PAT was adversely impacted by about Rs 1,050 crore on account of prudent expense and provisioning charges in Q3. Profit before tax (PBT) dropped 34.35% to Rs 1,491.23 crore in Q3 FY21 as against Rs 2,271.77 crore in Q3 FY20. Tax expense tumbled 27.22% to Rs 374.63 crore in Q3 FY21 compared with Rs 514.77 crore in Q3 FY20. The result was declared after market hours today, 27 January 2020.

The bank's operating profit for the quarter grew 6% YoY to Rs 6,096 crore. The core operating profit for the quarter grew 10% YoY to Rs 5,754 crore. Net Interest Income (NII) grew 14% YoY to Rs 7,373 crore in Q3FY21 from Rs 6,453 crore in Q3FY20. NII before interest reversals grew 19% YoY to Rs 7,987 crore. Net interest margin (NIM) for Q3FY21 was 3.59% as against 3.57% for Q3FY20. NIM before interest reversals stood at 3.89%.

Gross non-performing assets (NPAs) stood at Rs 21,997.90 crore as on 31 December 2020 as against Rs 26,831.64 crore as on 30 September 2020 and Rs 30,073.02 crore as on 31 December 2019. The ratio of gross NPAs to gross advances stood at 3.44% as on 31 December 2020 as against 4.18% as on 30 September 2020 and 5% as on 31 December 2019. The ratio of net NPAs to net advances stood at 0.74% as on 31 December 2020 as against 0.98% as on 30 September 2020 and 2.09% as on 31 December 2019.

The bank's provisions and contingencies jumped 32.65% to Rs 4,604.28 crore in Q3 FY21 over Rs 3,470.92 crore in Q3 FY20. The bank holds cumulative provisions (standard+additional other than NPA) of Rs 11,856 crore at the end of Q3FY21. This is over and above the NPA provisioning included in PCR calculations. These cumulative provisions translate to standard asset coverage of 2.08% as on 31st December 2020.

Gross slippages during the quarter per IRAC norms were Rs 6,736 crore, compared to Rs 1,572 crore during Q2FY21 and Rs 6,214 crore in Q3FY20. There was net slippages in NPAs per IRAC (before write-offs) for the quarter of Rs 5,831 crore as compared to Rs 3,792 crore in Q3FY20 and negative net slippages of Rs 276 crore in Q2FY21.

As on 31 December 2020, the bank's provision coverage, as a proportion of gross NPAs stood at 79%, as compared to 60% as at 31 December 2019 and 77% as at 30 September 2020.

The bank's total deposits grew by 11% on period end basis and by 8% YoY on quarterly average balance (QAB) basis. CASA and retail term deposits on QAB basis put together grew 16% YoY. The share of CASA plus retail term deposits in total deposits on QAB basis was up 574 bps YoY and 175 bps QoQ to 86% as of 31 December 2020.

The bank's advances including TLTRO investments grew 9% YoY to Rs 600,835 crore as on 31 December 2020. The bank's loan to deposit ratio stood at 89%. Retail loans grew 9% YoY and accounted for 55% of the net advances of the bank. The share of secured loans was 81% with home loans comprising 36% of the retail book.

Commenting on the Q3 earnings, Amitabh Chaudhry, the managing director (MD) and chief executive officer (CEO) of Axis Bank, said: As the economy turns around, we see fresh enthusiasm and positivity returning to both retail and corporate business. Digital has been one of our biggest strengths and we have fortified it further. With new collaborations with the best brands in their respective fields, we have rolled out some of the most innovative products and services for our customers, with unique features and benefits.

Axis Bank is the third largest private sector bank in India. As on 31 December 2020, the bank had a network of 4,586 domestic branches and extension counters situated in 2,586 centres compared to 4,415 domestic branches and extension counters situated in 2,521 centres as at end of 31 December 2019. As on 31 December 2020, the bank had 11,629 ATMs and 5,625 cash recyclers spread across the country.

Shares of Axis Bank tumbled 4.05% to Rs 631.90 on Wednesday. The stock hovered in the range of Rs 627.50 to Rs 663.60 today.

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