Axis Bank Q1 Results FY2023, PAT at Rs. 4125 crores

On 25th July 2022, Axis Bank announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- The Bank’s Net Interest Income (NII) grew by 21% YoY and 6% QoQ to Rs. 9,384 crores. Net interest margin (NIM) for Q1FY23 stood at 3.60%, up by 14 bps YoY and 11 bps QoQ

- The Bank’s core operating profit for the quarter grew by 17% YoY and 5% QoQ to Rs. 6,554 crores.

- Net profit grew by 91% from Rs. 2,160 crores in Q1FY22 to Rs. 4,125 crores in Q1FY23. 

- The Bank’s balance sheet grew by 14% YoY and stood at Rs. 11,52,580 crores in Q1FY23

- The total deposits grew by 14% YoY on a quarterly average balance (QAB) basis and 13% YoY on a period-end basis. 

- On a QAB basis, savings account deposits grew by 16% YoY and 4% QoQ, current account deposits grew 15% YoY; and total term deposits grew 13% YoY. 

- On a QAB basis, the share of CASA deposits in total deposits stood at 43% for Q1FY23

- The Bank’s advances grew BY 14% YoY to Rs. 7,01,130 crores as on 30th June 2022. The Bank’s loan-to-deposit ratio stood at 87%

- As on 30th June 2022, the Bank’s reported its Gross NPA and Net NPA levels at 2.76% and 0.64% respectively as against 2.82% and 0.73% as on 31st March 2022. 

Business Highlights:

- Bank’s Retail loans grew by 25% YoY and 3% QoQ to Rs. 4,12,683 crores and accounted for 59% of the net advances of the Bank. The share of secured retail loans was about 79%, with home loans comprising 35% of the retail book.

- Home loans grew by 18% YoY, Small Business Banking (SBB) grew by 74% YoY and 11% QoQ; and the rural loan portfolio grew by 42% YoY and 4% QoQ

- Unsecured personal loans grew by 20% YoY and 4% QoQ; Credit Card advances grew by 42% YoY and 14% QoQ respectively.

- The Bank issued 0.99 million new credit cards in Q1FY23. The Bank has been one of the highest credit card issuers in the country in the last two quarters, with an incremental market share of 17%, higher than the Bank’s period-ending market share of 12.3%.

- The Bank’s wealth management business ‘Burgundy’ is among the largest in India with assets under management (AUM) of Rs. 2,42,335 crores as at end of 30th June 2022.

- As on 30th June 2022, the Bank had a network of 4,759 domestic branches and extension counters situated in 2,702 centers compared to 4,600 domestic branches and extension counters situated in 2,628 centers as at end of 30th June 2021.

Commenting on the results, Amitabh Chaudhry, MD&CEO, Axis Bank said, “As an institution, we continue to make good progress despite the macroeconomic headwinds that pose a challenge at multiple levels, both domestically and to the larger global economy. We continue to strengthen our core, as we open up all doors of growth and development, keeping our priorities intact on building a nimble, smart, and customer-obsessed bank. One of the highlights for Axis Bank in the previous quarter was our acquisition of Citibank’s consumer business in India. We have filed for the due approvals and once they are in place, the integration process will pick up the pace.”