LONDON: Axis Bank Ltd. on Thursday reported an 18% year-over-year decline in its consolidated net profit for the fiscal first quarter, as increased provisions offset gains from robust income growth.
The private-sector lender posted a net profit of ₹6,243.7 crore ($748 million) for the quarter ended June 30, down from ₹7,475.1 crore a year earlier. Total income rose 6.9% to ₹40,401 crore, driven by strong interest earnings and fee-based income.
Operating profit before provisions climbed 13.6% to ₹12,213.9 crore. However, provisions surged 91% from the previous year to ₹4,034.2 crore, pressuring the bank’s bottom line.
Net interest income stood at ₹32,348.3 crore, while other income increased to ₹8,052.7 crore, reflecting strong performance in the retail and corporate banking segments. Retail banking remained the largest revenue contributor at ₹36,618.4 crore, including ₹9,405.4 crore from digital banking.
Asset quality weakened slightly. Gross non-performing assets rose to ₹17,764.7 crore, with the gross NPA ratio increasing to 1.57% from 1.28% in the previous quarter.
The bank’s consolidated assets reached ₹16.53 trillion, with deposits totaling ₹11.59 trillion. Its capital adequacy ratio under Basel III was 16.85%.
During the quarter, Axis Bank allotted over 3.8 million equity shares under employee stock option schemes and did not acquire or transfer any stressed loans. It added that its consolidated results include 10 subsidiaries, two step-down subsidiaries and one associate.
The bank’s board approved the unaudited financial results following a limited review by joint statutory auditors M M Nissim & Co. LLP and KKC & Associates LLP.
Shares of Axis Bank closed up 1.2% at ₹1,067.75 on the NSE prior to the earnings announcement.