The private sector bank Axis Bank reported a healthy quarterly earnings results for the June 2022 quarter, posting a whopping growth in its net profit on a year-on-year basis.
The lender’s bad loans in the quarter, which is an important parameter for checking the performance and health of a financial institution like banks, declined on a YoY basis, indicating a good performance in the period.
Here are the financial results of the Mumbai-based private banking major’s earnings for the June ending quarter.
Axis Bank’s Net Profit Rallies 91% YoY
Starting with the banking major’s profit figures, Axis Bank’s net profit almost doubled in Q1 FY23 to Rs 4,125 crore, rallying 91% compared to the year-ago period, led by a fall in bad loans during the quarter.
The profit figure came out to be more than estimated by experts.
The consolidated net profit jumped 84% YoY to Rs 4,389.22 crore in the reporting quarter.
The bank’s total income rose 12.2% YoY to Rs 21,727.61 crore in the Apr-Jun quarter and fee income surged 34% YoY to Rs 3,576 crore.
Its retail fees climbed 43% YoY and comprised 66% of the bank’s total income.
Another important banking parameter, the net interest income or NII during the June quarter advanced 21% YoY to Rs 9,384 crore and net interest margin or NIM climbed 14 basis points to 3.6% in the period.
Axis Bank’s asset health improved in Q1 FY23, with gross Non Performing Assets declining to 2.76%, compared to 3.85% in the same quarter last year, while net Non Performing Assets fell from 1.2% in Q1 FY22 to 0.64% in Q1 FY23.
Falling NPAs are a sign of improving asset quality of a lender.
“As an institution, we continue to make good progress despite the macroeconomic headwinds that pose a challenge at multiple levels, both domestically and to the larger global economy,” stated Axis Bank’s MD & CEO Amitabh Chaudhry.