Axis Bank share was among the top Sensex and Nifty gainers today after the lender reported a 4.52 per cent year-on-year (YoY) growth in its Q3 standalone net profit to Rs 1,757 crore against Rs 1,681 crore in the corresponding quarter of last fiscal.
During the September quarter last year, the bank reported a loss of Rs 112.1 crore due to one-time impact of deferred tax asset (DTA).
Share price of Axis Bank rose up to 3.44% to Rs 737.30 compared to the previous close of Rs 712.75 on BSE. Axis Bank share has gained after three days of consecutive fall. The large cap stock has gained 9.77% during the last one year.
38 of 46 brokerages rate the stock "buy" or 'outperform', six "hold" and two "underperform", according to analysts' recommendations tracked by Reuters.
On Nifty, the stock rose up to 3.5% to Rs 737.55 against previous close of Rs 712.60. Net interest income (NII) rose 15 per cent to Rs 6,453 crore during October-December quarter of current fiscal compared to Rs 5,604 crore in December quarter of last fiscal.
Other income (non-interest income), which comprises fee, trading profit and miscellaneous income, fell by 5 per cent to Rs 3,787 crore compared to Rs 4,001 crore in the same quarter last year.
Operating profit of Axis Bank rose 4 per cent to Rs 5,743 crore from Rs 5,525 crore in Q3FY19. While operative revenue grew 7 per cent YoY to Rs 10,240 crore, operating expenses jumped 10 per cent to Rs 4,497 crore on the yearly basis.
During the quarter under review, provisions and contingencies of the Axis Bank stood at Rs 3,470.92 crore, which was lesser than Rs 3,054.51 crore in the same quarter last year, but higher than Rs 3,518.39 crore in the September quarter.
Gross slippages increased to Rs 6,214 crore during Q3FY20, compared to Rs 4,983 crore in Q2FY20 and Rs 3,746 crore in Q3FY19, due to exposure to telecom sector.
On the asset quality front, the bank's gross non-performing assets (NPAs) ratio declined to 5 per cent versus 5.75 per cent in the year-ago quarter. Net NPAs also improved to 2.09 per cent against 2.36 per cent in the corresponding quarter last year.
As on 31 December 2019, the bank's Gross and Net NPAs stood at Rs 30,073 crore and Rs 12,160 crore, respectively.
By Aseem Thapliyal