Axis Bank posted an 18.82% fall (YoY) in net profit at Rs 1112.17 crore for the quarter ended June 30. Last year, net profits were reported to be Rs 1370.08 crore in the same period. Figures reported for the ending quarter is below what analysts had forecasted. The market believed that the company will report a YoY fall in net profits but the slump has even beaten their estimates.

One good news for the bank came in the form of an increase in their Net Interest Income. NII is the difference between the revenue generated by a bank with the interest rate they charge by issuing a loan and the interest rate they pay on a deposit. It grew 20% YoY to ₹6,985 crores for the quarter ended June 30.

Q1 FY21Q4 FY20Q1 FY20QoQ%YoY%
NII6,985 6,807558826% 20%
Profit1112.17-1,3871370.08180%-18.82%

Another news which can give relief to the third biggest private bank of India is their decreasing NPA and GPA ratios. Gross non-performing assets ratio has decreased by 53 bps y-o-y to 4.72% in Q1 FY21.

The net NPA ratio has declined from 1.56% in the March quarter of FY20 to 1.23% in Q1 this financial year. All this has been done successfully because the body has come with a suitable provision plan keeping the pandemic and restrictive financial ability of the borrowers in the mind.

According to Amitabh Chaudhry, MD&CEO of Axis Bank, “The disruption caused by the pandemic has led to immense economic and social impediments, however, it has also brought about innovations across the industry. This has led to many ‘firsts’ and we are in the process of coming up with more. 

After suffering huge losses last quarter, Axis bank has been able to stabilize their bottom line this quarter but still were not able to beat the market expectations. The results were declared only after the market came to an closing for the Tuesday. With a mixed results this quarter, it would be interesting to note how the investors behave once the market re-open tomorrow.

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