Axis Bank on Wednesday reported a 14.5% rise in its third quarter net profits at R2,175.30 crore compared to the same period last year.
The profit growth was aided by a strong rise in its net interest income (NII)—the difference between interest earned and interest expended—which grew by 15.95% to R4,162.06 crore in the third quarter.
The net interest margin (NIM) for the third quarter stood at 3.79%.
Advances grew 21% on a year-on-year basis to R3.15 lakh crore aided by a strong growth in retail advances which rose by 27% y-o-y to R1.25 lakh crore. Corporate credit grew 21% y-o-y at R1.48 lakh crore. Deposits grew by 16.15% on a y-o-y basis to
R3.38 lakh crore as on December 31, 2015.
The bank’s balance sheet grew 18% y-o-y and stood at R4.96 lakh crore as on December 31, 2015.
Other income grew by 14.65% at R2,337.78 crore compared to the same period last year while total income witnessed a growth of 14.66% at R12,531.11 crore. Operating profit witnessed a reasonable growth of 20.23% on a y-o-y basis to R3,985.06 crore.
Asset quality depreciated with the gross non-performing assets (NPA) as a percentage of total assets rising by
34 basis points to 1.68% on a
y-o-y basis. On a sequential basis, GNPAs rose by 30 basis points.
Net NPAs rose by 31 basis points to 0.75% compared to last year while on a sequential basis, it rose by 27 basis points.
Provisions other than tax and contingencies rose 40.5% on a y-o-y basis to R712.59 crore in the third quarter.
Axis Bank said it has fully recognized the necessary impairment and the resultant provisioning impact of the asset reclassification as per RBI’s assessment in the current quarter itself.
During the quarter, the bank added R2,082 crore to GNPAs, while recoveries and upgrades stood at R156 crore. There were no sales to ARCs during the quarter, the bank said in a release.
The cumulative value of net restructured advances as on December 31 2015 stood at R7,745 crore, the bank stated in the release.
The capital adequacy ratio (CAR) of the bank stood at 15.47% while the tier-I CAR stood at 12.35% as on December 31, 2015.