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UPDATED: FOR WEB AND PRINT
January 24
Axis Bank’s standalone net profit for the third quarter of the fiscal shot up 223.7 per cent as provisions declined significantly and net interest income grew in double digits. The private sector lender reported a net profit of ₹3,614.24 crore for the quarter ended December 31, 2021, compared to ₹1,116.6 crore a year ago.
The bank’s net interest income grew 17 per cent y-o-y to ₹8,653 crore in the third quarter of the fiscal from ₹7,373 crore a year ago.
Net interest margin for the third quarter improved by 14 basis points (bps) q-o-q to 3.53 per cent. It was 3.59 per cent including interest from income tax refunds in the third quarter of last fiscal.
Non-interest income (comprising of fee, trading profit and miscellaneous income) for the third quarter of the fiscal stood at ₹3,840 crore, up 31 per cent y-oy from ₹Rs 2,929 crore a year ago. The bank’s provisions declined to ₹1,334.83 crore in the third quarter of the fiscal from ₹3,757.20 crore in the same period last fiscal.
“Specific loan loss provisions for the third quarter of 2021-22 were ₹790 crore compared to ₹927 crore in the second quarter of 2021-22,” Axis Bank said in a statement on Monday, adding that it has not utilised Covid provisions during the quarter.
Improvement in asset quality
As on December 31, Axis Bank’s gross NPA and net NPA levels were 3.17 per cent and 0.91 per cent, respectively, as against 3.53 per cent and 1.08 per cent as on September 30, 2021. It was also lower compared to gross NPA of 3.44 per cent and net NPA of 0.74 per cent as on December 31, 2021.
Gross slippages during the quarter were ₹4,147 crore, compared to ₹5,464 crore in the second quarter of the fiscal and ₹7,993 crore in the third quarter of 2020-21. The bank also issued 7.7 lakh credit cards issued in the third quarter of the fiscal, which was the highest ever for any quarter.
Amitabh Chaudhry, Managing Director and CEO, Axis Bank said the bank is looking at more strategic partners for credit cards. He however, declined to comment on a possible acquisition of Citi’s consumer business in India.
“In retail, we continue our growth focus, with the economy turning around and limited impact of the virus. We are optimistic about the future and plan to leverage every sustainable growth opportunity that is available to us,” said Chaudhry.
In a media call, he also said the bank is well capitalised and does not require to raise capital. The bank’s advances grew 17 per cent y-o-y to ₹6,64,866 crore as of December 31, 2021 and deposits increased 20 per cent to ₹7,71,670 crore by the year end.
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