Axis Bank back in the black, posts net profit in Q4
Axis Bank on Tuesday reported a return to profit at Rs 2,677 crore in the quarter ended March 2021 due to a sharp fall in provisions.
The lender had reported standalone net loss of Rs 1,388 crore in the year-ago period.
Net interest income rose 11% to Rs 7,555 crore as against Rs 6,808 crore a year ago. The provisions and contingencies during the quarter fell 58% to Rs Rs 3,295 crore as against Rs 7,730 crore in year-ago period.
It’s loan book grew 12% on an annual basis and 8% on sequential basis.
The Board of Directors of the Bank at their meeting held today have considered it prudent to not propose any dividend for
the year ended 31st March, 2021, in light of the situation developing around Covid-19 in the country and related uncertainty that it creates.
Gross slippages during the quarter were Rs 5,285 crore, as compared to Rs 7,993 crore during Q3FY21 and Rs 3,920 crore in
Q4FY20. Slippages from the loan book were at Rs 5,038 crore.
Total income during the latest quarter stood at Rs 20,213.46 crore against Rs 20,219.57 crore in the year-ago period.
On consolidated basis, the lender posted a net profit of Rs 2,960.40 crore during the quarter ended March 2021 against a loss of Rs 1,250.09 crore in the year-ago period.
Total income increased to Rs 21,028.45 crore in the latest quarter from Rs 20,786.23 crore in the same period a year ago.
Gross non performing assets (NPAs) fell to 3.70% of the gross advances as on March 31, 2021, from 4.86% in the year-ago period.
Net NPAs too came down to 1.05% from 1.56%.
During the quarter, the bank made additional provision aggregating Rs 803 crores on account of change in NPA provision rates on loans to Commercial Banking segment. Net of the adjustments, specific loan loss provision for fourth quarter would have been Rs 1,969 crore.
Meanwhile, the board authorized the bank to raise funds in Indian or foreign currency by issue of debt Instruments including but not limited long term bonds, non-convertible debentures, perpetual debt instruments, AT 1 Bonds, Infrastructure Bonds and Tier II Capital Bonds up to an amount of Rs 35,000 crore.
Under Basel III, the Capital Adequacy Ratio (CAR) and CET1 ratio as on March 31, 2021 including FY’21 profits were 19.12% and 15.40% respectively.
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