Axis Bank Q3 results..standalone profit after tax up 62 percent year-on-year to Rs 5,853 crore for the quarter ending December.

Strong net profit

The bank’s standalone profit after tax (PAT) rose 62 percent year-on-year to Rs 5,853 crore for the quarter ending December. NII or the difference between interest earned and interest expended, rose 32 percent on-year and 11 percent on-quarter to Rs 11,459 crore on the back of a strong 15 percent loan growth and an expansion in net interest margins.
The net interest margins of the bank were at 4.26 percent, improved by 73 basis points (bps) on-year and 30 bps on-quarter. Retail fee grew 30 percent on-year and 8 percent on-quarter.

Fee income

Fee income of the bank in the reporting quarter grew 23 percent on-year and 6 percent on-quarter. Of this, granular fee constituted 93 percent of overall fees.

Strong Asset quality & NPA stats

The gross non-performing asset (NPA) ratio of the bank has seen an improvement during the quarter ending December.

It declined by 79 bps on-year and 12 bps on-quarter to 2.38 percent as on December 31, 2022.

Whereas, on the other hand, net NPA eased 44 bps on-year and 4 bps on-quarter to 0.47 percent.

The gross slippage ratio (annualised) of the bank has declined by 56 bps on-year at 2.03 percent, and the net slippage ratio (annualised) stood at 0.93 percent.

Loans & Advances

The net loan book of the private sector lender grew 15 percent on-year to Rs 7.62 lakh crore. On a sequential basis, advances rose 4 percent.

Loans sold under inter-bank participation certificate grew 16 percent on-year and 4 percent on-quarter during the reporting quarter.

Corporate loans grew 8 percent on-year and 9 percent on-quarter, SME loans grew 24 percent year-on-year, Mid-Corporate (MC) up 42 percent on-year,

Retail loans grew 17 percent on-year and 1 percent on-quarter.

Guidance: The stock is expected to show strong and steady uptrend in the coming months. Can be accumulated at CMP