“In challenging times, we have reported good numbers,” said Somnath Sengupta, executive director, Axis Bank. “We expect our credit growth to be higher than the banking sector in 2012-13,” he said.
Net interest income (the difference between interest earned and interest paid) for the quarter ended June 2013 grew 31% to Rs. 2,865 crore compared with Rs. 2,180 crore in the year-ago period. Other income increased 33% to Rs. 1,781 crore from Rs. 1,336 crore in same quarter previous year.
Net interest margin (NIM), a key gauge of profitability, of the bank improved by 0.16 percentage points to 3.86 % but the management expects margins to slip in the current fiscal.
“NIM will trend down in the current fiscal and will remain in the range of 3.25-3.50% in the current financial year,” said Sengupta.
As on 30th June 2013, Gross Non-Performing Assets (GNPA) and Net NPAs stood at 1.10% and 0.35%, as against 1.06% and 0.32% respectively as on 31st March 2013.