Economy

Axis Bank Net Profit up 36% for Second Quarter

Axis Bank Net Profit up 36% for Second Quarter”

It was Rs 319 crore in the same period a year ago.

Axis Bank Ltd, the third-biggest private sector lender by assets, said on Tuesday that its second-quarter net profit jumped by about 36 per cent, as provisions for bad loans eased from a year earlier.

Swiss brokerage UBS Securities has maintained buy call on the bank with a target price of Rs 140 and said that Federal Bank's second quarter results which crossed the estimated mark was surprising and it is positive for the company given strong forecast loan growth of 22-26%.

The private bank's asset quality deteriorated as gross non-performing assets (NPAs) at the bank rose in the last nine quarters.

Outstanding loans on the bank's watch list, or potential troubled loans, fell 24 percent from the previous quarter to 60.52 billion rupees as of end-September.

The gross slippages were seen at Rs 8,936 crore, while the write-offs were reported at Rs 2,517 crore. Its net interest margin was 3.45 per cent, compared with 3.63 per cent a quarter earlier.

Share of the low cost current and saving account deposits stood at 32.93 per cent.

The bank further said that the asset quality was impacted by accelerated recognition of assets.

"The bank has duly recorded the impact of such reclassifications in the results for the quarter ended 30th September 2017", it said. Provisions and contingencies fell about 13 per cent to 31.40 billion rupees.

The bank has a total loan outstanding of Rs 7,041 crore against the Insolvency and Bankruptcy Code (IBC) accounts mentioned in the two lists referred by RBI.

This is unedited, unformatted feed from the Press Trust of India wire.



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