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Axis Bank fiscal Q1 profit drops 46% YOY on higher provisions

Axis Bank Ltd.'s net profit for the fiscal first quarter ended June 30 fell to 7.01 billion Indian rupees from 13.06 billion rupees in the year-ago period as provisions soared.

On a year-over-year basis, net profit contracted by 46%, the company said July 30.

EPS dropped to 2.72 rupees from 5.43 rupees.

The S&P Capital IQ consensus normalized EPS estimate for the quarter was 2.52 rupees per share, with three analysts reporting.

Net interest income rose to 51.67 billion rupees from 46.16 billion rupees, while other income, including fee and trading profit, declined to 29.25 billion rupees from 30 billion rupees in the year-ago quarter. Net interest margin stood at 3.46% at the end of the period, compared with 3.33% in the previous quarter and with 3.63% in the prior-year quarter.

Provisions and contingencies climbed to 33.38 billion rupees from 23.42 billion rupees.

Operating profit increased to 43.72 billion rupees from 42.91 billion rupees in the prior-year period. Operating expenses grew to 37.20 billion rupees from 33.25 billion rupees.

As of the end of the quarter, the bank's gross nonperforming asset ratio clocked in at 6.52%, compared with 6.77% as of the end of March and with 5.03% as of the end of June 2017. The net NPA ratio stood at 3.09%, compared with 3.40% as of the end of March and with 2.30% as of the end of June 2017.

Under Basel III, Axis Bank's capital adequacy ratio remained the same at 16.57% from the previous quarter, but climbed from 16.36% at the end of June 2017.

As of July 30, US$1 was equivalent to 68.60 Indian rupees.