Axis Bank, India’s third largest private sector lender, on Tuesday posted 22% year-on-year rise in net profit at Rs 1,154 crore for the quarter ended June 30, 2012 compared to Rs 942 crore in the corresponding quarter last year helped by healthy growth in loans and interest income.
Net interest income (the difference between interest earned and paid) rose 26% to Rs 2,180 crore during Q1, compared to Rs 1,724 crore in the same quarter last year. Fee income of the lender grew by 9% to Rs 1,154 crore in Q1.
Loans by Axis grew 30% to Rs 171,146 crore as on June 30, 2012 compared to Rs 131,900 crore as on June 30, 2011. Axis was able to protect profit margins as net interest margin was 3.37%, compared to 3.28% in the same quarter last year.
Asset quality did not deteriorate as gross non-performing assets (NPAs), as proportion of gross customer assets, stayed at 1.06% in the quarter, year on year.