Axis Bank, the country's third-largest private sector bank, on Tuesday reported a net loss of Rs 112 crore for the second quarter ended September 30 dented by a one-time tax impact of Rs 2,138 crore due to changes in corporate tax rate. The Mumbai-headquartered private lender's net profit stood at Rs 790 crore in the same quarter last year.
"The one off impact for the bank, from a DTA (deferred tax assets) perspective, due to a change in corporate tax rate, has been Rs 2,138 crore. It has been fully adjusted through Q2FY20 financials, which has impacted the earnings significantly," Axis Bank said in a filing to the Bombay Stock Exchange.
The bank's operating profit for the quarter grew 45 per cent y-o-y to Rs 5,952 crore from Rs 4,094 crore in Q2FY19. Profit before tax grew 109 per cent y-o-y to Rs 2,433 crore as compared to Rs 1,167 crore in the same quarter last year.
The net interest income (NII) of the bank rose by 17 per cent to Rs 6,102 crore during July-September quarter of current fiscal versus Rs 5,232 crore in Q2FY19. The other income (non-interest income), which comprises of fee, trading profit and miscellaneous income, jumped 45 per cent to Rs 3,896 crore against Rs 2,678 crore in the year-ago period, driven by 495 per cent YoY growth in trading income.
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Provisions and contingencies of the Axis Bank stood at Rs 3,518.39 crore during September quarter, which was less than June quarter's Rs 3,814 crore, but higher than Rs 2,927 crore in the same quarter last year.
Gross slippages increased to Rs 4,983 crore during September quarter 2019, against Rs 2,777 crore in the corresponding period of the last fiscal and Rs 4,798 crore in June quarter.
The bank's asset quality improved during September quarter, with gross non-performing assets (NPAs) ratio declining to 5.03 per cent versus 5.96 per cent in the year-ago quarter. Net NPA improved to 1.99 per cent against 2.54 per cent in the corresponding quarter last year.
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As on September 30, 2019, the bank's gross NPA stood at Rs 29,071.39 crore and net NPA stood at Rs 11,138.30 crore.
During the quarter, the bank allotted 907,983 equity shares pursuant to the exercise of options under its employee stock option scheme (ESOP).
The private lender's balance sheet grew 11 per cent y-o-y and stood at Rs 8,09, 294 crore as on September 30, 2019. The bank's advances grew 14 per cent on yearly basis to Rs 5,21,594 crore on 30 September 2019. Domestic loans grew 19 per cent while the overseas book de-grew by 25 per cent.
Shares of Axis Bank closed trade at Rs 712.70 apiece, up 0.49 per cent, on the BSE on Tuesday.
Edited by Chitranjan Kumar