Private sector lender Axis Bank announced a 4% increase in standalone net profit, reaching ₹6,071 crore in the third quarter ended December 2023. This marks a rise from the net profit of ₹5,853 crore recorded in the same period of 2022.

Financial Performance

Axis Bank disclosed that its total income surged to ₹33,516 crore in the third quarter of the current fiscal, up from ₹26,798 crore in the corresponding period last year. The bank’s interest income also witnessed a notable growth, reaching ₹27,961 crore compared to ₹22,226 crore in the same period of the previous fiscal year.

Asset Quality Improvement

The gross Non-Performing Asset (NPA) ratio showed improvement, standing at 1.58% as of December 31, 2023, compared to 2.38% in the year-ago period. Similarly, the net NPA decreased to 0.36% from 0.47% at the end of December 2022.

Provisioning and Compliance

During the third quarter of 2023, Axis Bank allocated ₹181.70 crore for investments in its Alternate Investment Funds (AIFs) in accordance with the RBI directive issued on December 19, 2023.

Key Financial Metrics

Net Interest Income (NII) for the quarter witnessed a growth of 9% to ₹12,532 crore, while the Net Interest Margin (NIM) stood at 4.01%.

Capital Adequacy Ratio

However, the capital adequacy ratio of the bank declined to 14.88% from 17.60% at the end of December 2022. Despite the decline, the bank’s performance in the third quarter reflects positive trends in profitability and asset quality, positioning Axis Bank favorably in the competitive banking landscape.