Axis Bank Q3 results: Net profit soars 224% to Rs 3,614 cr

The bank's net interest income grew 17% YoY to Rs 8,653 cr; asset quality improves

Private lender Axis Bank on Monday reported 224% jump in standalone net profit at Rs 3,614 crore for the quarter ending December 31, 2021 on strong growth performance across deposits and loans, improving asset quality. The lender reported net profit of Rs 1,117 crore in the year-ago period.

The bank’s net interest income (NII) grew 17% YoY to Rs 8,653 crore. Net interest margin (NIM) for Q3FY22 improved by 14 bps QoQ to 3.53%.

Interest earned increased to Rs 17,261 crore as compared to Rs 15,426 crore in Q3FY21.

Provisions and contingencies fell significantly to Rs 1,335 crore as against Rs 3,757 crore a year ago.

The total deposits grew by 22% YoY on quarterly average balance (QAB) basis and 20% YoY on period end basis. The lender registered 18% year-on-year growth in retail loans, 20% growth in SME loans and 13% growth in corporate loan book.

As on December 31, 2021 the bank’s reported Gross NPA and Net NPA levels were 3.17% and 0.91% respectively as against 3.53% and 1.08% as on September 30, 2021.

"Gross slippages during the quarter were Rs 4,147 crores, compared to Rs 5,464 crore in Q2FY22 and Rs 7,993 crore in Q3FY21 (as per IRAC norms). Slippages from the loan book were at Rs 3,332 crore and that from investment exposures stood at Rs 815 crore. Recoveries and upgrades from NPAs during the quarter were Rs 3,288 crores while write-offs were Rs 1,707 crore. Consequently, there were net slippages in NPAs (before write-offs) for the quarter of Rs 860 crore as compared to Rs 707 crore in Q2FY22 and Rs 5,831 crore in Q3FY21," the bank said.

As on December 31, 2021, the bank’s provision coverage, as a proportion of Gross NPAs stood at 72%, as compared to 75% as at December 31, 2020 and 70% as at September 30, 2021.

Over 0.77 million credit cards acquired in Q3FY22, highest ever for any quarter, said the lender in a stock exchange filing. The credit card spend of the bank rose by 52% from a year ago.

Amitabh Chaudhry, MD&CEO, Axis Bank said: “As part of our digital strategy, we continue to focus on ‘OPEN’ Banking initiatives to enhance user experience through constant innovation in our offerings to both Retail and Corporate Banking customers. Our integrated ‘One Axis’ approach has supported many corporates, some of which have also figured in the 2021 Burgundy Private Hurun India 500 List launched last month. In Retail, we continue our growth focus, with the economy turning around and limited impact of the virus. We are optimistic about the future and plan to leverage every sustainable growth opportunity that is available to us.”

On Monday, the lender's scrip on BSE closed trading 1% lower at Rs 704.35.

Total income during the October-December period of 2021-22 rose to over Rs 21,101 crore from Rs 18,355 crore in the same quarter of 2020-21, Axis Bank said in a regulatory filing.

Specific loan loss provisions for Q3FY22 were Rs 790 crore as compared to Rs 927 crore in Q2FY22, the bank said.