The bank had reported a net profit of ₹2,160 crore a year ago.
Net interest income, or the core income of the bank, rose 21% on year to ₹9,384 crore at the end of the June quarter versus ₹7,760 crore a year ago. The net interest margins rose 14 basis points to 3.60%.
One basis point is 0.01%.
The bank posted a loss in its treasury book to the tune of ₹667 crore as bond yields climbed through the quarter, mirroring the first signs of hardening in policy rates in three years.
“We continue to make good progress despite the macroeconomic headwinds that pose a challenge at multiple levels, both domestically and to the larger global economy,” said Amitabh Chaudhry, MD, Axis Bank. “One of the highlights for Axis Bank in the previous quarter was our acquisition of Citibank’s consumer business in India. We have filed for the due approvals and once they are in place, the integration process will pick up pace.”
The bank said its specific loan loss provisions fell to ₹777 crore in the June quarter versus ₹2,865 crore in the year-ago period.
The bank holds cumulative provisions of ₹11,830 crore at the end of the quarter under review. Credit cost for the quarter stood at 0.41%, declining by 129 bps on year.
The bank posted a 14% growth in its total advances to ₹7.01 lakh crore. This was aided by 25% growth in retail loans which comprised 59% of the net advances of the bank. Small business banking loans grew 74% on year while rural loans grew 42%.
The corporate loan book shrank 5% and stood at ₹2.16 lakh crore. Loan growth lagged the industry average mainly due to lower corporate and SME loans and declined sequentially by 0.9%.
“It is not as if we are not doing business with large corporates. On the lending side at the short end, we think that the competition to some degree is mis-pricing liquidity at this point in time,” said Rajiv Anand, deputy MD, Axis Bank.
The bank reported gross non-performing asset ratio at 2.76% for the quarter versus 3.85% a year ago. Net NPA came in at 0.64%. Gross slippages during the quarter were ₹3,684 crore, compared with ₹3,981 crore in the March 2022 quarter. This was at ₹6,518 crore in the same period last year.
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and stood at Rs 3,402 crore.
