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Axis Bank Q3 net profit trebles as income rises, provisions drop

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Axis Bank Q3 net profit trebles as income rises, provisions drop

Private sector lender Axis Bank on Monday reported that its net profit tripled year-on-year to Rs 3,614 crore in the December quarter of FY22 on higher revenue and lower provisions.

The bank’s total provisions and contingency expenses stood at Rs 1,335 crore, down 64% year-on-year. The bank reported total revenue of Rs 21,101 crore for the three months ended December 31, up 15 percent from a year earlier. Axis Bank’s net interest income (NII) – the difference between interest earned and interest paid – rose 17 per cent year-on-year to Rs 8,653 crore as its net interest margin (NIM), a key measure of profitability indicator) was 3.53%, a month-on-month increase of 14 basis points (bps). Axis Bank’s other income, including fees, trading profits and miscellaneous income, rose 31 percent year-on-year to Rs 3,840 crore in the three months to December.

The bank’s gross non-performing asset (NPA) ratio (non-performing loans as a percentage of total advances) was 3.17% in the third quarter of fiscal 2022, down 36 basis points quarter-on-quarter and down 27 basis points year-over-year. After provisions, the net NPA ratio was 0.91% in the third quarter, compared to 1.08% in the September quarter of FY22 and 0.74% in the same period last year.

Puneet Sharma, chief financial officer at Axis Bank, said: “With our outlook on overall credit performance, we do expect credit costs to continue to moderate as we have shed significant wholesale exposure.”

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Amitabh Chaudhry, chief executive of Axis Bank, said that over the past few years, the bank had set the right provisions to absorb the up-front Covid-19-related blow by not making excessive ECLGS loans or even restructuring. “This is reflected in improved asset quality,” Chowdhury said.

Launched on May 20, 2020, ECLGS provides 100% guarantee coverage to selected borrowers, although it was originally designed for small business borrowers with fund-based credit outstanding up to Rs 250 crore, it is now Other parts are also included.

The bank’s gross slippage in Q3FY22 was Rs 4,147 crore compared to Rs 5,464 crore in Q2 and Rs 7,993 crore in Q3 FY21. The slippage of the loan book was Rs 3,332 crore and the slippage of the investment risk was Rs 8.15 crore. Its recoveries and upgrades from NPA stood at Rs 3,288 crore during the quarter, while write-offs were at Rs 1,707 crore. Axis Bank’s advances rose 17% year-on-year to Rs 6.64 trillion as at December 31. Retail loans rose 18% year-on-year to Rs 3.67 trillion and accounted for 55% of net bank advances. The share of secured retail loans is 80%, and housing loans account for 37% of the retail book. The bank’s corporate loan book rose 13% year-on-year to Rs 2.29 trillion.

“Mortgage loans are the largest (in the retail lending segment). But small business banking is growing strongly and personal loans are starting to show quarter-on-quarter growth. Growth in auto loans is limited due to supply-side issues,” Axis Bank Group Executive and Retail Lending Director Sumit Bali said.

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Train smarter, not harder: How taking occasional breaks from gym can revolutionise your fitness routine

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Train smarter, not harder: How taking occasional breaks from gym can revolutionise your fitness routine

Taking regular breaks from intense training, like deload weeks, helps your body recover, preventing fatigue and injury, and ultimately boosts fitness gains.

When it comes to getting fit, the idea of spending hours at the gym might come to mind, but many fitness experts argue that taking a “deload week” every six to eight weeks is actually key to improving your fitness gains. A deload week involves reducing the intensity of workouts to allow the body to recover from the fatigue and muscle damage caused by intense training.

While high-intensity training helps build strength and fitness, it can also lead to muscle strain, and without adequate recovery, these gains can’t fully materialise. Deload weeks give the body much-needed rest to repair and rebuild, ensuring continued progress. (Also read: Bhagyashree swears by this super easy exercise for instant leg pain relief and better mobility. Watch how to do it )

Why recovery is key for muscle growth

According to an article by The Conversation, intense exercise can cause tiny tears in muscle fibres, leading to inflammation that requires rest or low-intensity exercise to heal. This inflammation is essential for muscle growth and fitness improvements. However, without proper recovery, muscles remain in a state of slight damage, preventing inflammation from resolving. This chronic state of inflammation can hinder muscle function, reducing oxygen efficiency and impairing performance. Giving muscles time to recover through rest ensures they repair properly and are primed for continued progress, setting us up for greater success in our fitness journey.

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Many gymgoers fear taking time off and are worried it will lead to a loss of gains. However, research shows that muscle genes have a “memory imprint,” which keeps them in a semi-prepared state. This allows muscles to respond more quickly and effectively to future training, promoting growth after a rest period. Even after extended periods of reduced intensity, up to seven weeks, muscular fitness can be restored to prime condition—and in some cases, surpass previous levels. Interestingly, recovery can occur twice as fast as it took to reach peak fitness initially, even if some strength is lost.

Taking time off from intense training is crucial to prevent muscle soreness and avoid overtraining syndrome. Overtraining occurs when the body doesn’t get enough rest, leading to prolonged fatigue, decreased performance, and mood disturbances. Symptoms develop gradually, making overtraining difficult to recognize until it’s severe. Rest is essential to avoid these issues and ensure long-term progress in training.

Role of overtraining syndrome and deload weeks

Overtraining syndrome is challenging to quantify due to its vague symptoms. Studies suggest it may affect as few as 10% of elite athletes, though rates could climb to 60% among highly competitive individuals. Recovery is essential for both fitness and overall health. When engaging in heavy gym routines, it’s vital to incorporate sufficient recovery time into your workout plan. Unlike rest days, which involve little to no exercise once or twice a week, deload weeks feature lighter training at reduced intensity—typically about 50% fewer workouts or a 20% drop in workout intensity.

Both rest days and deload weeks are essential for recovery and crucial to improving fitness. It’s not about choosing one over the other—they complement each other. For instance, intense training for marathons, Ironman, or CrossFit competitions requires weekly rest days alongside scheduled deload weeks. However, for recreational gym-goers exercising 1–3 times weekly at a moderate intensity, the recovery from this routine is often sufficient without the need for additional deload weeks.

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Fitness influencers recommend incorporating deload weeks into training schedules every 4–8 weeks, aligning closely with the expert advice of 4–6 weeks. However, it’s crucial to listen to your body and schedule deload weeks as needed. If your performance plateaus or worsens, it may signal time for a deload. Training plans should be flexible enough to allow rest when required. Deload weeks not only enhance performance but also support overall health.

Disclaimer: This article is for informational purposes only and not a substitute for professional medical advice. Always seek the advice of your doctor with any questions about a medical condition.

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