Axis Bank net up 22% at Rs 1,555 cr on core income growth

Axis Bank net up 22% at Rs 1,555 cr on core income growth Mumbai: Axis Bank on Wednesday reported a 22 percent jump in post-tax profit for the March quarter at Rs 1,555 crore helped by growth in both core and non-interest income.

The country's third largest private sector lender had posted a post-tax net of Rs 1,277 crore the corresponding quarter of last fiscal.

Net interest income grew 24.16 percent to Rs 2,664 crore while the other income was up 26.43 percent to 2,007 crore, aided by a 62.83 percent growth in trading income which came in at Rs 237.76 crore, it said.

Axis Bank's asset book grew broadly at par with the industry average at 16 percent, on the back of a 44 percent growth in retail component. Credit to corporates grew 8 percent while agriculture book witnessed de-growth of 14.39 percent to Rs 14,845 crore from the year ago’s Rs 17,340 crore.

"We were under served in the retail segment which we are growing now. Retail assets have grown to 27 percent from the earlier 22 percent and I see them touching 30 percent by end of FY14," Axis Bank Executive Director Somnath Sengupta told reporters on a conference call.

The share of low-cost current and saving account deposits (CASA) improved to 44 percent as on March 31, 2013 as against 42 percent a year ago.

Net interest margin widened to 3.70 percent, but Sengupta said it would go down to 3.25 to 3.50 percent levels. It came in higher in the March quarter due to the recent capital raising done by the bank, he added.

The lender witnessed a three-fold spike in provisions at Rs 595.35 crore from the year ago's Rs 139.28 crore because of additional Rs 240 crore being put into a special contingency fund during the quarter, Sengupta said.

Sengupta said he does not see any trouble on credit quality front for FY14 and added that gross non-performing assets ratio will broadly be in line with the 1.06 percent observed in the quarter under review.

The bank added Rs 791 crore in restructured assets to take the total amount to Rs 4,637 crore, he said.

The bank gained from one-off help on the operating expenses front, which grew only 10 percent on a high base to Rs 1,872.13 crore, as against 25 percent surge in operating revenue of Rs 4,671.83 crore during the quarter, Sengupta said.

PTI