Axis Bank’s Q1FY23 performance can simply be described as focused earnings delivery and continued franchise investment, post balance sheet strengthening phase. Earnings beat in Q1FY23 was led by NIM expansion by 11bps QoQ and credit cost at <20bps. This, coupled with 34% YoY growth in fee income, more than offsets treasury loss of Rs6.7bn and opex to assets remaining elevated at 2.24%.