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

24 Jan 2022 , 06:08 PM

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%