Axis Bank Q3 net profit jumps 4% to Rs. 6,071cr
Axis Bank on Tuesday announced a 4% year-on-year (YoY) growth in its standalone net profit for the October-December quarter of the 2023-24 fiscal year. The bank's net profit reached Rs. 6,071 crore, a slight increase from Rs. 5,853 crore during the same period last year. This number narrowly missed the market estimate of Rs. 6,114 crore.
Net interest income and margin
The bank's net interest income (NII), which is the difference between interest earned from lending activities and interest paid to depositors, rose by 9% to Rs. 12,532 crore during the quarter. This figure is nearly in line with the market estimate of Rs. 12,555 crore. The net interest margin (NIM) for the quarter was 4.01%. Sequentially, net profit increased by 3.5%, while NII saw a marginal 1.7% growth quarter-on-quarter.
Asset quality and provisions
Axis Bank's gross non-performing asset (NPA) ratio improved to 1.58%, down from 2.38% recorded in the same quarter last year. The net NPA for the quarter remained flat at 0.36% on a YoY basis. During the quarter, the lender made a provision on its entire alternative investment funds (AIF) totaling Rs. 182 crore. Provisions for the third quarter amounted to Rs. 1,028 crore, up 26% quarter-on-quarter.
Deposit and loan growth
Total deposits at Axis Bank stood at Rs. 10.04 lakh crore and grew by 18% YoY, with savings and current account (CASA) deposits increasing by 16% and 5%, respectively. Total term deposits experienced a 24% growth, and the share of CASA deposits in total deposits was 42%. Retail loans of the lender increased by 27% to Rs. 5.46 lakh crore, with secured retail loans making up around 75% and home loans accounting for 30% of the retail book.
