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Private sector lender Axis Bank reported a 4.5 per cent increase in its net profit in the third quarter of the fiscal with healthy growth in balance sheet but elevated slippages.
The bank’s net profit rose to ₹1,757 crore in the quarter ended December 31, 2019 as against ₹1,680.85 crore in the same period a year ago. Total income grew by 7.5 per cent to ₹19,494.87 crore (₹18,130.42 crore).
The bank’s net interest income grew 15 per cent to ₹6,453 crore (₹5,604 crore). Net interest margin for the October to December 2019 quarter was 3.57 per cent and for the nine months of the fiscal year was 3.49 per cent.
Other income, however, declined by 5.3 per cent to ₹3,786.57 crore in the quarter under review. Axis Bank attributed this to a drop in miscellaneous income which stood at ₹497 crore in the third quarter compared to ₹1,007 crore in the third quarter last year, which included one significant recovery for ₹800 crore.
The bank’s provisions rose to ₹3,470.92 crore in the third quarter of the fiscal, which was 13.6 per cent higher than ₹3,054.51 crore a year ago.
“The bank has recognised slippages of ₹6,214 crore during the third quarter of 2019-20, compared to ₹4,983 crore in the second quarter and ₹3,746 crore in the third quarter last fiscal,” it said.
Recoveries and upgrades from NPAs during the quarter were ₹ 2,422 crore while write-offs were ₹ 2,790 crore.
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