Axis Bank Q1 net profit jumps 95% YoY

Axis Bank on Tuesday said its net profit climbed 95 per cent YoY to Rs 1,370 crore for the June quarter against Rs 701 crore in the same quarter last year. 

The numbers failed to meet poll ET Now poll projection of Rs 1,850 crore by a wide margin. 

The bank said it downgraded Rs 2,242 crore into the BB pool during the quarter, mostly from groups that have shown new signs of stress in recent months. Post the action, the bank’s BB and below rated book remained largely stable QoQ and stood at Rs 7,504 crore. This is 1.3 per cent of the bank’s gross customer assets, significantly down from 7.3 per cent at peak, the private bank said. 

Net Interest Income (NII) for the quarter rose 13 per cent YOY to Rs 5,844 crore from Rs 5,167 crore in the corresponding quarter last year. Net interest margin for Q1FY20 stood at 3.40 per cent, the private bank said in a BSE filing. Non-interest income, which comprises of fee, trading profit and miscellaneous income, jumped 32 per cent YOY to Rs 3,869 crore against Rs 2,925 crore in the corresponding quarter last year. Fee income rose 26 per cent YOY to Rs 2,663 crore. 

The key driver of fee income growth was retail fee, which grew 28 per cent YOY and constituted 62 per cent of the bank’s total fee income. Card Fees rose 28 per cent YOY. Transaction banking fees rose 7 per cent YoY and constituted 16 per cent of the total fee income of the bank. 

Asset quality remained stable with the bank’s gross NPA and net NPA coming at 5.25 per cent and 2.04 per cent respectively, against 5.26 per cent and 2.06 per cent, respectively as on March 31.