- Axis Bank, one of the leading private banks in the country, exceeded analyst expectations, reporting a 31% year-on-year increase in net interest income for the second quarter.
- The lender also reported an improvement in asset quality as its provisions declined.
- The wealth management solution for ultra-high net worth clients increased to 4,035 households, from 2,790 households last year.
Axis Bank’s second-quarter standalone net profit increased by more than 70% to 5,330 crore from ₹3,133 crore in the same quarter last year.
Net interest income (NII) increased 31% to ₹10,360 crore for the last quarter of September, year on year.
Net interest margins (NIMs) — a measure of how much a bank earns as interest income from its customers versus how much it pays on deposits — improved to 3.96% — up 57 bps year-on-year and 36 bps sequentially.
Axis Bank reported 20% growth in standalone total income to 24,180 crore, from ₹20,134 crore in the same quarter a year ago.
Net loans increased 18% year-over-year to ₹7,30,875 crore, with retail loans constituting 58% of the total loan portfolio – 79% of which were secured.
Asset quality improved moderately, with net non-performing assets (NPA) of 0.51% from 1.08% a year ago. Net slips – which is a measure of new additions to net NPA – also improved to 557 crore from ₹707 crore in the previous year.
Provisions declined 68% to 550 crore from ₹1,735 crore a year ago, contributing to the sharp increase in net profit in the quarter.
Payments and digital services
During the quarter, Axis Bank issued 1.04 million new credit cards, with a 13% market share in the nine months of calendar year 2022. It also witnessed 73% YoY growth in UPI transactions during the quarter, with a market share of 16%.
The bank’s wealth management solution, Burgundy, rose to ₹2,68,754 crore in assets under management. Burgundy Private, its offering for high net worth clients, rose to 4,035 families, from 2,790 families last year, the bank said.
Here’s Axis Bank’s second quarter in numbers:
|Particularities||Q2 FY23||Q1 FY23||Q2 FY22|
|Total income||₹24,180 crore||₹21,728 crores||₹20,134 crore|
|Net interest income||₹10,360 crore||₹9,384 crore||₹7,900 crore|
|Net profit||₹5.330 crore||₹4.125 crore||₹3,133 crores|
Source: Company Reports
$AXISBANK.NSE is almost always high….Looking for a good break, but facing some resistance from current level and little resistance in the future around 875-900 level…Strong close at 900 will take it to a bring a new peak. ..With the quarterly results close we may even see a gap if the results are good…But everyone is advised to stay cautious and add once the ABV 900 closes…Note:- We are not SEBI- registered. Consult your financial advisor before trading.
— (@FunTechAdda) October 20, 2022
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