Axis Bank Q3 net profit up 200% at Rs3,957cr on a sharp 64% fall in loan loss provisions to Rs1,363cr

Axis Bank reported 16.32% yoy rise in total consolidated revenues in the Dec-21 quarter at Rs22,091cr

January 24, 2022 6:08 IST | India Infoline News Service
Axis Bank
Axis Bank reported 16.32% yoy rise in total consolidated revenues in the Dec-21 quarter at Rs22,091cr. Revenues of Axis Bank were up 5.36% on a sequential basis.

In terms of top line revenues, Axis Bank saw all round growth across treasury, wholesale banking and retail banking. Operating profits saw a spike in corporate banking and treasury while retail banking turned around from operating losses to operating profits.

The provisions for doubtful assets in the Dec-21 quarter at Rs1,363cr was 64% lower compared to the Dec-20 quarter.

For the Dec-21 quarter, the operating profits were up 19.80% at Rs6,665cr. Net interest income or NII was up 17% yoy and 10% on sequential basis at Rs8,653cr.

Net interest margins or NIM improved 14 bps sequentially to 3.53%. Fee income grew 15% yoy at Rs3,344cr while retail fees grew 16% yoy and retail card fees grew 21%. Non-interest income was up 31% yoy at Rs3,840cr.

Operating margin or OPM expanded from a level of 29.29% in Dec-20 to 30.17% in Dec-21 quarter.

Profit after tax (PAT) for the Dec-21 quarter was up by 200% at Rs3,957cr. This was due to better interest spreads, higher non-interest income and lower provisioning for doubtful debts. As a result, the PAT margins improved from 6.94% to 17.91% in the same period.

Gross NPAs at 3.17% are under control and net NPAs of 0.91% indicate most losses provisioned for. On a yoy basis, loan loss provisions narrowed from Rs3,779cr to Rs1,363cr.

Financial highlights for Dec-21 compared yoy and sequentially

Axis Bank Ltd
Rs in Crore Dec-21 Dec-20 YOY Sep-21 QOQ
Total Income ₹ 22,091 ₹ 18,991 16.32% ₹ 20,967 5.36%
Operating Profit ₹ 6,665 ₹ 5,563 19.80% ₹ 6,304 5.72%
Net Profit ₹ 3,957 ₹ 1,318 200.24% ₹ 3,388 16.80%
Diluted EPS ₹ 12.86 ₹ 4.30 ₹ 11.02
Operating Margins 30.17% 29.29% 30.07%
Net Margins 17.91% 6.94% 16.16%
Gross NPA Ratio 3.17% 3.44% 3.53%
Net NPA Ratio 0.91% 0.74% 1.08%
Return on Assets (Ann) 1.30% 0.48% 1.19%
Capital Adequacy 17.44% 18.68% 19.23%

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