Axis Bank, the third-largest private sector lender in the country, today said its net profit for the quarter ended June 30, 2012 expanded 22% to Rs 1,154 crore from Rs 942 crore a year earlier. Higher interest income from advances and surge in trading profits aided the bank's earnings growth during the quarter.
Net interest income, or the difference between interest income and interest expense, grew 26% to Rs 2,180 crore during the three-month period. Net interest margin improved by 9 basis points year-on-year to 3.37%.
The bank's other income was up 14% at Rs 1,336 crore as trading profit more than doubled during the quarter. The private lender made trading profit of Rs 150 crore in April-June, 2012 compared to Rs 70 crore a year ago. Fee income growth remained muted at 9%.
Axis Bank made more provisions even though the credit quality remained steady in the first three months of this financial year. It made Rs 259 crore provisions during the quarter compared to Rs 176 crore a year earlier.
Both gross and net non-performing asset ratio was unchanged from a year ago. While gross non-performing asset ratio was at 1.06%, net bad loan ratio was at 0.31% at the end of June, 2012. The provision coverage ratio was at 79%.
The private lender restructured Rs 628 crore loans in April-June. Its restructured loan portfolio was at Rs 3,827 crore or 1.95% of the gross customer assets at the end of the quarter.
"Of the outstanding pool, assets amounting to Rs 1,231 crore have displayed a satisfactory repayment track-record of two years. Adjusting for these assets, restructured assets would constitute 1.32% of gross customer assets," the bank said in a statement.
Advances were up 30% year-on-year to Rs 171,146 crore. However, adjusting for currency depreciation the normalised growth in advances is estimated at 21%.
Deposits were at Rs 222,631 crore at the end of June, 2012 up 21% from a year ago. The current account savings account deposits (CASA) had 39% share in total deposits.
The bank closed the quarter with a capital adequacy ratio of 13.03%, of which tier I ratio was 9.02%.
Axis Bank said it is "now awaiting the necessary approvals under applicable law from various regulatory authorities" for completing the acquisition of Enam Securities' businesses. Hence, its first quarter earnings figures do not include the broking firm's financial numbers.
