Axis Bank Q3 results: Net profit jumps 224% YoY to Rs 3,614 cr, beats estimate

The profit was significantly higher than the analyst estimate of Rs 3,150 crore in an ETNow poll.

The bank said Net Interest Income (NII) grew 17 per cent year-on-year (YoY) and 10 per cent sequentially to Rs 8,653 crore.

Fee income grew 15 per cent YoY and 3 per cent QoQ to Rs 3,344 crore. The trading profits and miscellaneous income for the quarter stood at Rs 367 crores and Rs 130 crores respectively. Overall, non-interest income at Rs 3,840 crore, up 31 per cent YoY and 1 per cent QoQ.

The operating profit for the quarter grew 17 per cent YoY and 4 per cent QOQ to Rs 6,162 crores.

“As part of our digital strategy, we continue to focus on ‘OPEN’ Banking initiatives to enhance user experience through constant innovation in our offerings to both Retail and Corporate Banking customers. In Retail, we continue our growth focus, with the economy turning around and the 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 Amitabh Chaudhry, MD&CEO, Axis Bank.

Specific loan loss provisions for Q3 were Rs 790 crore compared to Rs 927 crore in Q2FY22. The Bank has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions of Rs 13,404 crore at the end of Q3FY22.

“It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 2.03 per cent as on December 31, 2021. On an aggregated basis, our provision coverage ratio stands at 130 per cent of GNPA as on 31st December, 2021,” Axis Bank said.

The lender said its retail loan book grew 18 per cent YoY and 6 per cent QoQ, SME loans grew 20 per cent YoY and 9 per cent QoQ and corporate loan book grew 13 per cent YoY and 7 per cent QoQ.