Axis Bank Posts Strong Growth in Q1 Profit, but Still Misses Estimates
A CNBC-TV18 Poll had predicted a profit of Rs 1,897.2 crore for the quarter under review. Most of the brokerages were also expect more than two-fold increase in its June quarter profit.
Image for Representation. (File Photo: Reuters)
Axis Bank on Tuesday announced after market hours that its consolidated net profit rose to Rs 1,370 crore for the first quarter ended June (Q1) compared with Rs 701 crore a year ago. The lender’s profit, though up over 95% year-on-year, failed to meet analyst estimates.
A CNBC-TV18 Poll had predicted a profit of Rs 1,897.2 crore for the quarter under review. Most of the brokerages were also expect more than a two-fold increase in its June quarter profit.
Shares of Axis Bank had closed the Tuesday session lower by 2.5% at Rs 702.40 apiece. The stock has returned nearly 33% to investors in the last year.
Axis Bank’s net interest income (NII) rose 13% to Rs 5,844 crore in the June quarter from Rs 5,167 crore in the same quarter last year.
The bank’s operating profit for the quarter grew 35% year-on-year to Rs 5,893 crore from Rs 4,372 crore in the year-ago quarter. Net interest margin (NIM) for the quarter stood at 3.4%.
The bank’s non-interest income jumped 32% to Rs 3,869 crore during the June quarter against Rs 2,925 crore in the year-ago quarter mainly helped by a 26% jump in fee income to Rs 2,663 crore.
In terms of asset quality, the lender’s gross non-performing assets (NPAs) as a percentage of total advances stood at 5.25% at the end of the June quarter compared with 5.26% in the preceding quarter, while net NPAs also slipped slightly to 2.04% from 2.06%.
Provisions set aside for bad loans, however, jumped sharply by 40.7% to Rs 3,814.60 crore during the June quarter compared with Rs 2,711.40 crore for the preceding March quarter.
Axis Bank’s gross slippages also remained higher at Rs 4,798 crore at the end of June quarter compared with Rs 3,012 crore in the previous quarter.
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