Q3FY18 Results: Axis Bank reports improvement in asset quality

Axis Bank reported stellar quarterly performance in the recent quarter ended December 2017. The asset-quality showed improvement and remained stable, while earnings grew robustly.

The NII for the quarter rose by 9.2 per cent YoY and 4.2 per cent QoQ to Rs. 4,731 crore compared to Rs. 4,540 in the previous quarter and Rs. 4,334 in the previous year's corresponding quarter. This was aided by rise in interest income by 5.5 per cent YoY and 4.3 per cent YoY to Rs. 11,721 crore.

Asset quality showed improvement over the quarter as total GNPA’s declined by 9 per cent QoQ to Rs. 25,000 crore compared to Rs. 27,402 crore in the previous quarter. GNPA’s as a percentage of total advances improved with 62 bps QoQ contraction to 5.28 per cent.

The provisions for the quarter declined steadily to Rs. 2,811 crore a YoY decline of 26 per cent and 10.5 per cent QoQ. The resultant net profit jumped 25.5 per cent YoY and 68 per cent QoQ to Rs.726 crore compared to Rs. 579 crore in Q3FY17 and Rs.432 crore in Q2FY17.

The advances also grew 21.1 per cent YoY Rs. 4,20,922 crore, while capital adequacy also increased strongly at CAR ( Basel III) of 17.5 per cent compared to 15.79 per cent in previous quarter and 16.03 per cent in the previous quarter of the corresponding year.

The stock closed today at Rs.611 mark up by 3.2 per cent after touching day high of Rs.621 mark.