Mumbai: Private sector Axis Bank Tuesday reported 83 percent plunge in net profit for the July-September quarter at Rs 319 crore mainly due to higher provisioning for bad loans.
The bank had posted a net profit of Rs 1,915.64 crore for the July-September period of FY2015-16.
Axis Bank in a regulatory filing said that net profit in the first half of the current fiscal declined by 52 percent to Rs 1,875 crore.
"The Bank has posted a net profit of Rs 3,190.80 million for the quarter ended September 30, 2016 as compared to Rs 19,156.40 million for the quarter ended September 30, 2015," the filing said.
Total Income increased to Rs 13,698.7 crore in the period under review from Rs 12,001 crore for the quarter ended September 30, 2015.
The Bank said its Gross NPAs and Net NPAs rose to 4.17 percent and 2.02 percent respectively in the second quarter of 2016-17 fiscal.
"As on September 30, 2016, loans outstanding on the Bank's Watch List reduced 32 percent over the previous quarter and stood at Rs 13,789 crore.
"The reduction in the Watch List primarily represents slippages to NPAs amounting to Rs 7,288 crore, which comprises 89 percent of the total corporate credit slippages," Axis Bank said.
The Watch List has reduced to 3.5 percent of customer assets in September 2016, from 5.4 percent in June 2016 and 6.2 percent in March 2016.
The Net Interest Income (NII) grew by 11 percent year- on-year to Rs 4,514 crore during second quarter from Rs 4,062 crore in similar period of last fiscal. Net interest margin stood at 3.64 percent.
Axis Bank said its balance sheet grew 17 percent year-on-year and stood at Rs 557,650 crore September end.