Private lender Axis Bank reported an all-time high standalone net profit of ₹3,133 crore in the September quarter (Q2FY22), mainly on account of accelerating loan growth in focus segments, limited restructuring and improving asset quality. This is an increase of 86% from ₹1,682 crore a year ago.
The lender’s net interest income (NII) grew 8% year-on-year to ₹7,901 cr from ₹7,326 crore in the last year quarter.
Ahead of the results on Tuesday, Axis Bank shares closed flat at ₹844.65 on NSE.
Commenting on the results, Axis Bank MD & CEO, Amitabh Chaudhry said, “On the business front we are seeing solid progress. We continue our focus on SMEs and mid-corporate segments, and on the retail side we see better disbursements and growth driven by secured products. We really hope to make the upcoming festivities special for our customers, with our ‘Dil Se Open Celebrations’ providing exciting deals and discounts across e-commerce platforms and local retailers.”
The Bank’s operating profit for the second quarter came in at ₹5,928 crore, while the core operating profit was ₹5,456 crore.
The non interest income for the second quarter stood at ₹3,798 crores, up 6% year-on-year. However, on a sequential basis, the same was up 13%.
Specific loan loss provisions during the second quarter stood at ₹927 crore as compared to ₹2,865 crore in the last year period.
The Bank said it has not utilized Covid provisions during the quarter. The Bank holds cumulative provisions (standard + additional other than NPA) of ₹12,951 crore at the end of second.
The gross non performing assets (NPA) of the lender came in at 3.53% in the second quarter, lower than 3.85% in the June quarter and 4.18% in the previous year period.
Meanwhile net NPA ratio during the quarter stood at l.08%.
On the digital front, Axis Bank crossed 1.9 million customers on WhatsApp Banking within 9 months of launch.
The loan book growth of the Bank stood at 10% year-on-year, driven by focused business segments.
Segment wise, retail loans rose 16% year-on-year and 4% sequentially, while SME loans grew 18% over last year.
The Bank’s balance sheet grew 17% year-on-year and stood at ₹10.5 lakh crore as of september quarter, while the total deposits jumped by 18% YoY, both on period end basis and quarterly average balance (QAB) basis.
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