Axis Bank rose 1.22% to Rs 511 after the private lender reported a net profit of Rs 1,683 crore in Q2 September 2020 as against net loss of Rs 112 crore in Q2 September 2019.
Total income during the quarter rose 2.8% year-on-year (YoY) to Rs 19,870.07 crore in Q2FY21. Net interest income (NIM) jumped 20% to Rs 7,326 crore in Q2FY21 over Q2FY20. Net interest margin in Q2FY21 was 3.58% as against 3.51% for Q2FY20.
The bank's provisions and contingencies increased by 30.2% to Rs 4,580.65 crore in Q2 FY21 from Rs 3,518.39 crore in Q2 FY20. As on 30 September 2020, the bank's provision coverage, as a proportion of gross NPAs, stood at 77%, as compared to 62% as at 30 September 2019 and 75% as at 30 June 2020.
Specific loan loss provisions for Q2FY21 were Rs 588 crore, compared to Rs 2,701 crore in Q2 last year. The bank held additional provisions of around Rs 6,898 crores towards various contingencies at the end of Q1FY21. The bank has made incremental provisions of Rs 1,279 crores towards loans under moratorium and Rs 1,864 crores towards probable restructuring, aggregating to Rs 3,143 crores. As at 30 September, 2020, the bank held in aggregate additional provisions of Rs 10,839 crore.
On an aggregated basis, the bank's provision coverage ratio (including specific + standard + additional + Covid provisions) stands at 124% of GNPA as on 30 September, 2020.
Gross non-performing assets (NPAs) stood at Rs 26,831.64 crore as on 30 September 2020 as against Rs 29,560.15 crore as on 30 June 2020 and Rs 29,071.39 crore as on 30 September 2019.
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The ratio of gross NPAs to gross advances stood at 4.18% as on 30 September 2020 as against 4.72% as on 30 June 2020 and 5.03% as on 30 September 2019.
The ratio of net NPAs to net advances stood at 0.98% as on 30 September 2020 as against 1.23% as on 30 June 2020 and 1.99% as on 30 September 2019.
Total deposits have risen by 8.8% to Rs 6,35,454 crore in Q2 FY21 from Rs 5,83,958 in Q2 FY20. Advances at the end of the September 2020 quarter increased by 10.5% to Rs 5,76,372 crore as compared to Rs 5,21,594 crore at the end of September 2019 quarter.
CASA and retail term deposits on quarterly average balance (QAB) basis put together recorded a growth of 20% YoY. The share of CASA and retail term deposits in the total deposits on QAB basis was up 536 bps YOY and 357 bps QOQ to 84% as of 30 September 2020.
Amitabh Chaudhry, MD & CEO, Axis Bank said: The last quarter was an extremely fulfilling one. Keeping the customer journey at the centre of all our innovations and solutions, we came up with some great initiatives to suit the current times. We have now gone to the next level of digital with Video KYC and other tech-enabled solutions like the AXAA multilingual BOT. As we look forward to an upbeat festive season, we have ensured that our 'Dil Se Open Celebrations' have something for everyone.
Axis Bank is a private sector bank. As on 30 September 2020, the bank had a network of 4,568 domestic branches and extension counters situated in 2,582 centres along with 11,821 ATMs and 5,606 cash recyclers spread across the country.
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