Axis Bank Q1 net up 27% to Rs 942.3 cr

Private sector lender Axis Bank on Friday reported a 27% increase in net profit at Rs 942 crore for the quarter ended June 2011 against Rs 742 crore last year, led by growth in advances and fee income.

Private sector lender Axis Bank on Friday reported a 27% increase in net profit at Rs 942 crore for the quarter ended June 2011 against Rs 742 crore last year, led by growth in advances and fee income.

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Net interest income — the difference between interest earned and interest paid — rose 14% to Rs 1,724 during the quarter compared to Rs 1,514 crore a year ago.

However, the net interest margin (NIM) fell slightly to 3.3% during the quarter ended June 2011 from 3.4% in the same quarter last year.

“The reduction in NIM during quarter ended June 2011 was driven by a slower build up in CASA (Current Account and Saving Accout) deposits leading to persistence of higher cost term deposits plus upward revision of rate for savings bank deposits,” said Shikha Sharma, managing director and chief executive officer, Axis Bank.