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Private sector lender Axis Bank reported a standalone net profit of ₹1,628.67 crore for the second quarter of the fiscal against a net loss of ₹112.08 crore a year ago.
For the quarter ended September 30, 2020, the bank’s total income grew by 2.8 per cent to ₹19,870.07 crore when compared to ₹19,333.57 crore in the same period last fiscal.
The bank’s net interest income grew by 20 per cent to ₹7,326 crore in the July to September 2020 quarter from ₹6,102 crore in the same period last fiscal. Net interest margin for the second quarter of this fiscal was 3.58 per cent against 3.51 per cent a year ago.
Non-interest income (comprising fee, trading profit and miscellaneous income) for the second quarter de-grew by 2 per cent on a year-on-year basis to ₹3,807 crore.
Provisions increased by 30.2 per cent to ₹4,580.65 crore in the second quarter of this fiscal from ₹3,518.39 crore a year ago.
“The bank has made incremental provisions of ₹1,279 crore towards loans under moratorium and ₹1,864 crore towards probable restructuring, aggregating to ₹3,143 crore,” Axis Bank said in a statement.
The bank’s Managing Director and CEO, Amitabh Chaudhry, said the bank wanted to be ahead of the curve and, based on a detailed analysis, made the provision on a pro-active basis.
Gross non-performing assets amounted to ₹26,831.64 crore as on September 30, 2020, or 4.18 per cent of advances against 4.72 per cent as on June 30, 2020, and 5.03 per cent as on September 30, 2019.
Net NPAs amounted to 0.98 per cent of net advances as on September 30, 2020, versus 1.99 per cent a year ago.
“Absent the standstill to asset classification post August 31, 2020, pursuant to the Supreme Court judgment, the bank would have been required to report GNPA as per RBI’s extant IRAC norms for asset classification,” said Axis Bank, adding that the GNPA ratio as per said IRAC norms at September 30, 2020, would have been 4.28 per cent and net NPA ratio would have been 1.03 per cent.
Axis Bank reported a 12 per cent growth on an annual basis in its balance sheet at ₹9,09,463 crore as on September 30, 2020. Its advances, including TLTRO investments, grew 14 per cent year-on-year to ₹5,94,461 crore as on September 30, 2020.
The bank’s overall capital adequacy was at 19.38 per cent with CET 1 ratio of 15.38 per cent the end of the second quarter, including the profit in the first half of the fiscal.
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