Major private banks in India have announced their numbers for Q1 FY22. NPAs (non-performing assets) have gone up for all companies and Amitabh Chaudhary, MD, AXIS Bank Ltd (NS: AXBK ) warned about the third wave and its possible implications as well.
He said, “The pace of [business] acceleration has picked up but it’s still not where we want it to be, hopefully as the production ramps up it will pick up, but with the economy opening up, the worries over Covid wave three are heightened and we have to be extremely watchful for that,” he said.
He added, “When you look at the results of Covid on the financial system it’s clearly showing that there are some banks which can manage this crisis exceedingly well because they have the strength in their balance sheet while there are some companies and NBFCs are struggling and showing a large deterioration in their asset quality.”
Axis bank’s GNPAs (gross NPAs) and NPAs in the June 2021 quarter rose to 3.85% and 1.2%, respectively, against the 3.7% and 1.05% in the March 2021 quarter.
Kotak Mahindra Bank Ltd. (NS: KTKM )’s GNPAs rose to 3.56% compared to 3.25% in March 2021 quarter while net NPAs rose to 1.28% from 1.21%.
India’s largest private bank HDFC Bank Ltd (NS: HDBK ) wrote off bad loans to the tune of Rs 3,100 crore in the June quarter compared to Rs 1,500 crore in Q1 FY21.
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