BENGALURU: Private lender Axis Bank on Monday reported a stronger-than-expected 62% jump in quarterly profit, as a surge in interest income outpaced a rise in provisions for bad loans.
Demand for credit has rebounded from the pandemic lows and boosted loan growth at banks, with consumers and businesses stepping up spending as the economy revived. Banks have in turn had to jostle for a larger share of deposits.
Axis Bank’s net profit rose to Rs 5,853 crore ($719.58 million) in the three months to December 31 from Rs 3,614 crore a year ago, despite a 7.7% rise in provisions, the Mumbai-based bank said in an exchange filing.
Analysts on average had expected the bank to report a profit of Rs 5,443 crore, according to Refinitiv IBES data.
Net interest income, the difference between interest earned and paid, rose 32.4% to Rs 11,459 crore, while net interest margin, a key indicator of a bank’s profitability, rose to 4.26% from 3.53%.
Over the weekend, rivals ICICI Bank and Kotak Mahindra Bank reported quarterly profits that beat estimates, with a healthy improvement in loan growth, though analysts flagged concerns over weak deposit growth.
Deposits at Axis Bank grew 10%, while loans grew 15%.
Meanwhile, the bank’s gross bad loans as a percentage of total loans, a measure of asset quality, improved to 2.38% from 2.5% from the last quarter.
Demand for credit has rebounded from the pandemic lows and boosted loan growth at banks, with consumers and businesses stepping up spending as the economy revived. Banks have in turn had to jostle for a larger share of deposits.
Axis Bank’s net profit rose to Rs 5,853 crore ($719.58 million) in the three months to December 31 from Rs 3,614 crore a year ago, despite a 7.7% rise in provisions, the Mumbai-based bank said in an exchange filing.
Analysts on average had expected the bank to report a profit of Rs 5,443 crore, according to Refinitiv IBES data.
Net interest income, the difference between interest earned and paid, rose 32.4% to Rs 11,459 crore, while net interest margin, a key indicator of a bank’s profitability, rose to 4.26% from 3.53%.
Over the weekend, rivals ICICI Bank and Kotak Mahindra Bank reported quarterly profits that beat estimates, with a healthy improvement in loan growth, though analysts flagged concerns over weak deposit growth.
Deposits at Axis Bank grew 10%, while loans grew 15%.
Meanwhile, the bank’s gross bad loans as a percentage of total loans, a measure of asset quality, improved to 2.38% from 2.5% from the last quarter.
For all the latest business News Click Here
Denial of responsibility! TechAI is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
