Mumbai: Private sector Axis Bank on Tuesday reported 83% plunge in net profit for the July-September quarter at Rs319 crore mainly due to higher provisioning for bad loans. The bank had posted a net profit of Rs1,915.64 crore for the July-September period of FY2015-16.
Axis Bank in a regulatory filing said that net profit in the first half of the current fiscal declined by 52% to Rs1,875 crore.
“The Bank has posted a net profit of Rs3,190.80 million for the quarter ended 30 September 2016 as compared to Rs19,156.40 million for the quarter ended on 30 September 2015,” the filing said.
Total Income increased to Rs13,698.7 crore in the period under review from Rs12,001 crore for the quarter ended 30 September 2015.
The Bank said its Gross NPAs and Net NPAs rose to 4.17% and 2.02% respectively in the second quarter of 2016-17 fiscal.
“As on 30 September 2016 loans outstanding on the Bank’s Watch List reduced 32% over the previous quarter and stood at Rs13,789 crore. “The reduction in the Watch List primarily represents slippages to NPAs amounting to Rs7,288 crore, which comprises 89% of the total corporate credit slippages,” Axis Bank said.
The Watch List has reduced to 3.5% of customer assets in September 2016, from 5.4% in June 2016 and 6.2% in March 2016.
The Net Interest Income (NII) grew by 11% year- on-year to Rs4,514 crore during second quarter from Rs4,062 crore in similar period of last fiscal. Net interest margin stood at 3.64%. Axis Bank said its balance sheet grew 17% year-on-year and stood at Rs557,650 crore September end.