Free Press Journal

Axis Bank Q3 net jumps 24%


Mumbai: Private sector lender Axis Bank on Friday beat estimates by recording a 23.6% rise in the net profit at Rs. 1,102.27 cr for the third quarter ended December 2011, as compared to Rs. 891.36 cr for the corresponding quarter last fiscal.

On Friday, its shares rose the highest in a single day in more than three months, up by 5.65% to Rs. 1,009.05.

The increase in revenue was helped by higher income from fees and interest, although provisions rose due to rise in bad loans. Net non- performing loans or bad loans as a proportion of net assets rose to 0.39% in the period.

Total income of the lender increased to Rs. 7,206.77 cr during the said quarter from Rs. 4,986.02 cr in the same period last year.

In the first nine months of 2011- 12, the bank clocked a 25.1% rise in net profit to Rs. 2,964.94 cr from Rs. 2,368.38 cr in the same period a year ago.

The bank reported a total income of Rs. 19,766.93 cr in the first three- quarters, compared to Rs. 13,969.88 cr in the same period last financial year.

Net interest income shot up 23% to Rs. 2,140 cr, while fee income scaled up by 26% year- on- year to Rs. 1,223 cr. The banks loan book expanded 20% year- on- year to around Rs. 1.49 lakh cr.

The share of retail loans rose to around 22% against 20% of last year. According to reports, Axis Bank has expanded its network to 8,324 ATMs and 1,493 branches. The current account and savings account ( CASA) grew by 32% to Rs. 86,756 cr.