Axis Bank Q1 FY23 Results: Private lender Axis Bank on Monday, July 25, reported a net profit of Rs 4,125 crore for the quarter ended June 30, 2022, which is a leap of a whopping 91 per cent on a year-on-year basis from Rs 2,160 crore in Q1 FY22. The bank said that its net interest income (NII) grew 21 per cent to Rs 9,384 crore in June quarter, compared to Rs 7,760 crore during the same quarter last year. On a quarterly basis, this was a rise of 6 per cent, Axis Bank said in a regulatory filing on Monday.
The net interest margin, or NIM, came to be at 3.60 per cent, which is a jump of 14 bps from a year-ago quarter and 11 bps as compared to the previous quarter Q4 FY22. Axis Bank said its core operating profit for the June quarter grew 17 per cent year-on-year to Rs 6,554 crore.
Fee income of Axis Bank for the April to June quarter this fiscal jumped to Rs 3,575 crore, up by 34 per cent on a year-on-year basis. Retail fees grew by 43 per cent as compared to the same quarter last financial year, and constituted 66 per cent of Axis Bank’s total fee income.
The lender further said that it made specific loan loss provisions of Rs 777 crore for the April to June quarter, against the Rs 602 crore provision made during the January to March quarter. The bank did not utilise its Covid-19 provisions during the quarter, it said in the filing with BSE.
Overall, Axis Bank held cumulative provisions of Rs 11,830 crore during the first quarter of the financial year. “It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.70 per cent as on 30th June, 2022. On an aggregated basis, our provision coverage ratio stands at 134 per cent of GNPA as on 30th June, 2022,” it said.
Axis Bank said its gross NPA and net NPA levels as on June 30, 2022 were 2.76 per cent and 0.64 per cent respectively as against 2.82 per cent and 0.73 per cent on March 31 2022. Gross slippages during the quarter were Rs 3,684 crore, compared to Rs 3,981 crore in Q4 FY22 and Rs 6,518 crore in Q1 FY22. Credit cost for the quarter was seen at 0.41 per cent, a plunge of 129 bps YoY.
Axis Bank issued 9.9 lakh credit cards to its customers during the April to June quarter, which is an incremental market share of 17 per cent in the last six months.
As of June 30, 2022, Axis Bank had a network of 4,759 domestic branches and extension counters situated in 2,702 centres compared to 4,600 domestic branches and extension counters situated in 2,628 centres during the year-ago quarter. The lender has 10,161 ATMs and 6,063 cash recyclers spread across the country as of June 30 this year.
Commenting on the results, Axis Bank CEO and MD Amitabh Chaudhry said, “As an institution, we continue to make good progress despite the macroeconomic headwinds that pose a challenge at multiple levels, both domestically and to the larger global economy. We continue to strengthen our core, as we open up all doors of growth and development, keeping our priorities intact on building a nimble, smart and customer obsessed bank.”
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