Monday, 30th October 2017

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Tax blow triggers loss at Axis Bank

The bank attributed the losses in the quarter to a one-off DTA impact because of a change in the corporate tax rate

  • Published 23.10.19, 12:45 AM
  • Updated 23.10.19, 12:45 AM
  • 2 mins read
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The private sector bank had posted a net profit of Rs 789.61 crore in the corresponding July-September quarter of the previous fiscal. Shutterstock

Axis Bank on Tuesday reported a net loss of Rs 112.08 crore on a standalone basis for the September quarter because of a one-time tax impact.

The private sector bank had posted a net profit of Rs 789.61 crore a year ago.

The bank attributed the losses in the quarter to a one-off deferred tax asssets (DTA) impact because of a change in the corporate tax rate.

“The one off impact for the bank, from a DTA perspective, due to a change in corporate tax rate, has been Rs 2,138 crore. It has been fully adjusted through Q2FY20 (second quarter of 2019-20, or July-September 2019) financials, which has impacted the earnings significantly. Adjusted for this one-off Q2FY20 PAT (profit after tax) would have been Rs 2,026 crore, up 157 per cent year-on-year,” the lender said.

The bank’s total income (standalone) rose to Rs 19,333.57 crore in the second quarter of 2019-20 from Rs 15,959.37 crore in the same period last year, it said.

The bank’s asset quality improved with gross non-performing assets (NPAs) falling to 5.03 per cent of gross advances at the end of September 2019 from 5.96 per cent a year ago.

Net NPAs stood at 1.99 per cent against 2.54 per cent a year ago.

Shares of Axis Bank on Tuesday closed 0.49 per cent higher at Rs 712.70 on the BSE.

RBL Bank

The asset quality at RBL Bank deteriorated with the percentage of gross NPAs rising to 2.60 per cent from 1.38 per cent in the April-June quarter. In absolute terms, gross NPAs stood at Rs 1,539 crore against Rs 789 crore on a sequential basis.

During the second quarter, net profits of the bank declined 73 per cent to Rs 54.3 crore against Rs 204.6 crore in the same period last year even as its core net interest income (NII) jumped 47 per cent to Rs 868.70 crore. The bank said in a presentation that increased stress in the economy and deterioration in the credit environment had an adverse impact on its numbers.

Kotak Bank net up

Kotak Mahindra Bank on Tuesday reported a 38 per cent increase in consolidated net profit at Rs 2,407.25 crore for the September quarter mainly on healthy core income.

The private sector lender had posted a net profit of Rs 1,747.37 crore in the year-ago quarter.

Total income jumped to Rs 12,542.99 crore in the three months ended September against Rs 10,829.08 crore in the same quarter of 2018-19, the bank said in a regulatory filing.

“For Q2FY20, the bank’s contribution to PAT was Rs 1,724 crore. The subsidiaries’ and associates’ net contribution was 28 per cent of the consolidated PAT,” it said.

The bank’s income from interests rose to Rs 8,418.75 crore against Rs 7,285.46 crore in the year-ago period.