Axis Bank Q1 net soars 32pc to Rs 742 cr | business | Hindustan Times
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Axis Bank Q1 net soars 32pc to Rs 742 cr

business Updated: Jul 15, 2010 20:33 IST

Leading private sector lender Axis Bank on Thursday reported a full 32 per cent jump in its June quarter net profit at Rs 741.88 crore on the back of a robust credit and deposit growth, a marginal fall in NPAs coupled with increased fee income.

The city-based bank had reported Rs 562.04 crore profit in the first quarter of the last fiscal. Total income rose to Rs 4,326.37 crore during the quarter, up from Rs 3,864.13 crore in the same period in the previous fiscal.

"The first-quarter has been marked by a robust 39 per cent growth in credit. Our current account, savings account (CASA) deposits registered a daily average growth of 39 per cent which helped us keep our cost of funds low," its executive director and chief financial officer Somnath Sengupta told PTI in Mumbai on Thursday.

Net interest income and fee income both grew 44.77 per cent and 18.58 per cent respectively, Sengupta said, adding the net interest margin stood at 3.71 per cent as against 3.34 in the year-ago period.

On the non-performing front too, the bank has been able to do better with a marginally fall to 0.35 per cent from 0.41 per cent in the year-ago period, he added.

The bank restructured loans aggregating Rs 30 crore during the quarter and the cumulative value of the assets restructured till June 30, stood at Rs 2,151 crore.

A segment-wise break-up of restructured loans stood the following manner-- large and mid-corporate credit (69 per cent), SMEs (20 per cent), farm sector (7 per cent) and capital markets (4 per cent).

Restructured loans were the maximum in the two segments of textiles and shipping at 22 per cent each.

The bank's advances grew 39 per cent at Rs 1,08,609 crore on a year-on-year basis.

Asked if the bank expects to maintain its credit growth at this high level, Sengupta said it woll moderate but will "still be above industry growth."