Mumbai: Axis Bank on Tuesday reported a net profit of Rs 1,681 crore for the quarter ended December 31, 2019, up 132% over Rs 726 crore in the corresponding quarter last year.
The bank said it witnessed healthy loan growth during the quarter, with domestic loan rising by 18% year-on-year; while the retail loan book grew by 20%. Announcing the results, the newly-appointed MD & CEO, Amitabh Chaudhary unveiled a three-pronged strategy of pursuing growth, profitability and sustainability.
According to Chaudhary, the company would pursue growth by increasing its market share of deposits and returning to past ratios. The bank would also strengthen its technology platform and invest in analytics and talent to ensure that the growth is sustainable.
“Axis Bank’s positive asset quality performance during Q3FY19 was the key, further augmented by improved net interest margins and lower slippages. The results vindicate our stance and indicate that the elevated non-performing assets recognition cycle has peaked for the bank,” said Sharekhan by BNP Paribas AVP Research Lalitabh Shrivastawa.
Total income rose to 27% to Rs 18,130 crore from Rs 14,315 crore. Total deposits grew 26% to Rs 5.14 lakh crore with retail term deposits up 24%. Domestic loan growth stood at Rs 4.31 lakh crore up 18%, driven by retail and SME segments. Net NPAs stood at 2.36% of the net advances as on December 31, 2018, down from 2.56% by the end of December 2017.
Gross NPAs (or bad loans), however, worsened to 5.75%, up from 5.28% a year ago. In value terms, the gross NPAs stood at Rs 30,854 crore in December quarter as against Rs 25,000 crore in the same period previous year.