Axis Bank posts net loss of Rs 112 crore in Q2 on tax impact

The net loss of Rs 112 crore for the quarter was driven by a one-time tax impact of Rs 2,138 crore due to changes in corporate tax rate, the bank said.

The bank showed improvement on asset quality, with gross non-performing assets (NPAs) falling to 5.03 per cent of gross advances at the end of September 2019 from 5.96 per cent a year ago.

Axis Bank has reported a net loss of Rs 112.08 crore on a standalone basis for the second quarter ended September of the current fiscal due to a one-time tax impact as against a net profit of Rs 789.61 crore in the corresponding of quarter of the previous fiscal.

The net loss of Rs 112 crore for the quarter was driven by a one-time tax impact of Rs 2,138 crore due to changes in corporate tax rate, the bank said. Excluding this extraordinary item, the profit after tax would have been Rs 2,026 crore, up 157 per cent year-on-year, it said. The bank’s total income (standalone) rose to Rs 19,333.57 crore in the second quarter of 2019-20 from Rs 15,959.37 crore in same period last year, it said.

The bank showed improvement on asset quality, with gross non-performing assets (NPAs) falling to 5.03 per cent of gross advances at the end of September 2019 from 5.96 per cent a year ago. Net NPAs stood at 1.99 per cent as against 2.54 per cent a year ago.

Shares of Axis Bank on Tuesday closed 0.49 per cent higher at Rs 712.70 on the BSE.

The bank’s net interest income (NII) grew 17 per cent to Rs 6,102 crore during the September quarter from Rs 5,232 crore in Q2 of last year. Net interest margin stood at 3.51 per cent. Non-Interest Income (comprising of fee, trading profit and miscellaneous income) for Q2 of FY20 grew 45 per cent to Rs 3,896 crore as against Rs 2,678 crore during the same period last year.

The bank’s advances grew 14 per cent to Rs 521,594 crore as on September 30, 2019. Domestic loans grew 19 per cent, it said.