Axis Bank Q3 results: Net profit rises 4% YoY, here are 5 key highlights

Axis Bank Q3 results: Private lender Axis Bank, on January 23, posted a net profit of ₹6,071 crore in the October-December quarter of the fiscal year 2023-24, reflecting a 4 per cent increase compared to the corresponding period last year. However, the reported net profit of ₹6,071 crore falls slightly short of the market consensus estimate, which stood at ₹6,114 crore.

Earlier today, shares of Axis Bank settled 3.48 per cent lower at ₹1,082 apiece on the BSE.

Also read: ICICI Bank Q3 Results: Operating profit rises 10% YoY, asset quality stable; 5 key highlights

“The conversations on India are buoyant and it’s being looked upon as an important investment destination, evident in discussions at global platforms like the World Economic Forum. The Indian economic momentum has been strong in FY24, and we believe the trend will continue well into FY25.At Axis Bank, our focus has been on sustainable and inclusive growth, with customer taking the centerstage in every discussion.This quarter we celebrated ‘Sparsh Week’, a week-long agenda focused on educative customer centric activities, with 15 eventscovering 5000+ branches and retail asset centers, reaching out to 95000+ employees,” said Amitabh Chaudhry, MD&CEO, Axis Bank.

Here are key highlights from Axis Bank Q3 financial results for FY24 -

Net Profit

The bank recorded its standalone net profit at ₹6,071 crore in the October-December quarter of the fiscal year 2023-24. The private lender posted a 4 percent rise in its net profit YoY, recorded ₹5,853 crore last year same period and 3.5% increase on a sequential basis as compared to previous quarter at ₹5,863.56 crore in Q2 FY24.

Also read: IDFC First Bank Q3 Results: Net profit rises 18% to ₹715 crore, NII up 30.5% YoY; asset quality stronger

Net Interest Income

The bank reported its Net interest income (NII) in the third quarter at ₹12,532, crore, rose by 9%, which is almost in line with the market estimate of ₹12,555 crore. Net Interest Income is the difference between interest earned by a bank through loans and interest it pays to depositors.

Meanwhile, the net interest margin (NIM) stood at 4.01 percent for the quarter ended on December 31, 2023. Net Interest Margin refers to the difference between the interest income earned and the interest disbursed by a bank in relation to its interest-generating assets such as cash.

Asset quality

The bank's gross non-performing asset (NPA) was at 1.58 percent, showing a decline from the 2.38 percent reported in the corresponding quarter of the previous year. In contrast, the net NPA for the quarter remained consistent at 0.36 percent when compared year-on-year.

The bank experienced a substantial 22 percent year-on-year growth in its advances, reaching a total of ₹9.32 lakh crore. Within this growth, the lender's retail loans saw an impressive increase of 27 percent, reaching ₹5.46 lakh crore. Notably, secured retail loans accounted for approximately 75 percent of this figure, with home loans constituting 30 percent of the overall retail portfolio.

Also read: Q3 results today: Axis Bank, Indus Towers, Havells India, others to announce Q3 earnings

PROP and deposit growth

In the current quarter, the pre-provision operating profit (PPOP) experienced a 1.4% year-on-year growth, reaching ₹9,141 crore. Comparatively, on a quarter-on-quarter basis, there was a notable 6% increase in PPOP. 

PPOP is the amount of income that a financial institution, usually a bank, earns in a given time period before subtracting funds set aside to provide for future bad debts.

As per the filing, the bank saw an 18 percent yoy increase in total deposits, and a 5 percent growth on a quarter-on-quarter basis at the end of the period. Notably, savings account deposits saw a robust 16% year-on-year expansion.