The Mint Report for 14 October 2010

The Mint Report for 14 October 2010

Quarterly results are in for India’s third biggest private lender. [GRFX IN] On Thursday Axis Bank reported a net profit of Rs735 crore for the period ending 30 September, an increase of 38%. Meanwhile, net interest income climbed 41% to Rs1,615 crore. The bank’s net interest margin stood at 3.68%. In the previous quarter last year it was at 3.52%. Axis has been helped along by an increase in low cost current and savings account. They allow the bank to pay a mere 3.5% interest rate on the savings accounts and no interest on the current accounts.

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Meanwhile stocks of Axis Bank closed in the red after making gains during the day. On the BSE its stock fell 1.59% to 1,563.45.

RIL may have to share more revenue from one of its hydrocarbon blocks if a government audit goes against it. The Directorate General of Hydrocarbons has delayed its approval of expenditure RIL is claiming for work on oil and gas fields. It says it will wait until the CAG finishes an audit on money spent on developing RIL’s lucrative KG D-6 block. RIL’s latest claim is worth about Rs358 crore. It includes expenditures like office expenses and administration. If the DGH doesn’t clear RIL’s claimed expenses, the money won’t be deducted from revenues and the company will have to pay the government more money. Under current rules, the developers of oil and gas blocks share some of their revenue with the government.