Axis Bank surged 5.62% to Rs 872.60 after the private lender's net profit soared 70% to Rs 5,329.77 crore on 20% increase in total income to Rs 24,180.08 crore in Q2 FY23 over Q2 FY22.
Net interest income (NII) increased by 31% YoY and 10% QoQ to Rs 10,360 crore. Net interest margin (NIM) for Q2 FY23 stood at 3.96%, up 57 basis points YoY and 36 basis points QoQ.Profit before tax in Q2 FY23 stood at Rs 7,166.43 crore, up by 70.9% from Rs 4,193.08 crore in Q2 FY22.
CASA deposits grew 14% YoY to Rs 3,74,638 crore in the quarter ended 30 September 2022. CASA deposits as % of total deposits grew to 46% as on 30 September 2022 as against 44% as on 30 September 2021.
Operating profit before provisions & contingencies rose 30.2% YoY to Rs 7,716.21 crore during the quarter. The bank's provisions and contingencies (excluding tax provisions) declined by 68.3% YoY to Rs 549.78 crore in Q2 FY23 over Q2 FY22.
Credit cost for the quarter ended 30 September 2022 stood at 0.38%, declining by 16 basis points YoY.
The bank's gross non-performing assets (NPAs) stood at Rs 19,893.73 crore as on 30 September 2022 as against Rs 21,036.77 crore as on 30 June 2022 and Rs 24,148.61 crore as on 30 September 2021.
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The ratio of gross NPAs to gross advances stood at 2.50% as on 30 September 2022 as against 2.76% as on 30 June 2022 and 3.53% as on 30 September 2021.
The ratio of net NPAs to net advances stood at 0.51% as on 30 September 2022 as against 0.64% as on 30 June 2022 and 1.08% as on 30 September 2021.
As on 30 September 2022, the bank's provision coverage, as a proportion of gross NPAs stood at 80%, as compared to 70% as at 30 September 2021 and 77% as at 30 June 2022.
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress declined during the quarter and as at 30 September 2022 stood at Rs 2,996 crore that translates to 0.38% of the gross customer assets. The bank carries a provision of approximately 23% on restructured loans, which is in excess of regulatory limits.
Gross slippages during the quarter were Rs 3,383 crore, compared to Rs 3,684 crore in Q1 FY23 and Rs 5,464 crores in Q2 FY22.
The bank's net advances grew 18% YoY to Rs 7,30,875 crore and deposits increased 10.1% YoY to Rs 8,10,807 crore as on 30 September 2022.
Amitabh Chaudhry, MD & CEO of Axis Bank said, Over the past 12 months, we have made significant strides across every identified priority area. The focus on customer obsession and digitisation has got our acquisition engine humming. The core operating profits and margins have grown on the back of strong performance across business segments. We are building a high-quality, granular franchise with the customer at the centre, while extending our network and services to semi-urban and rural geographies to tap into the Bharat opportunity. We are excited about the future of Axis Bank.
Axis Bank is the third-largest private sector bank in India. As on 30 September 2022, the bank had a network of 4,760 domestic branches and extension counters situated in 2,676 centres compared to 4,679 domestic branches and extension counters situated in 2,658 centres as at end of 30 September 2021.
The scrip hit an all time high at Rs 879.95 in intraday today.
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