Axis Bank Shares Climb On Reporting Highest Ever Quarterly Profit; Asset Quality Improves

Shares of Axis Bank in intra-day trade on April 28, 2021 surged over 1.5% to day's high price of Rs. 710 per share on the NSE

This is after the private sector lender on Tuesday reported its highest-ever quarterly standalone net profit of Rs. 2,677 crore in the March quarter due to lower provisioning. In the year-ago period, Axis Bank reported a loss of Rs. 1387.8 crore.

Axis Bank Shares Climb On Reporting Highest Ever Quarterly Profit; Asset Quality Improves

NII i.e. the differential between interest expended and interest earned surged 11 percent year on year to Rs. 7554.98 crore. Net interest margin (NIM) for Q4 was at 3.56% as against 3.55% a year earlier.

There was a decline in provisions by as much as 57 percent to Rs. 3294.98 crore. As on 31 March, the bank's provision coverage, as a proportion of gross NPAs stood at 72%, compared to 69% a year ago and 75% as on 31 December.

Asset quality at the bank as a percentage of total debt improved to 3.7% in fross terms. Net NPAs fell to 1.05% from 1.56% in the same quarter last year and 0.74% in the previous quarter.Non-interest income rose 17.13% to Rs. 4,668.3 crore for the March quarter.

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