Axis Bank logs highest-ever quarterly profit in Q2, up 86%

Axis Bank logs highest-ever quarterly profit in Q2, up 86%

Shares of Axis Bank plunged more than 3% at Rs 800 apiece on the BSE in Wednesday’s even though the private sector lender posted record surge net profit during the fiscal second quarter.
On Tuesday, Axis Bank posted a 86% year-on-year (YoY) jump in net profit to post its highest quarterly profit of Rs 3,133 crore.

In the corresponding quarter last year, the bank posted a net profit of Rs 1,683 crore.
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% YOY to Rs 7,900 crore from Rs 7,326 crore in Q2FY21. The net interest margin (NIM) for Q2FY22 stood at 3.39%.
Fee income for Q2FY22 grew 17% YOY and 21% QOQ to Rs 3,231 crore. Retail fees grew 19% YOY and 23% QOQ; and constituted 63% of the bank’s total fee income. The corporate & commercial banking fee grew 15% YOY and 18% 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% 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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