Axis Bank Q1 Results: Sharp increase in slippages; Asset quality deteriorates

Mumbai-based private lender Axis Bank Ltd. reported results for the June quarter after market closing hours on Thursday, July 17.

Net Interest Income (NII) or core income for the quarter increased by 0.8% from last year to ₹13,560 crore. A CNBC-TV18 poll had projected the figure to be ₹13,726 crore.

Axis Bank's Net profit for the quarter stood at ₹5,806 crore, implying a decline of 4% from the same quarter last year. A CNBC-TV18 poll had projected the figure to be ₹6,217 crore.

Gross NPA for the quarter stood at 1.57%, compared to 1.28% in the March quarter. Net NPA for the quarter stood at 0.45% from 0.33% in the March quarter.

Provisions for the quarter increased on both a sequential as well as a year-on-year basis. Provisions at the end of the quarter stood at ₹3,947 crore, from ₹1,359 crore in March and ₹2,039 crore during the June quarter last year.

Axis Bank saw a sharp rise in slippages during the quarter. Gross slippages at the end of June stood at ₹8,20 crore, compared to ₹4,805 crore at the end of the March quarter and ₹4,793 crore during the same quarter last year.

The lender mentioned that gross slippages worth ₹2,709 crore are due to a technical impact. Adjusted for the technical impact, gross slippages for the quarter stood at ₹5,491 crore.

Recovery and upgrades from NPAs during the quarter stood at ₹2,147 crore. Write-offs during the quarter stood at ₹2,778 crore.

Provision Coverage Ratio at the end of the June quarter stood at 71% compared to 75% in the previous quarter.

Shares of Axis Bank had ended 0.6% lower ahead of the result announcement at ₹1,161.

This is a breaking story and will be updated with more details.