Moneycontrol Bureau
Axis Bank said that slippages have come down from the earlier high levels. Jairam Sridharan, chief financial officer, Axis Bank said that the fresh slippages have reduced on a quarter-on-quarter basis for the bank.
The bank’s fresh slippages for the third quarter ended December 31, 2016 stood at Rs 4560 crore, down from Rs 8,772 crore in Q2. The write-offs stood at Rs 122 crore.
“Our slippages have reduced from the peak. Further, our provision coverage ratio has gone up to 64 percent from 60 percent quarter-on-quarter,” he said. He explained that 98 percent of non-watchlist corporate slippages in Q3FY17 have originated in FY11 and earlier. This was primarily from sectors like iron and steel, infrastructure and construction.
As on December 31, 2016, the bank’s gross non-performing assets (NPA) and Net NPA levels were 5.22 percent and 2.18 percent respectively, as against 4.17 percent and 2.02 percent sequentially. The gross NPA was 1.68 percent and net NPA was 0.75 percent in Q3 of last financial year.
The bank said that most of the increase in net non-watchlist slippages has come largely from corporate sector. Sridharan said that about 85 percent of corporate slippages in the first nine months of FY17 have come from the watchlist. In Q3, 30 percent of the corporate slippages came from the watchlist.
Overall, the current account savings account grew 21 percent year-on-year and constituted 48 percent of the total deposits as on December 31, 2016. The savings account balances grew 27 percent y-o-y and stood at Rs 1.18 crore at the end of Q3.
Sridharan said that demonetisation led to more number of digital transactions being recorded. During the quarter, the card usage grew a staggering 82 percent YoY in value terms. The mobile banking channel also witnessed a sharp growth of 103 percent YoY and 69 percent YoY in transactions and value terms respectively.
The bank’s debit cards in force stood at 18.5 million at end of December 2016, while credit cards in force stood at 3.1 million, seeing a growth of 20 percent and 41 percent respectively on a YoY basis.
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