Axis Bank Q3 Review - Higher Write Offs Supported NPA; Restructured Assets At 0.42%: IDBI Capital
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IDBI Capital Report
Axis Bank Ltd.’s asset quality deteriorated sequentially with gross non-performing asset ratio inched up to 4.55% (as per Income Recognition and Asset Classification norms) versus 4.28% led by higher slippage ratio (4.6% versus 1.1% QoQ); however, GNPA improved as against 5.0% YoY led by higher write offs (Rs 42.6 billion versus Rs 27.9 billion YoY).
That BB and below book declined by 5% QoQ and restructured assets stood at 0.42% of customer assets as against earlier estimates of 1.7% are key positives during the quarter.
Profit after tax declined by 37% YoY (down 34% QoQ) led by higher provisions (up 33% YoY) and employee expenses (up 23% YoY).
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