As of the quarter ended June 30, 2023, Axis Bank reported a significant increase in its standalone net profit, which rose by 40.5% year-on-year (YoY) to reach Rs 5,797.10 crore, compared to Rs 4,125.26 crore in the same quarter last year. Notably, the previous quarter (ended on March 31) had seen a loss of Rs 5,28.42 crore.
The bank’s net interest income (NII) witnessed a growth of 27% YoY and 2% quarter-on-quarter (QoQ), amounting to Rs 11,959 crore. The net interest margin (NIM) for Q1FY24 stood at 4.10%, showing an increase of 50 basis points YoY.
Another positive highlight was the reduction in gross non-performing assets (GNPAs) to 1.96%, a decline of 80 basis points YoY and 6 basis points QoQ. Additionally, the net NPA decreased to 0.41%, marking a decline of 23 basis points YoY. During the quarter, Axis Bank managed to recover Rs 554 crore from written-off accounts.
The overall capital adequacy ratio (CAR), including profit, stood at 17.74%, indicating the bank’s strong financial position.
The bank’s balance sheet saw a growth of 13% YoY, reaching Rs 1.3 trillion as of June 30. Total deposits also increased by 17% YoY, with savings account deposits rising by 22% YoY, current account deposits by 23% YoY, and total term deposits by 13% YoY and 2% QoQ. The share of current account savings account (CASA) deposits in total deposits stood at 46%, representing an increase of 182 basis points YoY.
In terms of credit cards, Axis Bank issued 1.11 million new credit cards in Q1FY24.
Overall, these results indicate a positive performance by Axis Bank with significant growth in net profit, stable asset quality, and an increase in deposits and credit card issuance.
