The bank had reported profits of ₹3,614 crore in the same period last year. The reported profits beat Bloomberg consensus estimates that had pegged net earnings at ₹5,340 crore.
Net interest income, which is the difference between interest earned and paid, rose 32% to ₹11,459 crore for the quarter under review versus ₹10,360 crore in the year ago period. Net interest margins expanded to 4.34% at the end of the December quarter against 3.77% a year ago.
“We are gaining market share in our focus segments and have delivered strong and balanced growth in domestic advances led by market share gains in Bharat and SME segments,” said Amitabh Chaudhry, MD, Axis Bank. “We got better on granular and premium deposits and our credit cards business has delivered industry leading performance for four quarters now.”
Chaudhry added that the acquisition of Citi’s retail business is progressing well and the customer base and business performance remains steady. The bank has said it will complete the transaction in the last quarter of this fiscal year.
The bank management also said that it has not taken a final call on when it wishes to up its stake in Max Life Insurance or the price it will be paying for the deal. As per norms, it will be making a fresh application to the regulators for the purchase of more shares.
The total loan book expanded 15% to ₹7.62 lakh crore. Retail loans climbed 17%, SME loans 24% and corporate loans 8% on year.Total deposits for the bank climbed at a slower pace as compared with its peers at 10% on year to reach ₹8.48 lakh crore.
“We have grown 1% faster than industry growth on deposits, yes term deposits have increased but it’s a way to fund the balance sheet,” said Puneet Sharma, CFO, Axis Bank.
Gross non-performing loan ratio improved to 2.38% against 3.17% a year ago. Net non-performing ratio came in at 0.47% versus 0.91% last year. Fresh slippages or new additions to bad loans increased sequentially to ₹3,807 crore versus ₹3,383 crore in the September 2022 quarter.
