The Board of Directors of Axis Bank Limited approved the financial results for the quarter and half-year ended 30th September 2016 at its meeting held in Mumbai on Tuesday, 25th October 2016. The accounts have been subjected to a Limited Review by the Bank’s Statutory Auditors. Profit & Loss Account: Period ended 30th September 2016

Operating Profit and Net Profit
Operating Profit for Q2FY17 and H1FY17 grew by 13% and 11% to `4,100 crores and `8,570 crores respectively. The Net Profit for Q2FY17 and H1FY17 contracted by 83% and 52% YOY to `319 crores and 1,875 crores respectively.

Net Interest Income and Net Interest Margin
The Bank’s Net Interest Income (NII) grew by 11% YOY to `4,514 crores during Q2FY17 from `4,062 crores in Q2FY16. Net interest margin for Q2FY17 stood at 3.64%. NII for H1FY17 also rose 11% YOY to `9,031 crores from `8,118 crores during H1FY16.

Other Income

Other income (comprising fee, trading profit and miscellaneous income) for Q2FY17 stood at `2,540
crores as against `2,041 crores during the same period last year. During H1FY17, other income grew 22% YOY and stood at `5,278 crores. Fee income for Q2FY17 grew 7% YOY to reach `1,935 crores. The key driver of fee income growth was Retail Banking, which grew by 17% YOY and constituted 43% of the Bank’s total fee income. Transaction Banking fee performance too was healthy and grew 8% YOY to constitute 26% of the total fee income of the Bank. Trading profits for the quarter grew 220% YOY and stood at `536 crores. During H1FY17, fee income grew 9% YOY primarily driven by 18% YOY growth in Retail fee and 12% YOY growth in Transaction Banking.

Balance Sheet: As on 30th September 2016

The Bank’s Balance Sheet grew 17% YOY and stood at `557,650 crores as on 30th September 2016. The Bank’s Advances grew 18% YOY to `353,170 crores as on 30th September 2016. Retail Advances grew 25% YOY and stood at `149,284 crores and accounted for 42% of the Net Advances of the Bank. Corporate credit grew 14% YOY and stood at `158,029 crores; and accounted for 45% of Net Advances. SME Advances grew 14% YOY and stood at `45,857 crores.

The book value of the Bank’s investments portfolio as on 30th September 2016, was `124,590 crores, of which `92,196 crores were in government securities, while `23,852 crores were invested in corporate bonds and `8,542 crores in other securities such as equities, preference shares, mutual funds, etc. CASA Deposits as on 30th September 2016 constituted 45% of total deposits. Savings Account balances grew at a strong 20% YOY, up from the 12% YOY growth reported for the period ended 30th September 2015. CASA, on a daily average basis, recorded a growth of 18%, in which both Savings Bank Deposits and Current Account Deposits recorded a growth of 18% YOY. The proportion of CASA on a daily average basis remained at the same level as the previous quarter and constituted 41% of total deposits. CASA and Retail Term Deposits constituted 81% of Total Deposits as on 30th September 2016 compared to 80% as on 30th September 2015.

Capital Adequacy and Shareholders’ Funds
The shareholders’ funds of the Bank grew 10% YOY and stood at `53,823 crores as on 30th September 2016. The Bank is well capitalised. Under Basel III, the Capital Adequacy Ratio (CAR) and Tier I CAR (including net profit for H1FY17) as on 30th September 2016 was 15.20% and 12.03% respectively. Asset Quality

As on 30th September 2016, the Bank’s Gross NPA and Net NPA levels were 4.17% and 2.02% respectively, as against 2.54% and 1.08% respectively as on 30th June 2016. As on 30th September 2016, the Bank’s Gross NPA was `16,379 crores against `9,553 crores as on 30th June 2016. During the quarter, the Bank added `8,772 crores to Gross NPAs, and Recoveries and upgrades were `1,073 crores and write-offs during the quarter were `873 crores.

As on 30th September 2016, loans outstanding on the Bank’s Watch List reduced 32% over the previous quarter and stood at `13,789 crores. The reduction in the Watch List primarily represents slippages to NPAs amounting to `7,288 crores, which comprises 89% of the total corporate credit slippages. The Watch List has reduced to 3.5% of customer assets in September 2016, from 5.4% in June 2016 and 6.2% in March 2016.

The cumulative value of net restructured assets as on 30th September 2016 stood at `6,702 crores, constituting 1.74% of net customer assets, compared to `7,363 crores, constituting 1.99% of net customer assets as on 30th June 2016.

During the quarter, the Bank sold assets with a gross outstanding of `2,316 crores and a net book value of `1,128 crores to ARCs against net sale consideration of `822 crores comprising `159 crores in cash and `663 crores in Security Receipts value.

Network

During Q2FY17, the Bank added 100 branches to its network across the country. As on 30th September 2016, the Bank had a network of 3,106 domestic branches and extension counters situated in 1,920 centres compared to 2,743 domestic branches and extension counters situated in 1,796 centres last Year. As on 30th September 2016, the Bank had 13,448 ATMs and 1,210 cash recyclers spread across the country.

For more information please visit: www.axisbank.com

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