Axis Bank Q3 results: Net profit up 224% to Rs 3,614 cr, NII rises 17%

Axis Bank on Monday reported a 224 per cent year-on-year (YoY) rise in its net profit for October-December quarter at Rs 3,614 crore. On a quarter-on-quarter (QoQ) basis, the private sector lender's profit registered a 15 per cent growth.
 
The bank's net interest income (NII) rose 17 per cent YoY and 10 per cent QoQ to Rs 8,653 crore, while net interest margin expanded by 14 basis points QoQ and 2 basis points YoY to 3.53 per cent.
 
On a quarterly average balance basis, Axis Bank's deposits rose 22 per cent YoY and 3 per cent QoQ during the December quarter, while current account and savings account (CASA) deposits grew 25 per cent YoY and 7 per cent QoQ. The bank said its CASA ratio was up 189 basis points to 44 per cent during the quarter. Credit cost for the quarter stood at 0.44 per cent, declining by 258 basis points YoY and 10 basis points QoQ.
 
The bank's advances grew 17 per cent YoY and 7 per cent QoQ to Rs 6,64,866 crore as on December 31, 2021. The loan to deposit ratio stood at 86 per cent. Retail loans grew 18 per cent YoY and 6 per cent QOQ to Rs 3,67,494 crore and accounted for 55 per cent of the net advances.
 
"The share of secured retail loans was about 80 per cent, with home loans comprising 37 per cent of the retail book. Disbursements in retail segment were up 37 per cent YoY and 19 per cent QoQ. SME loan book grew 20 per cent YoY and 9 per cent QoQ to Rs 67,909 crore," the bank said in a release,
 
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Meanwhile, the corporate loan book grew 13 per cent YoY and 7 per cent QoQ to Rs 2,29,462 crore.
 
The gross non-performing assets (NPAs) declined 138 basis points YoY and 36 basis points QoQ to 3.17 per cent, while net NPAs fell 28 basis points YoY and 17 basis points QoQ to 0.91 per cent.
 
As on December 31, 2021, the bank's provision coverage, as a proportion of gross NPAs stood at 72 per cent, as compared to 75 per cent as of December 31, 2020 and 70 per cent as of September 30, 2021.
 
"Our integrated 'One Axis' approach has supported many corporates, some of which have also figured in the 2021 Burgundy Private Hurun India 500 List launched last month. 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," Axis Bank MD and CEO Amitabh Chaudhry said.
 
Shares of Axis Bank closed 1.16 per cent lower at Rs 704.35 on the BSE on Monday.

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