Private sector lender Axis Bank seems to be back on track with a net profit of ₹1,505.6 crore in the fourth quarter of 2018-19, against a net loss of ₹2,188.74 crore in the same period a year ago.
On sequential basis, its net profit fell by 10.4 per cent compared to a net profit of ₹1,680.85 crore in the third quarter of 2017-18. This is largely attributable to lower other income of ₹3,526.28 crore in the quarter ended March 31, 2018, against ₹4,000.69 crore in the previous quarter.
Axis Bank’s net profit for 2018-19 shot up to ₹4,676.61 crore compared to ₹275.68 crore in 2017-18. However, other parameters of the bank seem to have shown a steady improvement.
“In the last few months, we have taken significant positive strides. We have our entire senior management team in place and have reoriented our strategy on retail and wholesale,” said Amitabh Chaudhry, Managing Director and CEO, Axis Bank, adding that the lender also intends to set up a digital banking practice. Net interest income for the January to March 2019 quarter grew by 21 per cent to ₹5,706 crore, against ₹4,730.45 crore in the same period a year ago. Net interest margin was a robust 3.44 per cent for the fourth quarter.
Total income, bad loans
The bank’s total income grew by 25.85 per cent to ₹18,324.31 crore in the fourth quarter of the fiscal, against ₹14,559.85 crore a year ago. Fee income for the quarter under review grew strongly at 23 per cent, led by retail fees, which grew by 37 per cent.
The bank’s asset quality also improved and its bad loans fell for the fourth straight quarter. Gross non-performing assets were at ₹29,789.44 crore as on March 31, 2019, while net non-performing assets amounted to ₹11,275.60 crore.
Gross NPAs, as a per cent of gross advances, was at 5.26 per cent as on March 31, 2019, compared to 6.77 per cent a year ago. Similarly, net NPAs, as a per cent of net advances, also lowered to 2.06 per cent at the end of 2018-19, against 3.4 per cent a year ago.
Gross slippages for the quarter stood at ₹3,012 crore, against ₹16,536 crore.
Recoveries and upgrades from NPAs during the quarter were ₹2,376 crore, while write-offs were ₹1,701 crore. As on March 31, 2019, the bank’s provision coverage, as a proportion of gross NPAs, including prudential write-offs, stood at 77 per cent, up from 75 per cent in the third quarter.
The bank’s scrip fell 1.08 per cent and closed at ₹744.45 apiece on the BSE.