Axis Bank Q3 Results: 5 Key Highlights – Net Profit Rises, NII Growth, Asset Quality Improvement

Private lender Axis Bank has released its Q3 financial results for the fiscal year 2023-24, posting a net profit of ₹6,071 crore, reflecting a 4% increase compared to the same period last year. Here are the key highlights from Axis Bank’s Q3 FY24 results:

1. Net Profit:
   • Standalone net profit for Q3 FY24 stood at ₹6,071 crore, showing a 4% YoY increase.
   • The reported net profit falls slightly short of market consensus, which was estimated at ₹6,114 crore.
   • Sequentially, there’s a 3.5% increase from the previous quarter’s net profit of ₹5,863.56 crore in Q2 FY24.
2. Net Interest Income (NII):
   • Axis Bank reported NII of ₹12,532 crore in Q3, a 9% YoY increase.
   • The NII figure is nearly in line with the market estimate of ₹12,555 crore.
   • Net Interest Margin (NIM) for the quarter ended December 31, 2023, stood at 4.01%.
3. Asset Quality:
   • Gross non-performing asset (NPA) reduced to 1.58%, down from 2.38% in the corresponding quarter of the previous year.
   • Net NPA remained consistent at 0.36% YoY.
4. Loan Growth:
   • Axis Bank witnessed a substantial 22% YoY growth in advances, totaling ₹9.32 lakh crore.
   • Retail loans experienced an impressive 27% increase, reaching ₹5.46 lakh crore.
   • Secured retail loans constituted 75% of the growth, with home loans accounting for 30% of the overall retail portfolio.
5. Pre-Provision Operating Profit (PPOP) and Deposits:
   • PPOP saw a 1.4% YoY growth, reaching ₹9,141 crore in the current quarter.
   • On a QoQ basis, there was a notable 6% increase in PPOP.
   • Total deposits witnessed an 18% YoY increase, and a 5% growth QoQ, reaching a significant level.
   • Savings account deposits showed robust expansion with a 16% YoY increase.

The overall performance of Axis Bank in Q3 FY24 indicates positive trends in profitability, asset quality, and growth in key financial metrics. The bank’s focus on sustainable and inclusive growth is reflected in its strategic initiatives and customer-centric approach.