Axis Bank has reported a 70% year-on-year growth in net profit to Rs 5,330 crore for the quarter ended September.

The strong growth in the bottom-line was on the back of lower provisions, which fell to Rs 550 crore in the fiscal second quarter from Rs 1,735 crore a year ago.

India’s third largest private sector lender posted a 31% YoY growth in net interest income (NII) to Rs 10,360 crore.

Net interest margin (NIM) expanded 57 basis points to 3.96%. Fee income reported a growth of 20%.

The bank's asset quality improved with gross non-performing asset (NPA) ratio falling to 2.5% as on 30 September 2022, from 2.76% a quarter ago and 3.53% a year ago.

Net NPA ratio dropped to 0.51%, from 0.64% a quarter ago and 1.08% a year ago. 

Operating profit in the September quarter grew 30% YoY to Rs 7,716 crore.

Credit cost stood at 0.38%, declining by 16 basis points YOY.

As on 30 September, Axis Bank wrote-off Covid-19 related loans to the tune of Rs 46.14 crore. Covid-related loans worth Rs 652.6 crore became NPAs in the September quarter.

Retail loans grew 22% YoY and small and medium enterprises by 28%.