Axis Bank Q3 results: PBT down 8.03%, bad loan provisions fall 11.63%

Axis Bank’s profit before tax (PBT) declined by 8.03 per cent to Rs 2,271.8 crore for the third quarter ended December (Q3FY20). The private lender had posted a pre-tax profit of Rs 2,470.14 crore in Q3 of FY19.

The stock closed lower by 0.7 per cent at Rs 712.7 per share on BSE.

Net profit in Q3 rose by 4.53 per cent to Rs 1,757 crore over Rs 1,680.8 crore in the same quarter of FY19. The bank benefited from the cut in corporation tax rate. The effective tax rate for the bank is down to 25 per cent from 33 per cent.

Net interest income (NII) rose by 15 per cent to Rs 6,453 crore from Rs 5,604 crore in the same quarter in FY19. Net interest margin (NIM) stood at 3.57 per cent, up from 3.36 per cent in Q3 FY19, the bank said. Non-interest revenue (other income) declined by 5 per cent to Rs 4,001 crore as against Rs 3,787 crore in Q3FY19.

The bank said provisions, including those for loan loss and contingencies, grew by 13.63 per cent to Rs 3,470 crore in Q3FY20 from Rs 3,054.51 crore in the same period in FY19. Loss from specific loan provisions in Q3 declined by 11.63 per cent to Rs 2,962 crore from Rs 3,352 crore in the same quarter in FY19.

The asset quality showed improvement as gross non-performing assets (GNPAs) declined year-on year and sequentially. GNPAs moved up at 5.0 per cent in December 2019 from 5.75 per cent in December 2018.

The bank’s share of low cost — current account and savings (CASA) — deposits stood at 41 per cent at the end of December 2019 down from 46 per cent at end of December 2018. 

The total Capital Adequacy Ratio (CAR) according to Basel III guidelines was at 18.20 per cent as of December 31, 2019, against 15.81 per cent as of December 31, 2018.