Third largest private sector lender Axis Bank reported a 38.28 per cent increase in net profit to Rs 735.14 crore during the second quarter of the financial year compared to Rs 531.64 crore in the corresponding period last year, on strong growth in interest income.
The net interest income (NII) which is the difference between the interest earned and interest expended rose by 41 per cent to Rs 1,615 crore during second quarter from Rs 1,150 crore in the corresponding period last year.
The bank posted a net interest margin (NIM) of 3.68 per cent during the second quarter as against 3.52 per cent during July-September 2009-10. However it was slightly lower than 3.71 per cent during the first quarter.
The Bank’s advances grew by 36 per cent year on year, from Rs 81,044 crore as on September 30, 2009 to Rs 1,10,593 crore as on September 30, 2010, while investments rose to Rs 61,942 crore from Rs 52,072 crore, over the same period, a growth of 19 per cent.
Fee income registered a growth of 18 per cent rising to Rs 849 crore during July-September 2010 compared to Rs 719 crore in corresponding quarter last year, majorly due to increase in income from large and mid corporate credit which grew by 54 per cent. It was followed by treasury with a 12 per cent growth, retail business grew by 8 per cent. Fee income earned from capital markets declined by 22 per cent in the quarter.
Net NPAs, as a proportion of net customer assets, decreased to 0.34 per cent as on September 30, 2010 compared to 0.35 per cent as on June 30, 2010 and 0.45 per cent as on September 30, 2009.
During the quarter, the bank added Rs 446 crore to gross NPAs. Recoveries and upgradations of Rs 130 crore and write-offs of Rs 294 crore during the quarter resulted in a closing position of Rs 1,362 crore of Gross NPAs on September 30, 2010, higher than the position at the end of September 2009 by Rs 230 crore, the bank said.
The Bank restructured loans aggregating Rs 60 crore during the second quarter. The cumulative value of assets restructured till September 30, 2010, however, declined to Rs 2,061 crore.
Net profit for first half of the financial year grew by 35.05 per cent to Rs 1,477.02 crore from Rs 1,093.68 crore the first six months of the last financial year.
Shares of the bank were trading at Rs 1,592 up 0.24 per cent from its previous close at Bombay Stock Exchange.
