Axis Bank reports 70 per cent surge in standalone net profit

Axis Bank

Axis Bank recorded a 70 per cent increase in standalone net profit to Rs 5,329.77 crore in the July-September quarter of FY23, owing to robust core revenue and a drop in bad loans.

Furthermore, investment income increased by 27 per cent during the quarter, contributing to the bank’s profit statistics.

In the previous quarter, the country’s third-largest private lender had a net profit of Rs 3,133.32 crore.

Axis Bank said in a regulatory filing that total income on a standalone basis increased to Rs 24,180 crore in the September quarter of 2022-23, up from Rs 20,134 crore in the same period of 2021-22.

The interest income for the quarter was Rs 20,239 crore, a 24 percent increase from Rs 16,336 crore.

The bank’s income from investments increased by more than 27 per cent in the quarter, to Rs 4,477.47 crore from Rs 3,521.64 crore. Other sources of income, such as currency and derivatives transactions, commissions, fees, and the sale of third-party products, increased by 3.8 per cent to Rs 3,941.15 crore.

The lender’s consolidated net profit for the reporting quarter was Rs 5,625.25 crore, up from Rs 3,382.78 crore the previous year. According to the report, the total income on a consolidated basis was Rs 25,258.80 crores as opposed to Rs 20,966.61 crore.

The bank’s consolidated earnings include numbers from its subsidiaries and affiliates.

Axis Bank invested an extra Rs 104.81 crore in its wholly-owned subsidiary Axis Finance Ltd during the quarter.

Amitabh Chaudhry, MD & CEO, 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.”

On the asset front, there was progress, with gross non-performing assets decreasing to 2.50 percent of gross advances as of September 30, 2022, down from 3.53 percent in the same time last year.

Net NPAs (bad loans) fell from 1.08 percent to 0.51 percent.

The bank’s provisioning for bad loans and contingencies was therefore reduced to Rs 549.78 crore for the July-September quarter of FY23, down from Rs 1,735 crore for the same time the previous year.

Furthermore, during the half-year ended September 2022, Axis Bank did not transfer (except for prudentially written off accounts) or acquire any stressed loans (NPA and Special Mention Account/SMA).

The bank stated that it made no investment in security receipts from April to September of the current fiscal year, and that the book value of outstanding security receipts as of September 30, 2022.

The bank launched three digital bank units last Saturday, which were inaugurated by Prime Minister Narendra Modi as part of the government’s commitment to open 75 DBUs in 75 districts throughout the nation.

Axis Bank’s stock finished at Rs 826.20 a share on the BSE, down 0.42 percent.

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