Axis Bank beats estimates, Q3 net up 23.7% at Rs 1,102 cr

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Axis Bank beats estimates, Q3 net up 23.7% at Rs 1,102 cr

Country's third largest private sector lender Axis Bank has reported better than expected growth of Rs 23.7% YoY in net profit of Rs 1,102 crore for the third quarter of FY12 as against Rs 891 crore in the corresponding quarter of last fiscal.

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Moneycontrol Bureau

Aided by higher net interest income, the private sector lender Axis Bank's third quarter (October-December) net profit rose to forecast beating 24% year-on-year to Rs 1,102 crore. CNBC-TV18 had expected 13% year-on-year rise in net profit to Rs 1,006 crore.

Net interest income or the difference between interests earned and paid out shot up 23% to Rs 2,140 crore while fee income scaled up by 26% y-o-y to Rs 1,223 crore.

"Fee income from large and mid corporate credit (including infrastructure) grew 34% y-o-y, retail banking fees grew 26%, treasury and debt capital markets fees grew 25% y-o-y and agriculture & SME banking fees grew 13%," the bank said in a release.

The bank's loan book expanded 20% y-o-y  to around Rs 1.49 lakh crore. The share of retail lonas have gone up to around 22% of the book as against 20% a year back. The gross non-performing asset ratio was a tad up from 1.08% to 1.10% quarter-on-quarter while the net NPA ratio inched up from 0.34% to 0.39%.

The lender's total deposits rose nearly 34% to Rs 1.56 lakh crore. During the quarter, Axis has expanded its network to 1,493 branches and 8,324 ATMs. The current account and savings account (CASA) grew by 32% to Rs 86,756 crore. However, the share of CASA to total deposits remains unchanged at 42% quarter-on-quarter.

Though the lender has not hiked its savings deposit rate after the deregulation of rates, the daily average balances of savings deposits grew 19% y-o-y.

Capital adequacy ratio in the October-December quarter stood at 11.78% and provision coverage ratio at 87.68%. Net interest margin declined to 3.75% versus 3.81% year-on-year and 3.78% quarter-on-quarter.