Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
Needmore seats to Win
Needmore seats to Win
3-min read

Lower Credit Cost, Higher Core Income Boost Axis Bank Net 83%

The third largest private sector lender had reported a huge dip in net profit at Rs 432 crore in the year-ago period on a jump in bad assets.


Updated:November 2, 2018, 9:19 PM IST
Lower Credit Cost, Higher Core Income Boost Axis Bank Net 83%
File photo of Axis Bank (Image: Reuters)
Mumbai: Lower provisioning driven by better asset quality and higher interest income helped Axis Bank on Friday report a 83 per cent rise in net income at Rs 790 crore for the September quarter, leading the outgoing leadership to assert that the bank is well positioned for the future.

The third largest private sector lender had reported a huge dip in net profit at Rs 432 crore in the year-ago period on a jump in bad assets.

Shikha Sharma, the outgoing managing director and chief executive, said bad assets are nearing their peak and it is their resolution that will be the focus from here on.

Fresh slippages declined 69 per cent to Rs 2,777 crore, improving the gross non-performing assets ratio to 5.96 percent from 5.90 percent, but the provision coverage moved up 4 percentage points to 73 per cent.

Provisions, which had risen in the corresponding three months period last fiscal year, and wrecking the bottomline, came in at Rs 2,927 crore in the reporting quarter, as against Rs 3,140 crore a year ago, thus boosting the bottomline.

Chief financial officer Jairam Sridharan guided towards a normalization of the credit cost or provisions in the second half which should eventually help the bank reach its long-term average of having the credit costs at 1.10 per cent of total assets.

He said 88 per cent of the corporate slippages came in from a separately classified book on advances to companies rated BB and below and added this particular book got reduced by Rs 1,700 crore to Rs 8,860 crore during the quarter.

When asked if the entire book will slip into dud assets eventually, he replied in the negative saying assets are also being upgraded and said recently two of its steel accounts were upgraded.

Sridharan said the bank has a Rs 825-crore exposure to the crippled IL&FS Group and the group companies, of which Rs 250 crore is a fund-based account and the remaining is non-fund based accounts.

But he was quick to add that all these accounts are classified as "standard" as of now and the bank has made a provision of 20 per cent on the fund based exposure.

Its overall exposure to the NBFC sector stands at over Rs 27,000 crore and Axis Bank will be keen to both lend to the segment and also is interested in portfolio buys, he said.

Sridharan further said over 90 per cent of its exposure is to better rated NBFCs and the bank is satisfied with the performance.

The core net interest income grew 15 per cent to Rs 5,232 crore on an 11 per cent growth in its loan book and an expansion in the net interest margin to 3.36 per cent. The bank, however, saw a 14 per cent dip in its overseas book.

The share of the low cost current and savings account deposits stood at an average of 45 per cent for the quarter. Non-interest income including trading performance grew 4 per cent to Rs 2,678 crore during the quarter. The bank's capital buffers stood at 16.45 per cent with the core tier-1 at 13.04 per cent.

The Axis Bank counter closed 1.26 per cent up at Rs 609.95 on the BSE as against a 1.68 per cent surge in the benchmark.
(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
| Edited by: Padmaja Venkataraman
Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
SBI 348.85 2.27
Reliance 1,353.00 0.94
IndusInd Bank 1,593.40 4.90
ICICI Bank 419.05 3.38
HDFC Bank 2,367.90 -1.57
Company Price Change %Gain
Reliance 1,353.00 0.92
Larsen 1,493.25 2.24
SBI 348.15 2.14
Yes Bank 142.30 3.34
Adani Enterpris 167.00 5.73
Top Gainers
Company Price Change %Gain
Adani Ports 412.30 6.83
IndusInd Bank 1,593.40 4.90
Zee Entertain 358.85 4.87
Yes Bank 141.95 3.20
BPCL 389.80 1.44
Company Price Change %Gain
IndusInd Bank 1,592.00 4.91
Yes Bank 142.35 3.38
ICICI Bank 418.90 3.30
SBI 349.30 2.48
Hero Motocorp 2,768.15 2.57
Top Losers
Company Price Change %Gain
ITC 290.90 -2.95
Vedanta 162.60 -2.22
Eicher Motors 20,719.90 -2.38
HDFC Bank 2,366.50 -1.63
Bajaj Finserv 8,136.00 -1.04
Company Price Change %Gain
Vedanta 162.00 -2.67
ITC 291.25 -2.77
HDFC Bank 2,367.65 -1.56
TCS 2,063.35 -0.93
Bajaj Finance 3,421.05 -0.77

Live TV

Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results