Axis Bank Ltd. reported third quarter net profit grew more than threefold to ₹3,614 crore on account of a rise in net interest income and improvement in asset quality.
Net Interest Income (NII) grew 17% YOY to ₹8,653 crore while fee income rose 15% YOY to ₹3,344 crore.
The bank said it has not utilised Covid provisions during the quarter. It held cumulative provisions of ₹13,404 crore at the end of Q3FY22.
These cumulative provisions translate into a standard asset coverage of 2.03% as on December 31, the bank said in a filing.
“On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 130% of GNPA as on 31st December, 2021,” it said.
Thes balance sheet grew 20% YoY and stood at ₹11,13,066 crore. Total deposits grew 22% YoY to ₹7,71,670 crore on quarterly average balance (QAB) basis and 20% YoY on period end basis.
Advances grew 17% YOY to ₹6,64,866 crore. retail loans grew 18% YoY to ₹3,67,494 crore and accounted for 55% of the net advances. Corporate loan book grew 13% YoY to ₹2,29,462 crore.
Amitabh Chaudhry, MD & CEO, Axis Bank said, “In retail, we continue our growth focus, with the economy turning around and limited impact of the virus. We are optimistic about the future and plan to leverage every sustainable growth opportunity that is available to us.”
Gross slippages during the quarter were ₹4,147 crore compared with ₹7,993 crore a year ago. Slippages from the loan book were at ₹3,332 crore and that from investment exposures stood at ₹815 crore. Recoveries and upgrades from NPAs during the quarter were ₹3,288 crore while write-offs were ₹1,707 crore. Consequently, there were net slippages in NPAs (before write-offs) for the quarter of ₹860 crore as compared to ₹5,831 crore a year ago.
Net decline in NPA’s (before write-offs) for retail loans stood at ₹94 crore. For SMEs, there were net slippages in NPAs (before write-offs) for the quarter of ₹40 crore. The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (COVId 1.0 and COVID 2.0) as at December 31 stood at ₹4,643 crore that translates to 0.63% of the gross customer assets, the bank said.
The Bank carries a provision of 24% on restructured loans, which is in excess of regulatory limits, it added.
