Axis Bank's net profit rises 66%

Axis Bank's net profit rose by 66 per cent to Rs 306.83 crore in the quarter ended December 31, 2007 as against Rs 184.61 crore in the corresponding quarter last fiscal.

The growth in profit was largely driven by 80 per cent incease in fee income at Rs 348.41 crore and 91 per cent gowth in net interest income at Rs 747.34 crore. The bank's total income increased by 58.54 per cent to Rs 2290.24 crore.

"We saw a strong business momentum in the third quarter. There was a healthy growth in our advances to large, small and medium enterprises as well as retail. The trading profits rose by 65 per cent largely on account of the robust equities market,'' said P J Nayak. chairman and managing director, Axis Bank. 
 

STRONG NUMBERS Performance in quarter ended December 2007
Rs crore	AXIS Bank			South Indian Bank
	2006	2007	% chg	2006	2007	% chg
Interest earned	1366.77	1802.34	31.87	248.95	338.89	36.13
Other income	279.74	487.90	74.41	22.10	36.61	65.66
Expenditure	1110.73	1617.96	45.67	209.88	307.17	46.36
PBT	358.63	672.28	87.46	61.17	68.33	11.71
Net profit	184.61	306.83	66.20	24.84	40.72	63.93
CAR (%)	11.83	16.88	-	11.76	14.92	-
Net profit margin (%)	15.52	17.02	-	9.98	12.02	-

The bank's net interest margin (NIM) in the quarter grew to 3.91 per cent compared with three per cent in the corresponding quarter last year. The rise was driven by lower cost of funds coupled with a 50 per cent growth in net advances.

Demand deposits grew by 64 per cent year on year, and constitute 45 per cent of the total deposits. Savings bank deposits grew by 51 per cent and current account deposits rose by 81 per cent on a year-on-year basis.

Savings Bank deposits rose from Rs 10,431 crore in December 2006 to Rs 15,768 crore in December 2007. Current account deposits increased from Rs 8,452 crore in December 2006 to Rs 15,264 crore at the end of December 2007.

The bank's cost of funds rose marginally to 5.72 per cent in the third quarter of 2007 as against 5.53 per cent in the corresponding quarter last year. Retail advances grew from Rs 9,178 crore at end December 2006 to Rs 12,009 crore at end December 2007, a growth of 31 per cent year on year. Retail advances accounted for 25 per cent of the total advances by the bank at the end of December 2007.

Axis Bank's capital adequacy ratio stood at 16.88 per cent. The bank has received Reserve Bank of India approval to set up 150 branches in the current financial year. It expects to open 125 branches by the end of March and the remaining thereafter.

The bank has four international offices "� branches at Singapore, Hong Kong and Dubai (at the DIFC) and a representative office in Shanghai - with a focus on corporate lending, trade finance, syndication, investment banking, risk management and liability businesses.

The total assets under overseas operations stod at $1.57 billion at the end of December 2007.