This Article is From Jul 21, 2020

Axis Bank June Quarter Profit At Rs 1,112 Crore; Asset Quality Improves

Axis Bank's net interest margin - a key measure of profitability - stood at 3.40% in the April June period.

Axis Bank June Quarter Profit At Rs 1,112 Crore; Asset Quality Improves

Axis Bank is the country's fourth largest private sector lender by market value

Axis Bank on Tuesday reported a net profit of Rs 1,112.17 crore for the April-June period, marking a decline of 18.82 per cent compared with the corresponding period a year ago. In a regulatory filing after market hours, Axis Bank, the country's fourth largest private sector lender by market capitalisation, said its total interest income came in at Rs 16,538.89 crore in the first quarter of current financial year, up 8.42 per cent on a year-on-year basis.

Net interest income (NII) - or the difference between interest earned and interest expended - rose 19.54 per cent to Rs 6,985.31 crore, Axis Bank said.

Axis Bank said its profit was Rs 1,626 crore when adjusted for accounting policy changes and NII reserves created during the quarter.

The private sector lender said the coronavirus pandemic has affected the world economy including India, causing volatility in financial markets and hampering economic activities. The extent to which COVID-19 will impact Axis Bank's operations and asset quality will depend on future developments, "which are highly uncertain", it said.

"The disruption caused by the pandemic has led to immense economic and social impediments, however, it has also brought about innovations across the industry," said Amitabh Chaudhry, managing director and CEO, Axis Bank.

"Axis Bank has been in the forefront, working with all its stakeholders to constantly come up with new solutions that strengthen the institution and support customers, employees and partners through this challenging phase," he added.

Its net interest margin - a key measure of profitability - stood at 3.40 per cent in the first quarter of current financial year, as against 3.55 per cent in the quarter ended March 31.

The bank's gross non-performing assets - or bad loans - as a percentage of total loans improved to 4.72 per cent in the April-June period, from 4.86 per cent in the previous quarter, and 5.25 per cent in the three-month period ended June 30, 2019. Net NPAs came in at Rs 7,447.99 crore in the April-June period, down 20.43 per cent sequentially and 32.52 per cent annually.

Shares in Axis Bank had ended 2.86 per cent higher at Rs 446.20 apiece on the BSE, outperforming the benchmark Sensex index which rose 1.37 per cent to a more than four-month closing high led by gains across sectors.