DCB Bank posts 22% jump in net profit

Marco Green
October 18, 2017

Axis Bank reported a 36% rise in net profit for the ended September 30 to Rs 432 crore on higher growth in advances and trading profits, fee income and lower provisions over the previous year.

Net interest income was up 30.5 per cent year-on-year (yoy) at Rs 248 crore (Rs 190 crore in the year-ago period).

Provisions and contingencies fell about 13 per cent to Rs 31.40 billion. The bank attributed the worsening in the bad-loan stockpile to nine accounts that were standard at the end of June being reclassified as NPAs in the September quarter on the direction of the Reserve Bank of India (RBI).

"The bank has duly recorded the impact of such reclassifications in the results for the quarter ended 30th September 2017", it said. Total provisions of Rs 1,618 crore were created against these accounts during the quarter. Other income edged up to Rs 65 crore (Rs 62 crore).

The bank's gross NPA grew 5.90% to Rs 27,400 crore. The net NPA also inched up to 3.12 per cent as against 2.02 per cent in the same quarter of the previous fiscal. But he said there has been no contribution from the corporate segment to the slippages.

As Axis Bank's stressed assets grew, provisions, money set aside by the bank as assets to pay for anticipated future losses, also increased to Rs 3140 crore during the quarter, from Rs 2342 crore in last quarter.

During the quarter, however, the bank's gross non-performing assets (NPAs) rose to 5.90 per cent as compared to 4.17 per cent in the same period a year ago.

On Tuesday, Axis's scrip on BSE closed 1.4% lower at Rs 513. Retail advances drove loan growth, rising 23% y-o-y and accounted for 45% of net advances.

The net interest income (NII) remained nearly flat at Rs 4,539.62 crore as against Rs 4,513.87 crore in the second quarter of the last financial year. Transaction banking fees grew 13% and constituted 26% of the total fee income of the bank.

Other reports by Click Lancashire

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