Axis Bank Q1 profit falls 19% YoY to Rs 1,112 crore as provisions jump 16% YoY

Axis Bank NSE 2.81 % on Tuesday reported an 18.82 per cent year-on-year (YoY) fall in net profit at Rs 1,112.17 crore for the quarter ended June 30. Axis bank has reported a net profit of Rs 1,370.08 crore in the same period last year.

Net interest income (NII) has gone up 20 per cent YoY to Rs 6,985 crore in Q1FY21. On the other hand, operating profit fell by 1 per cent to Rs 5,844 crore.

Provisions and contingencies shoot up to 15.78 per cent YoY to Rs 4,416.42 crore during the quarter under review. However, the figure witnessed a fall of 42.87 per cent on a quarter-on-quarter basis.

Asset quality of the bank increased during the quarter as a percentage of gross non-performing assets (GNPAs) came in at 4.72 per cent over 5.25 per cent on YoY basis. The figure stood at 4.86 per cent in the preceding quarter ended March 31. Percentage of net NPA stood at 1.23 per cent over 2.04 per cent on YoY basis.

Specific loan loss provisions are at Rs 3,512 crore for Q1FY21, compared with Rs 2,886 crore in Q1 last year and Rs 4,204 crore in Q4FY20.

According to Axis Bank “The bank held additional provisions of around Rs 5,983 crores towards various contingencies at the end of Q4FY20. It has made incremental provisions aggregating Rs 733 crore in Q1FY21 towards Covid-19,”

Axis Bank recognised slippages of Rs 2,218 crore during the quarter under review against Rs 3,920 crore in Q4FY20 and Rs 4,798 crore in Q1FY20.

Axis Bank announced its results post-market hours. Earlier, it was 2.86 per cent higher at Rs 446.20, while the benchmark BSE Sensex settled 1.37 per cent up at 37,930.