Axis Bank Q1 Result: Net profit jumps 41% to ₹5,797 crore; NII up by 27%

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₹5,797 crore which was 41% higher than ₹4,125 crore reported during the corresponding quarter in previous fiscal. The net interest income (NII) of the bank jumped 27% from ₹9,384 crore in Q1FY23 to ₹11,958 crore during the quarter ending June 2023. Net interest margin (NIM) for Q1FY24 stood at 4.10%, up 50 bps (YoY).

As on 30th June, 2023 the Bank’s reported Gross NPA and Net NPA levels were 1.96% and 0.41% respectively as against 2.02% and 0.39% as on 31st March, 2023. Recoveries from written off accounts for the quarter was 554 crores. Reported net slippages in the quarter adjusted for recoveries from written off pool was 1,131 crores, of which retail was 1,639 crores, CBG was negative 10 crores and Wholesale was negative 498 crores.

Gross slippages during the quarter were 3,990 crores, compared to 3,375 crores in Q4FY23 and 3,684 crores in Q1FY23. Recoveries and upgrades from NPAs during the quarter were 2,305 crores. The Bank in the quarter wrote off NPAs aggregating 2,131 crores.

As on 30 th June, 2023, the Bank’s provision coverage, as a proportion of Gross NPAs stood at 80%, as compared to 77% as at 30th June, 2022. The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) declined during the quarter and as at 30th June, 2023 stood at 1,907 crores that translates to 0.21% of the gross customer assets. The Bank carries a provision of 21% on restructured loans, which is in excess of regulatory limits.