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Wednesday, April 08, 2020

Axis Bank Q3 net up 4.5%, NPAs decline marginally

Gross non-performing assets (NPAs) improved to 5 per cent of the gross advances from 5.75 per cent a year ago.

By: ENS Economic Bureau | Mumbai | Updated: January 23, 2020 5:11:32 am
Axis Bank, Axis Bank NPA, Axis Bank NPA decline, Axis Bank quartely report, Axis Bank revenue, Indian express The share of unsecured loans comprising of personal loans and credit cards has been stable at 17 per cent of retail book. (File)

Axis Bank has reported a 4.5 per cent rise in net profit at Rs 1,757 crore for the third quarter ended December 2019 as against a net profit of Rs 1,680.85 crore in the same quarter last year.

Gross non-performing assets (NPAs) improved to 5 per cent of the gross advances from 5.75 per cent a year ago. In value terms, gross NPAs stood at Rs 30,073 crore in December quarter as against Rs 30,854.67 crore in the same period last year. Net NPAs stood at 2.09 per cent of the net advances as on December 31, 2019, down from 2.36 per cent at the end of December 2018. Net bad loans were at Rs 12,160.28 crore as against Rs 12,233.29 crore as of December 2018.

The bank said it recognised slippages of Rs 6,214 crore in the December quarter as compared to Rs 3,746 crore in the year-ago period. Slippages from the loan book were at Rs 5,124 crore and that from investment exposures stood at Rs 1,090 crore.

According to the bank, recoveries and upgrades from NPAs in the quarter stood at Rs 2,422 crore, while write-offs were at Rs 2,790 crore. Consequently, net slippages (before write-offs) for the quarter stood at Rs 3,792 crore as against Rs 2,124 crore in the corresponding quarter last fiscal.

Net interest income grew 15 per cent to Rs 6,453 crore in the third quarter this fiscal, Axis Bank said in a stock exchange filing. Total income during the quarter under review rose to Rs 19,494 crore as against Rs 18,130 crore in the year-ago period.

Retail loans grew 25 per cent to Rs 2,91,554 crore and accounted for 53 per cent of net advances of the bank. The growth in retail advances was driven by all product segments across home loans, auto loans, personal loans and small business loans.

The share of unsecured loans comprising of personal loans and credit cards has been stable at 17 per cent of retail book.

“We continue to see stable risk in home loans, LAP, personal loans and credit cards. SME loan book stood at Rs 61,741 crore. Corporate loan book grew by 9 per cent with domestic corporate loan book up 16 per cent. The bank’s loan to deposit ratio stood at 93 per cent,” the private lender said.

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