Private sector lender Axis Bank reported a net loss of Rs 1,387.78 crore for the fourth quarter of 2019-20 as against a net profit of Rs 1,505.06 crore in the same period in the corresponding year.
“Net profit de-grew 65 per cent year on year to Rs 1,627 crore, and was impacted on account of higher provisions taken in 2019-20 and the one time DTA charge was taken in the second quarter to incorporate revised corporate tax rates,” Axis Bank said in a statement.
Amid the uncertainty on economic conditions due to the outbreak of coronavirus pandemic, the lender has made Rs 3,000 crore of provisions towards COVID-19.
For the quarter ended March 31, 2020, the bank’s net interest income inflated by 19 percent to Rs 6,808 crore from Rs 5,706 crore a year ago.
Net interest margin for the 4th quarter was 3.55 percent while for 2019-20 it stood at 3.51 percent.
Its whole provisions for the January to March 2020 quarter increased to Rs 7,730.02 crore from Rs 2.711.43 a year ago.
As on March 31, 2020, the lender’s gross NPA and net NPA levels were 4.86 percent and 1.56 percent respectively, as against 5 percent and 2.09 percent respectively as on December 31, 2019.