The private sector bank reported a 94.2% jump in standalone net profit to Rs 2,160 crore on a 2.4% rise in total income to Rs 19,591 crore in Q1 FY22 over Q1 FY21.
Axis Bank's operating profit before provisions and contingencies rose nearly 10% to Rs 6,416.04 crore in Q1 FY22 from Rs 5,844.40 crore in Q1 FY21. Profit before tax surged nearly 102% to Rs 2884.03 crore in Q1 FY22 over Q1 FY21.
The bank's net interest income (NII) grew 11% year on year (YoY) to Rs 7,760 crore from Rs 6,985 crore in Q1FY21. Net interest margin (NIM) for Q1 FY22 stood at 3.46%.
Provisions and Contingencies declined 20% to Rs 3,532.01 crore in Q1 FY22 from Rs 4,416.42 crore in Q1 FY21. Specific loan loss provisions for Q1 FY22 were at Rs 3,151 crores compared to Rs 3,512 crores in Q1 FY21. The bank said it has not utilized Covid provisions during the quarter. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 12,425 crores at the end of Q1 FY22.
On the asset quality front, as on 30 June 2021, the bank's reported Gross NPA and Net NPA levels were at 3.85% and 1.20% respectively as against 3.70% and 1.05% as on 31 March 2021. Gross slippages during the quarter were at Rs 6,518 crores, compared to Rs 5,285 crores during Q4FY21 and Rs 2,218 crores in Q1FY21. Slippages in Q1 FY21 were moderated due to regulatory forbearances that do not exist in the current quarter. As on 30 June 2021, the bank's provision coverage, as a proportion of Gross NPAs stood at 70%, as compared to 75% as at 30 June 2020 and 72% as at 31 March 2021.
The bank's balance sheet grew 14% YoY and stood at Rs 10,12,050 crores as on 30 June 2021. The total deposits grew by 16% on period end basis. Advances grew 12% YoY to Rs 6,14,874 crores as on 30 June 2021. The bank's loan to deposit ratio stood at 86%.
Commenting on developments during the quarter, Amitabh Chaudhry, MD & CEO of Axis Bank said, Despite wave two headwinds, we made tremendous progress this quarter on our strategy of building a high quality granular franchise, increasing our relevance in the lives of the customers and the communities we serve and building the best digital bank in the country.
Axis Bank offers the entire spectrum of financial services to customer segments covering large and mid-corporates, MSME, agriculture and retail businesses. As on 30 June 2021, the bank had a network of 4,600 domestic branches and extension counters situated in 2,628 centres.
Shares of Axis Bank were trading 0.65% lower at Rs 751.25 on BSE.
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