Axis Bank Q2 results: Lender clocks profit of ₹5,330 cr, up 70% YoY; NII rises 31%
Premium- Axis Bank's net interest margin for Q2FY23 stood at 3.96%, up 57 YOY
- On BSE, the lender's scrip closed 0.5% lower at ₹825.40
India's third largest private sector lender Axis Bank on Thursday reported a consolidated net profit of ₹5,330 crore, up 70% for the quarter ended September 2022, as against ₹3,133 crore in the year-ago quarter.
The lender's net interest income (NII) grew 31% year-on-year to ₹10,360 crore from ₹7,901 crore in the last year quarter.
Net interest margin (NIM) for Q2FY23 came at 3.96%, up 57 YOY and 36 QOQ, the private lender said in a BSE filing.
The strong growth in the bottom-line was on the back of lower provisions. Provisions in the quarter under review fell to ₹550 crore, as against ₹1,735 crore a year ago.
The bank's asset quality improved further during the reporting quarter. The gross non-performing asset ratio dropped to 2.5% as on 30 September, 2022, from 2.76% a quarter ago and 3.53% a year ago.
The net non-performing asset ratio came at 0.51% was lower than 0.64% a quarter ago and 1.08% a year ago. The capital adequacy ratio for the lender fell to 16.52% from 17.28% a quarter ago, and 19.23% a year ago.
Meanwhile, the operating profit in the September quarter grew by more than 30% YoY to ₹7,716 crore.
Credit cost for the quarter ended 30 September, 2022 stood at 0.38%, declining by 16 bps YOY.
The total deposits grew by 10% YOY on quarterly average balance (QAB) basis as well as on period end basis, the bank stated.
Amitabh Chaudhry, MD and CEO of Axis Bank said: “Over the past 12 months, we have made significant strides across every identified priority area. The focus on customer obsession and digitisation has got our acquisition engine humming. The core operating profits and margins have grown on the back of strong performance across business segments."
Ahead of the results today, Axis Bank shares closed at ₹824.20 apiece, down 0.68% on the NSE.
