Axis Bank Q1 results: Net profit rises 23% to ₹7,114cr
What's the story
Axis Bank has reported a 23% year-on-year rise in its standalone net profit for the April-June quarter of FY27. The private sector lender's net profit stood at ₹7,114 crore, compared to ₹5,806 crore in the same quarter last year. The growth was driven by a steady operating performance and stable asset quality.
Financial growth
NII, fee income up
Axis Bank's net interest income (NII), the difference between interest earned and paid, grew 8% YoY to ₹14,646 crore from ₹13,560 crore a year ago.
The bank's fee income also increased by 7% to ₹6,156 crore.
Total non-interest income stood at ₹6,735 crore while operating profit was reported at ₹11,659 crore for the quarter under review.
Asset quality
Asset quality improves
Axis Bank's asset quality showed improvement during the quarter.
The gross non-performing assets (GNPA) ratio fell to 1.28% as of June 30, from 1.57% a year ago, while the net NPA ratio improved to 0.39% from 0.45%.
The bank reported gross slippages for the quarter at ₹5,566 crore compared with ₹8,200 crore in the year-ago period and a net credit cost of just 0.63%.
Provisions
Provisions for uncertainties
The bank's provisions and contingencies for the quarter stood at ₹2,223 crore, including specific loan loss provisions of ₹2,079 crore.
Axis Bank said it continues to hold an additional one-time provision of ₹2,001 crore created in the previous quarter toward macroeconomic and geopolitical uncertainties.
The bank's balance sheet expanded 20% YoY to ₹19.22 lakh crore as of June 30.
Capital adequacy
Capital adequacy ratio at 16.67%
Axis Bank maintained a strong capital position with its capital adequacy ratio under Basel III at 16.67% and CET-1 ratio at 14.64% as of June 30. The bank had additional capital buffer of about 52 basis points from provisions not included in regulatory capital calculations.