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Axis Bank reports Q2 net profit rises at Rs 1,683 crore

Net NPAs too declined to 0.98 per cent as against 1.99 per cent earlier.

SNS | New Delhi |

Private lender, Axis Bank on Wednesday posted a net profit of Rs 1,683 crore for the quarter ended September on account of decline in bad loans. The bank had reported net loss of Rs 112.08 crore in the corresponding July-September period of the previous fiscal.

Bank’s net interest income (NII) zoomed up 20 per cent to Rs 7,326 crore during the quarter under review from Rs 6,102 crore earned during the corresponding quarter of the previous year.

The net interest margin for Q2FY21 stood at 3.58 per cent as against 3.51 per cent for Q2FY20.

The bank showed improvement on the asset quality front, with gross non-performing assets (NPAs) falling to 4.18 per cent of gross advances at the end of September 2020, from 5.03 per cent a year ago.

Net NPAs too declined to 0.98 per cent as against 1.99 per cent earlier. As a result, specific loan loss provisions for the quarter stood at Rs 588 crore, compared to Rs 2,701 crore in the year-ago period.

MD and CEO Amitabh Chaudhry said: “The last quarter was an extremely fulfilling one. Keeping the customer journey at the centre of all our innovations and solutions, we came up with some great initiatives to suit the current times.

“We have now gone to the next level of digital with ‘Video KYC’ and other tech-enabled solutions like the ‘AXAA multilingual BOT’.”

During the quarter, the bank raised additional equity capital through a qualified institutional placement (QIP) of 23,80,38,560 shares at a price of Rs 420.1 0 per share, aggregating to Rs 10,000 crore.

As a consequence, the paid-up share capital of the bank has increased by Rs 47.61 crore and the reserves have increased by Rs 9,915.37 crore after charging off issue related expenses, it said.