Axis Bank Ltd., a private-sector bank offering both retail and corporate banking services, reported a higher net profit for the second-quarter on strong growth in net interest income, fee income and operating revenue.
It also said with slower growth of operating expenses, its operating profit and net profit have shown healthy growth.
For the second quarter ended September 30, 2012, the Ahmedabad-based bank's net profit was Rs.1,123.54 crore, 22 percent higher than the net profit of Rs.920.32 crore reported for the same period last year. On per share basis, the bank's quarterly earnings rose by 21 percent to Rs.27.00 from the Rs.22.33 in the year-ago quarter.
Net interest income during the quarter significantly rose by 16 percent to Rs.2,326.93 crore from the Rs.2,007.26 reported in the corresponding quarter last year. Net interest margin for the quarter stood at 3.46 percent, compared to 3.37 percent in Q1FY13.
Non-interest income for the quarter grew by 29 percent to Rs.1,593.06 crore from the Rs.1,234.92 crore reported in the same period last year, driven by significant growth in fee income.
Operating profit for the quarter rose by 23 percent to Rs.2,178.26 crore from the Rs.1,775.64 crore in the prior- year quarter.
The bank reported for the six months a net profit of Rs.2,277.06 crore, compared with Rs.1,862.67 crore in the corresponding period in 2011, registering a 22 percent growth.
For the six-month period, net interest income rose by 34 percent to Rs.4,506.79 crore from the Rs.3,371.36 crore in the corresponding period last year. Non-interest income was Rs.2,928.57 crore, up by 22 percent from the Rs.2,402.79 crore for the six months period ended September 30, 2011.
At the end of second quarter, the net non-performing assets as a proportion of net customer assets were 0.33 percent, flat from last year's 0.34 percent.
The bank's capital adequacy ratio for the quarter rose to 12.99 percent from 11.35 percent in the second quarter of last year.
Its total deposits as at the end of December grew by 21 percent to Rs.235,619 crore from Rs.194,455 crore as at the end of September 2011, while advances increased by 23 percent to Rs.172,132 crore as at the end September this year from Rs.140,089 crore as at end September 2011.
The bank has inducted Somnath Sengupta and V. Srinivasan on its Board as Executive Directors effective October 15.
At the NSE, Axis Bank shares are currently trading at Rs.1,146.75, up by Rs.27.65 or 2.47 percent on a volume of 12,12,205 shares.
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by RTT Staff Writer
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