Net profit surges 70% YoY to Rs 5,329.8 crore, NII jumps 31%

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Axis Bank Q2FY23 results: Private sector lender Axis Bank on Thursday posted a net profit of Rs 5,329.8 crore for the September 2022 quarter (Q2FY23), a jump of 70.1% from the Rs 3,133.3 crore recorded it a year ago. Axis Bank’s net interest income (NII) between July and September 2022 increased by 31.12% year-on-year to Rs 10,360 crore from Rs 7,901 crore in the prior year quarter.

Axis Bank’s core operating profit for the September 2022 quarter increased by 43% YoY and 19% QoQ to Rs 7,802 crore, respectively. Operating profit for the quarter increased by 30% YoY and 31% QoQ to Rs 7,716 crore.

Its net interest margin (NIM) for Q2FY23 came in at 3.96%, a jump of 57 basis points year-on-year and 36 basis points quarter-on-quarter.

As of September 30, 2022, the bank’s reported gross NPA and net NPA levels were 2.50% and 0.51%, respectively, compared to 2.76% and 0.64% as of June 30, 2022. Gross slippages during the quarter were Rs 3,383 crores, compared to Rs 3,684 crores in Q1FY23 and Rs 5,464 crores in Q2FY22.

“NPA recoveries and upgrades during the quarter were Rs 2,826 crore. Therefore, net NPA slips (before write-offs) for the quarter of Rs 557 crore compared to Rs 727 crore in Q1FY23 and Rs 707 crore in Q2FY22,” Axis Bank said in a statement.

As of September 30, 2022, Axis Bank’s capital adequacy ratio (CAR) and CET1 ratio, including profit, between July and September stood at 17.72% and 15.14%, respectively. Additionally, the bank held Rs 5,012 crore of COVID-19 provisions, not taken into account for the CAR calculation, providing a cushion of 55 basis points from the reported CAR.

Amitabh Chaudhry, Managing Director and CEO of Axis Bank, said: “Over the past 12 months, we have made significant progress in all identified priority areas. The focus on customer obsession and digitization has our acquisition engine buzzing. Earnings and core operating margins increased on strong performance across all business segments. »

He added that the bank is building a high-quality, granular franchise with the customer at the center, while expanding our network and services to semi-urban and rural geographies to exploit the Bharat opportunity.

The bank’s balance sheet increased by 13% year-on-year and stood at Rs 11,85,272 crore as of September 30, 2022. Its total deposits increased by 10% year-on-year based on the quarterly average balance ( QAB) as well as at the end of the period. . On a QAB basis, savings account deposits increased 14% YoY and 3% quarter-on-quarter, current account deposits increased 11% YoY; and total term deposits increased 8% year-on-year. On an MEB basis, the share of CASA deposits in total deposits was 46%, up 172 basis points year-on-year and 251 basis points quarter-on-quarter.

At the end of the September 2022 quarter, Axis Bank has a network of 4,760 branches and domestic extension counters located in 2,676 centers, compared to 4,679 branches and domestic extension counters located in 2,658 centers there are a year.

It had 16,043 ATMs and coin acceptors spread across the country as of September 30, 2022. The bank’s Axis Virtual Center operates in six centers with over 1,500 virtual relationship managers as of September 30, 2022.

In the September quarter of 2021, Axis Bank had recorded a net profit of Rs 3133.3 crore, operating profit of Rs 5928.2 crore, NII of Rs 7900.3 crore and net interest margin ( NIM) by about 3.3%.

Shares of Axis Bank fell 0.42% or 3.45 rupees on Thursday to close at 826.2 rupees each on BSE.

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