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Axis Bank reported a 4.15% rise in consolidated net profit for the third quarter to ₹6,763.10 crore, compared to ₹6,493.36 crore in the same period last year. However, profits fell 8.7% sequentially from ₹7,408.90 crore in the second quarter.
Consolidated operating profit grew 15% year-on-year to ₹11,246.74 crore in Q3, up from ₹9,736.76 crore in the same period last year.
However, expenses rose due to higher employee costs, reaching ₹27,712.43 crore compared to ₹25,400.07 crore a year ago.
As per the bank, the profit growth was fuelled by a 9% rise in interest on advances to ₹25,767.71 crore in the third quarter, and a 14% increase in investment income, which grew to ₹5,840.81 crore from ₹5,113.71 crore in the same quarter last year. Interest income from interbank and RBI balances nearly doubled to ₹292.89 crore from ₹151.22 crore a year ago.
“Digital and Rural have been our big drivers, along with Sustainability and Inclusivity,” said Amitabh Chaudhry, MD & CEO, Axis Bank, in a statement.
Asset quality saw a slight deterioration, with Gross NPA rising to 1.46% from 1.44% in Q2, and Net NPA edging up to 0.35% from 0.34%.
Axis bank shares closed at ₹1,044 on NSE today, up 1.67% from yesterday's close of ₹1,026.80.
The bank remains one of the highest credit card issuers in the country over the last eleven quarters, and issued 7 lakh new credit cards in the third quarter.
While fees from third-party products grew the highest by 21% year-on-year, retail fees saw a 5% year-on-year growth, and constituted 71% of the bank’s total fee income. Total fee income for the third quarter rose by 6%, reaching ₹5455 crore in the third quarter.
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