Private sector lender Axis Bank on Tuesday reported a 86 percent year-on-year (YoY) jump in net profit to post its highest quarterly profit of Rs 3,133 crore for the second quarter ended September 30, 2021.

In the corresponding quarter last year, the bank posted a net profit of Rs 1,683 crore. CNBC-TV18 Poll had predicted a profit of Rs 2,912.1 crore for the quarter under review.

The bank's operating profit for the quarter was Rs 5,928 crore while the core operating profit was Rs 5,456 crore. The bank's net interest income (NII) grew 8 percent YOY to Rs 7,900 crore from Rs 7,326 crore in Q2FY21. The net interest margin (NIM) for Q2FY22 stood at 3.39 percent.

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Fee income for Q2FY22 grew 17 percent YOY and 21 percent QOQ to Rs 3,231 crore. Retail fees grew 19 percent YOY and 23 percent QOQ; and constituted 63 percent of the bank's total fee income. The corporate & commercial banking fee grew 15 percent YOY and 18 percent QOQ.

The trading profits and miscellaneous income for the quarter stood at Rs 473 crore and Rs 95 crore respectively. Overall, non-interest income (comprising of fee, trading profit and miscellaneous income) for Q2FY22 stood at Rs 3,798 crore, up 6 percent YOY and 13 percent QOQ.

Specific loan loss provisions for Q2FY22 were Rs 927 crore compared to Rs 2,865 crore in Q1FY22. The bank has not utilised COVID provisions during the quarter. The bank holds cumulative provisions (standard + additional other than NPA) of Rs 12,951 crore at the end of Q2FY22.

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"It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 2.11 percent as of September 30, 2021. On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 124 percent of GNPA as of September 30, 2021. Credit cost for the quarter ended 30th September 2021 was 0.54 percent as compared to 1.70 percent in Q1FY22," the bank said in a press release.

Net interest income for H1FY22 grew 9 percent YoY to Rs 15,661 crore from Rs 14,311 crore. Fee income grew 34 percent YOY to Rs 5,899 crore. Core operating profit grew by 2 percent to Rs 11,064 crore from Rs 10,877 crore in H1FY21. Total provisions for H1FY21 stood at Rs 5,037 crore, down 40 percent over the same period last fiscal. Net Profit for H1FY22 grew 89 percent to Rs 5,293 crore from Rs 2,795 crore in H1FY21.

As of September 30, 2021, the bank's reported gross NPA and Net NPA levels were 3.53 percent and 1.08 percent respectively as against 3.85 percent and 1.20 percent as of June 30, 2021. Gross slippages during the quarter were Rs 5,464 crore, compared to Rs 6,518 crore during Q1FY22 and Rs 1,751 crore in Q2FY21 (as per IRAC norms).

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Slippages in Q2FY21 were moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were Rs 4,757 crore while write-offs were Rs 2,508 crore.

The bank's advances grew 10 percent YoY to Rs 6,21,719 crore as of September 30, 2021. The bank's loan to deposit ratio stood at 84 percent. Retail loans grew 16 percent YoY and 4 percent QoQ to Rs 3,45,603 crore and accounted for 56 percent of the net advances of the bank. The share of secured retail loans was 80 percent, with home loans comprising 37 percent of the retail book.

The bank's balance sheet grew 17 percent YOY and stood at Rs 10,50,738 crore as of September 30, 2021. The total deposits grew by 18 percent YoY, both on a period-end basis and quarterly average balance (QAB) basis.

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On QAB basis, savings account deposits grew 23 percent YoY and 5 percent QoQ, current account deposits grew 18 percent YoY and 3 percent QoQ; and retail term deposits (RTD) grew 11 percent YoY and 3 percent QoQ. On QAB basis, CASA and RTD deposits put together grew 16 percent YoY and 4 percent QoQ. On QAB basis, the share of CASA plus RTD deposits in total deposits stood at 83 percent as of September 30, 2021.

The results came after the close of the market hours. Shares of Axis Bank ended at Rs 844.00, down by Rs 1.05, or 0.12 percent on the BSE.

(Edited by : Jomy Jos Pullokaran)

First Published:Oct 26, 2021 4:45 PM IST