Axis Bank raises profit 38 per cent as lending expands
Axis Bank reported September-quarter profit of 70.03 billion rupees, up about 38 per cent from a year earlier. Lending and deposits both expanded, while gross and net bad-loan ratios declined. Corporate and small-business lending grew faster than retail credit. The Indian bank also reported higher core operating profit alongside its quarterly interest margin.
Economics & Markets··Evening
Quarterly earnings reach 70.03 billion rupees
Axis Bank, an Indian lender, reported net profit of 70.03 billion rupees for the quarter ending September 30. The bank rounded annual growth to 38 per cent; Upstox reported 37.6 per cent and profit of 7,003.3 crore rupees. The figures describe the same quarterly result using different rounding and Indian counting units.[1], [2]
Net interest income reached 153.71 billion rupees. The bank reported growth of 12 per cent from a year earlier and 5 per cent from the previous quarter. Core operating revenue increased 10 per cent to 218.17 billion rupees, while core operating profit rose 11 per cent to 109.98 billion rupees.[1]
Corporate lending grows faster than retail loans
The loan book expanded 23 per cent over the year and 9 per cent over the quarter. Corporate lending grew 34 per cent, lending to small and medium enterprises 25 per cent and the small-business banking portfolio 21 per cent. Retail loans increased 16 per cent. Deposits grew 21 per cent annually and 6 per cent from the preceding quarter. These balances accompanied net interest margin of 3.36 per cent; excluding foreign-currency non-resident deposits, the margin was 3.47 per cent.[1]
Bad-loan ratios improve on both comparisons
Gross bad loans represented 1.16 per cent of lending, down from 1.46 per cent a year earlier and 1.28 per cent in the preceding quarter. The net ratio fell to 0.35 per cent, compared with 0.44 per cent annually and 0.39 per cent quarterly. The bank set aside 1,694 crore rupees for credit losses and other contingencies, including 1,564 crore rupees for bad loans.[2]
Capital adequacy was 16.27 per cent, with common equity tier-one capital at 14.61 per cent. The quarter’s average liquidity coverage ratio was about 119 per cent. Fee income increased 6 per cent. The board approved the quarterly and half-year accounts in Mumbai on October 17, covering the reporting period that closed at the end of September.[1]
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