Axis Bank: Axis Bank beats expectations, first quarter net profit rises 91%

Mumbai: The Hub BankOn Monday, India’s fourth-largest private bank by market capitalization, announced a 91% rise in the June quarter Net profit At $4,125 crore, topping street estimates on a sharper-than-expected drop in judgments That overshadowed the somewhat cautious expansion of loans.

The bank reported a net profit of Rs 2,160 crore a year ago.

Net interest income, or the bank’s primary income, rose 21% YoY to Rs 9,384 crore at the end of the June quarter from Rs 7,760 crore a year earlier. Net interest margins rose 14 basis points to 3.60%.

One basis point is 0.01%.

The bank posted a loss on its treasury book at Rs 667 crore as bond yields rose during the quarter, reflecting the first signs of policy rate hardening in three years.

“We continue to make good progress despite macroeconomic headwinds that are challenging on multiple levels, both domestically and the larger global economy,” said Amitabh Chaudhry, managing director at Axis Bank. “One of the highlights of Axis Bank in the previous quarter was our acquisition of consumer company Citibank in India. We have applied for the due approvals and as soon as it is ready, the merger will proceed.”

The bank said the provisions for specific loan losses fell to ₹ 777 crore in the June quarter from ₹ 2,865 crore in the period last year.

The Bank holds a cumulative provision of Rs.11,830 crore at the end of the quarter under review. The cost of credit in the first quarter was 0.41%, down 129 basis points year over year.

The bank recorded a growth of 14% in total advances to ₹ 7.01 crore. This was fueled by a 25% growth in retail loans which made up 59% of the bank’s net advances. Small business bank loans grew 74% year over year while rural loans grew 42%.

The corporate loan book shrank by 5% and amounted to INR 2.16 thousand crore. Loan growth lagged behind the industry average mainly due to the decline in corporate and SME loans and fell sequentially by 0.9%.

Rajiv Anand, Deputy Managing Director, said Axis Bank.

The bank reported its Total Non-Performing Assets Ratio at 2.76% for the quarter versus 3.85% a year ago. Net NPA came in at 0.64%. Slips during the quarter totaled $3,684 crore, compared to ₹3,981 crore in the March quarter of 2022. This was at ₹6,518 crore in the same period last year.

The fund outstanding balance of standard loans restructured under the Adjustment Framework for COVID-19 stress (Covid 1.0 and Covid 2.0) decreased during the quarter and amounted to Rs 3,402 crore.

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