Result Analysis: Axis Bank Limited (CMP: Rs.933) Result Update: Q3FY23

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture, and Retail Businesses. As of 31st December 2022, the Bank had a network of 4,849 domestic branches and extension counters situated in 2,734 centers compared to 4,700 domestic branches and extension counters situated in 2,665 centers as of 31st December 2021. As of 31st December 2022, the Bank had 15,674 ATMs and cash recyclers spread across the country. The Bank’s Axis Virtual Centre is present across six centres with over 1,500 Virtual Relationship Managers as on 31st December 2022.

    Open FREE* Demat & Trading Account & ₹0 AMC for first year

    Stock Details

    Market Cap. (Cr.) 287051
    Equity (Cr.) 615.10
    Face Value 2
    52 Wk. high/low 970 / 618
    BSE Code 532215
    Book Value (Rs.) 416.91
    Sector Banks


    Key Ratios

    ROE (%): 12.77
    TTM EPS: 59.72
    P/BV: 2.2
    TTM P/E: 15.63


    Result Highlights:

    • Axis Bank has reported robust growth in net profits with an increase of 56.28% YoY and 10.38% QoQ for the December quarter’ 22 of Rs.6,209 cr.
    • Net Interest Income of the bank grew by 29.40% YoY and 9.91% QoQ to Rs.22,843 cr. whereas Net Interest Margin increased by 30 bps on QoQ and 73 bps on YoY basis to 4.26%, albeit on the back of continued sub-par retail deposit growth.
    • Banks’s total advances grew to Rs.7,82,852 cr. by 15.14% YoY in Q3FY23 compared to Rs.6,79,926 cr. in Q3FY22.
    • Healthy loan growth delivered across all business segments , Credit Card advances grew 39% YOY, Personal loans grew 21% YOY & 3% QOQ , SBB grew 60% YOY & 8% QOQ, Rural loans grew 27% YOY , Mid-Corporate (MC) book up 42% YOY and 11% QOQ and SME + SBB + MC mix at ₹1,53,652 crores i.e. 20% of loans, was up by ~510 bps in last 2 years.
    • Axis Bank showed declining NPA’s and gross slippages, moderate credit costs. GNPA is at 2.38% declined by 79 bps YOY & 12 bps QOQ, NNPA is at 0.47% declined 44 bps YOY & 4 bps QOQ. However fresh slippages increase by 12.53% QoQ.
    • PCR is healthy at 81%; On an aggregated basis 3 , Coverage ratio is at 139% Annualized, gross slippage ratio declined by 56 bps YOY to 2.03%, net slippage ratio is at 0.93%  Annualized credit cost for Q3FY23 is at 0.65% Non-recurring, one-time / prudent items impacted gross and net slippage by 22 bps and credit cost by 11 bps
    • Bank’s domestic subsidiaries continue to deliver steady performance; annualized profit is at 1,252 crores, with a return on investment of 50% Axis Finance 9MFY23 PAT grew 35% YOY to 340 crores; asset quality remains stable, CAR is healthy at 22.2% Axis AMC 9MFY23 PAT grew 16% YOY to 292 crores, Axis Capital 9MFY23 PAT stood at 110 crores, and  Axis Securities 9MFY23 PAT at 151 crores

    Financial Performance:

    Final performance Axis

    Shareholding Pattern:

    Particulars %
    Promoters & Promoter Group 7.98
    FIIs 54.02
    DIIs 30.70
    Public 5.99
    Others 1.31

    Managerial commentary:

    • Amitabh Chaudhry, MD&CEO, Axis Bank commented, “In the midst of global uncertainty, India stands as a bright spot offering great stability and opportunities for the economy and businesses. The Banking sector is in a good position to leverage this great momentum built over the last few quarters. Axis Bank has been steadily enhancing its capabilities, buoyed by good business growth and great partnerships. The Citi merger has been shaping very well, and we are extremely happy with the response we are getting from customers and employees alike. We are excited to welcome them all to the Axis family.”


    Axis Bank delivered a stable performance in 3QFY23, driven by better margins (4.3%), strong fee income traction (+18% QoQ), high other income and improving cost metrics. Business growth was healthy, led by the corporate segment. Asset quality continued to improve, even as slippages increased marginally, especially from the retail portfolio, but were compensated by healthy recoveries and upgrades. The restructured book improved further, while a higher provisioning buffer provided comfort, the bank needs to conservatively build its provisioning buffer, especially to cover for retail slippages, which have been steadily inching up. The bank reported EPS of Rs.52.67 for 9MFY23, and we expect the company to clock in the EPS of Rs.70.23 for FY23


    Particulars (In Rs. Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY% 9MFY23 9MFY22          YoY%
    Interest earned 22,843 20,783 17,653 9.91% 29.40% 62,819 50,638 24.06%
    Interest Expended 11,094 10,150 8,795 9.30% 26.14% 30,809 25,760 19.60%
    Net Interest Income 11,749 10,633 8,858 10.50% 32.64% 32,010 24,878 28.67%
    Total Income 28,084 25,259 22,091 11.18% 27.13% 76,029 63,114 20.46%
    Operating Profit 9,765 8,120 6,665 20.26% 46.51% 24,151 19,480 23.98%
    Provisions 1,446 547 1,363 164.35% 6.09% 2,377 6,454 -63.17%
    Net Profit after tax 3,807 3,383 4,147 12.53% -8.20% 16,224 9,730 66.74%
    Deposits 8,20,914 3.21% 8,47,293 7,70,586 9.95%
    Advances 7,25,126 7.96% 7,82,852 6,79,926 15.14%
    Ratios (%) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY%
    Gross NPA 2.38% 2.50% 3.17% -12bps -79 bps
    Net NPA 0.47% 0.51% 0.91% -4 bps -44 bps
    Provision Coverage Ratio 81% 80% 72% 100 bps 900 bps
    Net Interest Margin 4.26% 3.96% 3.53% 30 bps 73 bps
    Capital Adequacy Ratio 17.6% 16.52% 17.44% 108 bps 16 bps
    CASA Ratio 44% 43.52% 43.82% 48 bps 18 bps
    Segment Income (In Cr.) Q3FY23 Q2FY23 Q3FY22 QoQ % YoY% 9MFY23 9MFY22          YoY% Segment %
    Treasury 7,448 5,598 5,376 33.05% 38.54% 17,859 15,728 13.55% 17.93%
    Retail banking 9,462 8,291 7,202 14.12% 31.38% 25,469 20,598 23.65% 22.78%
    Whole sale banking 23,723 22,263 18,512 6.56% 28.15% 65,976 53,310 23.76% 57.11%
    Other banking operations 903 825 852 9.45% 5.99% 2,421 2,112 14.63% 2.17%
    Total 41,536 36,977 31,942 12.33% 30.04% 1,11,725 91,748 21.77% 100.00%
    Less: Inter-segment revenue 13,452 11,718 9,851 14.80% 36.55% 35,696 28,634 24.66%
    Income from Operations 28,084 25,259 22,091 11.18% 27.13% 76,029 63,114 20.46%

    Source: Company website, EWL Research

    Disclosure in pursuance of Section 19 of SEBI (RA) Regulation 2014

    Elite Wealth Limited does/does not do business with companies covered in its research reports. Investors should be aware that the Elite Wealth Limited may/may not have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only information in making their investment decision and must exercise their own judgment before making any investment decision.
    For analyst certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by Elite Wealth Limited are registered/qualified as research analysts with SEBI in India.( SEBI Registration No.: INH100002300)
    Disclosure Appendix
    Analyst Certification (For Reports)
    Israil Khan, Elite Wealth Limited,
    The analyst(s) certify that all of the views expressed in this report accurately reflect my/our personal views about the subject company or companies and its or their securities. I/We also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report. Unless otherwise stated, the individuals listed on the cover page of this report are analysts in Elite Wealth Limited.
    As to each individual report referenced herein, the primary research analyst(s) named within the report individually certify, with respect to each security or issuer that the analyst covered in the report, that:
    (1) all of the views expressed in the report accurately reflect his or her personal views about any and all of the subject securities or issuers; and
    (2) no part of any of the research analyst’s compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in the report.
    For individual analyst certifications, please refer to the disclosure section at the end of the attached individual notes.
    Research Excerpts
    This note may include excerpts from previously published research. For access to the full reports, including analyst certification and important disclosures, investment thesis, valuation methodology, and risks to rating and price targets, please visit
    Company-Specific Disclosures
    Important disclosures, including price charts, are available and all Elite Wealth Limited covered companies by visiting, or emailing with your request. Elite Wealth Limited may screen companies based on Strategy, Technical, and Quantitative Research. For important disclosures for these companies, please e-mail
    Options related research:
    If the information contained herein regards options related research, such information is available only to persons who have received the proper option risk disclosure documents. For a copy of the risk disclosure documents, please contact your Broker’s Representative or visit the OCC’s website at
    Other Disclosures
    All research reports made available to clients are simultaneously available on our client websites. Not all research content is redistributed, e-mailed or made available to third-party aggregators. For all research reports available on a particular stock, please contact your respective broker’s sales person.
    Ownership and material conflicts of interest Disclosure
    Elite Wealth Limited policy prohibits its analysts, professionals reporting to analysts from owning securities of any company in the analyst’s area of coverage. Analyst compensation: Analysts are salary based permanent employees of Elite Wealth Limited. Analyst as officer or director: Elite Wealth Limited policy prohibits its analysts, persons reporting to analysts from serving as an officer, director, board member or employee of any company in the analyst’s area of coverage.
    Country Specific Disclosures
    India – For private circulation only, not for sale.
    Legal Entities Disclosures
    Mr. Ravinder Parkash Seth is the Managing Director of Elite Wealth Ltd (EWL, henceforth), having its registered office at Casa Picasso, Golf Course Extension, Near Rajesh Pilot Chowk, Radha Swami, Sector-61, Gurgaon-122001 Haryana, is a SEBI registered Research Analyst and is regulated by Securities and Exchange Board of India. Telephone:011-43035555, Facsimile: 011-22795783 and Website:
    EWL discloses all material information about itself including its business activity, disciplinary history, the terms and conditions on which it offers research report, details of associates and such other information as is necessary to take an investment decision, including the following:
    1. Reports
    a) EWL or his associate or his relative has no financial interest in the subject company and the nature of such financial interest;
    (b) EWL or its associates or relatives, have no actual/beneficial ownership of one per cent. or more in the securities of the subject company, at the end of the month immediately preceding the date of publication of the research report or date of the public appearance;
    (c) EWL or its associate or his relative, has no other material conflict of interest at the time of publication of the research report or at the time of public appearance;
    2. Compensation
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) EWL or its associates have not managed or co-managed public offering of securities for the subject company in the past twelve months;
    (c) EWL or its associates have not received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (d) EWL or its associates have not received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months;
    (e) EWL or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.
    3 In respect of Public Appearances
    (a) EWL or its associates have not received any compensation from the subject company in the past twelve months;
    (b) The subject company is not now or never a client during twelve months preceding the date of distribution of the research report and the types of services provided by EWL