Mumbai: Private sector lender Axis Bank on Tuesday reported a net loss of ?1,388 crore for the three months to March owing to higher provisions. The bank had reported net profit of ?1,505 crore during the corresponding period a year ago.
The bank’s total provisions rose 18% to ?7,730 crore at the end of March 2020, compared to ?2,711 crore during corresponding quarter last year. The bank also made additional provisioning of ?3,000 crore towards Covid-19 during the quarter.
The net interest income, or the difference between interest earned and expended, rose 19% year on year to ?6,808 crore as against ?5,706 crore during the corresponding quarter last year.
Axis bank’s net interest margin (NIM), a measure of its profitability, stood at 3.55% in Q4FY20.
The bank reported gross NPA of ?30,233 crore at the end of March 2020 compared to ?29,789 crore during the corresponding quarter last year. As a percentage of total loans , gross NPA stood at 4.86% at the end of March 2020 compared to 5% in the previous quarter and 5.26% during the corresponding quarter last year.
The bank added fresh bad loans worth ?3,920 crore during Q4FY20, compared to ?6,214 crores in Q3FY20 and ?3,012 crore in Q4FY19.
On a call with reporters, Amitabh Chaudhry, managing director and chief executive officer of Axis bank said that the bank has done an intense stress test to understand the impact of coronavirus, which is likely to be long drawn out and will have an impact on all sectors. He also expects lower fee income and higher provisioning in the coming quarters.
Chaudhry also said that the bank’s deposit book remained resilient and grew 19% year on year while the loan book grew15% on an annual basis.
On Tuesday, the lender’s stock on BSE closed 7% higher at ?457.50.
News Source: Livemint