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Axis Bank reported a 10% year-on-year increase in Q3 net profit to Rs 5,863 crore on Wednesday. The Chennai-based bank’s total income and net interest income (NII) also saw significant growth, reaching Rs 31,660 crore and Rs 12,315 crore respectively. This robust performance was reflected in the bank’s Q2 FY24 results, which demonstrated a significant surge in net profit and total interest income compared to Q2 FY23.
In addition to the surge in profits and income, the bank’s asset quality also showed marked improvement. The gross non-performing assets (GNPA) and net NPA as of the end of September decreased to Rs 16,756 crore and Rs 3,441 crore respectively. These figures indicate a substantial reduction from the previous year’s levels.
The bank’s performance was bolstered by other income contributions worth Rs 5,034 crore. This additional revenue stream elevated the total income to around Rs 31,660 crore for the quarter ending September 30, 2023.
Despite these positive financial results, Axis Bank shares experienced a slight dip on the BSE, closing at Rs 955.35, a 0.84% drop. This occurred amidst global geopolitical volatility which has been affecting markets worldwide.
CEO Amitabh Chaudhry remains optimistic about the bank’s future prospects. He endorsed ‘the India story’ and forecasted consistent growth in all major business verticals. This prediction is spurred by a demand surge from upcoming festivities. However, he also noted that provisioning for Q2 of the current fiscal has escalated to Rs 815 crore, indicating potential headwinds for the bank moving forward.
Overall, Axis Bank’s Q3 results demonstrate strong year-on-year growth and improved asset quality despite market volatility. The bank continues to navigate the challenging economic landscape with a positive outlook, as it anticipates further growth in the coming quarters.
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