Axis Bank Ltd. posted higher-than-expected profit in the quarter ended March and its asset quality improved.
Other Key Highlights
- Advances at Rs 6.24 lakh crore, up 9% year-on-year.
- Retail loans rose 10% year-on-year to Rs 3.34 lakh crore.
- Retail loan disbursements at all-time high, led by secured loan products.
- Retail loans account for 54% of total loan book.
- Corporate advances rose 7% year-on-year to Rs 2.19 lakh crore.
- Deposits stood at Rs 7.07 lakh crore, up 10% over last year.
- Current account-savings account ratio stood at 42% compared with 39% a year ago.
According to Chaudhry, the bank will continue to grow its retail loan portfolio with a focus on secured lending products. While Axis Bank will not stop lending to unsecured borrowers, it will be cautious and deal with customers who meet the bank’s risk standards, Chaudhry said.
Even as the retail portfolio grows, Axis Bank is seeing resurgence in demand from good quality corporate customers. During the last financial year, 94% of the incremental credit to corporate borrowers went to companies rated A- and above, the bank said.
“While corporates are adopting a wait and watch approach, we are seeing some early signs of capex in cement and steel sectors. It is too early to say that this is the start of a strong private capex cycle, but we are seeing early signs,” said Rajiv Anand, the lender’s executive director.
Shares of Axis Bank closed flat before the results were announced compared with a 1.16% gain in the benchmark Nifty 50.
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