Axis Bank Q2 Result: Bank reports net profit jump by 70 % at Rs 5,330 crore in July-September quarter of FY23

The country's third largest private lender Axis Bank had posted a net profit of Rs 3,133.32 crore in the year-ago quarter.

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New Delhi: Private sector lender Axis Bank on Thursday reported a 70 per cent jump in standalone net profit at Rs 5,329.77 crore in the July-September quarter of FY23 on healthy core income supported by fall in bad loans. Also, the income from investments during the quarter rose by 27 per cent, adding to bank's profit numbers further. The country's third largest private lender had posted a net profit of Rs 3,133.32 crore in the year-ago quarter.

Total income on standalone basis rose to Rs 24,180 crore in September quarter of 2022-23 as against Rs 20,134 crore in same period of 2021-22, Axis Bank said in a regulatory filing. Of this, the interest income during the quarter stood at Rs 20,239 crore, up by 24 per cent from Rs 16,336 crore. Bank's income from investments rose at a good pace of over 27 per cent to Rs 4,477.47 crore in the quarter, as against Rs 3,521.64 crore. Income from other sources such as forex and derivatives transactions, commission, fees and selling of third party products was up by a marginal 3.8 per cent at Rs 3,941.15 crore.

Consolidated net profit of the lender during the reported quarter stood at Rs 5,625.25 crore, up from Rs 3,382.78 crore in the year-ago period. The total income on consolidated basis was at Rs 25,258.80 crore as against Rs 20,966.61 crore, showed the filing. The consolidated results of the bank include figures from its subsidiaries and associates. During the quarter, Axis Bank infused additional equity capital of Rs 104.81 crore in its wholly-owned subsidiary Axis Finance Ltd.

On asset front, there was improvement with the gross non-performing assets falling to 2.50 per cent of the gross advances as of September 30, 2022 from 3.53 per cent by year-ago same period. Net NPAs (bad loans) slid to 0.51 per cent from 1.08 per cent. Bank's provisioning for bad loans and contingencies were thus brought down to Rs 549.78 crore for July-September quarter of FY23 from Rs 1,735 crore put aside by the lender for the same period of the previous fiscal.

Also, Axis Bank did not transfer (except prudentially written off accounts) or acquired any stressed loans (NPA and Special Mention Account/SMA) during the half year ended September 2022. The bank said it has not made any investment in security receipts also during April-September period of this fiscal and the book value of outstanding security receipts as on 30th September, 2022 is nil.

Axis Bank said reporting of Digital Banking as a separate sub-segment of retail banking segment will be undertaken based on the decision of the DBU working group. The bank opened three digital bank units, inaugurated by Prime Minister Narendra Modi last Saturday, as part of the government's initiative to launch 75 DBUs in 75 districts across the country. Stock of Axis Bank closed at Rs 826.20 apiece on BSE, down by 0.42 per cent.