Axis Bank, India’s third largest private sector bank, on Thursday announced 22% rise in net profit to Rs. 1,409 crore for the quarter ended June 2013 compared with Rs. 1,154 in the corresponding quarter previous year, driven by healthy growth in interest and non-interest income.
“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.