InvestorQ : What explains the doubling of profits of Axis Bank for the June 2022 quarter?
Chandralekha Desai made post

What explains the doubling of profits of Axis Bank for the June 2022 quarter?

Answer
image
NISHA Nayak answered.
2 weeks ago
Follow

Like most of the other private sector banks, even Axis Bakn reported sharp growth in profits on a yoy basis. For the June 2022 quarter, net profits of Axis Bank nearly doubled to Rs4,125 crore. This can be largely explained by the sharp fall in bad loans. For the June 2022 quarter, total revenues of the bank were up 12.2% at Rs21,728 crore.

For the quarter, gross NPAs of Axis Bank improved sharply yoy from 3.85% to 2.76% even as the net NPAs almost halved to 0.64%. The main trigger for the sharp profit boost was the steep fall in the provisionsfor the quarter, which fell from Rs3,302 crore in Q1FY22 to Rs359.36 crore in Q1FY23. Lower provisions combined with lower credit costs helped the profit performance of Axis Bank. Axis expects to complete the integration of the India retail business of Citibank either by the end of the current year or early next year.

3 Views