Private sector lender Axis Bank on Thursday reported a net loss of Rs 2,188.74 crore for the quarter ended March 31, 2018 due to higher provisioning for bad loans. The bottom-line reported net loss for the quarter at Rs. 2,188 crore in Q4FY18 vs net profit of Rs. 1,225 crore in Q4FY17 and Rs. 726 crore in Q3FY18.
The net interest income for the quarter remained unchanged for the quarter at Rs. 4,731 crore in Q4FY17 vs Rs. 4,731 crore in Q3FY18 and Rs. 4,729 crore in Q4FY17. For the financial year ended March 31, the lender posted a 93 per cent fall in net profit to Rs 276 crore.
Net loss was 21.89 billion rupees ($327.94 million) for the three months ended March 31, compared with a profit of 12.25 billion rupees a year ago, the Mumbai-based bank said.
The bank has an exposure of Rs 440 crore to the Anil Ambani group's Reliance Naval, whose auditors yesterday had raised concerns on the viability of its business as a "going concern", Kapoor said, stressing that it has adequate securities in the account.
However, on a sequential basis, Bandhan Bank witnessed stable growth and reduction in bad loans with gross NPA ratio down from 1.67 percent in the third quarter ending December 2017.
Net NPAs increased to 0.58 per cent (Rs 172.90 crore) of the net advances by end of March 2018, versus 0.36 per cent (Rs 61.17 crore).
The Chief Financial Officer of the bank, Sunil Samdani said margins changed because of the change in its loan mix of micro and non-microcredit (86:14).
Corporate lending slippages stood at Rs 13,938 crore.
The overall provisions increased to Rs 399 crore from Rs 309 crore and Kapoor said the bank is targeting to trim down credit cost to 0.50-0.70 per cent range for the fiscal 2019 from 0.76 per cent recorded in FY18. "Infra play did not work out well, and now it is critical that we complete the NPA recognition cycle".
According to reports, the RBI may have been upset with the wide divergence in asset quality reporting by Axis Bank, spiralling bad loans, violations of know-your-customer norms during demonetisation.
Sharma's term as the CEO will come to an end in December this year.
Ahuja said retail loans grew faster during the year and now contribute 41 per cent of the loan book, with the rest coming in from wholesale banking.
Investors lapped up the yes Bank counter with the scrip rallying 8.26 per cent to Rs 352.05 on the BSE as against gains of 0.62 per cent on the benchmark.