Axis Bank reports unexpected loss of Rs 112 crore in September quarter

Enforcement Directorate, Know Your Customer, Narendra Modi, Chandni Chowk, demonetised currency notes., Income Tax department, Axis bank,

Axis Bank reported a net loss of Rs 112.08 crore for the quarter ended September 30, shocking analysts.

The private sector bank had reported a net profit of Rs 789.61 crore for the corresponding period a year ago. Its net interest income (NII) which is the difference between interest earned and interest expended stood at Rs 6,101.83 crore in the second quarter of the current financial year, as against Rs. 5,232.11 crore in the year-ago period.

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Nineteen analysts had on average expected a profit of Rs 1,151 crore in the July-September period, Refinitiv data showed.

Its tax expense rose 6.75 times to Rs 2,545.27 crore in the quarter ended September 30.

The bank said the rise in tax expenses was on account of a write-down of net deferred tax assets worth Rs 2,137.59 crore, which was fully charged to the profit and loss account.

However, the bank’s asset quality improved. Gross non-performing as a percentage of total loans stood at 5.03% in the July-September period, as against 5.25% in the previous quarter and 5.96% in the quarter ended September 30, 2018.

Shares in Axis Bank ended 0.49% higher at Rs. 712.70 apiece on the BSE ahead of the earnings announcement, outperforming the benchmark Sensex index which fell 0.85% breaking a six-day winning run.

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