Axis Bank Q1 net profit down 46% to Rs 701 cr on rising bad loans
The bank had significant recovery during the quarter from one large account through the NCLT process, Axis Bank CFO Jairam Sridharan said.
However, the bank did not disclose the recovery made from the stressed account in the steel sector.
"Corporate lending slippages stood at Rs 2,218 crores. 88 per cent of this came from disclosed BB & below accounts (rating). The bank's BB and below-rated book stood at Rs 10,396 crore. This is 2.1 per cent of the bank’s gross customer assets, and is down to less than 1/3rd of the 7.3 per cent peak reached in June 2016," it said.
Full-year NIM would be broadly around the FY'18 level, he said.
The bank’s balance sheet grew 14 per cent to Rs 6,92,686 crore as on June 30, 2018. The bank's advances grew 14 per cent to Rs 4,41,074 crore as on June 30, 2018. Retail advances rose by 21 per cent to Rs 2,11,648 crore.
The retail and SME continue to witness growth in the coming months, he added.
It is to be noted that the bank is in the process of shortlisting candidates to succeed managing director (MD) and chief executive officer (CEO), Shikha Sharma.
She is slated to demit office on December 31, 2018.
Sharma had in April announced her decision to step down from the position of MD and CEO of the bank by the end of the year.
Sharma's term was to end in June 2021, with the board in December 2017 announcing a three-year extension of her term that was then to end in June 2018. However, RBI did not give its nod for a further three-year extension.
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