Axis Bank Ltd on Tuesday reported a 35.51% jump in its September quarter net profit after it made fewer provisions for bad loans.
The bank reported a profit of Rs432.38 crore compared with Rs319.08 crore a year ago. The bank had been expected to post a net profit of Rs1,318.30 crore, based on a poll of 20 analysts by Bloomberg.
Provisions and contingencies fell 13.31% to Rs3,140.41 crore from Rs3,622.74 crore a year ago. On a quarter-on-quarter basis, they rose 34.09% from Rs2,341.93 crore.
Net interest income (NII) or the core income a bank earns by giving loans rose marginally by 0.57% to Rs4,539.62 crore compared with Rs4,513.87 crore last year. Non-interest income increased marginally by 1.81% to Rs2,585.54 crore from Rs2,539.66 crore in the same period last year.
Asset quality of the bank worsened during the quarter. As a percentage of total loans, gross non-performing assets (NPA) rose to 5.9% from 5.03% in the previous quarter and 4.17% in the year-ago quarter. Net NPAs rose to 3.12% in the September quarter compared to 2.3% in the previous quarter and 2.02% in the same quarter last year.
Gross NPA’s stood at Rs27,402.32 crore, up 67.31% from a year ago. Gross slippages (or new bad loans) in the quarter were at Rs8,936 crore, of which corporate loans made up Rs8,110 crore.
Advances in the quarter grew 16.14% to Rs4.10 trillion from a year ago. Deposits went up by 9.53% to Rs4.16 trillion.
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