Axis Bank Jumps 1% On Turnaround Q2 Earnings, Better Asset Quality

Axis Bank Net Profit: Axis Bank reported a net profit of Rs 1,682.67 crore in the quarter ended September 2020 as against a net loss of Rs 112.08 crore in the corresponding period a year ago.

Axis Bank Jumps 1% On Turnaround Q2 Earnings, Better Asset Quality

Axis Bank share price: Gross NPAs as a percentage of total advances were 4.18 per cent.

Axis Bank shares rose more than 1 per cent in early trading after the bank, in a regulatory filing after market hours hours on Wednesday, reported return to profitability in the July-September quarter on the back of improvement in asset quality. The shares of Axis Bank rose 1.5 per cent to touch an intra-day high of Rs 512.45 in early trading, and at 9:35 am, the shares were at Rs 512, up 1.35 per cent.

The country's third largest private sector lender by market value got back into the black, reporting a net profit of Rs 1,682.67 crore in the quarter ended September 2020 as against a net loss of Rs 112.08 crore in the corresponding period a year ago, due to improvement in asset quality improved.

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.

Axis Bank said its net interest income - the difference between interest earned and interest expended - increased 20 per cent to Rs 7,326.07 crore. 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.

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

The BSE Sensex was at 39,728.08, lower by 193.60 points and the NSE Nifty was at 11,666.30, down 62.65 points or 0.55 per cent at the time.