Particulars (In Cr.) 1QFY21 4QFY20 1QFY20 QoQ % YoY%
Interest earned 16539 16234 15255 1.9% 8.4%
Interest Expended 9554 9426 9411.3 1.3% 1.5%
Net Interest Income 6985 6808 5844 2.6% 19.5%
Operating Profit 5844 5851 5893 -0.1% -0.8%
Provisions 4416 7730 3815 -42.9% 15.8%
Net Profit after tax 1112 -1388 1370 181.2% -18.8%
Deposits 628150 640105 540678 -1.9% 16.2%
Advances 561341 571424 497276 -1.8% 12.9%
Ratios (%) 1QFY21 4QFY20 1QFY20    
Gross NPA 4.72 4.86 5.25
Net NPA 1.23 1.56 2.04
Provision Coverage Ratio 75 69 62
Net Interest Margin 3.40 3.55 3.40
Capital Adequacy Ratio 17.29 17.53 15.82
Return on Assets 0.48 (0.62) 0.69
CASA Ratio 41 41 41

Result Highlight:

  • Net Interest Income in Q1FY21 grew by 20% YOY to Rs. 6,985 crores; NIM was 3.40%
  • GNPA and NNPA declined to 4.72% and 1.23%, from 4.86% and 1.56%, respectively on QOQ basis
  • Market share in UPI transactions stood at 19% for Q1FY21; quarterly transactions up 163% YOY.
  • Provision coverage ratio improved to 75% from 69% at March’20
  • Savings Account deposits grew 15% YOY, Current Account deposits grew by 8% YOY and Retail Term Deposits (RTD) were up 27% YOY on QAB basis. CASA ratio was 39% on QAB basis
  • Reported fresh slippages worth Rs 2,218 crore compared with Rs 4,798 crore a year earlier.
  • Loans under moratorium have declined from 26% in April to 9.7% as of June 2020. 90% of current moratorium loans are from moratorium one.

Management commentary:

  • Loans under moratorium have declined from 26% in April to 9.7% as of June 2020. 90% of current moratorium loans are from moratorium one. Of these 80bps is already paying installments. Collections from moratorium 1 for retail and corporate account are 70%/80% respectively. Bank is increased its effort for collections and expect collections to increase going forward.

  • Around 80% of retail loans are secured, within unsecured retail loan, 84% are salaried and 80% have banking relation. 67% of customers are employee of premium corporate and PSUs

  • Of the total gross slippages during the quarter 21% were based on credit and risk assessment criteria and not of 90+DPD, bank has provided 100% on these accounts. Other than this 42% of slippage was related to a single group and bank has provided 100% on this account

  • Bank has created an NII reserve on standard asset to provide cushion of interest reversal in case of higher slippages. This has led to NIM impact of 5bps


Axis bank posted NII growth of 19.55 YoY in Q1FY21 which is highest on last 5 quarters driven by 13% growth in domestic loan. Reported Slippages at Rs. 2218 cr. are lowest in 17 quarters. The proportion of loan under moratorium declined meaningfully to 9.7% in Q1FY21 Vs 26% in Q4. The sharp decline in moratorium does not necessarily mitigate the inherent risk in the portfolio as the collection efficiency of portfolio which moved out of moratorium is still low at 70%. However Asset quality of bank improved with Gross NPA fell to 4.72% from 4.86% in the preceding three-month period.


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