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Axis Bank Q3 net profit jumps 62% on interest income

Banking sector is in a good position to leverage great momentum built over the last few quarters: MD and CEO Chaudhry

January 23, 2023 08:40 pm | Updated January 26, 2023 10:11 am IST - Mumbai

Axis Bank said third quarter net profit grew 62% to ₹5,853 crore from the year-earlier period.

Net Interest Income grew 32% ₹11,459 crore, the private sector lender said in a filing. Net interest margin was higher by 73 basis points at 4.26%.

Provisions and contingencies for the quarter were ₹1,438 crore. These include non-recurring, one-time / prudent provisions of ₹340 crore.

Specific loan loss provisions were ₹1,341 crore. The bank said it had not utilised COVID-19 provisions during the quarter. The bank held cumulative provisions (standard + additional other than NPA) of ₹5,012 crore at the end of December, 2022.

“This is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.53% as on 31st December, 2022. On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 139% of GNPA as on 31st December, 2022,” the bank said.

Amitabh Chaudhry, MD and CEO, Axis Bank, said, “In the midst of global uncertainty, India stands as a bright spot offering great stability and opportunities for the economy and businesses. The banking sector is in a good position to leverage this great momentum built over the last few quarters.”

“Axis Bank has been steadily enhancing its capabilities, buoyed by good business growth and great partnerships. The Citi merger has been shaping very well, and we are extremely happy with the response we are getting from customers and employees alike,” he added.

The bank’s balance sheet grew 10% ₹12,23,509 crore as on December 31.

Total deposits grew 9%, while net advances expanded 15% to ₹7,62,075 crore. Domestic net loans climbed 17%.

The Capital Adequacy Ratio (CAR) and CET1 ratio including profit for 9 months ended December were 19.51% and 15.55%, respectively.

In the quarter, gross slippages increased by ₹410 crore on account of non recurring or prudent items.

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

The bank wrote off NPAs aggregating ₹1,652 crore during the quarter.

Provision coverage, as a proportion of Gross NPAs stood at 81%, compared with 72% on December 31, 2021 and 80% as on September 30, 2022.

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