Axis Bank Q2FY23 PAT up 65.7% at Rs5,612 crore on lower loan loss provision

22 Oct 2022 , 06:35 PM

Axis Bank Ltd reported 20.47% growth in total sales revenues for the September 2022 quarter on consolidated basis at Rs25,2593cr. Revenue growth was 11.34% in sequential terms.

For the quarter, the treasury profits were flat on yoy basis. However, the profits from retail banking and wholesale banking showed sharp growth on yoy basis.

Net interest income (NII) was up 31% yoy at Rs10,360 crore while the net interest margins (NIM) improved sharply to 3.96% in the quarter.

Fee income grew 20% yoy to Rs3,862 crore in Q2FY23, while overall core operating profits for the quarter was up 43% yoy and 19% on sequential basis.

CASA deposits grew by 13% yoy while the CASA ratio stood at 46% of overall deposits. Capital adequacy was comfortable at 17.12%.

Consolidated Profit after tax (PAT) for September 2022 quarter was up 65.67% at Rs5,612cr on the back of a sharp growth in NII, expansion of NIMs to 3.96% and more than halving of the provisions in the quarter.

Gross NPAs fell from 3.53% to 2.50% in the quarter while the net NPAs fell from 1.08% to 0.51%. Retail loans grew 22% on a yoy basis while the SME loans were up 28% in the quarter on a yoy basis. The annualized ROE is up by 545 basis points in the quarter at 18.9%.

PAT margins were higher at 22.22% in the Sep-22 quarter compared to 16.16% in the Sep-21 quarter and compared to 19.31% in June 2022 quarter. The provision coverage ratio stands at 138% of the gross NPAs, which is very comfortable.

Financial highlights for Sep-22 compared yoy and sequentially

	Axis Bank
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 25,259	₹ 20,967	20.47%	₹ 22,686	11.34%
Operating Profit (Rs cr)	₹ 8,120	₹ 6,304	28.80%	₹ 6,267	29.57%
Net Profit (Rs cr)	₹ 5,612	₹ 3,388	65.67%	₹ 4,381	28.12%
Diluted EPS (Rs)	₹ 18.14	₹ 11.02		₹ 14.23
OPM	32.15%	30.07%		27.62%
Net Margins	22.22%	16.16%		19.31%