Axis Bank Q3 Results: Net profit jumps 62%, beats analysts estimates; margin, asset quality improve
Axis Bank Q3 Results: Indias fifth largest lender by market value reported a net profit of Rs 5,853.1 crore for the October-December period, marking a jump of 61.9 per cent compared with the corresponding period a year ago.
Axis Bank — India's fifth largest lender by market value — on Monday reported a net profit of Rs 5,853.1 crore for the October-December period, a jump of 61.9 per cent compared with the corresponding period a year ago that exceeded analysts' estimates by a wide margin.
The private sector lender's net interest income (NII) — or the difference between interest earned and interest paid — increased 32.4 per cent on a year-on-year basis to Rs 11,459.3 crore, according to a regulatory filing.
According to Zee Business research, the bank's quarterly net profit was estimated at Rs 5,480 crore and NII at Rs 10,900 crore.
The Mumbai-based lender said its performance was driven by strong NII growth, higher fees and moderation in operating expenses.
Citi merger has been shaping very well, and we are extremely happy with the response we are getting from customers and employees alike. We are excited to welcome them all to the Axis family," he said.
The lender's asset quality improved, reflected in its gross non-performing assets (NPAs) — or gross bad loans — as a percentage of total loans, which came in at 2.38 per cent. That marked a contraction of 12 basis points sequentially, and 79 basis points on a year-on-year basis.
Net bad loans came in at 0.47 per cent, down four basis points sequentially and 44 bps on a year-on-year basis.
Total loans increased 15 per cent for the quarter ended December 2022 compared with the year-ago period, with growth of eight per cent in the corporate segment and nine per cent in the retail segment, according to a statement.
Axis Bank shares ended higher by Rs 2.7 or 0.3 per cent at Rs 933.4 apiece on BSE ahead of the earnings announcement.
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