India’s third-largest non-public lender, Axis Bank revealed that it might witness a rise in retail non-performing loans during the third and fourth quarters of this fiscal before the situation normalizes in 2021-22. The pandemic had adversely affected the growth margin of almost all the banks and NBFCs of the country. With everything gone hay-wire the bank growth rates had to see a fall. Axis Bank stated that there had been more decrease in the non-performing loans than what was expected.
Head of retail leading and funds at Axis Bank, Sumit Bali said that the bouncing in September was higher and that is what will be visible in the bad loans in the third and fourth quarter. The bank had envisaged the stress to be much lower but comparing the numbers to that of the last year, the bank is expecting to see a growth in the profits margin. He also mentioned that the job losses and wage cuts have made a dent in the retail ebook. Due to the non-availability of the funds for the people, there was less investment in the banks during the pandemic. The bank is however sure that the situation will improve by 2021-22. Bali also said that once the third and fourth quarters of the year are done with, the growth rates of the bank will reach back to that of pre-corona times.
Axis Bank has simultaneously been reporting that after the six-month moratorium that took place in August, the assortment efficiency of more than 95 percent has been reported. The Retail advances also showed a growth of 12 percent by the end of September and have presented greater than half of the lender’s complete portfolio. The bank also mentioned a gross non-performing property of 0.7 percent in its retail ebook by the end of September 2020. The secured ebook of the bank has surpassed pre-covid levels.