Axis Bank Q3 Financial Results: 4% Increase in Net Profit, Robust Asset Quality Maintained

In the third quarter of the fiscal year 2023-24, Axis Bank reported a net profit of Rs 6,071 crore, reflecting a 4% growth compared to the same period last year. However, this figure slightly falls short of the market estimate of Rs 6,114 crore.

The net interest income (NII), standing at Rs 12,532 crore, aligns closely with the market projection of Rs 12,555 crore. Notably, the bank made a provision of Rs 182 crore on its entire alternative investment funds (AIF) during the quarter, while the net interest margin (NIM) for the period was reported at 4.01 percent.

In terms of asset quality, the gross non-performing asset (NPA) decreased to 1.58 percent from the previous year’s 2.38 percent. Conversely, the net NPA remained constant at 0.36 percent year-on-year.

The bank’s total deposits reached Rs 10.04 lakh crore, registering an 18 percent YoY growth. Within this, savings and current account (CASA) deposits increased by 16 percent and 5 percent, respectively, with CASA deposits constituting 42 percent of the total deposits. Term deposits witnessed a 24 percent growth.

Advances for the bank grew by 22 percent YoY, reaching Rs 9.32 lakh crore. Notably, retail loans surged by 27 percent to Rs 5.46 lakh crore, with secured retail loans accounting for 75 percent and home loans contributing 30 percent to the retail portfolio.

Despite the positive financial indicators, Axis Bank’s stock closed nearly 3.41 percent lower at Rs 1,082.50 on the BSE.

Axis Bank Q4 Result Snapshot

  • Oct-Dec net profit 60.71 bln rupees vs 58.53 bln
  • Analysts saw Oct-Dec net profit 60.02 bln rupees
  • Oct-Dec total income 335.16 bln rupees vs 267.98 bln
  • Gross NPA ratio 1.58% as on Dec 31 vs 1.73% qtr ago
  • Net NPA ratio 0.36% as on Dec 31, flat vs qtr ago
  • Oct-Dec provisions 10.28 bln rupees vs 14.38 bln
  • Axis Bank Basel III capital adequacy ratio 14.88% as on Dec 31

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