Private lending major Axis Bank posted its Q1 financial results on Wednesday, showcasing robust performance with a consolidated net profit of ₹5,797 crore. This impressive figure marked a substantial 41% increase compared to the ₹4,125 crore reported in the corresponding quarter of the previous fiscal year. The bank’s net interest income (NII) also demonstrated remarkable growth, surging by 27% from ₹9,384 crore in Q1FY23 to ₹11,958 crore in the quarter ending June 2023. Furthermore, the net interest margin (NIM) for Q1FY24 stood at 4.10%, exhibiting a noteworthy 50 basis points (YoY) improvement.
During the April-June quarter, Axis Bank witnessed a significant 36% jump in interest income, reaching ₹25,556.77 crore YoY. Conversely, the interest expenses incurred by the bank during the reporting quarter amounted to ₹13,598 crore, displaying a substantial YoY growth of over 45%.
In terms of asset quality, Axis Bank’s Gross Non-Performing Assets (GNPA) during Q1 were reported at 1.96%, a slight improvement from 2.02% in the corresponding quarter of the previous fiscal year. The Net Non-Performing Assets (NNPA) stood at 0.41% compared to 0.39% in Q1FY23. The bank also managed to recover ₹554 crore from written-off accounts, as stated in the release.
Following the release of the Q1 results, Axis Bank’s shares settled 1.37% higher at ₹975.70 apiece on Wednesday. Overall, the bank exhibited strong performance across various financial indicators, reinforcing its position in the market.