Mumbai (Maharashtra) [India], October 17 (ANI): Axis Bank reported a 38 per cent year-on-year jump in standalone net profit to Rs 7,003 crore for the July-September quarter of FY27, supported by a sharp 52 per cent decline in provisions and improving asset quality, even as its core operating profit grew at a slower pace.

According to the bank's earnings release and investor presentation filed with the stock exchanges on Saturday, provisions and contingencies fell to Rs 1,694 crore from Rs 3,547 crore in the corresponding quarter last year.

The decline in provisions helped boost profitability despite operating profit rising only 6 per cent to Rs 11,083 crore.

However, the year-ago quarter included a one-time standard asset provision of Rs 1,231 crore, which contributed to the sharp year-on-year decline in provisions.

The bank stated in its investor presentation that 'GNPA, NNPA, slippages and credit costs improved YOY and QOQ.'

Gross non-performing assets (NPAs) declined to 1.16 per cent from 1.46 per cent a year earlier, while net NPAs improved to 0.35 per cent from 0.44 per cent.

Fresh loan slippages also fell to Rs 4,762 crore from Rs 5,696 crore in the year-ago quarter, indicating fewer loans turning bad.

The bank's annualised net credit cost declined to 0.45 per cent, down 28 basis points year-on-year.

Meanwhile, net interest income rose 12 per cent to Rs 15,371 crore, while net interest margin stood at 3.36 per cent.

The bank's earnings release highlighted 'Robust growth in deposits at 21% YOY and 6% QOQ and advances at 23% YOY and 9% QOQ.'

Total deposits reached Rs 14.52 lakh crore, while advances stood at Rs 13.74 lakh crore. Corporate lending grew 34 per cent year-on-year, outpacing retail loan growth of 16 per cent.

The results indicate that lower provisioning requirements and improving loan quality supported Axis Bank's earnings growth, alongside continued expansion in lending and deposits. (ANI)