Axis Bank Q1 Net Jumps 94 Percent To Rs 2,160 Crore
- ByStartupStory | July 27, 2021
Private lender Axis Bank’s net profit increased by 94 percent to Rs 2,160 crore in the first quarter ended June 2021 (Q1FY22) on a rise in non-interest income and a sharp dip in provisions. Axis Bank had posted a net profit of Rs 1,112.17 crore in the year-ago period. According to a regulatory filing, In the first quarter of the current fiscal, total income of the bank reached to Rs 19,591.63 crore from Rs 19,032.15 crore in the same period a year ago. Although, it was down from Rs 20,162.76 crore in the quarter ended March 2021.
The bank’s interest income fell from Rs 16,445.47 crore in the year-ago period to Rs 16,003.46 crore in Q1 FY22. However, income on investments jumped from Rs 2,973 crore in the same period a year ago to Rs 3,428.20 crore in the latest June quarter. Likewise, income from other sources also went up. The filing said, Loan book rose by 12 percent year-on-year, driven by all the three business segments of retail, corporate and SME loans.
An improvement has been seen in Asset quality with the gross non-performing assets or bad loans falling to 3.85 per cent of the gross bad assets as of June 30, 2021 from 4.72 per cent at the end of June 2020. Also, Net NPAs plunged to 1.20 per cent from 1.23 per cent. Provisions for bad loans and contingencies in the latest June quarter fell to Rs 3,532.01 crore from Rs 4,416.42 crore in the same period a year ago, the bank said. Specific loan loss provisions for Q1 FY22 were Rs 3,151 crore compared to Rs 3,512 crore in Q1FY21, and that the bank did not utilize COVID provisions during the quarter, the filing showed.
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