New Delhi: Private sector lender Axis Bank on Monday reported a 62 percent surge in profit at Rs 5,853 crore for the quarter that ended December 2022, driven by the increase in net interest income and decline in bad loans. Its net profit on a standalone basis stood at Rs 3,614 crore in the same quarter of the preceding financial year. Total income increased to Rs 26,892 crore in the quarter from Rs 21,101 crore in the year-ago period, the bank said in a regulatory filing.
At the same time, net interest income rose by 32 percent Rs 11,459 crore, it said, adding the net interest margin (NIM) increased to 4.26 percent. The bank’s operating profit grew 51 percent on annual basis to Rs 9,277 crore. (Also Read: ‘Why me? Why now?’: 8 months pregnant IT employee pens down heart-rending post after being fired from Google)
On the asset quality front, the bank recorded an improvement, with gross NPAs (Non-Performing Assets) declining to 2.38 percent of the gross advances as compared to 3.17 percent at the end of the third quarter of 2021-22. (Also Read: WHOPPING RETURN! Invest Rs 71 per day in LIC, get Rs 48.5 lakh on maturity; check return calculator, other details)
Net NPAs too eased to 0.47 percent from 0.91 percent. Despite a decline in bad loans, provisions and contingencies increased to Rs 1,437.73 crore as against Rs 1,334.83 crore in the same period a year ago. During the quarter that ended December 31, 2022, the bank issued Basel III compliant Tier II bonds of Rs 12,000 crore, it said.
The capital adequacy ratio rose to 17.60 percent in the December quarter as against 17.44 percent. “India is emerging from the effect of the COVID-19 virus, a global pandemic that affected the world economy over the last more than two years. The extent to which any new wave of COVID-19 will impact the Bank’s operations and asset quality will depend on the future developments, which are highly uncertain,” it said.
With regard to Citi retail business merger, it said it has been shaping very well, and the bank is excited to welcome all customers to the Axis family. In March 2022, Axis Bank acquired Citibank’s India consumer business for USD 1.6 billion in an all-cash deal. The transaction comprised the sale of consumer banking businesses of Citibank India, including credit cards, retail banking, wealth management, and consumer loans.