Axis Bank net profit surges 91% for Q1FY23

Axis Bank on Monday reported strong earnings for the quarter ended June 30, 2022. The private bank, in a regulatory filing, said it has registered significant rise in operating performance and margin expansion combined with growth in deposits and loans.

Axis Bank’s PAT (profit after tax) jumped nearly 91 per cent year-on-year to Rs 4,125 crore in Q1FY23 as against Rs 2160.2 crore in Q1FY22. The bank’s net interest income surged to almost 21 per cent year-on-year to Rs 9,384 crore in the June quarter of FY23 against Rs 7,760 crore in the same quarter a year ago.

Amitabh Chaudhry, MD&CEO, Axis Bank said, “We continue to make good progress despite the macroeconomic headwinds that pose a challenge at multiple levels, both domestically and to the larger global economy. We continue to strengthen core, as we open up all doors of growth and development, keeping our priorities intact on building a nimble, smart and customer obsessed bank. One of the highlights for Axis Bank in the previous quarter was our acquisition of Citibank’s consumer business in India,” Chaudhry said.

The bank’s net interest margin (NIM) stood at 3.60 per cent, up 14 basis points (bps) year-on-year (YoY) and 11 bps QoQ, while the consolidated ROE (annualised) stood at 15.66 per cent, up 587 bps YoY. Retail loans have gone up 25 per cent YoY, SME up 27 per cent YoY. The gross non-performing assets (NPA) of the company stood at 2.76 per cent, a decline by 109 bps YoY.  Net NPA stood at 0.64 per cent, a decline by 56 bps YoY and 9 bps QoQ.

Capital adequacy ratio (CAR) including profit for Q1FY23 stood at 17.83 per cent with CET 1 ratio of 15.16 per cent.

The bank has issued 0.99 million credit cards issued in Q1. Axis bank has also become the second largest player in Merchant Acquiring with market share of 17 per cent with an incremental share of 30 per cent for last 3 months.