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:
- 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.
- 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.
- 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.
- 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.
- 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):
- The bank’s non-performing assets (NPAs) remained steady during the quarter but provisions jumped sharply.
- 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:
- The bank increased provisions to Rs. 1,121.77 crore during the April-June quarter from Rs. 386.6 crore last year.
- In the March quarter, provisions were at Rs. 709.82 crore.
Other bank’s increments:
- HDFC Bank Ltd reported a 21% net jump in Q1 to Rs. 2,695.72 Crore.
- Published on: July 27, 2015