Axis Bank on Monday reported a net profit of Rs 4,125.26 crore for the first quarter of the current financial year as compared to Rs 2,160.15 crore recorded in the corresponding period of the previous year, registering a year-on-year growth of 91 percent.
The bank’s net interest income jumped by 21 percent year on year and 6 percent on a quarter-on-quarter basis.
The bank’s net interest margin for the quarter ended June 30, 2022, stood at 3.60 percent, which is higher by 14 basis points when compared with the previous year. On a quarter-on-quarter basis Axis Bank’s net interest margin increased by 11 basis points.
The Board of Directors of Axis Bank Limited approved the financial results for the quarter ended 30th June 2022 at its meeting held in Mumbai on Monday.
Amitabh Chaudhry, MD&CEO, 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,” Chaudhry said in a statement.
The bank’s core operating profit rose to Rs 6,554 crore for the April-June quarter, registering a growth of 17 percent on a year-on-year basis and 5 percent on a quarter-on-quarter basis. Fee income for Q1 FY23 grew 34 percent YoY to Rs 3,576 crore.
Retail fees grew 43 percent YoY; and constituted 66 percent of the Bank’s total fee income. Retail assets (excluding cards and payments) fee grew 81 percent YoY. Retail cards and payments fees grew 62 percent YoY. The Corporate & Commercial banking fees together grew 19 percent YoY.
The trading loss for the quarter stood at Rs 667 crore as compared to trading gains of Rs 556 crore in Q1 FY22. Miscellaneous income in Q1 FY23 stood at Rs 90 crore.
Overall, non-interest income (comprising of fee, trading profit and miscellaneous income) for Q1 FY23 stood at Rs 2,999 crore. Specific loan loss provisions for Q1 FY23 were Rs 777 crore compared to Rs 602 crore in Q4 FY22. The Bank has not utilised COVID provisions during the quarter.