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Axis Bank to see sharp fall on dismal Q2 FY18 earnings

Axis Bank to see sharp fall on dismal Q2 FY18 earnings

The company's net interest income (NII) inched up by one per cent to Rs 4,540 crore in the second quarter of 2017-18 from Rs 4,514 crore during the same quarter a year ago.

Private sector lender Axis Bank on Tuesday reported a almost 36 per cent increase in net profit at Rs 432 crore in the second quarter ended September despite rise in bad loans.

The company has reported net sales of Rs.6863.61 crores during the period ended September 30, 2017 as compared to Rs.6775.03 crores during the period ended September 30, 2016.

Government-owned Andhra Bank has put up 62 stressed loan accounts, with a combined principal balance of Rs 1,653 crore, for sale in a move to partly reduce the burden of non-performing assets (NPAs). The bank's net interest income or the core income a bank earns by giving loans rose marginally by 0.5% to Rs.4,539 crore. Profit for the quarter stood at Rs 432 crore, against Rs 319 crore in the year-ago quarter. The net NPA ratio too rose to 3.12 percent against 2.3 percent quarter on quarter.




Its gross slippages for the quarter were at Rs 8,936 crore, which were sharply higher compared with Rs 3,519 crore in previous quarter.

The quarterly results missed street estimates as NII for the quarter was 4.5% below street estimates of Rs 4741 crore.

The bank said that the Reserve Bank of India (RBI) has pointed out certain reclassifications in the bank's asset classification and provisioning as on 31 March, subsequent to the annual Risk Based Supervision (RBS) exercise conducted for fiscal 2017.