Axis Bank Ltd. reported second quarter standalone net profit jumped 86% to ₹3,133 crore.
Net Interest Income (NII) grew 8% yoy to ₹7,900 crore. Specific loan-loss provisions stood at ₹927 crore (₹2,865 crore).
The Bank said it has not utilised COVID provisions during the quarter. It holds cumulative provisions (standard + additional other than NPA) of ₹12,951 crore at the end of Q2FY22.
“It is pertinent to note that this is over and above the NPA provisioning included in our PCR calculations. These cumulative provisions translate to a standard asset coverage of 2.11% as on 30th September, 2021,” the bank said in a filing.
“On an aggregated basis, our provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 124% of GNPA as on 30th September, 2021,” it added.
As on September 30, the bank’s reported gross NPA and net NPA levels stood at 3.53% and 1.08% respectively as against 3.85% and 1.20% as on June 30.
Slippages in Q2FY21 were moderated due to regulatory forbearances that do not exist in the current quarter. Recoveries and upgrades from NPAs during the quarter were ₹4,757 crore while write-offs were ₹2,508 crore,” it said.
Consequently, there were net slippages in NPAs (before write-offs) for the quarter of ₹707 crore as compared to Rs 3,976 crore in Q1FY22 and net decline in NPA’s (before write-offs) of ₹276 crore in Q2FY21.
Net slippages in NPAs (before write-offs) for Retail loans stood at ₹697 crore and for SME, there was a ₹16 crore decrease in NPAs (before write-offs).
As on 30 September 2021, the bank’s provision coverage, as a proportion of Gross NPAs stood at 70%, as compared to 77% as at 30th September 2020 and 70% as at 30th June 2021. Provisions prior to technical write-offs remained stable at 88%.
The fund based outstanding of standard restructured loans implemented under resolution framework for COVID-19 related stress (Covid 1.0 and Covid 2.0) as at 30th September 2021 stood at ₹4,342 crores that translates to 0.64% of the gross customer assets. The Bank carries a provision of 24% on restructured loans, which is in excess of regulatory limits, it said.
The bank said it has set an incremental lending target of ₹30,000 crore over the next 5 years to pertinent sectors, while also scaling down exposure to carbon-intensive sectors.
MD & CEO Amitabh Chaudhry said, “We continue to focus on SMEs and mid corporates and on retail, we see better disbursements and growth driven by secured products.”