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Axis Bank’s net profit in the third quarter of FY17 decreased 73 per cent year-on year (y-o-y) to ₹580 crore on higher provisioning for bad loans.
However, the bank’s loan book and net interest income expanded by 10 per cent and 4 per cent, respectively,
Net interest income (NII) grew 4 per cent y-o-y to ₹4,334 crore in Q3 FY17 (₹4,162 crore in Q3 FY16). The bank’s net interest margin (NIM ) declined 36 basis points to 3.43 per cent (3.79 per cent in Q3 FY16).
Balance sheetThe bank’s balance sheet size (total assets) grew 15 per cent y-o-y to over ₹5.78 lakh crore. The loan book grew 10 per cent to ₹3,47,175 crore. Of this, retail contributed 43 per cent, corporate 44 per cent, and small and medium enterprises (SME) and others contributed the remaining 13 per cent.
Deposits grew 9.5 per cent to over ₹3.7 lakh crore. Of this, low-cost deposits or CASA (current and savings account) constituted 48 per cent.
Bad loansGross non-performing assets (NPA) rose 354 basis points (bps) y-o-y to 5.22 per cent while net NPAs rose 143 bps to 2.18 per cent.
The bank’s capital adequacy ratio (money set aside to absorb shocks from bad loans) as per Basel-III norms stood at 16.03 per cent, up 213 bps y-o-y.
Axis Bank has a network of 3,211 branches and 13,726 ATMs across the country.
Nine-month performanceFor the nine months ended December 2016, Axis Bank’s net profit fell 73 per cent to ₹2,454 crore. NII for the period however, increased 9 per cent y-o-y to ₹13,365 crore (₹12,280 crore).
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