Axis Bank Q1 results: Net profit drops 19% at ₹1,112 crore
2 min read . Updated: 21 Jul 2020, 05:47 PM IST- Bank's Net Interest Income (NII) grew 20% YOY to ₹6,985 crores during the quarter
Axis Bank, the private sector lender, on Tuesday reported a 19% year-on-year fall in net profit at ₹1,112 crore for June quarter. The bank reported a net profit of ₹1,370.08 crore for corresponding quarter last year.
Bank's Net Interest Income (NII) grew 20% YOY to ₹6,985 crores during the quarter. Non-Interest Income (comprising of fee, trading profit and miscellaneous income) for the June quarter declined by 33% to ₹2,587 crores. The operating profit inched lower by 1% to ₹5,844 crore.
Specific loan loss provisions for Q1FY21 stood at ₹3,512 crore, compared with ₹2,886 crore in Q1 last year and ₹4,204 crore in Q4FY20.
“The bank held additional provisions of around ₹5,983 crores towards various contingencies at the end of Q4FY20. It has made incremental provisions aggregating ₹733 crores in Q1 FY21 towards COVID-19. At June 30, 2020, the Bank holds in aggregate additional provisions of ₹6,898 crores.,"the lender said in a release.
Amitabh Chaudhry, MD&CEO, Axis Bank 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. 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.
"This has led to many ‘firsts’ and we are in the process of coming up with more. Our journey has been rendered even more special with our ‘Dil Se Open’ spirit that reverberates across all our branches and customer service touch-points," he added.
The bank’s balance sheet grew 16% YoY and stood at ₹8,97,138 crores as on 30th June 2020. The total deposits grew by 19% on quarterly average balance (QAB) basis and by 16% YOY on period end basis. On QAB basis, savings account deposits grew 15% YOY and 5% QOQ, current account deposits grew 8% YOY and retail term deposits grew 27% YOY. CASA and Retail Term Deposits on QAB basis put together recorded a growth of 20% YOY. The share of CASA and retail term deposits in the Total Deposits on QAB basis was 81% as of 30th June 2020.
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