India’s third-largest private bank by assets, Axis Bank Ltd, on Friday reported that net profit in the three months ended 30 June rose 18.7% to Rs.1,978.44 crore from Rs.1,666.76 crore despite steep rise in provisions.
Net interest income (the difference between interest earned and expended) increased 22.53% to Rs.4,056 crore from Rs.3,310 crore last year. Other income rose 35% to Rs.2,298 crore from Rs.1,691 crore in the same period last year, partly on higher income from treasury operations.
Provisions for bad loans rose 2.9 times year-on-year (up 58% sequentially) to Rs 1,121.77 crore in the quarter ended June. The bank said it held provision coverage of 78%, as a proportion of Gross NPAs, including prudential writeoffs.
Net NPAs up to 0.48% compared with 0.44% respectively in the same period last year. Gross NPAs were at 1.38% compared with 1.34% in the year-ago quarter.