Axis Bank’s Q1 profit nearly doubles to ₹4,125 crore; NII up 21%

Net interest income (NII), the difference between interest earned and interest spent, increased 21% year-on-year 9,384 crores. it was 7,760 crore in the corresponding quarter of last year.

The private lender’s core operating profit grew 17% YOY and 5% QOQ, the bank said in a BSE filing.

Fee income up 34% year-on-year for June quarter 3,576 crores. Retail charges grew 43 per cent year-on-year and accounted for 66% of the total fee income of the bank. Corporate and commercial banking fees increased 19% year-on-year.

The gross NPA ratio for the April-June quarter stood at 2.76%, as against 2.82% in the March quarter.

Axis Bank said it has made specific loan loss provisions 777 crore as compared to 602 crore in the March quarter.

The bank, Axis Bank said, has not utilized the COVID provisions during the quarter.

Overall, the bank kept cumulative provisions of 11,830 crore at the end of Q1FY23. “It is worth noting that this is over and above the NPA provision included in our PCR calculations. These cumulative provisions translate into a standard asset coverage of 1.70 per cent as of June 30, 2022. On an overall basis, our provision coverage ratio of GNPA is 134 percent.”

Credit cost for Q1FY23 came down 129 basis points YoY at 0.41%.

The private lender has issued 9.9 lakh credit cards in the June quarter, an incremental share of 17% for the past six months.

Bank’s domestic subsidiaries

– Axis Finance Q1FY23 PAT up 59% yoy 95 crores; Asset quality remains stable, with almost zero restructuring

– Axis AMC Q1FY23 PAT up 20% yoy 88 Cr, Quarterly AAUM 18% YOY

– Axis Capital stood at Q1FY23 PAT 34 crore

– Axis Securities Q1FY23 PAT at 39 crore

Shares of Axis Bank closed down 0.56% 726.65 each on NSE today.

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