Axis Bank Q2 profit jumps 35% YoY, but asset quality worsens

NEW DELHI: Private sector lender Axis Bank on Tuesday posted 35.51 per cent year-on-year rise in net profit at Rs 432.38 crore for the second quarter ended September 30. It had reported a net profit of Rs 319.08 crore in the corresponding quarter last year.

Net interest income of the bank increased 0.57 per cent to Rs 4,539.62 crore during the quarter under review against Rs 4,513.87 crore in the same quarter last year.

Asset quality of the lender worsened in Q2 with percentage of gross non-performing assets ( NPA) increasing to 5.90 per cent from 5.03 per cent in the sequential quarter ended June 30, 2017.

Percentage of net NPAs also increased to 3.12 per cent in Q2FY18 against 2.30 per cent in Q1FY18.

Shares of the private sector lender closed 1.44 per cent down at Rs 513.20.

As on September 30, 2017, the lender has total loan outstanding of Rs 7,041 crore against the IBC accounts mentioned in the two lists referred by RBI. Incremental provisions of Rs 505 crore on these select accounts have been made during the quarter taking the total provisioning against these select accounts to Rs 3,886 crore with an improved provision coverage ratio at 55 per cent.