Axis Bank on Tuesday announced its Q1 results and reported a 19% yoy fall in net profit at Rs 1,112 crore for June quarter. The bank reported a net profit of Rs 1,370.08 crore for corresponding quarter last year.
Bank’s Net Interest Income (NII) grew 20% YOY to Rs 6,985 crores during the quarter. Non-Interest Income (comprising of fee, trading profit and miscellaneous income) for the June quarter declined by 33% to Rs 2,587 crores. The operating profit inched lower by 1% to Rs 5,844 crore.
Specific loan loss provisions for Q1FY21 stood at Rs 3,512 crore, compared with Rs 2,886 crore in Q1 last year and Rs 4,204 crore in Q4FY20.
“The bank held additional provisions of around Rs 5,983 crores towards various contingencies at the end of Q4FY20. It has made incremental provisions aggregating Rs 733 crores in Q1 FY21 towards COVID-19. At June 30, 2020, the Bank holds in aggregate additional provisions of Rs 6,898 crores., “the lender said in a release.
The bank’s gross non-performing assets (NPAs) ratio were at 4.72% in Q1 FY21, down 53 bps y-o-y and down 14 bps sequentially. Post-provisions, the net NPA ratio was at 1.23% in Q1, against 1.56% in the March quarter of FY20 and 2.04% in the year-ago quarter.
Amitabh Chaudhry, MD&CEO, Axis Bank said, “The disruption caused by the pandemic has led to immense economic and social impediments, however, it has also brought about innovations across the industry. Axis Bank has been in the forefront, working with all its stakeholders to constantly come up with new solutions that strengthen the institution and support customers, employees and partners through this challenging phase.
“This has led to many ‘firsts’ and we are in the process of coming up with more. Our journey has been rendered even more special with our ‘Dil Se Open’ spirit that reverberates across all our branches and customer service touch-points,” he added.
The bank’s balance sheet grew 16% YoY and stood at Rs 8,97,138 crores as on 30th June 2020. The total deposits grew by 19% on quarterly average balance (QAB) basis and by 16% YOY on period end basis. On QAB basis, savings account deposits grew 15% YOY and 5% QOQ, current account deposits grew 8% YOY and retail term deposits grew 27% YOY. CASA and Retail Term Deposits on QAB basis put together recorded a growth of 20% YOY. The share of CASA and retail term deposits in the Total Deposits on QAB basis was 81% as of 30th June 2020.