Axis Bank on Tuesday reported a 18.93% rise in net profit at R1,915.64 crore for the quarter ended September, in line with estimates.
Net interest income — the difference between interest earned and interest expended — saw a growth of 15.24% on a y-o-y basis to R4,062.09 crore for the quarter ended September. The net interest margin stood at 3.85%. Axis Bank’s core operating revenue for the second quarter and first half of FY16 grew by 15% and 17% on a y-o-y basis to R5,936 crore and R11,644 crore, respectively.
Asset quality saw a marginal fall compared to last year with gross non-performing assets as a percentage of gross advances rising by four basis points to 1.38%. On a sequential basis, gross NPAs remained flat.
During the quarter, the bank added R583 crore to gross NPAs, excluding assets sold to ARCs while recoveries and upgrades stood at R180 crore. Net NPAs for the second quarter rose by four basis points to 0.48% compared to the same period last year, while on a sequential basis, it remained flat.
Provisions other than tax and contingencies stood at R707.17 crore compared to R725.04 crore in the second quarter of last year. Advances as on September 30 saw a growth of 23% at R2.98 lakh crore against R2.42 lakh crore in the corresponding period of FY15.
Deposits stood at R3.24 lakh crore compared to R2.83 lakh crore in the same quarter last year.
Corporate credit grew 25% y-o-y to R1.38 lakh crore and accounted for 47% of net advances, the bank stated. Retail advances grew 27% y-o-y and stood at R1.19 lakh crore and accounted for 40% of the net advances. The capital adequacy ratio of the bank stood at 15.42% as on September 30. The board of directors has approved the re-designation of V Srinivasan as deputy managing director of the bank with effect from October 15.
The board has also approved the appointment of Jairam Sridharan as chief financial officer with effect from October 28.