Axis Bank Q1 results: Net profit surges 41% to Rs 5,797cr

Axis Bank reported a net consolidated profit of 41 per cent to Rs 5,797 cr in its Q1 results for FY24, on Wednesday. The bank’s net interest income (NII) increased 27 per cent from 9,384 crore in Q1FY23 to 11,958 crore in the quarter ending June 2023. Net interest margin (NIM) was 4.10 per cent in Q1FY24, up 50 basis points (YoY).

Axis Bank’s operating profit increased by 50 per cent YoY to 8,814 crores, with Core Operating profit increasing by 27 per cent YoY to 8,295 crores.

Interest income reached 25,556.77 crore during the April-June quarter, representing a 36 per cent rise over the previous fiscal year’s figure of 18,728.65 crore. In terms of interest expenses, the firm paid 13,598 crore during the reporting quarter, a significant YoY increase of more than 45 per cent from 9,344.64 crore in the same quarter of FY23.

Axis Bank’s Gross Non-Performing Assets (GNPA) were 1.96 per cent in Q1 compared to 2.02 per cent in the previous fiscal quarter. The Net Non-Performing Assets (NNPA) rate was 0.41 per cent, down from 0.39 per cent in Q1FY23. According to an Axis Bank press statement, the bank recovered 554 crore from the written-off accounts.

Axis Bank wiped off NPAs of 2,131 crores in the first quarter. Adjusted for recoveries from the write off pool, reported net slippages in the quarter were 1,131 crores, of which retail was 1,639 crores, CBG was negative 10 crores, and wholesale was negative 498 crores.

Gross slippages were 3,990 crores during the quarter, compared to 3,375 crores in Q4FY23 and 3,684 crores in Q1FY23. During the quarter, NPA recoveries and upgrades totaled 2,305 crores.

Amitabh Chaudhry, MD & CEO, Axis Bank said that, “We are striving to create a distinctive new age bank that provides seamless banking solutions to customers, giving wings to their financial dreams and aspirations. We have been constantly raising the bar – strengthening our digital capabilities and building on our robust pipeline of products and services while keeping customer centricity at the core of every initiative,”

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“With India’s strong macro environment supporting growth and providing abundant opportunities, we are geared up and confident of delivering sustainable growth across all our priority businesses,” he added.