Income rise propels Axis Bank's profit

Axis Bank, a private sector bank which was earlier called UTI Bank, has reported a 60 per cent jump in its net profit for the second quarter ended September 30, 2007, due to a sharp rise in interest, fee and trading incomes.

The net profit rose to Rs 227.82 crore in the quarter from Rs 141.98 crore a year earlier.

The bank's net interest income increased by 73 per cent year-on-year to Rs 588.67 crore in the July-September 2007 quarter, fee income rose by 69 per cent to Rs 288 crore and trading income went up by 339 per cent to Rs 102.49. 
 

Axis Bank
	Rs crore	% chg
Interest earned	1,676.49	59.66
Other income	382.88	86.98
PBT	462.86	68.63
Net profit	227.82	60.46
CAR (%)	17.59	-
NPM (%)	13.59	-

"There has been a 73 per cent increase in the bank's net interest income. We raised fresh capital this year, which was used to refinance high cost term deposits. The robust growth in fee income and treasury profits on account of the booming stock markets also added to the profit growth,'' said the chairman, PJ Nayak.

The net interest margin (NIM) rose to 3.28 per cent at the end of the second quarter this year against 2.72 per cent a year earlier.

The bank's other income rose by 87 per cent to Rs 382.88 crore in the quarter ended September 30, 2007 from Rs 204.77 crore a year earlier. Its advances portfolio grew by 54 per cent, with retail advances growing by a comparatively slower 27 per cent.

"We have lent in accordance with the demand momentum. Our focus is on ensuring that the quality of our portfolio is maintained,'' added Nayak.