Axis Bank Q3 Results: Net Profit Falls 36% On Higher Provisions

[NiveRoshni]

Axis Bank Q3 Results: Net Profit Falls 36% On Higher Provisions



Axis Bank Ltd. saw its net profit fall in the quarter ended December as provisions increased.

The private bank's net profit stood at Rs 1,116.6 crore compared with Rs 1,757 crore in the corresponding year-ago period, according to an exchange filing. That compares with the Rs 2,356-crore consensus estimate of analysts tracked by Bloomberg.

Its net interest income, or core income, however, rose 14% year-on-year to Rs 7,373 crore, against the estimated Rs 7,472 crore. Other income stood at Rs 3,776 crore, marginally down from Rs 3,786.57 crore a year earlier.

Axis Bank's gross non-performing asset ratio stood at 3.44% compared with 4.18% in the quarter ended September. Its net NPA ratio fell 24 basis points to 0.74%.

Its proforma gross NPA, including the accounts not classified as bad loans owing to the Supreme Court's decision in the interest-on-interest case, rose to 4.55% from 4.28% as of September. Proforma net NPA rose to 1.19% from 1.03% in the preceding three months.

Gross slippages were at Rs 29 crore, owing to the Supreme Court's directions.

Considering the Reserve Bank's asset classification norms, the bank's slippages in the third quarter would have been Rs 6,736 crore.

The bank has written off loans worth Rs 4,258 crore during the third quarter.

During the quarter, the bank made specific loan loss provisions of Rs 1,050 crore, which affected profitability, it said. Total cumulative provisions for the bank, including those made against standard assets and depression on investments, stood at Rs 4,604 crore compared with Rs 3,471 crore a year ago.

Total restructured advances constituted 0.42% of gross customer assets, the bank said in a statement.

As of Dec. 31, Axis Bank's outstanding advances stood at Rs 5.82 lakh crore, up 6% year-on-year.

Outstanding loans rose 1% from Rs 5.76 lakh crore as on Sept. 30.

Including advances classified under the targeted long-term repo operations, the bank's advances rose 9% year-on-year to over Rs 6 lakh crore.

Retail advances at the end of the third quarter stood at Rs 3.18 lakh crore, or 55% of net advances.

Total deposits as on Dec. 31 stood at Rs 6.54 lakh crore, up 11% year-on-year, and 3% higher over the preceding three months. Low cost current account savings account deposits constituted 42% of the bank's total deposits, higher than 40% reported a year ago.

Shares of Axis Bank closed 3.77% lower before the results were announced compared with a 1.91% drop in the benchmark Nifty 50 Index.

Source : https://www.bloombergquint.com/amp/quarterly-earnings/axis-bank-q3-results-net-profit-falls-36-on-higher-provisions