Axis Bank's Q3 net profit drops by 73%; bad loans rise

India's third largest bank, Axis Bank on Thursday reported a net profit of Rs 580 crores, a drop of 73% on year-on-year basis as against Rs 2,175.3 crore during the quarter ended on December, 2015.

The Bank’s Gross NPA (Non Performing Assets) and Net NPA rose to 5.22% and 2.18% respectively in Q3FY17. 

As on 31st December 2016, the Bank’s Gross NPA was Rs 20,467 crores against Rs 16,379 crores as on 30th September 2016. During the quarter, slippages were Rs 4,212 crores down from Rs 8,772 crores sequentially. Recoveries and upgrades were Rs 350 crores while write-offs during the quarter were Rs 122 crores. 

The Bank’s Net Interest Income (NII) grew by 4% YOY to Rs 4,334 crores during Q3FY17 from Rs 4,162 crores in Q3FY16. Net interest margin for Q3FY17 stood at 3.43%. NII for 9MFY17 also rose 9% YOY to Rs 13,365 crores from Rs 12,280 crores during 9MFY16.

"The Bank’s digital channel usage received a major fillip on the back of Governmental focus on digitalisation. During the quarter, the card usage grew a staggering 82% YOY in value terms. Mobile Banking channel also witnessed a sharp growth of 103% YOY and 69% YOY in transactions and value terms respectively," the bank said in a press release.