Axis Bank’s Net profit for the quarter stood at ₹5,806 crore, implying a decline of 4% from the same quarter last year. A CNBC-TV18 poll had projected the figure to be ₹6,217 crore.
Gross NPA for the quarter stood at 1.57%, compared to 1.28% in the March quarter. Net NPA for the quarter stood at 0.45% from 0.33% in the March quarter.Provisions for the quarter increased on both a sequential as well as a year-on-year basis. Provisions at the end of the quarter stood at ₹3,947 crore, from ₹1,359 crore in March and ₹2,039 crore during the June quarter last year.
Out of this, ₹821 crore worth of provisions are attributed to the technical impact, adjusted for which, the total provisions would stand at ₹3,127 crore.Axis Bank saw a sharp rise in slippages during the quarter. Gross slippages at the end of June stood at ₹8,20 crore, compared to ₹4,805 crore at the end of the March quarter and ₹4,793 crore during the same quarter last year.
The lender mentioned that gross slippages worth ₹2,709 crore are due to a technical impact. Adjusted for the technical impact, gross slippages for the quarter stood at ₹5,491 crore.
In its post-earnings statements, Axis Bank attributed the multiple one-offs to technical factors affected by the new provision policy which took effect from April 1. The lender elaborated that the technical factors impacted the net profit by ₹614 crore, RoA by 15 basis points an RoE by 1.4% adversely during the quarter.
Recovery and upgrades from NPAs during the quarter stood at ₹2,147 crore. Write-offs during the quarter stood at ₹2,778 crore.
Provision Coverage Ratio at the end of the June quarter stood at 71% compared to 75% in the previous quarter.
Shares of Axis Bank had ended 0.6% lower ahead of the result announcement at ₹1,161. The UK listed shares (GDR) are down 5% in response to the results.
