CHENNAI: Mounting bad loans pulled down Axis Bank’s first-quarter performance as the private-sector lender on Tuesday reported a 16.06 per cent decline in net profit at Rs 1,306 crore for the April-June 2017 period against a net profit of Rs 1,556 crore in the corresponding quarter a year ago.
Revenues of the bank, however, rose to Rs 14,052.30 crore during the quarter under review compared to Rs 13,852.18 crore in the year-ago period, Axis Bank said.
The lender’s asset quality worsened as gross non-performing assets almost doubled to 5.03 per cent as on June 30 this year, from 2.54 per cent on June 30, 2016. Likewise, net NPAs or bad loans increased to 2.30 per cent of net advances furnished by June-end from 1.08 per cent a year earlier.
In absolute terms, gross NPAs stood at Rs 22,030.87 crore as on June 30, 2017 compared to Rs 9,553.17 crore a year earlier.Net NPAs were at Rs 9,765.98 crore, up from Rs 4,010.23 crore a year ago.
“Additions to gross NPAs were Rs 3,519 crore, recoveries and upgrades were Rs 306 crore, while write-offs during the quarter were Rs 2,462 crore,” the bank said.
The lender’s provisioning for bad loans and contingencies stood at Rs 2,341.93 crore for the reporting quarter against Rs 2,117.17 crore in the same period a year ago.