Axis Bank Q2 net rises 22% on higher interest, fee income

Axis Bank reported a 22 per cent growth in net profit at Rs 1,124 crore in the second quarter ended September 30, 2012 on the back of growth in non-interest income and net interest income.

India’s third largest private sector bank had posted a net profit of Rs 920 crore in the year-ago period.

The board of directors of the bank approved the financial results at a meeting held in London on Monday.

The bank’s half-yearly net profit grew 22 per cent to Rs 2,277 crore (Rs 1,863 crore in the year-ago period).

Net interest income (difference between interest earned and interest expended) rose 16 per cent to Rs 2,327 crore from Rs 2,007 crore in the year-ago period. Non-interest income (comprising fee income and trading income) rose 29 per cent to Rs 1,593 crore from Rs 1,235 crore.

“Fee income and retail business grew by 43 per cent,” the bank said in a statement.

NPA

Gross non-performing assets (NPAs) increased marginally to 1.10 per cent from 1.08 per cent in the year-ago period, while net NPAs were almost flat at 0.33 per cent from 0.34 per cent.

Provisions during the quarter increased 25 per cent to Rs 509 crore (from Rs 406 crore). Capital adequacy ratio stood at 12.99 per cent (from 11.35 per cent as on Q2 FY12).

Shares of Axis Bank ended down 0.15 per cent to close at Rs 1,118.5 on the Bombay Stock Exchange on Monday.

Beena.parmar@thehindu .co.in