Financial Insights

Axis Bank Q3 results: Net Profits grow 3x times YoY

Axis Bank’s Q3 results have shown a 3x times YoY growth in its net profit. Its net profit increased to Rs 3,614 crores against Rs 1,117 crores on December 2020. It has shown a strong growth in loans and fees income as its provisions fell.

The results showed a 17% growth in Net Interest Income at Rs 8,653 crores and a 15% growth in fee income. Its Net Interest Margin grew up to 3.53% from 3.51% last year. Its lending grew across several categories: retail loans grew 18%, SME loans grew 20%, corporate lending increased 13% and mid-corporate lending improved 44% YoY.

The bank has added a record 7.70 lakh new credit cards during the quarter. It saw a sharp decline in its provisions as they fell from Rs 3,757 crores on December 2020 to Rs 1,335 crores on December 2021.

“All the hard work we have done in terms of providing upfront, being conservative in restructuring and building a loan book is now bearing fruit. As things open up post-Omicron we are well-positioned to take advantage of our business, customer relationships and market presence and grow 500 to 600 basis points faster than the system,” CEO Amitabh Chaudhry said.

It also saw a fall in it NPA ratios: Gross NPA stood at 3.17% and Net NPA was 0.91%. The CASA ratio improved 189 basis points as it stood at 44%.

Shares of Axis bank underperformed as it fell 17% in the last 3 months, main reasons for which were sub-par growth and poor performance. Since the results were declared yesterday the stock has grown over 6% since today morning.

Highlight by Aman Agarwal.

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