Axis Bank reported second-quarter net profit grew 18% year-on-year ( YoY) to ₹6,918 crore. Net interest income (NII) grew 9% year-on-year (YoY) to ₹13,483 crore. Net interest margin (NIM) for Q2FY25 stood at 3.99%, the private sector lender said in a filing.
Provision and contingencies for Q2 FY25 stood at ₹2,204 crore. Specific loan loss provisions stood at ₹ 1,441 crore. In addition to specific loan loss provisions, in the quarter, the bank made provisions aggregating to ₹520 crore under the head provision for other contingencies.
“These are entirely prudent and not for current or future NPA assets and should not be construed in any manner as the bank’s assessment of its expected asset quality,” the bank said.
The bank holds cumulative provisions (standard plus additional other than NPA) of Rs 11,815 crore at the end of Q2FY25.
“These cumulative provisions translate to a standard asset coverage of 1.2% as on 30th September, 2024. On an aggregated basis, our provision coverage ratio (including specific plus standard plus additional) stands at 153% of GNPA as on 30th September, 2024,” it said.
As on 30th September, 2024 the bank’s reported Gross NPA and Net NPA levels were 1.44% and 0.34% respectively as against 1.54% and 0.34% as on June 30. Recoveries from written off accounts for the quarter was ₹984 crore.
The reported net slippages in the quarter adjusted for recoveries from written off pool was ₹1,390 crore, of which retail was ₹2,164 crore and Wholesale was negative ₹805 crore.
Gross slippages during the quarter were ₹4,443 crore, compared to ₹3,254 crore in the year ago period.
Recoveries and upgrades from NPAs during the quarter were ₹2,069 crore. The bank in the quarter wrote off NPAs aggregating ₹3,119 crore.
As on September 30, the bank’s provision coverage, as a proportion of Gross NPAs stood at 77% compared to 79% as at Septembe 30, 2023 and 78% as at June 30, 2024.
The bank carries a provision of 20% on restructured loans, which is in excess of regulatory limits. The bank’s total deposits grew 14% and net advances grew 11% YOY. While retail loans grew 15% YOY, SME grew 16% YOY, Corporate loans grew 6% YOY.
Published - October 17, 2024 07:18 pm IST
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