Axis Bank’s net profit grows 70% to ₹5,330 crore in Q2
- Axis Bank, one of the leading private banks in the country, beat analyst expectations to report a 31% YoY surge in net interest income for the second quarter.
- The lender also reported an improvement in asset quality as its provisions declined.
- Its wealth management solution for ultra-high net worth clients surged to 4,035 families, from 2,790 families in the last one year.
AdvertisementAxis Bank’s second quarter standalone net profit surged over 70% to ₹5,330 crore from ₹3,133 crore in the same quarter last year.
Its net interest income (NII) went up by 31% to ₹10,360 crore for the September ending quarter, on a year-on-year basis.
Net interest margins (NIMs) – a measure of how much a bank is earning as interest income from its customers versus how much it is paying on deposits – improved to 3.96% – up 57 bps YoY, and 36 bps sequentially.
Axis Bank reported a 20% growth in standalone total income to ₹24,180 crore, from ₹20,134 crore in the year-ago quarter.
Its net loans surged 18% YoY to ₹7,30,875 crore, with retail loans accounting for 58% of the total loan book — with 79% of them being secured.
Asset quality witnessed moderate improvement, with net non-performing assets (NPA) at 0.51% as against 1.08% a year ago. Net slippages – which is a measure of fresh additions to net NPA – also improved to ₹557 crore from ₹707 crore in the previous year.
Provisions declined 68% to ₹550 crore from ₹1,735 crore a year ago, contributing to the surge in net profit in the quarter.
Payments and digital services
During the quarter, Axis Bank issued 1.04 million new credit cards, with a spends market share of 13% in the nine months of calendar year 2022. It also witnessed 73% YoY growth in UPI transactions during the quarter, with a market share of 16%.
The bank’s wealth management solution, Burgundy, surged to ₹2,68,754 crore worth assets under management. Burgundy Private, its offering for ultra-high net worth clients, surged to 4,035 families, from 2,790 families in the last one year, the bank said.
AdvertisementHere’s Axis Bank’s Q2 in numbers:
|Particulars||Q2 FY23||Q1 FY23||Q2 FY22|
|Total income||₹24,180 crore||₹21,728 crore||₹20,134 crore|
|Net interest income||₹10,360 crore||₹9,384 crore||₹7,900 crore|
|Net profit||₹5,330 crore||₹4,125 crore||₹3,133 crore|
Source: Company reports
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