Axis Bank Q1 Results: Lower provisions aid profitability but asset quality sees some pressure

Mumbai-based private sector lender Axis Bank Ltd. reported results for the June quarter on Saturday, July 18, that were largely in-line with what the street had anticipated.

Axis Bank's Net Interest Income (NII) for the quarter grew by 8% from the same quarter last year to ₹14,646.1 crore. A CNBC-TV18 poll had projected that figure to be ₹14,870 crore.

Net profit for the period stood at ₹7,113 crore, higher than the CNBC-TV18 poll expectation of ₹6,877 crore. On a year-on-year basis, Axis Bank's bottom-line grew by 22.5%. The rise in profitability is despite lower other income than last year

Axis Bank's asset quality saw marginal deterioration with Gross NPA at 1.28% from 1.23% in March, while Net NPA stood at 0.39% from 0.37% in the previous quarter. In absolute terms, Axis Bank's Gross NPA stood at ₹17,124 crore from ₹16,083 crore sequentially, while its Net NPA were ₹5,192 crore from ₹4,789 crore in March.

Provisions for the quarter stood at ₹2,222.5 crore, lower than the previous quarter's provision figure of ₹3,522 crore.

Shares of Axis Bank had ended 1.67% higher on Friday at ₹1,329.4. The stock is up 4% so far this year and is also trading close to its 52-week high level of ₹1,418.

This story will be updated with more details.