InvestorQ : What is your quick take on the quarterly numbers of Axis Bank for Q2FY23?
vidhya Laxmi made post

What is your quick take on the quarterly numbers of Axis Bank for Q2FY23?

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sarah Leo answered.
1 month ago
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For the September 2022 quarter, Axis Bank reported 20.5% growth in revenues at Rs25,2593 crore on consolidated basis. If you look at the break-up of the revenues for the quarter, then treasury profits were flat on yoy basis. However, the real boost to the profits came from retail banking and wholesale banking, helped by a surge in consumer demand. Net interest income (NII) was up 31% at Rs10,360 crore while NIM was up 57 bps at 3.96%.

Axis Bank has always been strong on fee income and for the quarter it grew by 20% yoy to Rs3,862 crore. The core operating profits for the quarter surged by a healthy 43% yoy and 19% on sequential basis, showing good traction. CASA (current and savings accounts) low-cost deposits grew by 13% yoy while the CASA ratio stood at 46% of overall deposits, which is close to median for private banks. Capital adequacy was at 17.12%. Here is a gist.

Axis Bank

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 25,259

₹ 20,967

20.47%

₹ 22,686

11.34%

Operating Profit (Rs cr)

₹ 8,120

₹ 6,304

28.80%

₹ 6,267

29.57%

Net Profit (Rs cr)

₹ 5,612

₹ 3,388

65.67%

₹ 4,381

28.12%

Diluted EPS (Rs)

₹ 18.14

₹ 11.02

₹ 14.23

OPM

32.15%

30.07%

27.62%

Net Margins

22.22%

16.16%

19.31%

Let me now turn to the profitability story of Axis Bank. For the Q2FY23 quarter, the Profit after tax (PAT) came in 65.7% higher at Rs5,612 crore. This was backed by the sharp surge in the NII, as well as the 57 bps expansion of NIMs to 3.96%. In addition, the provisions for doubtful and bad assets also nearly halved in the quarter on a yoy basis. Gross NPAs fell from 3.53% to 2.50% in the quarter while net NPAs fell from 1.08% to 0.51%.

For the September 2022 quarter, retail loans grew 22% yoy while the SME loans were up 28% in the quarter on a yoy basis. The annualized ROE is sharply up 545 basis points in the quarter at 18.9%. PAT margins were higher at 22.22% in the Sep-22 quarter compared to 16.16% in the year ago quarter and also higher than 19.31% in sequential quarter. The provision coverage ratio stands at 138% of the gross NPAs, which is fairly comfortable.

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