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.