Axis Bank Q3 Results: Private lender Axis Bank, on January 23, posted a net profit of ₹6,071 crore in the October-December quarter of the fiscal year 2023-24, reflecting a 4 percent increase compared to the corresponding period last year. However, the reported net profit of ₹6,071 crore is slightly less than the market consensus estimate, which stood at ₹6,114 crores.
Earlier today, shares of Axis Bank settled 3.48 percent lower at ₹1,082 apiece on the BSE.
Also Read: ICICI Bank Q3 Results: Operating profit rises 10% YoY, asset quality stable; 5 key highlights
“The conversations about India are upbeat and it is seen as a major investment destination, evident in discussions at global platforms such as the World Economic Forum. The Indian economic momentum was strong in FY24, and we believe the trend will continue well into FY25. At Axis Bank, our focus has been on sustainable and inclusive growth, with customer taking center stage in every discussion.This quarter we celebrated ‘Sparsh. Week’, a week-long agenda focused on educational customer centric activities, with 15 events covering over 5000 branches and retail value centers, reaching over 95000 employees,” said Amitabh Chaudhry, MD&CEO, Axis Bank.
Here are key highlights of Axis Bank Q3 financial results for FY24 –
Net Profit
The bank recorded its standalone net profit at ₹6,071 crore in the October-December quarter of the fiscal year 2023-24. The private lender posted a 4 percent increase in its net profit YoY, on record ₹5,853 crore last year in the same period and a 3.5% increase on a sequential basis compared to previous quarter at ₹5,863.56 crore in Q2 FY24.
Also Read: IDFC First Bank Q3 Results: Net profit rises 18% to ₹715 crore, NII up 30.5% YoY; asset quality stronger
Net Interest Income
The bank reported its Net interest income (NII) in the third quarter at ₹12,532, crore, up 9%, which is almost in line with the market estimate of ₹12,555 crores. Net Interest Income is the difference between interest earned by a bank on loans and interest it pays to depositors.
Meanwhile, the net interest margin (NIM) stood at 4.01 percent for the quarter ended December 31, 2023. Net Interest Margin refers to the difference between the interest income earned and the interest expensed by a bank in relation to its interest-bearing assets. like cash.
Active quality
The bank’s gross non-performing asset (NPA) stood at 1.58 percent, showing a decline from the 2.38 percent reported in the corresponding quarter of the previous year. In contrast, the net NPA for the quarter remained consistent at 0.36 percent year-on-year.
The bank experienced a large 22 percent growth per year in its advances, reaching a total of ₹9.32 lakh crores. Within that growth, the lender’s retail loans saw an impressive growth of 27 percent, reaching ₹5.46 lakh crores. Notably, secured retail loans accounted for approximately 75 percent of this figure, with home loans accounting for 30 percent of the total retail portfolio.
Also Read: Q3 results today: Axis Bank, Indus Towers, Havells India, others to announce Q3 earnings
PROP and deposit growth
In the current quarter, the pre-supply operating profit (PPOP) experienced a 1.4% annual growth, reaching ₹9,141 crores. In comparison, quarter on quarter, there was a remarkable 6% increase in PPOP.
PPOP is the amount of income that a financial institution, usually a bank, earns in a given time period before deducting funds set aside to provide for future bad debts.
According to the filing, the bank saw 18 percent growth in total deposits, and 5 percent quarter-on-quarter growth at the end of the period. In particular, savings account deposits saw a robust 16% year-on-year expansion.
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Published: 23 Jan 2024, 16:19 IST