Mumbai, Oct. 15 -- Axis Bank's provisions on standard assets surged during the second quarter of the current financial year due to a one-time impact of reclassification of certain priority sector loans (PSL) as standard assets, based on an advisory by the Reserve Bank of India. However, lower loan loss provisions helped maintain overall credit costs for the quarter.

One-time standard asset provisions due to the declassification were Rs.1,231 crore, bringing the total standard asset provisions for the quarter to Rs.1,568 crore-up from Rs.154 crore in the previous quarter and Rs.140 crore in the corresponding quarter of last year.

However, a sequential decline in loan loss provisions resulted in overall provisions and contingencies of Rs....