Axis Bank is back in the black as fee collections ramp up and ₹10,000 crore in fund raising cushions the balance sheet
- Axis Bank is profitable again as it posts a net profit of ₹1,683 crore after a dip of 19% last year.
- Credit growth was lower than expected at 6%.
- The bank’s fund raising of ₹10,000 crore went towards additional provisions.
Axis Bank’s profit is in the green again after reporting a dip of 19% last quarter. Between July and September, net profit was at ₹1,683 crore. This is also an increase compared to same quarter last year, when the bank registered a net loss of ₹112 crore.
View all Offers
View all Offers
OnePlus Nord 2 5G (Gray Sierra, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 19% OFF
Redmi Note 10 (Aqua Green, 4GB RAM, 64GB Storage) -Amoled Dot Display | 48MP Sony Sensor IMX582 | Snapdragon 678 Processor₹ 12999₹ 15999Buy On
OnePlus Nord 2 5G (Blue Haze, 8GB RAM, 128GB Storage) I Extra upto Rs.1000 off on Exchange₹ 29999Buy On
- 18% OFF
Redmi 9 (Carbon Black, 4GB RAM, 64GB Storage) | 2.3GHz Mediatek Helio G35 Octa core Processor₹ 8999₹ 10999Buy On
- 18% OFF
Redmi 9A (Nature Green, 2GB RAM, 32GB Storage) | 2GHz Octa-core Helio G25 Processor | 5000 mAh Battery₹ 6999₹ 8499Buy On
The bank’s net interest income also showed growth of around 20% in the second quarter as compared to the same time period last year.
TOP VIDEOS FOR YOU
More importantly, collection of fees showed considerable improvement standing at ₹2,752 crore — growing 67% over the first quarter and 4% over last year. According to the bank, the key driver for fee income growth for retail fees, which — in itself — grew by 82% over the last three months.
Loan growth, however, was underwhelming, increasing by only 6%. Most analysts expected at least 10% in credit growth.
Axis Bank’s ₹10,000 crore in fund raising put towards provisions
At the end of September, Axis Bank’s gross non-performing assets (GNPA) and net non-performing assets (NNPA) were at 4.18% and 0.98% respectively.
|NPA ratio||September 2020||June 2020|
The bank has not recognised any non-performing assets (NPAs) since August 31, adhering to the Supreme Court's order. If not for that, its GNPA would have been 4.28% and NNPA would have been 1.03%.
Axis Bank has made incremental provisions of ₹1,279 crore towards loans under moratorium and ₹ 1,864 crore towards probable restructuring, aggregating to ₹ 3,143 crore.
It has another ₹10,839 crore in aggregated additional provisions which comes from the funds it raised through allotment of equity shares to qualified institutional buyers (QIB).
AdvertisementThe fund raising also led to the paid-up share capital of the Axis Bank increasing by ₹47 .61 crore and the reserves of the bank increasing by ₹9 ,915.37 crores after charging off issue related expenses.
On an aggregated basis, provision coverage ratio — which includes specific, standard, additional and COVID-19 provisions — stands at 124% of GNPA at the end of September.
Building blocks of life discovered in Titan’s atmosphere — NASA discovers a ‘weird’ molecule on Saturn’s largest moon
EXCLUSIVE: Ajay Piramal believes that if banks won't lend to long-term projects, India will need to revive the likes of IDBI and IFCI
Apophis, the ‘God of Chaos’ asteroid is speeding up — increasing the likelihood of it hitting Earth in 2068
- Fino Payments Bank files papers for ₹1,300 crore IPO
- OfBusiness, a platform that helps SMEs get raw materials, becomes the newest unicorn from India
- Tokyo Olympics: India's P V Sindhu loses to world number one Tai Tzu Ying of Chinese Taipei in the semis
- Droom founder explains why he is considering a US IPO and where he intends to spend the money
- 21 new COVID-19 cases reported at Tokyo Olympics, no athletes among them