Axis Bank recorded a 26.4% slump in its net profit for the quarter ended September, according to the financial results declared by the private lender on Wednesday.
The bottom-line of the bank came in at Rs 5,090 crore, as compared to Rs 6,917.57 crore in the year-ago quarter. This has missed the estimate of Rs 5,838 crore, as projected by the analysts tracked by Bloomberg.
The net interest income advanced by 2% to Rs 13,744 crore during the quarter under review, as against 13,483.2 crore in the year-ago period.
Provisions and contingencies of the bank surged sharply by 61% to Rs 3,547 crore in the July-September period, compared to Rs 2,204.09 crore in the corresponding period of the last fiscal.
There was also a one-time standard asset provisioning of Rs 1,230 crore recorded in the quarter under review.
The bank's net interest margin came in at 3.73% versus 3.8% reported in the June quarter.
In terms of asset quality, the gross non-performing assets stood at 1.46%, compared to the 1.57% reported by the bank in the preceding quarter.
Axis Bank Q2 Result Highlights (Standalone, YoY)
Profit slumps 26.4% to Rs 5,090 versus Rs 6,917.57 crore.
Net interest income rises 2% to Rs 13,744 crore versus Rs 13,483.2 crore.
Provisions up 61% at Rs 3,547 crore versus Rs 2,204.09 crore.
Gross NPA comes in at 1.46% versus 1.57% (QoQ).
NIM at 3.73% versus 3.8% (QoQ).
Gross slippages of the bank fell to Rs 5,696 crore during the September quarter, lower than Rs 8,200 crore in the June quarter.
The lender's net advances rose 12% on-year to Rs 11.17 lakh crore. Retail loans grew 6% to Rs 6.35 lakh crore and accounted for 57% of the net advances. The share of secured retail loans was 72% and home loans comprised 26% of retail book.
Personal loans grew 4% on-year, whereas credit card advances grew 7% year-on-year.
Axis Bank Share Price
The earnings came after the market hours. The shares closed 0.61% lower at Rs 1,169.60 apiece, in comparison to 0.71% advance in Nifty 50.
The stock has risen 1.36% in the last 12 months and 9.85% year-to-date.
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