Net interest income (NII) grew 8% year-on-year to ₹7,900 crore. The specific debt-loss provisions were ` 927 crore (` 2,865 crore).
Axis Bank Ltd reported a standalone net profit jump of 86% to Rs 3,133 crore in the second quarter.
Net interest income (NII) grew 8% year-on-year to ₹7,900 crore. The specific debt-loss provisions were ` 927 crore (` 2,865 crore).
The bank said that it has not utilized the COVID provisions during the quarter. This puts a cumulative provision (Non-Plus + Additional) of ₹12,951 crore at the end of Q2FY22.
“It is pertinent to note that this is over and above the NPA provision included in our PCR calculations. These cumulative provisions translate into standard asset coverage of 2.11% as on September 30, 2021,” the bank said in a filing.
“On an overall basis, our provision coverage ratio (including Specific + Standard + Additional + COVID provisions) is 124% of GNPA as on September 30, 2021,” it added.
As on September 30, the gross NPA and net NPA levels of the bank stood at 3.53% and 1.08%, respectively, while on June 30 it was at 3.85% and 1.20%.
Slippage in Q2FY21 was moderate due to regulatory tolerances that do not exist in the current quarter. The recovery and up-gradation from NPAs during the quarter was ₹4,757 crore, while the write-off was ₹2,508 crore,” it said.
Consequently, there was a net slippage in NPAs (before write-off) for the quarter of ₹707 crore as compared to ₹3,976 crore in Q1FY22 and a net decline in NPAs (before write-off) of ₹276 crore in Q2FY21.
The net decline in NPAs (before write-off) for retail loans was ₹697 crore and for SMEs, there was a shortfall of ₹16 crore in NPAs (before write-off).
As on 30 September 2021, the provision coverage of the bank, as a proportion of gross NPAs, stood at 70%, as against 77% as on 30 September 2020 and 70% as on 30 June 2021. The provisions remained stagnant before the technical write-off. at 88%.
As on 30 September 2021, the fund based outstanding of standard restructured loans implemented under the resolution framework for COVID-19 related stress (COVID 1.0 and COVID 2.0) was ₹4,342 crore which is 0.64% of the Gross Customer Assets. The bank has made a provision of 24 per cent on restructured loans, which is over and above the regulatory limit.
The bank said it has set an incremental credit target of Rs 30,000 crore for relevant sectors over the next 5 years, while also mitigating the exposure to carbon-intensive sectors.
Amitabh Choudhary, MD & CEO, said, “We continue to focus on SMEs and Mid Corporates and on retail, we see better disbursements and growth driven by secure products.”
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