Axis Bank eyes SMEs & mid-corporate segments

New Delhi, 27 Oct (KNN) Axis Bank ended September 2021 marking 86 per cent growth in net profit at INR 3,133 crore, against INR 1,683 crore in Q2 of FY21.

A growth of 18 per cent is notified for the small and medium enterprise (SME) loans and the mid-corporate loan book surged 32 per cent.

The Managing Director & Chief Executive of the Bank, Amitabh Chaudhry, said, Axis Bank will continue to focus on small and medium enterprises (SMEs) and mid-corporate segments.

He also stated that the Bank is committed in work on the retail side, where it sees better disbursements and growth driven by secured products.

The net interest income (NII) grew by 8 per cent on a year-on-year (YoY) basis to INR 7,900 crore in Q2 of FY22 as against INR 7,326 crore in Q2 of FY21.

Whereas the net interest margin (NIM) declined to 3.39 per cent in Q2 of FY22 from 3.58 per cent a year ago.

The bank’s global deposits rose by 18 per cent on a YoY basis to INR 7,13,400 crore in Q2 of FY22. The share of low-cost deposits, current account and savings account (CASA), in total deposits increased to 42 per cent in September 2021 from 41 per cent a year ago.

Gross advances grew by 10 per cent to INR 6,21,700 crore in Q2 of FY22. Retail loans grew 16 per cent YoY. Now, 80 per cent of the retail book is secured.

Asset quality profile im­pr­oved with gross non-perfor­ming assets (gross NPAs) di­p­­ping to 3.53 per cent in September 2021 from 4.18 per cent in September 2020.

Net NPAs rose marginally to 1.08 per cent in September 2021 fr­om 0.98 per cent a year ago. Its provision coverage ratio sto­od at 88 per cent at the end of Q2 of FY22 against 88 per cent at the end of Q2 of FY21.