Axis Bank Q3 Results FY2023, Net Profit at Rs. 5,853 crores

On 23rd January 2023, Axis Bank announced its results for the third quarter of FY2023.

Key Highlights:

-  The Bank’s Net Interest Income (NII) grew 32% YoY to Rs.11,459 crores. Net interest margin (NIM) for Q3FY23 stood at 4.26%, up 73 bps YoY.
- Fee income for Q3FY23 grew 23% YoY to Rs.4,101 crores. 
- Retail fees grew 30% YoY, and constituted 69% of the Bank’s total fee income.
- Retail Assets fee grew 22% YoY. 
- Retail cards and payments fee grew 44% YoY. 
- The Bank’s operating profit for Q3FY23 grew 51% YoY to Rs.9,277 crores. 
- Core operating profit for the quarter grew 53% YoY to Rs.8,850 crores.
- Net profit at Rs.5,853 crores in Q3FY23 grew 62% YoY.

Business Highlights:

- The Bank’s balance sheet grew 10% YoY and stood at Rs.12,23,509 crores.
- The total deposits grew by 9% YoY and 2% QoQ on quarterly average balance (QAB) basis; and 10% YoY.
- On QAB basis, savings account deposits grew 10% YoY and 1% QoQ, current account deposits grew 9% YoY and 10% QoQ; and total term deposits grew 9% YoY and 2% QoQ. 
- On QAB basis, the share of CASA deposits in total deposits stood at 44%, up 18 bps YoY & 48 bps QoQ.
- The Bank’s net advances grew 15% YoY to Rs.7,62,075 crores. 
- Domestic net loans grew 17% YoY. 
- The advances growth was 16% YoY.
- Retail loans grew 17% YoY to Rs.4,29,313 crores and accounted for 56% of the net advances of the Bank. 
- The share of secured retail loans was 79%, with home loans comprising 34% of the retail book.
- Home loans grew 9% YoY, Small Business Banking (SBB) grew 60% YoY, and rural loan portfolio grew 27% YoY.
- Unsecured personal loans grew 21% YoY; Credit Card advances grew 39% YoY. 
- SME book remains well diversified across geographies and sectors, grew 24% YoY to Rs.82,190 crores.
- Corporate loan book grew 8% YoY to Rs.2,50,572 crores. Mid-corporate book grew 42% YoY. 
- The Bank issued 1.04 million new credit cards in Q3FY23.
- The Bank’s wealth management business, Burgundy is among the largest in India with assets under management (AUM) of Rs.2,83,762 crores as at end of 31 st December 2022. Burgundy Private, the Bank’s proposition for high and ultra-high-net-worth clients, covers 4,417 families, up from 3,209 families in last one year. The AUM for Burgundy Private increased 22% YoY to Rs.98,964 crores. 
- The shareholders’ funds of the Bank grew 18% YoY and stood at Rs.1,30,645 crores 
- The Capital Adequacy Ratio (CAR) and CET1 ratio including profit for 9MFY23 was 19.51% and 15.55% respectively. 
- The Bank’s reported Gross NPA and Net NPA levels were 2.38% and 0.47%
- The Bank had a network of 4,849 domestic branches and extension counters situated in 2,734 centres compared to 4,700 domestic branches and extension counters situated in 2,665 centres as at 31 st December, 2021. As on 31st December, 2022, the Bank had 15,674 ATMs and cash recyclers spread across the country.