MUMBAI : Private sector lender Axis Bank on Thursday reported a 54% year-on-year (yoy) increase in its net profit for 4,118 in the March quarter of FY22 on the basis of higher earnings and lower provisions.

Total bank conditions and contingencies stopped 984.12 million, less than 55% of the years.

Axis Bank’s net interest income (NII), which is the difference between interest earned and interest spent, increased by 17 percent to 8,819 crore and its net interest margin (NIM), a key measure of profitability, stood at 3.49%, down 4 basis points (bps) sequentially. Axis Bank’s other income, which includes fees, trading profit, and miscellaneous income, grew 19% year-on-year 4,223 million in the three months to March. One basis point is 0.01%.

“There is a lot of momentum going into FY23. There is a positive cultural change in the bank. We are confident and optimistic about the future,” said Amitabh Chaudhry, managing director and chief executive officer, Axis Bank.

The ratio of gross non-performing assets (NPAs), bad loans as a percentage of gross disbursements, was 2.82% in Q3FY22, down 35 bps sequentially. Post-conditions, the gross NPA ratio was 0.73% in Q4, against 0.91% in the December quarter of FY22.

“Approximately 54% of the slippage improves in the same quarter. About 34% of the new returns are from the wholesale trade and the rest from the retail trade. Our net slippage is 218 crore. We are happy with where our asset quality mix is ​​at now,” said Puneet Sharma, chief financial officer, Axis Bank.

The net banking deficit in Q4FY22 was 3,981 million, compared to 4,147 crore during Q3 and 5,285 crore in Q3FY21. Deficiencies from the loan book were 3,332 crore and those from investment exposures were 815 million. Bank recoveries and improvements from NPAs in the quarter of this year were 3,763 million, while cancellation of payment was done 1,696 million.

Axis Bank’s growth grew by 15 percent 7.07 trillion as on March 31. Retail loans grew 21% year-to-date 3.99 trillion and accounted for 57% of the bank’s total income. The share of retail loans achieved was 80%, with mortgages comprising 36% of the retail book. The bank’s loan book grew by 4 percent 2.30 trillion.

The private sector lender said it added 2.67 million new credit cards in FY22, its highest ever card addition. The new card guidelines issued by the Reserve Bank of India will immediately affect the number of outstanding cards at Axis Bank, said Sanjeev Moghe, executive vice president and head of cards and payments. “There are business cycles and there are regulatory cycles in the business. We believe that the business will recover from these guidelines. We do not see any impact on our branded card business because of the new guidelines,” Moghe said.

On Thursday, the bank’s shares rose 1.8% to close 779.95 on BSE.

On 30 March, Axis Bank announced the acquisition of Citibank’s Indian consumer business for 12,325 million (1.6 billion dollars). Once completed, the deal will strengthen Axis Bank’s status as the country’s third-largest private lender and help it compete with arch-rivals HDFC Bank and ICICI Bank in the lucrative segments.

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