Axis Bank Q3 net profit jumps 62% on interest income

Banking sector is in a good position to leverage great momentum built over the last few quarters: MD and CEO Chaudhry

Axis Bank said third quarter net profit grew 62% to ₹5,853 crore from the year-earlier period.

Net Interest Income grew 32% ₹11,459 crore, the private sector lender said in a filing. Net interest margin was higher by 73 basis points at 4.26%.

Provisions and contingencies for the quarter were ₹1,438 crore. These include non-recurring, one-time / prudent provisions of ₹340 crore.

Specific loan loss provisions were ₹1,341 crore. The bank said it had not utilised COVID-19 provisions during the quarter. The bank held cumulative provisions (standard + additional other than NPA) of ₹5,012 crore at the end of December, 2022.

“This is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 1.53% as on 31st December, 2022. On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 139% of GNPA as on 31st December, 2022,” the bank said.

Amitabh Chaudhry, MD and CEO, Axis Bank, said, “In the midst of global uncertainty, India stands as a bright spot offering great stability and opportunities for the economy and businesses. The banking sector is in a good position to leverage this great momentum built over the last few quarters.”