Axis Bank’s net profit increased by 70 per cent to Rs 562 crore for the quarter ended June 30, from Rs 330 crore in the corresponding quarter last year.
The rise in profits was on account of the strong growth in non-interest income and the focus on low-cost deposits.
“Our non-interest income continues to do well. Within that, although our fee income growth was lower, the treasury income was very profitable,” said Mr Somnath Sengupta, President, Finance and Accounts.
The fee income increased 17 per cent to Rs 627 crore (Rs 537 crore) and the trading profit increased to Rs 326 crore (Rs 57 crore).
The trading income comprised Rs 149 crore from government securities, Rs 70 crore from corporate bonds, Rs 77 crore from equity, Rs 25 crore from derivatives and Rs 5 crore from mutual funds.
The Net Interest Margin was at 3.34 per cent, marginally lower than 3.35 per cent last year. The target for this fiscal is between 3.2 and 3.5 per cent.
The share of the low-cost CASA deposits (current account and savings account) to the total deposits was 37 per cent, slightly lower than 38 per cent in the same quarter last year, but higher than 35 per cent in the fourth quarter of the previous fiscal.
Credit grew by 28 per cent and deposits by 24 per cent.
“There are opportunities for lending in sectors such as infrastructure and mortgages,” said Mr Sengupta.
The provisions for coverage were 86 per cent, including the write-offs, which was higher from 80 per cent last year.
During the June quarter, the bank restructured loans worth Rs 996 crore.
The bank plans to grow its balance sheet by 25 per cent and add 200 branches to its existing 866-strong network, Mr Sengupta said.
On Monday, the Axis Bank scrip closed at Rs 755.9, up 2.27 per cent from the previous close of Rs 739.10, on the BSE.
The bank also informed the BSE that its Board of Directors has approved the voluntary delisting of equity shares of the bank from the Ahmedabad Stock Exchange.
Source: The Hindu Business Line
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