Axis Bank's net profit drops 36% in Q3 due to higher provisions

Provisioning cost rose 33 per cent year-on-year; proforma gross NPA at 4.55 per cent

Private lender Axis Bank reported a 36 per cent decline in net profit at Rs 1,117 crore in the December quarter (Q3) of financial year 2020-21 (FY21), compared with Rs 1,757 crore a year ago, due to higher provisions. Reported numbers were below the Street’s estimate of Rs 1,500 crore. Axis Bank stock was the worst performer among the BSE Sensex components, down 4.05 per cent on Wednesday’s trade. 

Net interest income (NII) rose 14 per cent year-on-year (YoY) to Rs 7,373 crore, compared with Rs 6,453 crore a year ago. Adjusted for interest reversals, NII would have increased by 19