Axis Bank Q1 net up 94% YoY at Rs 2,160 cr on sharp dip in provisions

Non-interest income up 39% to Rs 3,588 cr, with fee income growing at 62% to Rs 2,668 cr

Private lender Axis Bank's net profit rose by 94 per cent to Rs 2,160 crore in the first quarter ended June 2021 (Q1FY22) on a rise in non-interest income and a sharp dip in provisions.

The bank posted net profit of Rs 1,112 crore during the same quarter last year (Q1FY21). Sequentially, the bank had booked a profit of Rs 2,677 crore in the quarter ended March 2021 (Q4FY21).

The Axis Bank stock closed flat at Rs 756.15 per share on BSE.

Its net interest income (NII) rose by 11 per cent in Q1FY22 to Rs 7,760 crore from Rs 6,985 crore in Q1FY21.

Net interest margin (NIM) for the reporting quarter rose to 3.46 per cent for Q1FY22 from 3.4 per cent for Q1FY21. NIM was 3.56 per cent in Q4Fy21.

Its non-interest income was up by 39 per cent on YoY basis to Rs 3,588 crore in Q1FY22. Within it, the fee-income grew 62 per cent to Rs 2,668 crore.

The bank's asset quality profile improved with gross non-performing assets (NPAs) stood at 3.85 per cent in June 2021 from 4.72 per cent a year-ago. Sequentially, GNPAs rose marginally from 3.7 per cent in March 2021.

Net NPAs declined to 1.2 per cent during the quarter from 1.23 per cent a year ago. Net NPAs were at 1.05 per cent in March 2021.

Its provisions fell to Rs 3,532 crore in Q1FY22 from Rs 4,416 crore in Q1FY21. The provisions rose marginally at Rs 3,294 crore in Q4Fy21.

The provision coverage ratio (PCR) rose to 87 per cent for Q1Fy22 from the same level a year ago. PCR was 88 per cent in March 2021.

Advances rose 12 per cent to Rs 6.14 trillion in Q1FY22, while deposits also grew by 16 per cent to Rs 7.13 trillion in June 2021.

The bank’s total Capital Adequacy Ratio (CRAR) stood at 18.67 per cent in June 2021.