New Delhi, Oct 17 (PTI) Private sector lender Axis Banktoday reported a 38 per cent increase in net profit at Rs 432crore in the second quarter ended September despite rise inbad loans.
The bank had posted a net profit of Rs 319 crore for theJuly-September period of 2016-17.
Total income increased to Rs 13,821 crore in the periodunder review from Rs 13,698.7 crore for the quarter endedSeptember 30, 2016, Axis Bank said in a statement.
During the quarter, gross non-performing assets (NPAs) ofthe bank rose to 5.90 per cent as compared to 4.17 per cent inthe same period a year ago.
At the same time, the net NPA also inched up to 3.12 percent as against 2.02 per cent in the same quarter of theprevious fiscal.
As a result, the gross NPA shot up in absolute terms toRs 27,402 crore at the end of September as compared to 16,379crore at the end of the second quarter of the previous year.
Gross NPA additions for the second quarter stood at Rs8,936 crore, of which corporate slippages stood at Rs 8,110crore, it said.
The net interest income (NII) remained almost flat at Rs4,540 crore as against Rs 4,514 crore in the second quarter ofthe last financial year. Net interest margin for stood at 3.45per cent.
The bank further said that the Reserve Bank of India(RBI) has pointed out certain reclassifications in the bank'sasset classification and provisioning as on March 31,subsequent to the annual Risk Based Supervision (RBS) exerciseconducted for fiscal 2017.
"The bank has duly recorded the impact of suchreclassifications in the results for the quarter ended30th September 2017," it said.
The bank has a total loan outstanding of Rs 7,041 croreagainst the Insolvency and Bankruptcy Code (IBC) accountsmentioned in the two lists referred by RBI.
"Incremental provisions of Rs 505 crore on these selectaccounts have been made during the quarter taking the totalprovisioning against these select accounts to Rs 3,886 crorewith an improved provision coverage ratio at 55 per cent," itsaid. PTI DPSBT.
This is unedited, unformatted feed from the Press Trust of India wire.