Axis Bank Q2 net profit rises 38 per cent to Rs 432 cr
Bank had posted a net profit of Rs 319 crore for the July-September period of 2016-17.
New Delhi: Private sector lender Axis Bank on Tuesday reported a 38 per cent increase in net profit at Rs 432 crore in the second quarter ended September despite rise in bad loans.
The bank had posted a net profit of Rs 319 crore for the July-September period of 2016-17. Total income increased to Rs 13,821 crore in the period under review from Rs 13,698.7 crore for the quarter ended September 30, 2016, Axis Bank said in a statement.
During the quarter, gross non-performing assets (NPAs) of the bank rose to 5.90 per cent as compared to 4.17 per cent in the same period a year ago. At the same time, the net NPA also inched up to 3.12 per cent as against 2.02 per cent in the same quarter of the previous fiscal.
As a result, the gross NPA shot up in absolute terms to Rs 27,402 crore at the end of September as compared to 16,379 crore at the end of the second quarter of the previous year. Gross NPA additions for the second quarter stood at Rs 8,936 crore, of which corporate slippages stood at Rs 8,110 crore, it said.
The net interest income (NII) remained almost flat at Rs 4,540 crore as against Rs 4,514 crore in the second quarter of the last financial year. Net interest margin for stood at 3.45 per cent.
The bank further said that the Reserve Bank of India (RBI) has pointed out certain reclassifications in the bank's asset classification and provisioning as on March 31, subsequent to the annual Risk Based Supervision (RBS) exercise conducted for fiscal 2017.
"The bank has duly recorded the impact of such reclassifications in the results for the quarter ended 30th September 2017," it said.
The bank has a total loan outstanding of Rs 7,041 crore against the Insolvency and Bankruptcy Code (IBC) accounts mentioned in the two lists referred by RBI.
"Incremental provisions of Rs 505 crore on these select accounts have been made during the quarter taking the total provisioning against these select accounts to Rs 3,886 crore with an improved provision coverage ratio at 55 per cent," it said.