Axis Bank Q1 results: Net profit rises 41% to Rs 5,797 cr, asset quality improves

Axis Bank Ltd reported 41% rise in first-quarter profit on Wednesday, helped by an increase in net interest income and robust growth in loans.

The Mumbai-based private lender reported a net profit of Rs 5,797 crore for the quarter ended June 30 as compared to Rs 4,125 crore in the year-ago period.

Amitabh Chaudhry, MD&CEO, Axis Bank said: “We are striving to create a distinctive new age bank that provides seamless banking solutions to customers, giving wings to their financial dreams and aspirations. We have been constantly raising the bar - strengthening our digital capabilities and building on our robust pipeline of products and services, while keeping customer centricity at the core of every initiative. With India’s strong macro environment supporting growth and providing abundant opportunities, we are geared up and confident of delivering sustainable growth across all our priority businesses.”

As on June 30, 2023 the bank’s reported gross non-performing assets (NPAs) and net NPA levels were 1.96% and 0.41% respectively as against 2.02% and 0.39% as on March 31, 2023.

On Wednesday, Axis Bank's scrip on BSE closed 1.45% higher at Rs 976.85.

The bank’s net interest income (NII) grew 27% YOY and 2% QOQ to Rs 11,959 crore. Net interest margin (NIM) for Q1FY24 stood at 4.10%, up 50 bps YoY.

Provisions and contingencies for Axis Bank, India's fifth largest by market capitalisation, nearly tripled to Rs 1,035 crore.

This offset a 27.4% jump in its net interest income - the difference between interest earned and expended - to Rs 11,959 crore.

Net interest margins too rose to 4.1% from 3.60% a year ago but shrank from 4.22% in the January-March quarter. The bank had reported a one-time loss of Rs 5,728 crore that quarter, weighed down by costs incurred due to its $1.41-billion Citi deal.

Axis' quarterly advances were up 22% year-on-year, in line with double-digit loan growth seen in Indian banks consistently over the last few months.

The Mumbai-based bank's deposits grew 17%.

With inputs from Reuters