Axis Bank reported a 2.9% rise in net profit for the December quarter, while asset quality improved on a sequential basis.
Profit rose to Rs 6,490 crore in Q3 from Rs 6,304 crore a year earlier, according ot its notification to the exchanges on Monday. The anallsyts consensus estiamte for the profit tracked by Bloomberg stood at Rs 6,708 crore.
Gross non-performing assets declined to 1.4% from 1.46% in the previous quarter, below estimates of 1.5%. Net non-performing assets eased to 0.42% from 0.44% quarter on quarter, close to estimates of 0.4%.
Axis Bank Q3 Results (Standalone, YoY)
- Profit rose 2.9% to Rs 6,490 crore versus Rs 6,304 crore (Bloomberg estimate: Rs 6,708 crore)
- Net interest income rose 5% to Rs 14,287 crore versus Rs 13,606 crore
- Provisions rose 4.2% to Rs 2,246 crore versus Rs 2,156 crore
- Net NPA at 0.42% versus 0.44% (QoQ)
- Gross NPA at 1.4% versus 1.46% (QoQ)
Net interest income rose 5% to Rs 14,287 crore from Rs 13,606 crore a year earlier, while the net interest margin stood at 3.64%. Provisions rose 4.2% year on year to Rs 2,246 crore from Rs 2,156 crore.
Deposits, Advances Grow
Total deposits rose 15% year on year and 5% quarter on quarter. Current account deposits increased 20% year on year, savings account deposits rose 11%, and term deposits grew 16%. CASA deposits accounted for 39% of total deposits.
Advances grew 14% year on year and 4% quarter on quarter to Rs 11.59 lakh crore. Retail loans increased 6% year on year, with secured loans accounting for 73% of the book, including 26% home loans. SME advances rose 22% year on year, while corporate loans increased 27%, with 90% rated A- and above.
Capital Position
Shareholders' funds increased 15% year on year to Rs 1.96 lakh crore. The capital adequacy ratio stood at 16.55%, while the CET1 ratio was 14.50%. Book value per share rose to Rs 634 from Rs 553 a year earlier.
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