Axis Bank net profit declines over quarter ending June 30,notes improvement in asset quality
Mumbai/IBNS: Axis Bank Limited (Axis Bank), India’s fourth largest market lender by market capitalisation, said its Net Interest Income in the first quarter of FY21 (quarter ending June 30, 2020) was up by 20% compared to the same quarter in the previous financial year.
The bank, on Tuesday, reported its financial results for the quarter and year ended June 30, a period that felt the first impact of the pandemic on the financial situation of the country.
The bank reported Net profit of Rs 1,112.17 crore for the April-June period, marking a decline of 18.82 per cent compared with the corresponding period a year ago.
Amitabh Chaudhry, MD&CEO, Axis Bank said, “The disruption caused by the pandemic has led to immense economic and social impediments. However, it has also brought about innovations across the industry.”
The bank also reported that its bad loans (gross non-performing assets) in the reported quarter declined to 4.73% compared to 4.86% reported in the previous quarter.
Net NPAs came in at Rs 7,447.99 crore in the April-June period, down 20.43 per cent sequentially and 32.52 per cent annually.
According to the bank, its operating profit for Q1FY21 de-grew by 1% from the same period in the previous year to Rs 5,844 crores.
Total deposits of Axis Bank grew 19% year on year (YOY) on quarterly average basis (QAB).
Savings Account deposits grew 15% YOY, Current Account deposits grew by 8% YOY and Retail TermDeposits (RTD) were up 27% YOY on QAB basis. CASA ratio was 39% on QAB basis.
The bank’s Non-Interest Income (consisting of fee, trading profit and miscellaneous income) for Q1FY21 declined by 33% to Rs 2,587 crores.
Fee income for Q1FY21 de-grew 38% year to year to Rs 1,651 crores, which the bank attributed to lower business volumes and velocity of throughput of transactions. Retail fees constituted 57% of the Bank’s total fee income.
Miscellaneous Income, for the quarter stood at Rs 313 crores as compared to Rs 373 crores in Q1FY20.
According to the bank, it reviewed its accounting practices in the reported quarter and revised them to achieve more prudent and conservative outcomes.
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