Axis Bank Q3FY17 net plummets more than expected; down 73.3% to Rs 580 crore

By: | Published: January 19, 2017 5:45 PM

Axis Bank Ltd’s fiscal third quarter net profit fell 73.3% on-year to Rs 579.6 crore, amid rising NPAs and falling margins.

Axis Bank, Demonetisation, Income Tax Department, IT raids, Raids at Axis Bank, Currency Crunch, Money Laundering, Fake AccountsAxis Bank’s watch list loans reduced to 2.8% of customer assets in December 2016, from 3.5% in Sept 2016 and 6.2% at beginning of current financial year 2016-17, it said. (Source: Reuters)

Axis Bank Ltd’s fiscal third quarter net profit fell 73.3% on-year to Rs 579.6 crore, amid rising NPAs and falling margins. The fall in net profit was sharply larger than most analyst estimates. Reuters, in an analyst poll, forecast the net profit for the quarter at Rs 779 crore.

India’s third largest private sector lender’s gross NPAs also expanded higher than expected to 5.22% in Oct-Dec from 4.17% in the preceding quarter, rising by more than a full percentage point. The company’s net NPAs in the fiscal third quarter rose to 2.18% from 2.02% in the previous quarter.

Its net interest margin for Q3FY17 was at 3.43%.

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Provisions for bad loans rose sharply on-year to Rs 3,796 crore in Oct-Dec from Rs 713 crore in the same period previous year.

It said that gross slippages in December quarter declined 48% on-quarter and most of the slippages in corporate lending were from the watch list.

Also, Axis Bank’s watch list loans reduced to 2.8% of customer assets in December 2016, from 3.5% in Sept 2016 and 6.2% at beginning of current financial year 2016-17, it said.

The bank earned Rs 11,101 crore in interest in the third quarter, up 8.9% from Rs 10,193 crore a year ago.

Axis Bank’s total capital adequacy ratio under basel III was at 16.59%, with tier-1 capital adequacy at 12.99%.

Ahead of results, Axis Bank shares ended down almost 1% today at Rs 483.8, amid higher broader markets.

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