Axis Bank reports net profit of Rs. 701 crore

Axis Bank reported strong improvement in the quarter on all fronts as the bank expects slippages to taper down, going forward.

The bank's net interest income for the quarter grew by 12 per cent yoy and 9 per cent qoq to Rs. 5,167 crore in Q1FY19 vs Rs. 4,731 crore in Q1FY18 and Rs. 4,616 crore in the previous quarter. The interest expenses rose higher than the interest income increase in the quarter. Interest income for the quarter grew by 15 per cent yoy, while interest expenses grew by 18 per cent.

The asset quality for the quarter improved sequentially with 5 per cent decline in total GNPAs to Rs. 32,662 crore in Q1FY19. The GNPAs as a percentage of total advances declined by 0.25 bps sequentially to 6.52 per cent vs 6.77 per cent in the previous quarter.

The provisions for the quarter declined by 53.5 per cent qoq and rose 42 per cent yoy to Rs. 3,337 crore in Q1FY19. The lower provisioning led to positive bottom-line after a severe loss in the previous quarter. The net profit for the quarter stood at Rs. 701 crore vs net loss of Rs. 2,188 crore in the previous quarter. Advances for the quarter also rose by 14 per cent yoy to Rs. 4,41,074 crore.