The private lender's net profit surged 61.94% to Rs 5,853.07 crore on 27.44% increase in total income to Rs 26,891.87 crore in Q3 FY23 over Q3 FY22.
Net Interest Income (NII) grew 32% YoY and 11% QoQ to Rs 11,459 crore. Net interest margin (NIM) for Q3 FY23 stood at 4.26%, up 73 basis points (bps) YoY and 30 bps QoQ.Profit before tax in Q2 FY23 stood at Rs 7,839.76 crore, up by 62.42% from Rs 4,826.70 crore in Q3 FY22.
CASA deposits grew 10% YoY to Rs 3,77,713 crore in the quarter ended 31 December 2022. CASA deposits as % of total deposits was constant on YoY basis at 45% as on 31 December 2022.
Operating profit before provisions & contingencies rose 50.57% YoY to Rs 9,277.49 crore during the quarter. The bank's provisions and contingencies (excluding tax provisions) rose by 7.71% YoY to Rs 1,437.73 crore in Q3 FY23 over Q3 FY22.
Credit cost for the quarter ended 31 December 2022 stood at 0.65%, rising by 21 basis points YoY.
The bank's gross non-performing assets (NPAs) stood at Rs 19,961.02 crore as on 31 December 2022 as against Rs 19,893.73 crore as on 30 September 2022 and Rs 23,301.19 crore as on 31 December 2021.
The ratio of gross NPAs to gross advances stood at 2.38% as on 31 December 2022 as against 2.50% as on 30 September 2022 and 3.17% as on 31 December 2021.
The ratio of net NPAs to net advances stood at 0.47% as on 31 December 2022 as against 0.51% as on 30 September 2022 and 0.91% as on 31 December 2021.
As on 31 December 2022, the bank's provision coverage, as a proportion of gross NPAs stood at 81%, as compared to 72% as at 31 December 2021 and 80% as at 30 September 2022.
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 31 December 2022 stood at Rs 2,482 crore that translates to 0.30% of the gross customer assets. The bank carries a provision of 22% on restructured loans, which is in excess of regulatory limits.
Gross slippages during the quarter were Rs 3,807 crore, compared to Rs 3,383 crore in Q2 FY23 and Rs 4,147 crore in Q3 FY22. Annualized, gross slippage ratio declined 56 bps YoY to 2.03%, net slippage ratio stood at 0.93%.
The bank's net advances grew 15% YoY and 4% QoQ to Rs 7,62,075 crore and deposits increased 9.91% YoY to Rs 8,48,173 crore as on 31 December 2022.
Amitabh Chaudhry, MD & CEO of Axis Bank said, In the midst of global uncertainty, India stands as a bright spot offering great stability and opportunities for the economy and businesses. The Banking sector is in a good position to leverage this great momentum built over the last few quarters. Axis Bank has been steadily enhancing its capabilities, buoyed by good business growth and great partnerships. The Citi merger has been shaping very well, and we are extremely happy with the response we are getting from customers and employees alike.
Axis Bank is the third-largest private sector bank in India. As on 31 December, 2022, the bank had a network of 4,849 domestic branches and extension counters situated in 2,734 centres compared to 4,700 domestic branches and extension counters situated in 2,665 centres as at 31 December, 2021.
The scrip rose 0.28% to end at Rs 933.35 on the BSE.
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