Axis Bank

The private sector bank posted a very disturbing set of numbers. Its profitability slipped and its asset quality also fell, slipping down much more than all analyst estimates.

The Bank’s net profit fell 21% (YoY) to Rs.1555 crore and this was mainly on account of the increase in provisioning, which was at Rs.2117 crore, up 81% sequentially and up 89% YoY. Fresh slippages also rose 36% (QoQ) and of this, corporate slippages were to the tune of Rs.2911 crore. Restructured book went down to 2.14% v/s 2.38% (QoQ) and though there was no sale of stressed assets to ARCs, four of its accounts continued to remain in the 5/25 scheme. Importantly, its outstanding watchlist now stands at Rs.20.295 crore. CASA slipped from 47.3% to 43%.

Gross NPA rose sharply from 1.67% to 2.54% and Net NPA was up from 0.7% to 1.08%. On the earnings front, NII was up 11% (YoY) at Rs.4517 crore.