Axis Bank Reports INR 6,071 Crore Net Profit in Q3 2023-24, Asset Quality Improves

Introduction:

Axis Bank has announced its financial results for the third quarter of the fiscal year 2023-24, revealing a net profit of INR 6,071 crore. Despite a slight miss compared to market estimates, the bank showcased resilience with a 4% YoY increase. Key highlights include robust growth in total deposits, improvements in asset quality, and significant advancements in retail loans.

Financial Performance Overview:

• Net Profit: INR 6,071 crore, reflecting a 4% YoY increase.
• Net Interest Income (NII): INR 12,532 crore, aligning closely with market projections of INR 12,555 crore.
• Provisions: Allocation of INR 182 crore for the entire alternative investment funds (AIF).
• Net Interest Margin (NIM): Reported at 4.01% for the quarter.

Asset Quality and Provisions:

• Gross NPA: Decreased to 1.58% from 2.38% YoY, indicating a commendable improvement in asset quality.
• Net NPA: Remained steady at 0.36% on a YoY basis.

Deposit and Loan Growth:

• Total Deposits: Reached INR 10.04 lakh crore, demonstrating an impressive 18% YoY growth.
• CASA Deposits: Grew by 16%, constituting 42% of the total deposit base.
• Term Deposits: Surged by 24%.
• Advances: Recorded a robust 22% YoY growth, totaling INR 9.32 lakh crore.

Retail Loan Portfolio:

• Retail Loans: Stood at INR 5.46 lakh crore, marking a substantial 27% YoY growth.
• Composition: Secured retail loans accounted for 75%, with home loans constituting 30% of the retail portfolio.

Conclusion:

Axis Bank's Q3 performance underscores its financial resilience, with positive strides in profitability, asset quality, and deposit and loan growth. The bank's strategic focus on retail loans and robust deposit mobilization contributes to its overall stability in a dynamic economic landscape.