Axis Bank Q1 (first quarter) profit increases 19% to Rs 1,978 crore [ Current Affairs ]


About Axis Bank: Axis Bank Limited is the third largest private sector bank in India. It offers to customer the financial services segments covering Large and Mid-Sized Corporates, MSME, Agriculture and Retail Businesses. Axis Bank has its registered office at Ahmedabad. Axis Bank is the second private bank to report a jump in provisions.

Increment in profit:

  1. It has been reported that net profit increased 19% to Rs. 1,978.44 crore in the three months ended 30 June from Rs. 1,666.76 crore a year ago.
  2. Gross bad loans as a percentage of total loans rose to 1.38 per cent in the June quarter from 1.34 per cent in the previous three months.
  3. Net profit was higher than the Rs. 1,944 crore expected by 34 analysts polled by Bloomberg . Profit increased mainly because of higher net interest income and an increase in other income.
  4. Net interest income, or the difference between interest earned and that expended, increased 22.53% to Rs. 4,056.23 crore from Rs. 3,310.49 crore last year.
  5. Other income increased 35% to Rs. 2,298.27 crore from Rs. 1,691.05 crore in the same period last year.

Non-performing assets (NPAs):

  1. The bank’s non-performing assets (NPAs) remained steady during the quarter but provisions jumped sharply.
  2. Net NPAs inched up to 0.48% compared with 0.44% in the same period last year. Gross NPAs were at 1.38% compared with 1.34% in the year-ago quarter.

Previous month’s increments:

  1. The bank increased provisions to Rs. 1,121.77 crore during the April-June quarter from Rs. 386.6 crore last year.
  2. In the March quarter, provisions were at Rs. 709.82 crore.

Other bank’s increments:

  1. HDFC Bank Ltd reported a 21% net jump in Q1 to Rs. 2,695.72 Crore.

- Published on: July 27, 2015