Axis Bank†posted profit of Rs 1,505 crore for the quarter ended March 2019, as provisions fell sharply and asset quality improved with a decline in slippages.
The bank had posted a loss of Rs 2,188.74 crore in the corresponding period last year. Higher NII, other income and operating income also supported profitability during the quarter.
Net interest income in Q4 grew by 21 percent year-on-year to Rs 5,705.6 crore with credit growth at 18 percent.
Other income or non-interest income increased 26 percent to Rs 3,526.3 crore and operating income shot up 37 percent to Rs 5,014.4 crore compared to year-ago.
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Asset quality of the bank improved considerably during March quarter. Gross non-performing assets as a percentage of gross advances dipped to 5.26 percent against 5.75 percent in the previous quarter and net NPA declined to 2.06 percent against 2.36 percent in Q3, which were on expected lines.
In absolute term, gross NPAs were lower by 13 percent at Rs 29,789.44 crore and net NPAs by 32 percent to Rs 11,275.6 crore compared to the previous quarter.
Slippages for the quarter at Rs 3,012 crore were lower than Rs 3,746 crore reported in the previous quarter and significantly lower than Rs 16,535 crore reported in March quarter 2018.