Private sector lender Axis Bank on Tuesday reported net profit of Rs 432 crore in the second quarter ended September 30 , up 36 per cent from a year ago despite rise in bad loans. The bank had posted a net profit of Rs 319 crore for the corresponding quarter last year.
Axis Bank in a statement said its 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.
During the quarter, however, the bank’s gross non-performing assets (NPAs) rose to 5.90 per cent as compared to 4.17 per cent in the same period a year ago. 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.
According to the bank, its 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 a year ago. Gross NPA additions for the second quarter stood at Rs8,936 crore, of which corporate slippages stood at Rs 8,110 crore, the bank said.
The bank also said that the Reserve Bank of India (RBI) has pointed out certain re-classifications 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 re-classifications in the results for the quarter ended 30th September 2017,” said Axis Bank.
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. The bank said 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.
The net interest income (NII) remained almost flat at Rs 4,539.62 crore as against Rs 4,513.87 crore in the second quarter of the last financial year. Net interest margin for stood at 3.45 per cent.