Stock Market update: Axis Bank shares up by 4% post Q3 results

Stocks of Axis Bank rose by 4% to ₹738.65 per equity share against the previous close at ₹704.60 per share, in today’s early trade.

The shares of Axis Bank increased by 4% at ₹738.65 per share against the previous close at ₹704.60 per share, in today’s early trade.  Axis Bank on January 24 reported a 224 percent year-on-year rise in its net profit at Rs 3,614 crore for the quarter ended December, which was sharply above analysts’ expectations of Rs 3,046 crore.

The private sector lender also reported a 17 percent on-year growth in net interest income to Rs 8,653 crore for the quarter ended December, which was also above Street’s estimate of Rs. 8,230 crore.

The lender had a strong performance on the asset quality front as the gross non-performing ratio slipped 36 basis points sequentially to 3.17 percent. Similarly, the net NPA ratio also fell 17 basis points on quarter to 0.91 percent.

Axis Bank said its net loan slippage ratio declined 38 basis points on-quarter to 0.06 percent in the reported quarter. Specific loan-loss provisions in the quarter declined to Rs, 790 crore from Rs. 927 crore in the previous quarter.

“The Bank has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions of Rs. 13,404 crores at the end of Q3FY22,” Axis Bank said in a filing to the exchanges.

On the advances front, Axis Bank posted 18 percent year-on-year growth in retail loans and a 37 percent jump in retail loan disbursements. The private sector lender also showed healthy growth in corporate loans in the quarter, which grew 13 percent on-year.

“We are optimistic about the future and plan to leverage every sustainable growth opportunity that is available to us,” said Amitabh Chaudhry, managing director and chief executive officer at Axis Bank. Total deposits of the lender grew 20 percent on-year to Rs. 7.7 lakh crore with current account-savings account deposits rising by 22 percent on-year. The lender’s CASA ratio improved 189 basis points on-year to 44 percent.

Overall capital adequacy ratio (CAR) including profit for the first nine months of the current financial year stood at 18.72 percent with common equity tier-I ratio of 15.33 percent. Axis Bank’s operating profit rose 17 percent on-year to Rs. 6,162 crore while core operating profit grew 9 percent. Core operating profit excludes trading profit and gain or loss on capital repatriated from an overseas branch or subsidiaries.

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