Axis Bank Q3 results: Net profit rises 3% to ₹6,490 cr, NII at ₹14,287 cr

Following several quarters of slower growth, lenders reported double-digit loan growth in the Oct-Dec period, as the local festive season and sweeping consumption tax cuts spurred consumer spending

India's Axis Bank reported a surprise quarterly profit rise on Monday, ‍supported by healthy ​loan growth.

The country's fourth-largest private lender by market capitalisation said standalone net profit rose 3 per cent on-year to ₹6,490 crore ($709.04 million) for the three months ended December 31.

Analysts had expected ​profit to fall to ₹6,079 crore, according to data compiled by LSEG.

Following several quarters of slower growth, Indian lenders reported double-digit loan growth in the October-December period, as the local festive season and sweeping consumption tax cuts spurred consumer spending.

Axis Banks' net interest income, the difference between interest earned on loans and paid on deposits, rose 5 per cent to ₹14,287 crore.

 

Its provisions and contingencies rose 4 per cent ‌on-year to ₹2,246 crore. ​However, it was down 37 per cent sequentially. The lender had stepped up provisions in the April-June quarter due to what the bank said ‍was a one-time industry benchmarking exercise, and was carried over to the quarter-ended ‍September.

Axis Bank's ‌gross non-performing asset ​ratio fell to 1.40 per cent ‍at the end of December from 1.46 per cent three ‍months ‍earlier.