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Axis Bank Q4 results: Lender's asset quality worrying for investors still

The bank's slippages moderated significantly in March, but provisioning costs because of the coronavirus rose.

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This Q4 is the first time after March 2018 that Axis dipped into losses of this magnitude due to provisioning costs. September 2019 quarter’s loss was due to adjustment of deferred tax assets.

Hamsini Karthik

3 min read Last Updated : Apr 29 2020 | 1:53 AM IST

The dilemma for Axis Bank’s investors is how to interpret its March quarter (Q4) numbers. There are signs of easing asset quality pressure if investors consider the gross non-performing assets (NPA) ratio easing to 4.9 per cent, from 5 per cent last quarter, the absolute additions to gross NPA being contained at Rs 160 crore sequentially or even slippages (addition to bad loans) remaining contained at Rs 3,920 crore, as against Rs 6,214 crore in the December quarter. Yet, the Rs 7,730-crore provisioning cost, which is near twice the December quarter figure and resulted in a Rs 1,388-crore net loss

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