Private lender Axis Bank on Tuesday reported a net loss of Rs 1,387.78 crore for the quarter ended March 31 compared with a profit of Rs 1,505 crore in the same quarter in 2019.
A Bloomberg consensus had projected the number at Rs 1,478 crore.
However, the bank had posted a net interest income of Rs 6,808 crore i.e. 19.3 per cent higher. Operating profit rose by 17 per cent YoY to Rs 5,851 crore.
The bank also manages to improve its asset quality in the last three months with the percentage of gross non-performing assets (GNPA) coming in at 4.86 per cent against 5 per cent in the preceding quarter.
The asset quality of the bank was moderately better with the gross non-performing assets (NPAs) standing at 1.56 per cent of gross advances at March-end 2020 against 2.06 per cent as of March 31, 2019.
“During the quarter, the bank has made provisions of Rs 7,730 crore, including Rs 3,000 crore related to Covid-19. The overall additional provisions held by the bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3 per cent at March 31, 2020,” Axis Bank said in a statement.
The private lender also recognised a 39 per cent drop in slippages to Rs 3,920 crore during Q4FY20 against Rs 3,012 crore last year.
Meanwhile, Axis Bank’s board has the board approved to raise funds in amid debt instrument up to an amount of Rs 35,000 crore.
Axis Bank shares closed 6.61 per cent higher on BSE before the Q4 results were announced.