India’s third largest private sector bank, Axis Bank, reported 19% drop in profits at Rs.1112 crore for the Jun-20 quarter on a YOY basis. However, the lower profits were largely accounted for by change in accounting practices to a more conservative approach leading to a one time charge. Its fee income fell almost by a third to Rs.2587 crore for Jun-20 quarter.

The core net interest income or NII grew by 20% to Rs.6985 crore in the June quarter, which shows good traction in its core lending business. The good news was that the gross NPAs of the bank were lower at 4.72% compared to 5.25% a year ago. However, the full impact of the EMI moratorium and the subsequent impact on NPAs has not been disclosed.