Aided by a healthy rise in income, Axis Bank Tuesday reported a 95 per cent jump in standalone net profit to Rs 1,370 crore for the first quarter of 2019-20, as against a net profit of Rs 701 crore in the April-June quarter of the previous fiscal.
Total income (standalone) rose to Rs 19,123.71 crore for the 2019-20 June quarter, from Rs 15,702.01 crore in year-ago period, Axis Bank said in a regulatory filing. There was an uptick in provisioning for bad loans and contingencies at Rs 3,814.58 crore for April-June 2019-20, as against Rs 3,337.70 crore a year-ago.
However, the asset quality showed improvement with gross non-performing assets (NPAs) standing at 5.25 per cent of the gross advances as on June 2019, down from 6.52 per cent in June last. Net NPAs or bad loans were at 2.04 per cent, from 3.09 per cent a year ago. As of June 2019, the bank’s gross NPAs stood at Rs 29,405 crore and net NPAs were at Rs 11,037 crore.
On a consolidated basis, the net profit jumped by 75 per cent to Rs 1,262.98 crore as against Rs 722.23 crore year ago. Income increased to Rs 19,409.09 crore as against Rs 16,126.05 crore.
Axis Bank downgraded Rs 2,242 crore into the BB rated pool this quarter, mostly from groups that have shown new signs of stress in recent months.
Post this action, the bank’s BB and below rated book remained largely stable quarter-on-quarter and stood at Rs 7,504 crores. Gross slippages for Q1FY20 stood at Rs 4,798 crore.