Axis Bank reports 25% jump in Q3 profit at Rs 726 crore; asset quality improves

NEW DELHI: Private sector lender Axis Bank on Monday reported a 25 per cent year-on-year (YoY) rise in net profit at Rs 726 crore for December quarter, which was lower than Rs 800 crore anticipated by analysts in an ET Now poll.

The lender had reported a profit of Rs 580 crore in the corresponding quarter last year.

Net interest income (NII) rose 9 per cent YoY to Rs 4,732 crore in December quarter, the bank said in a BSE filing. Fee income rose 24 per cent YoY at Rs 2,246 crore.


Gross non-performing assets (NPAs) fell to 5.28 per cent in December quarter from 5.9 per cent in September quarter.

Recoveries and upgrades stood at Rs 4,008 crore for the quarter. Write-offs were at Rs 2,822 crore.

"The credit cost for the third quarter and first nine months of this fiscal has been 233 bps and 250 bps, respectively. We continue to retain our credit cost guidance for fiscal 2018 in the range of 220-260 basis points. PCR is expected to be maintained in the 60 per cent to 65 per cent range," the lender said. PCR is Provision Coverage Ratio.

Net interest margin (NIM) for the quarter stood at 3.38 per cent. Retail and SME loan book rose 29 per cent and 27 per cent, respectively, for the quarter. Corporate loan growth rose 12 per cent.