“We have made steady progress across all dimensions of our business, considerable work has gone into strengthening our core, building granularity while at the same time ensuring that we are well positioned to grow and leverage the opportunities opening up, hopefully with the pandemic behind us,” said Amitabh Chaudhry, MD, Axis Bank.
Net interest income, or the core income, grew 17% year-on-year to ₹8,815 crore. Other income, rose to ₹4,223 crore, up 19%. Net interest margin (NIM) for the March quarter stood at 3.49%.
The bank posted strong improvement in its asset quality metrics with gross non-performing loan ratio at 2.82% down from 3.70% in the same period last year. Net non-performing loan ratio too improved to 0.73%.
Gross slippages, or new additions to bad loans, was ₹3,981 crore for the quarter under review versus ₹4,147 crore in the December 2021 quarter. Recoveries and upgrades was robust and stood at ₹3,763 crore.
Provisions fell sharply down 54% year-on-year at ₹987.2 crore. It was ₹2,167 crore in the same period last year. The bank holds cumulative provisions (standard and additional other than NPA) of ₹12,428 crore at the end of the March quarter.
The bank’s advances grew 15% year-on-year taking the loan book size to ₹7.07 lakh crore. Retail loans grew 21% YoY to around ₹4 lakh crore and accounted for 57% of the net advances.
The share of secured retail loans was nearly 80%, with home loans comprising 36% of the retail book.
