Axis Bank net up 18% at Rs 1,611 cr

Written by fe Bureau | Mumbai | Updated: Oct 18 2014, 06:29am hrs
Axis Bank on Friday posted an 18% growth in the net profit y-o-y to R1,611 crore on account of a 20% jump in the net interest income and a healthy 10% rise in other income.

Net profit was up due to a healthy growth in net interest income which was high on a year-on-year basis and other income also rose 10% of which the fee income growth was 11%. These were the key reasons for good numbers in Q2, said executive director (corporate centre) & CFO Sanjeev K Gupta.

Click here for graph

The net interest income of Axis bank increased 20% year-on-year to R3,252 crore. Loan growth of 20% and an improvement of 18 basis points in the net interest margin to 3.97% led to the jump in interest income.

However, the bank saw a rise in both its gross and net non-performing assets (NPA), indicating that the pressure on the asset quality continues. Gross NPAs stood at 15 bps higher at 1.38%, while the net NPA rose 6 bps to 0.44%.

The bank expects a rise of R6,500 crore in bad loans and restructured assets in 2014-15. Gupta said that given the present rate of accretion of NPAs, the incremental stock of bad loans and restructured loans would not rise beyond the guidance.

The operating profit rose to R2,861 crore, registering a growth of 16% y-o-y. Other income grew 10% y-o-y and stood at R1,948 crore against Rs 1,766 crore in the same period last year. In H1FY15, other income stood at R3,639 crore.

The loan book increased 20% y-o-y to R2,42,198 crore, of which loans to corporate was at R11,0176 crore and grew at 13.14%. Loan advances to small and medium enterprises and retail customers stood at R37,701 crore and R94,321 crore, respectively.

Savings bank deposits recorded a healthy growth of 20% y-o-y to reach R79,875 crore as of September 30, 2014, while current account deposits grew 8% y-o-y and stood at R46,492 crore and term deposits stood at R1,26,367 crore.

Axis bank stocks ended the day with an increase of 2.26% to R401.95 a share.