Axis Bank Q3 results: In the December quarter, asset quality as indicated by gross non-performing assets as a percentage of total advances improved.
On Tuesday, Axis Bank Ltd reported a standalone profit of Rs 6,071.10 crore for the December quarter, marking a 4 percent year-on-year increase from Rs 5,853.07 crore. Net interest income (NII) grew by 9 percent to Rs 12,532 crore, while the net interest margin (NIM) stood at 4.01 percent, slightly below analysts’ expectations of around 4 percent.
The asset quality, indicated by the gross non-performing assets (NPAs) as a percentage of total advances, exhibited improvement at 1.58 percent, compared to 1.73 percent in the September quarter and 2.38 percent in the same quarter last year. Provisions for the quarter amounted to Rs 1,028.34 crore, rising from Rs 814.56 crore in the September quarter and decreasing from Rs 1,437.73 crore in the year-ago period. Axis Bank’s total provision and contingencies included specific loan loss provisions of Rs 691 crore. Additionally, the bank made a full provision on its entire AIF investments, totaling Rs 182 crore during the quarter. – Axis Bank Q3 results
Compared to Rs 3,254 crore in September and Rs 3,807 crore in the same month last year, gross slippages throughout the quarter totaled Rs 3,715 crore. For the quarter, recoveries and upgrades from non-performing assets totaled Rs 2,598 crore. According to Axis Bank, the bank wiped off NPAs totaling Rs 1,981 crore during the quarter. According to Axis Bank, it did not make use of any Covid provisions during the quarter. As of the end of Q3FY24, the bank has cumulative provisions of Rs 11,981 crore. It is important to remember that this is additional to the NPA provisioning that is accounted for in PCR computations.
As of December 31, these cumulative provisions equate to a standard asset coverage of 1.29 percent. As of December 31, 2023, our provision coverage ratio, taken as a whole, is 153% of GNPA. Credit cost was 0.28 percent for the quarter that concluded on December 31, 2023, according to Axis Bank. According to Axis Bank, their fee income increased to Rs 5,170 crore, up 29% YoY and 4% QOQ. Retail fees accounted for 72% of Axis Bank’s overall fee income, with YoY and QOQ increases of 36% and 6%, respectively. Retail card and payment fees increased by 10% QOQ and 52% YoY, according to a BSE report by Axis Bank.
Customers have always come first in all conversations at Axis Bank, according to Chaudhry, with an emphasis on inclusive and sustainable growth.
The closing price of Axis’ BSE stock on Tuesday was Rs 1,088.9, about 3% lower.
