Axis Bank announced a net profit of Rs 6,071 crore for the October-December quarter of the fiscal year 2023-24, reflecting a 4% increase compared to the same period last year. While the net profit fell slightly short of the market estimate of Rs 6,114 crore, it highlights the bank’s positive financial trajectory.
The net interest income (NII), representing the difference between interest earned from lending activities and interest paid to depositors, reached Rs 12,532 crore. This figure closely aligns with the market estimate of Rs 12,555 crore, showcasing the bank’s steady performance in this crucial financial metric.
During the quarter, Axis Bank set aside a provision of Rs 182 crore for its entire alternative investment funds (AIF). The net interest margin (NIM) for the quarter was reported at 4.01 percent, underlining the bank’s efficiency in managing interest income.
Examining the asset quality, the bank’s gross non-performing asset (NPA) decreased to 1.58%, down from 2.38% recorded in the same quarter the previous year. Meanwhile, the net NPA for the quarter remained stable at 0.36% on a year-on-year basis.
The bank’s total deposits amounted to Rs 10.04 lakh crore, experiencing an 18% year-on-year growth. Within this, savings and current account (CASA) deposits increased by 16% and 5% respectively. Total term deposits saw a substantial 24% growth, with CASA deposits contributing 42% to the total deposits.
Axis Bank’s advances witnessed a notable 22% year-on-year growth, reaching Rs 9.32 lakh crore. The lender’s retail loans surged by 27% to Rs 5.46 lakh crore, with secured retail loans constituting approximately 75% of the total and home loans making up 30% of the retail book.
However, despite the positive financial performance, shares of the bank closed trading at a 3.41% decline, settling at Rs 1,082.50 apiece on the BSE.
