Axis Bank quarterly profit rises 38% as loan-loss charges almost halve

what happened

Axis Bank posted a 38% annual increase in its July-September profit, reaching 7,003 crore rupees on a standalone basis. The gain came mainly from a 52% drop in provisions, which fell to 1,694 crore rupees from 3,547 crore a year earlier. Operating profit grew a more modest 6%, to 11,083 crore rupees.

The prior-year quarter included a one-time standard asset provision of 1,231 crore rupees, which exaggerates the year-on-year comparison. Gross non-performing assets eased to 1.16% from 1.46%, and net NPAs fell to 0.35% from 0.44%. Fresh slippages dropped to 4,762 crore rupees from 5,696 crore.

Net interest income rose 12% to 15,371 crore rupees, and the net interest margin stood at 3.36%. Deposits reached 14.52 lakh crore rupees, up 21% year on year, while advances hit 13.74 lakh crore rupees, up 23%. Corporate lending grew 34%, ahead of 16% growth in retail loans. The figures come from the bank's earnings release and investor presentation, as reported by TradingView, which cites ANI.

why it matters

Much of the profit jump reflects a low base from last year and smaller provisions, so the operating growth looks more moderate. For Indian bank stocks, the signal is that credit quality is improving while lending accelerates.

market impact

Axis Bank, Indian banks: lower provisions and better loan quality support sector earnings

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