On Wednesday, Axis Bank revealed their first-quarter earnings, reporting a net consolidated profit of 5,797 crore, a 41% increase over the 4,125 crore reported during the same quarter the previous fiscal year. In the quarter ending in June 2023, the bank’s net interest income (NII) increased by 27%, from $9,384 crore in Q1FY23 to $11,958 crore. Net interest margin (NIM) for Q1FY24 was 4.10%, an increase of 50 basis points (YoY).
The Bank reported that its Gross NPA and Net NPA levels were 1.96% and 0.41%, respectively, as of June 30, 2023, compared to 2.02% and 0.39% as of March 31, 2023. 554 crores were recovered from accounts that were written off during the quarter. Retail accounted for 1,639 crores of the reported net slippages in the quarter, CBG for -10 crores, and Wholesale for -498 crores, which were adjusted for recovery from the written off pool.
Gross slippages were 3,990 crores during the quarter, up from 3,375 crores in Q4FY23 and 3,684 crores in Q1FY23. 2,305 crores were recovered and upgraded from NPAs during the quarter. The Bank wiped off NPAs of 2,131 crores during the quarter.
As of June 30, 2023, the Bank’s provision coverage as a percentage of Gross NPAs was 80%, up from June 30, 2022, when it was 77%. As of June 30, 2023, the fund-based outstanding of standard restructured loans under resolution framework for COVID-19 associated stress (Covid 1.0 and Covid 2.0) remained at 1,907 crores, or 0.21% of the gross customer assets, a decrease from the previous quarter. Over the required thresholds, the Bank carries a provision of 21% on restructured loans.
