Axis Bank's Q3 profit hurt by provisions, weak loan growth

Gross slippages for Q3 rose 22% sequentially and 46% annually to ₹5,432 crore, led by ₹4,923 crore in the retail book

- Anshika Kayastha

Axis Bank's struggles with asset quality continued in the third quarter (October-December) of the current financial year, slowing down loan growth and hurting profitability, as the private lender saw a rise in gross slippages, largely in the retail unsecured and agriculture credit portfolios.

Gross slippages for the December quarter rose 22% sequentially and 46% annually to ₹5,432 crore, the bank said in a statement detailing its quarterly results. Slippages to the tune of ₹4,923 crore were from the retail book, owing to higher delinquencies in unsecured loans. Agriculture loan slippages were also higher due to seasonal impact in the bank's Bharat Banking or financial inclusion portfolio.

Of the remaining, ₹215 crore worth of slippages were from the mid-corporate and SME book, whereas ₹294 crore was from wholesale loans, chief financial officer Puneet Sharma said in an earnings call.