Axis Bank’s profit doubled in December quarter, these are the 3 big reasons for this strong performance

Axis Bank has grown its business in many different segments. Axis Bank has increased its work in mutual funds, insurance, broking and advisory business. This has seen a one-time increase in the profits of Axis Bank.

axis bank profit

Private Sector Bank Axis Bank (Axis Bank) has increased 3 times from the previous quarter till this quarter. Axis Bank’s profits in the October-December quarter (Axis Bank Profit) has seen a jump of 225 percent. Between October-December 2020 to October-December 2021, this profit of the bank has reached Rs 3,614 crore. Many big reasons are being given for this, the most important of which is the big boom in loans. This boom retail (Retail loan) and in the corporate loan segment. Amitabh Choudhary, MD and CEO of Axis Bank says that the impact of corona virus on the bank’s work is less and Axis Bank will keep full focus on retail banking.

Axis Bank is one of the largest private banks in the country. In this December quarter, this bank has already earned three times more profit than the previous December quarter. The profit of the bank has reached Rs 3614 crore and this growth has been seen in both retail and corporate banking sector. There is another great news for Axis Bank that its net income has also increased by 17 percent, which is the account of the year. That is, Axis Bank has earned 17 percent more interest this year than last year. This is the reason that on January 25, the share of Axis Bank saw a jump of 4 per cent and Rs 733 per share was recorded.

Let us know about three reasons for the rise in the profits of Axis Bank.

1- Huge reduction in bad loans

Like other banks, Axis Bank is also grappling with bad loans or written off loans. When the corona epidemic started two years ago, bad loans were like a huge slander for any bank. From this it seems that the money of the bank has sunk or the creditor will not return the money of the bank. Now even a year has passed and the threat of corona remains, but people feel that there should be a new way to live with the loan and repay it. ,Business InsiderAccording to ‘, there has been a huge reduction in Axis Bank’s loan in the last three months. This means that people are repaying the loan money. Now that the risk of default is almost gone, Axis Bank has further simplified the loan provisions. This has strengthened the financial position of the bank.

2- Big boom in loan

In the last three months, Axis Bank has disbursed many loans to people. If you look at the account of the last 5 months in the midst of the Corona epidemic, Axis Bank has continued the work of distributing loans amid the restrictions of the epidemic. The reason for this is that the central government has asked the banks to give easy loans to the people under the self-reliant India campaign. On the other hand the bank has focused on retail banking. With the end of the effect of Corona, the economy is booming, so retail banking is also being kept fast. The future of retail banking is looking bright for the bank.

3- Benefit from mutual funds and insurance

Axis Bank has grown its business in many different segments. Axis Bank has increased its work in mutual funds, insurance, broking and advisory business. This has seen a one-time increase in the profits of Axis Bank. In the same period last year, Axis Bank earned Rs 507 crore from its subsidiary companies. In October-December of the financial year 2022, this earning has increased by 66 percent to 843 crore.

Read also:

Budget 2022: Tax exemption of 1.5 lakh will be available on health insurance in section 80D, GST will be reduced from 18 to 5% on insurance!

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