October 26, 2023
New Delhi, India
Axis Bank Q2 Results
Axis Bank, one of India’s prominent private sector lenders, has reported a noteworthy 10% growth in net profit for the second quarter of the current fiscal year. Here’s a breakdown of the key highlights from the earnings report:
Positive Net Profit Growth
Axis Bank’s net profit for Q2 surged to Rs 5,863 crore, showcasing a robust 10% increase when compared to the same period in the previous year when the bank had reported a net profit of Rs 5,329 crore.
Increased Provisioning
The bank’s provisioning for potential loan losses rose to Rs 815 crore in the second quarter, up from Rs 550 crore in the year-ago period. This uptick in provisioning indicates a cautious approach to manage asset quality and potential risks.
Rising Total Income
Axis Bank’s total income for the reviewed quarter reached Rs 31,660 crore, marking substantial growth from Rs 24,094 crore in the previous year. This overall income increase underscores the bank’s expanded business activities, including interest and non-interest income.
Strong Net Interest Income (NII)
The Net Interest Income (NII), which is the difference between interest earned and interest expended, demonstrated a strong performance, growing by 19% year-on-year to reach Rs 12,315 crore. This suggests that the bank’s core interest-earning operations have been resilient and contributed significantly to its income growth.
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Share Price Movement
Despite the positive financial results, Axis Bank‘s share price closed at Rs 955.35 on the Bombay Stock Exchange, marking a 0.84% decline from the previous close. The share price movement can be influenced by various market factors, including sentiment and expectations.
In summary, Axis Bank’s Q2 results showcase a positive trajectory, with increased net profit and income. The bank’s cautious approach to provisioning underlines its commitment to managing potential risks in an ever-evolving financial landscape.
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