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The bank’s provisions saw a significant uptick, with a YoY increase of 48%, amounting to Rs 814 crore. Despite this, Axis Bank demonstrated an improvement in asset quality, as evidenced by the reduction in gross and net non-performing asset (NPA) ratios to 1.73% and 0.36% respectively.
Fresh bad loan additions decreased to Rs 3,254 crore during the period. However, write-offs witnessed a rise of 25%. Upgrades and recoveries were recorded at Rs 1,985 crore, marking a reduction compared to previous periods.
A significant factor contributing to Axis Bank’s robust financial performance was the notable growth across various lending segments. Domestic advances grew by 26%, while the retail loan book saw an increase of 23%. Small and medium enterprises (SME) lending and corporate loans also experienced substantial growth of 27% and 21%, respectively. Overall, net advances grew by 23%.
In terms of deposits, Axis Bank reported an increase of 18%, maintaining a low-cost current account savings account deposits ratio of 44%. This growth in deposits further strengthens the bank’s liquidity position and supports its lending activities.
This strong Q3 performance reflects Axis Bank’s strategic focus on improving asset quality and diversifying its loan portfolio across various segments. The bank continues to maintain its trajectory of growth despite the challenging economic environment.
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