Axis Bank quarterly net up 60% at Rs228 crore

Axis Bank quarterly net up 60% at Rs228 crore


Mumbai: Driven by higher net interest and fee income and dipping non-performing assets (NPA), private sector Axis Bank clocked a 60.46% increase in net profit at Rs227.82 crore for the quarter ended 30 September.

While net interest income (NII) rose 73% to 88.67 crore in Q2 FY’08 against 40.51 crore in the same period last fiscal, fee income was up 69% at 288 crore.

Net NPAs declined to 0.55% from 0.74% in the year-ago period, while the capital adequacy ratio (CAR) of the bank improved substantially at 17.59% against 11.50% at end-June 2007 and 11.52% as of end-September 2006, the bank said in a press release here on 15 October.

Axis Bank’s balance-sheet size grew 40% to Rs83,548.88 crore in the quarter under review as against Rs59,765.99 crore in the year-ago period. Its savings and current account deposits expanded by 48% and 49% at Rs14,395 crore and Rs14,690 crore, as against the year-ago numbers of Rs9,725 crore and Rs9,854 crore, respectively.

There has been a healthy growth in advances as well, with the bank’s net advances rising 54% to Rs44,701 crore as against Rs29,121 crore in the year-ago period. Retail advances grew 27% to Rs10,848 crore as against Rs8,513 crore in the same period last fiscal.

Axis Bank’s net interest margin (NIM) increased substantially in the second quarter to 3.28% from 2.92% in the year-ago period and from 2.72% the previous quarter.

“The bank believes it continues to have a very credible and encouraging pipeline of corporate advances, and as these translate into loan assets, the NIM should further rise," its statement said.

There has also been a lowering in the cost of funds for the bank by 0.25% at 6.18% as compared to 6.43% in the previous quarter, though it has increased from 5.42% in the year-ago period.

Under its cash management services (CMS), Axis Bank handled a cash remittance throughput of Rs1,63,524 crore in the quarter, up 77% from the Rs92,458 crore in the year-ago period. The number of its CMS clients has grown to 2,592.

On the retail business side, the bank’s savings accounts grew from Rs40.15 lakh as at end-September’06 to Rs54.24 lakh in Q2 of FY’08.

Earlier known as UTI Bank, it changed its name to Axis Bank in August. It had, during this quarter, raised $218.06 million by way of a GDR offering, Rs1,752 crore through a QIP and Rs1,903 crore through a preferential allotment to promoters.