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Home > Finance News > Axis Bank Q1 results: Net profit rises 94% YoY, misses estimate; NII rises 11%

Axis Bank Q1 results: Net profit rises 94% YoY, misses estimate; NII rises 11%


MUMBAI: Axis Bank today reported a 94 per cent year-on-year rise in net profit to Rs. 2,160 crore for the quarter ended June, which was above analysts’ estimate.

The lender reported a 11 per cent on-year growth in net interest income to Rs. 7,760 crore in the reported quarter, which was also below Street’s estimate.

The lender saw a marked deterioration in its asset quality in the quarter likely due to the second wave of COVID-19 pandemic. The gross non-performing assets ratio stood at 3.85 per cent in the June quarter as against 3.7 per cent in the previous quarter.

Similarly, the net NPA ratio rose to 1.2 per cent in the quarter from 1.05 per cent in the previous quarter. The lender’s gross slippages in the quarter jumped 23 per cent sequentially to Rs. 6,518 crore and was nearly three times from the year-ago quarter.

As on June 30, the bank’s provision coverage, as a proportion of gross NPAs stood at 70 per cent, as compared to 75 per cent in the year-ago quarter and 72 per cent in the previous quarter.

Loan growth in the reported quarter was healthy for the bank despite the challenges posed by the pandemic. Axis Bank reported a 12 per cent year-on-year rise in advances to Rs. 6.14 lakh crore with retail loans growing at a faster clip of 14 per cent on-year.

The lender’s earnings in the quarter were boosted by a strong performance by the non-lending part of the business. Axis Bank’s non-interest income grew 39 per cent on-year to Rs. 3,588 crore led fee income and trading profits.

Axis Bank’s operating performance in the quarter was sturdy as operating profit grew 10 per cent on-year to Rs. 6,416 crore, while core operating profit jumped 13 per cent.

Shares of Axis Bank ended 0.1 per cent lower at Rs. 755 on the National Stock Exchange.



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