The private lender's net profit surged 91% to Rs 4,125.26 crore on 12.2% increase in total income to Rs 21,727.61 crore in Q1 FY23 over Q1 FY22.
Net interest income (NII) increased by 21% % YoY and 6% QoQ to Rs 9,384 crore. Net interest margin (NIM) for Q1 FY23 stood at 3.60%, up 14 basis points YoY and 11 basis points QoQ.Profit before tax in Q1 FY23 stood at Rs 5,527.64 crore, up by 91.7% from Rs 2,884.03 crore in Q1 FY22.
Operating profit before provisions & contingencies slipped 4.8% YoY to Rs 5,887 crore during the quarter. The bank's provisions and contingencies (excluding tax provisions) declined by 89% YoY to Rs 359.36 crore in Q1 FY23 over Q1 FY22.
Credit cost for the quarter ended 30 June 2022 stood at 0.41%, declining by 129 basis points YoY.
The bank's gross non-performing assets (NPAs) stood at Rs 21,036.77 crore as on 30 June 2022 as against Rs 21,822.32 crore as on 31 March 2022 and Rs 25,949.77 crore as on 30 June 2021.
The ratio of gross NPAs to gross advances stood at 2.76% as on 30 June 2022 as against 2.82% as on 31 March 2022 and 3.85% as on 30 June 2021.
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The ratio of net NPAs to net advances stood at 0.64% as on 30 June 2022 as against 0.73% as on 31 March 2022 and 1.20% as on 30 June 2021.
As on 31 March 2022, the bank's provision coverage, as a proportion of gross NPAs stood at 77%, as compared to 70% as at 30 June 2021 and 75% as at 31 March 2022.
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress declined during the quarter and as at 30 June 2022 stood at Rs 3,402 crore that translates to 0.45% of the gross customer assets. The bank carries a provision of approximately 24% on restructured loans, which is in excess of regulatory limits.
Gross slippages during the quarter were Rs 3,684 crore, compared to Rs 3,981 crore in Q4 FY22 and Rs 6,518 crores in Q1 FY22.
The bank's advances grew 14% YoY to Rs 7,01,130 crore and deposits increased 13% YoY to Rs 8,03,572 crore as on 30 June 2022.
As on 30 June 2022, the capital adequacy ratio (CAR) and CET1 ratio including profit for Q1 FY23 was 17.83% and 15.16%, respectively.
Amitabh Chaudhry, MD & CEO of Axis Bank said, "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. We continue to strengthen our core, as we open up all doors of growth and development, keeping our priorities intact on building a nimble, smart and customer obsessed bank.
One of the highlights for Axis Bank in the previous quarter was our acquisition of Citibank's consumer business in India. We have filed for the due approvals and once they are in place, the integration process will pick up pace."
Axis Bank is the third-largest private sector bank in India. As on 30 June 2022, the bank had a network of 4,759 domestic branches and extension counters situated in 2,702 centres compared to 4,600 domestic branches and extension counters situated in 2,628 centres as at end of 30 June 2021.
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