 crore. Its core operating profit during the period grew 38% YoY to ₹23,206 crore from ₹16,859 crore. Operating profit grew 25% YoY to ₹22,881 crore from ₹18,276 crore. The total provisions for the period stood at ₹2,347 crore, down 63% over the same period last fiscal.

As on December 31, 2022, the bank had a network of 4,849 domestic branches and extension counters situated across 2,734 centres compared to 4,700 domestic branches and extension counters across 2,665 centres as on December 31, 2021.