Axis Bank posted a disappointing performance for Q4FY16. It reported, for the first time in 46 quarters, a 1% (YoY) drop in net profit at Rs.2154 crore. This fall was mainly on account of higher provisions. The Bnak’s provisions jumped 64% (YoY) at Rs.1,168 crore, mainly on account of RBI’s asset quality review (AQR) initiative. Though net profit fell, the good news is that asset quality improved. The NII for the fourth quarter was at Rs.4553 crore, up 20% (YoY). Other income was unchanged at Rs.2694 crore.

 Gross NPA was steady at 1.67% v/s 1.68% (QoQ) and Net NPA also remained stable at 0.7% v/s 0.75%.

The Bank’s net interest income rose 20% to Rs.4553 crore. The Bank’s fresh slippages were at Rs.1474 crore. Recoveries stood at Rs.780 crore. The Bank stated that it sold NPAs to Asset Reconstruction Companies (ARCs) worth Rs.349 crore.