Axis Bank Posts Rs 1,683 Crore Profit In September Quarter, Asset Quality Improves

Axis Bank on Wednesday reported a net profit of Rs 1,682.67 crore in the July-September period, as its asset quality improved. The profit came despite higher provisioning for contingencies. Axis Bank - the country's third largest private sector lender by market value - had posted a net loss of Rs 112.08 crore in the corresponding period a year ago. In a regulatory filing after market hours, Axis Bank said its net interest income - or the difference between interest earned and interest expended - increased 20 per cent to Rs 7,326.07 crore. (Track Axis Bank stock price here)

Its net interest margin - a key measure of profitability - improved to 3.58 per cent in the second quarter of current financial year, from 3.51 per cent in the year-ago period.

Mumbai-based Axis Bank's asset quality saw a slight improvement with gross non-performing assets (NPAs) as a percentage of total advances at 4.18 per cent in the three-month period ended September 30, as against 4.72 per cent in the previous quarter.

Total gross NPAs - or bad loans - came down to Rs 26,831.64 crore in the July-September period, from Rs 29,560 crore in the quarter ended June 30.

Net NPAs as a percentage of total advances stood at 0.98 per cent, as against 1.23 per cent in the June quarter.

(Also Read: Axis Bank Raises Rs 10,000 Crore Through Share Sale)

Axis Bank shares ended 0.71 per cent lower at Rs 504.85 apiece on the BSE ahead of the earnings announcement, as against a 1.48 per cent fall in the benchmark S&P BSE Sensex index amid a broad-based selloff.