Axis Bank Q3 Results: Net Profit Increased 4% Year on Year Basis

India’s one of the top private lenders, Axis Bank, released the October- December 2023 quarterly earnings on Tuesday, January 24, 2024. It reported a Net profit of Rs 6,071 crore in the third quarter of Fiscal year 2023-24.

The profits increased by 4% compared to last year’s corresponding period. It reported a profit of Rs 5,853 crore in the same period the previous year.

Market Reaction After Q3 Earnings

The share price of Axis Bank on Tuesday, January 23, 2024, closes at Rs 1,089.25 with a decline of 2.83%. Moreover, in today’s session, the Axis Bank stock price opened a gap down with a bearish note. 

Net Interest Income and Net Interest Margin Update

In third-quarter earnings, the Bank’s Net Interest Income (NII) stands at Rs 12,532 crore, which has increased by 9%. However, the market estimate of NII is at Rs 12,555 crore, which is near the actual results. The NII is the difference between the interest the bank earns through loans and the interest it pays depositors. 

Meanwhile, the Net Interest Margin of Axis Bank stands at 4.01% for the quarter ended on December 31, 2023. NIM refers to the Net interest earned and the income disbursed by the bank. 

Gross NPA and Net NPA 

Axis Bank’s Gross NPA was at 1.58%, which decreased from 2.38% reported in the corresponding quarter of the previous year. However, the Net NPA for the quarter stood at 0.36%, which remains stagnant on a year-on-year basis. 

The Bank showed a 22% year-on-year growth on its advances, reaching a total of Rs 9.32 Lakh crore. Furthermore, the Bank’s retail loans grew by 27%, totalling Rs 5.46 lakh crore. The secured loans are approximately 75% of total retail loans, and the remaining comprise home loans. 

As per the exchange filing, Axis Bank witnessed an increase of 18% in total deposits on a YoY basis and a 5% increase every quarter at the end of the period. Furthermore, savings account deposits saw a rise of 16% yearly.