Axis Bank Ltd.‘s quarterly profit jumped more than threefold as provisions fell and other income rose.
The private lender’s net profit rose 224% year-on-year to Rs 3,614 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 3,216-crore consensus estimate of analysts tracked by Bloomberg.
Net interest income rose 17% over the preceding year to Rs 8,653 crore. Other income was Rs 3,840 crore, up 31% year-on-year.
Axis Bank’s overall net interest margin improved 14 basis points quarter-on-quarter to 3.53%. Domestic NIM improved 16 basis points sequentially to 3.66%.
The bank’s asset quality improved during the quarter. Its gross non-performing asset ratio fell 36 basis points sequentially to 3.17%. The net NPA ratio also declined 17 basis points over the previous quarter to 0.91%.
During the third quarter, Axis Bank saw fresh slippages worth Rs 4,147 crore.
Upgrades and recoveries stood at Rs 3,288 crore, while write-offs were at Rs 1,707 crore.
As of Dec. 31, Axis Bank reported loans worth Rs 4,643 crore under the Reserve Bank of India’s two Covid restructuring schemes. Most of these loans were from retail borrowers.
Provisions stood at Rs 1,335 crore during the third quarter, down 64% year-on-year. Sequentially, they fell 23%.
Shares of Axis Bank closed 1.29% down on Monday compared with a 2.66% decline in the Nifty 50. The earnings were announced during after-market hours.
