As week Mumbai , April 27(PTI) axis bank on Tuesday posted a consolidated with net profit of rs 2,960.04 crore for the march quarter, as against a loss of rs 1,250 crore in the year ago with a period and warned of an immediate business impact because of the second wave of COVID across the segment.
The AXIS bank, the third largest private sector bank, this standalone net profit came at rs 2,677 crore for the reporting quarter. This has even said that there has not been any impact from any kind of collections perspective as yet but there may be one in the near term with the lock downs make it difficult.
The chief executive and managing director Amitabh chaudhry told the reporters that the corporate have gone to wait and watch mode now after the second wave hitted and stressed. It’s the bank’s strategy which will be a mix of being bold and conservative.
Even though it’s the early days, but there is no immediate business impact seen across the segments. As per Mr. Chaudhary, the bank is not going to chase loan growth which doesn’t come at a price it’s not comfortable with and have pointed out that even in the quarter of March; it chose to miss out on some of the wholesale lending opportunities. This is because of its discomfort with the price of credit.
Now for the financial year 20-21, the bank standalone with net that came at Rs 6,588 crore as against 1,627 crore in the fiscal ago period.
During the reporting quarter, its core net interest is moving with income growing 11 percent at rs 7,555 crore of the back of 12 percent growth in advances and the net interest margin being stable at 3.56 %. With the standalone basis, its total income during the March quarter stood at rs 20,213. 46 crore against rs 20,219.57 crore in the year ago period.
The bank other income grew to rs 4,668 crore in Q4FY21 from the year ago periods 3,985 crore and the fee income grew to 15 %. It disclose that it had received rs 3,004 crore of restructuring requests under the special COIVD – related window of which rs 1,848 Crore have been invoked and rs 623 crore have also been implemented. This is take on a call on the rest by the month of June to be carried as a deadline as said by the chief financial officer Mr. Puneet Sharma.
It’s a great news that bank has reported a net profit of around 2,677 crore in the three months to the end of financial year in 2021 as compared to the loss of rs 1,388 crores in the same period in last year. During the reporting quarter, its core net interest income which grew from 11 % at rs 7,555 crore on the back of 12 % growth in advance and then the net interest margin being quite stable at 3.56%.
Excluding the targeted long term repo operations (TLTRO) Linked advances, the FY21 load growth would be 9.6 %. But on the standalone basis, its total income during the March quarter has stood ahead with rs 20,213.46 crore against the rs 20.219.57 crore in the year ago period.
Even the apart income grew to rs 4,668 crore in the Q4FY21 from the year ago period’s 3,985 crore and then the fee income grew around 15%. It disclosed that it had received rs 3,004 crore of restricting requests under the special COVID related situations. Among this rs 1,848 crore has been invoked and rs 623 crore have been implemented. This is going to take on a call on the rest of the finance by the June considered as the deadline as being said by Mr. Puneet Sharma. Further as a private sector bank, the Axis bank has set aside rs 100 crore fund for helping fight COVID situations in the next moments. This will be used to support customers, employees, vendors as well as the government agencies and the community in large scale to ensure that the spread of corona virus is curved and restricted.
Based on certain reports, the banks gross nonperforming assets have grown up to 3.70 % in March. This is as against 3.44 % in the quarter ago period. Now its fresh slippages have come on with rs 5,285 crore during the quarter with a bulk of 64% of them coming from retail segment. As estimated, its overall provisions is less than halved at rs 3,294 crore as against the rs 7,730 crore in the year ago period. This is carrying ahead with a dedicated covid provisions of over rs 5,012 crore for any kind of further impact. Apart of that, it also changed its policies of setting aside money for small business loans as a great part of its strategy which is more conservative. This had rs 803 crore impact in the quarter of March month. Its subsidiaries delivered around 75% of growth in their collective profit after tax at rs 822 crore in the FY21. This is indeed going to be a continuous focus to derive more of profits from the step down arms.
As of reports, bank has said that they have formalized and calibrated the provisioning policies depending on their portfolio of how they have the franchise for people. They have a strong balance sheet and are taking provisions upfront with more than decent buffers being built in. further it has reported gross slippages of rs 5,285 crore during the quarter that stands competitive with rs 3,920 crore in the same period last year.
Now it’s a final verdict as being discussed by the authorities of the bank that the bank has scripped with closing amount of 0.16 % down at rs 699.30 on a piece on the BSE as against gaining of 1.15% on the bench mark.
With the pandemic bringing a lot of changes in financial systems, axis bank stands strong with its financial coverage’s and is surely going to intimate further changes in its objectives.