Private sector lender Axis Bank’s net profit for the quarter ended December 2017 rose by 25 per cent to Rs 7.26 billion (Rs 726 crore) on robust growth in net interest income. This was against a net profit of Rs 5.79 billion (Rs 579 crore) in previous year’s corresponding quarter.
Net interest income rose by nine per cent to Rs 47.3 billion (Rs 4,730 crore) during the September–December quarter from Rs 43.34 billion (Rs 4,334 crore) in the same quarter a year ago.
Other income comprising fees, commissions and treasury revenues was Rs 25.9 billion (Rs 2,590 crore) against Rs 34 billion (Rs 3,400 crore) during last year’s third quarter. This was a fall of 6 per cent in total other income, despite a year on year (y-o-y) rise of 24 per cent in fee income.
The asset quality improved with the gross non-performing assets (GNPAs) falling to 5.28 per cent at end of December 2017 from 5.9 per cent in previous September quarter. However, the GNPA ratio increased on a yoy basis from 5.22 per cent in December 2016.
The provisions and contingencies declined to Rs 281 billion (Rs 28,100 crore) compared to Rs 379 billion (Rs 37,900 crore) in the third quarter of 2016.
The bank’s Capital Adequacy Ratio (CAR) stood at 17.5 per cent at end of December 2017, up from 16.03 per cent in December 2016.
Axis Bank’s stock was trading at Rs 608.20 per share, 3.04 per cent up from previous day’s close at 2:17 pm, on the Bombay Stock Exchange.business-standard