NEW DELHI: Private sector lender Axis Bank on Tuesday reported 86.2% year-on-year (YoY) growth in standalone profit at Rs 3,133.32 crore for the quarter ended September 2021 (Q2FY22) mainly on account of significant fall in provisions.
The bank had reported profit of Rs 1,682.67 crore, for the same quarter last fiscal year. Net interest income was up by 7.8% to Rs 7,900 crore while Net interest margin contracted to 3.39% in the quarter.
“Retail loans, where 80% of the book is secured, grew 16% YoY, while there was 18% YoY growth in SME loans, and 32% rise in mid-corporate loan book during the September 2021 quarter,” the bank said in its regulatory filing,
The bank’s balance sheet grew 17% YoY and stood at Rs 10.5 lakh crore as of September 2021. Bank saw improvement in asset quality with gross non-performing assets fell 22 basis poins sequentially to 3.53% in Q2FY22, and net NPAs declined 12 basis points QoQ to 1.08%.
Gross slippages during the quarter declined to Rs 5,464 crore, compared to Rs 6,518 crore during Q1FY22, recoveries during the quarter were Rs 4,757 crore, and write-offs were Rs 2,508 crore.
“The bank carried a provision of around 24% on restructured loans, which is in excess of regulatory limits,” the private lender said.
Provisions and contingencies fell sharply by 47.5% sequentially to Rs 1,735.09 crore in Q2FY22 and YoY decline was 60%. Specific loan loss provisions for Q2FY22 were Rs 927 crore compared to Rs 2,865 crore in Q1FY22.