Axis Bank Q4 results: Net loss at Rs 1,388 crore as provisions more than double to Rs 7,730 crore

New Delhi: Axis Bank on Tuesday posted a net loss of Rs 1,387.78 crore for the quarter ended March 31 against a net profit of Rs 1,505.06 crore in the same period last year.

Analysts in an ET NOW poll had projected the number at Rs 1,900 crore.

Spike in provisions and contingencies dented the bottomline of the lender. The figure increased by 185 per cent year-on-year (YoY) to Rs 7,730.02 crore during the quarter under review.

However, asset quality of the lender improved with percentage of gross non-performing assets (GNPA) coming in at 4.86 per cent against 5.26 per cent in the previous financial year. The figure stood at 5 per cent in the preceding quarter ended December 31, 2019.

Percentage of net NPAs improved to 1.56 per cent over 2.06 per cent in Q4FY19. The figures stood at 2.09 per cent in the December quarter on FY20.

Net interest income grew 19 per cent YoY to Rs 6,808 crore, with net interest margins coming at 3.55 per cent. Operating profit increased 17 per cent YoY to Rs 5,851 crore.

“During the quarter, the bank has made provisions of Rs 7,730 crore, including Rs 3,000 crore related to Covid-19. The overall additional provisions held by the bank towards various contingencies together with the standard asset provisions, translate to a standard asset coverage of 1.3 per cent at March 31, 2020,” Axis Bank said.

Overall, provision coverage ratio (PCR) improved to 69 per cent as of March 31 compared to 60 per cent for Q3FY20 and 62 per cent for Q4FY19.

The bank’s balance sheet grew 14 per cent YoY and stood at Rs 9.15 lakh crore as on March 31. Total deposits on quarterly average basis increased 19 per cent and 17 per cent YoY.

Axis Bank recognised slippages of Rs 3,920 crore during Q4FY20 against Rs 3,012 crore last year.

In another update, the bank’s board has approved to borrow funds in Indian or foreign currency up to an amount of Rs 35,000 crore.