Axis Bank Q1 profit falls 16% as bad loans, provisions climb
Mumbai: Private sector lender Axis Bank Ltd on Tuesday reported a 16.07% decline in its net profit for the June quarter as bad loans continued to mount and provisions soared. This is the sixth consecutive quarter in which Axis Bank has posted a decline in profit.
Net profit stood at Rs1,305.60 crore against Rs1,555.53 crore a year ago. Twelve analysts polled by Bloomberg had forecast a net profit of Rs1,266.10 crore.
Net interest income (NII) or the core income a bank earns by giving loans increased 2.2% to Rs4,616.14 crore from Rs4,516.92 crore last year. Other income rose 9.55% to Rs2,999.81 crore from Rs2,738.28 crore a year ago.
Gross non-performing assets surged 130.61% to Rs22,030.87 crore from Rs9,553.17 crore a year ago. From the previous quarter’s it Rs21,280.48 crore, it is 3.53%.
As a percentage of total loans, gross NPAs were at 5.03% as compared to 5.04% in the previous quarter and 2.54% in the year-ago quarter. Net NPAs were at 2.3% in the June quarter compared to 2.11% in the previous quarter and 1.08% in the same quarter last year.
Provisions and contingencies rose 10.62% to Rs2,341.93 crore in the quarter from Rs2,117.17 crore a year ago. From the previous quarter’s Rs2,581.25 crore, it declined 9.27%.
The bank said loans outstanding on its watch list declined 16% to Rs7,941 crore in the June quarter over the previous quarter. Net restructured assets for the quarter stood at Rs5,336 crore against Rs5,379 crore a quarter ago.
Fresh slippages stood at Rs3,213 crore. Gross slippages for the first quarter was at Rs3,519 crore, down from Rs4,811 crore a quarter ago.
Total advances rose 11.76% from a year ago to Rs3.85 trillion while deposits rose 10.03% to Rs3.94 trillion.
On Tuesday, Axis Bank ended at Rs544.65 on BSE, up 1.94% from previous close while India’s benchmark Sensex index fell 0.05% to close at 32,228.27 points.
- Market Live: Sensex, Nifty open lower, Asian Paints, Bharti Airtel top gainers
- Rupee opens lower against US dollar
- John Taylor said to impress Trump for Fed chair as Kevin Warsh slips
- Punjab govt fixes industrial power tariff at Rs5 per unit for 5 years
- North Korea warns that nuclear war could ‘break out any moment’