The private lender's net profit dropped 18.82% to Rs 1,112.17 crore while total income remained almost flat at Rs 19,125.57 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax (PBT) fell 31.28% to Rs 1,427.98 crore in Q1FY21 as against Rs 2,078.18 crore in Q1FY20. Tax expense slumped 55.40% to Rs 315.81 crore in Q1FY21 compared with Rs 708.10 crore in Q1FY20. The result was declared after market hours yesterday, 21 July 2020.
Net interest income (NII) grew 20% Y-o-Y (year-on-year) to Rs 6,985 crore during Q1FY21 from Rs 5,844 crore in Q1FY20. Net interest margin (NIM) for Q1FY21 was 3.40%.
Gross non-performing assets (NPAs) stood at Rs 29,560.15 crore as on 30 June 2020 as against Rs 30,233.82 crore as on 31 March 2020 and Rs 29,404.90 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 4.72% as on 30 June 2020 as against 4.86% as on 31 March 2020 and 5.25% as on 30 June 2019. The ratio of net NPAs to net advances stood at 1.23% as on 30 June 2020 as against 1.56% as on 31 March 2020 and 2.04% as on 30 June 2019.
The bank's provisions and contingencies jumped 15.77% to Rs 4,416.42 crore in Q1FY21 over Rs 3,814.58 crore in Q1FY20. The bank held additional provisions of around Rs 5,983 crore towards various contingencies at the end of Q4 FY20. Axis Bank has made incremental provisions aggregating Rs 733 crore in Q1 FY21 towards COVID-19. At 30 June 2020, the bank held an aggregate additional provisions amounting to Rs 6,898 crore. The bank has recognized slippages of Rs 2,218 crore during Q1FY21, compared to Rs 3,920 crore in Q4FY20 and Rs 4,798 crore in Q1FY20.
The total deposits grew by 19% on quarterly average balance (QAB) basis and by 16% YOY on period end basis. CASA and retail term deposits on 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 81% as of 30 June 2020.
Advances including TLTRO investments grew 17% YOY to Rs 5,79,444 crore as on 30 June 2020. Retail loans grew 16% YOY to Rs 2,98,636 crore and accounted for 53% of the net advances of the bank.
Commenting on the Q1 earnings, Amitabh Chaudhry, the managing director (MD) and chief executive officer (CEO) of Axis Bank, has stated that: "The disruption caused by the pandemic has led to immense economic and social impediments, however, it has also brought about innovations across the industry. Axis Bank has been in the forefront, working with all its stakeholders to constantly come up with new solutions that strengthen the institution and support customers, employees and partners through this challenging phase. This has led to many 'firsts' and we are in the process of coming up with more. Our journey has been rendered even more special with our 'Dil Se Open' spirit that reverberates across all our branches and customer service touch-points."
Axis Bank and Max Financial Life Services (MFSL) has announced the signing of the definitive agreements to become joint venture partners in Max Life Insurance Company on 28 April 2020. Since then, the parties have approached the regulators for approval of the transaction and believe that the deal continues to be on track.
Axis Bank is the third largest private sector bank in India. As on 30 June 2020, it had a network of 4,528 domestic branches and extension counters situated in 2,559 centres compared to 4,094 domestic branches and extension counters situated in 2,380 centres last year. As on 30 June 2020, Axis Bank possessed 11,971 ATMs and 5,485 cash recyclers spread across India.
Shares of Axis Bank advanced 3.93% to Rs 463.75. The stock hovered in the range of Rs 460.25 to Rs 482.85 so far.
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