Axis Bank Q2 net skids 83% as NPA provisioning surges

Higher provisioning for bad loans saw Axis Bank’s quarterly net profit erode 83 per cent year-on-year to ₹319 crore (₹1,916 crore).

However, net interest income grew 11 per cent y-o-y to ₹4,514 crore (₹4,062 crore). Net interest margin declined 21 basis points to 3.64 per cent (3.85 per cent).

Balance sheet The bank’s balance sheet size (total assets) grew 17 per cent y-o-y to cross the ₹5.5-lakh crore mark. In Q2 FY17, total assets of the bank were ₹5,57,650 crore (₹4,76,525 crore).

Advances for the same period grew 18 per cent to ₹3,53,170 crore (₹2,98,066 crore). Deposits also grew 17 per cent to ₹3,80,187 crore (₹3,24,101 crore). Of this, low-cost deposits, also called CASA deposits, constituted 45 per cent.

The bank’s gross NPA (bad loans as a percentage of risk-weighted assets) stood at 4.17 per cent in Q2 FY17 (1.38 per cent) while the net NPA stood at 2.02 per cent (0.48 per cent).

In absolute terms, the bank’s gross NPA was ₹16,379 crore while the cumulative value of net restructured assets as on September 30 stood at ₹6,702 crore, constituting 1.74 per cent of net customer assets.

Under Basel-III norms, the bank’s capital adequacy ratio was 15.2 per cent.

As on end-September, the bank had a network of 3,106 domestic branches and extension counters, besides 13,448 ATMs and 1,210 cash recyclers.