Axis Bank Q3 results out: PAT rises by 62%

Axis Bank Q3 results are out now, Read here! One of the leading private lenders, Axis Bank announced its financial results for the third quarter ending December 31, 2022 (Q3FY23) period. The bank posted strong growth of 62% year-on-year growth in net profit to ₹5,853.1 crore in Q3FY23. However, in the quarter, the bank’s provisions scaled up sharply on a quarter-on-quarter basis, but asset quality improves further.

The Q3 PAT rose by 9.82% from a profit of ₹5,329.77 crore in September 2022 quarter.

Net interest income (NII) came in at ₹11,459 crore in Q3FY23, registering a growth of 32% YoY and 11% QoQ. Net interest margins (NIM) expanded b 73 bps YoY and 30 bps QoQ to 4.26% in the quarter.

Other figures of Axis Bank Q3

Also, the bank’s provisions scaled up sharply to ₹1,437.73 crore in Q3FY23 compared to ₹549.78 crore in Q2 of the same fiscal. The provisions are marginally up from ₹1,334.83 crore in December 2021 quarter.

According to Axis Bank, the provisions in Q3FY23 also included ₹340 crore of non-recurring, one-time/prudent provisions.

On the contrary, gross NPA came in at 2.38% in Q3FY23 compared to 2.50% in Q2FY23 and 3.17% in Q3FY22 — declining by 79 bps YoY and 12 bps QoQ. Net NPA as well contracted by 44 bps YoY and 4 bps QoQ to 0.47%. The provision coverage ratio stood healthy at 81%.

Amitabh Chaudhry, MD&CEO, Axis Bank commented, “In the midst of global uncertainty, India stands as a bright spot offering great stability and opportunities for the economy and businesses.”

On the merger deal with Citi Group, Chaudhry said, “The 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.”

The MD stated that the banking sector is in a good position to leverage this great momentum built over the last few quarters. Axis Bank has been steadily enhancing its capabilities, buoyed by good business growth and great partnerships.

Deposits and others

Axis Bank’s balance sheet grew 10% YOY and stood at ₹12,23,509 crore as of December 31, 2022. Total deposits jumped by 9% YoY and 2% QoQ on a quarterly average balance (QAB) basis. In the quarter, current account deposits soared by 9% YoY, and 10% QoQ savings account deposits also surged by 10% YoY and 1% QoQ. Total term deposits picked up by 9% YoY and 2% QoQ, while the share of CASA deposits stood at 44%.

Meanwhile, net advances stood at ₹7,62,075 crore in Q3FY23 up by 15% YoY and 4% QoQ.

During the quarter, home loans grew 9% YoY, Small Business Banking (SBB) grew 60% YoY, and the rural loan portfolio grew 27% YoY. Unsecured personal loans grew 21% YoY and credit card advances grew 39% YoY. SME book remains well diversified across geographies and sectors, growing 24% YoY and 5% QoQ to ₹82,190 crore. Corporate loan book grew 8% YoY and 9% QoQ to ₹2,50,572 crore.

Notably, Axis Bank issued 1.04 million new credit cards in Q3FY23.

As of December 31, 2022, the bank’s network stood at 4,849 domestic branches and extension counters in 2,734 centres. As of December 31, 2021r 4,700 domestic branches and extension counters in 2,665 centres. Also, the bank had 15,674 ATMs and cash recyclers spread across the country. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 Virtual Relationship Managers as of December 31, 2022.

By CA Nitin Kaushik

Watch this video by CA Nitin Kaushik to Quarterly Results in detail.