Private player Axis Bank on Friday reported 21 per cent decline in net profit at Rs 1,555.5 crore (Rs 15.55 billion) for the first quarter of the current fiscal on account of rise in bad loans.
It had earned a net profit of Rs 1,978.44 crore in the April-June quarter of the last fiscal, Axis Bank said in a statement.
Decline in profit is "driven by slippages from the watch list, the bank's Gross NPA and Net non-performing assets levels rose to 2.54 per cent and 1.08 per cent respectively in the first quarter", it said.
The bank's Gross NPA in absolute term rose to Rs 9,553 crore (Rs 95.53 billion) as compared to Rs 4,251 crore (Rs 42.51 billion) at the end of June 2015.
Total income of the bank improved to Rs 13,852.1 crore (Rs 138.52 billion) as against Rs 12,234.41 crore (Rs 122.34 billion) in the same period last year.
During the quarter, the interest income rose to Rs 11,113.9 crore (Rs 111.13 billion) from Rs 9,936.14 crore (Rs 99.36 billion) in the same period a year ago.
Operating profit of Axis Bank grew 9 per cent to Rs 4,469 crore (Rs 44.69 billion).
Its other income (non-interest revenue) increased to Rs 2,738 crore (Rs 27.38 billion) as compared Rs 2,298 crore (Rs 22.98 billion) in the April-June quarter of last fiscal.
During the quarter, the bank added Rs 3,638 crore (Rs 36.38 billion) to Gross NPAs, while 'recoveries and upgrades' were at Rs 140 crore (Rs 1.4 billion) and write-offs at Rs 32 crore (Rs 320 million).
Image: An Axis Bank branch. Photograph: Reuters
