Business

Axis Bank Q2 net jumps 86% to ₹3,133 crore

Special Correspondent MUMBAI 27 October 2021 03:57 IST
Updated: 26 October 2021 22:53 IST

Net Interest Income (NII) grew 8% yoy to ₹7,900 crore. Specific loan-loss provisions stood at ₹927 crore (₹2,865 crore).

Axis Bank Ltd. reported second quarter standalone net profit jumped 86% to ₹3,133 crore.

Net Interest Income (NII) grew 8% yoy to ₹7,900 crore. Specific loan-loss provisions stood at ₹927 crore (₹2,865 crore).

The Bank said it has not utilised COVID provisions during the quarter. It holds cumulative provisions (standard + additional other than NPA) of ₹12,951 crore at the end of Q2FY22.

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“It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 2.11% as on 30th September, 2021,” the bank said in a filing.

“On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 124% of GNPA as on 30th September, 2021,” it added.

As on September 30, the bank’s reported gross NPA and net NPA levels stood at 3.53% and 1.08% respectively as against 3.85% and 1.20% as on June 30.

Slippages in Q2FY21 were moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were ₹4,757 crore while write-offs were ₹2,508 crore,” it said.

Consequently, there were net slippages in NPAs (before write-offs) for the quarter of ₹707 crore as compared to Rs 3,976 crore in Q1FY22 and net decline in NPA’s (before write-offs) of ₹276 crore in Q2FY21.

Net slippages in NPAs (before write-offs) for Retail loans stood at ₹697 crore and for SME, there was a ₹16 crore decrease in NPAs (before write-offs).

As on 30 September 2021, the bank’s provision coverage, as a proportion of Gross NPAs stood at 70%, as compared to 77% as at 30th September 2020 and 70% as at 30th June 2021. Provisions prior to technical write-offs remained stable at 88%.

The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) as at 30th September 2021 stood at ₹4,342 crores that translates to 0.64% of the gross customer assets. The Bank carries a provision of 24% on restructured loans, which is in excess of regulatory limits, it said.

The bank said it has set an incremental lending target of ₹30,000 crore over the next 5 years to pertinent sectors, while also scaling down exposure to carbon-intensive sectors.

MD & CEO Amitabh Chaudhry said, “We continue to focus on SMEs and mid corporates and on retail, we see better disbursements and growth driven by secured products.”

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