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Axis Bank Ltd., the Mumbai-based private lender, reported September quarter results on Saturday, October 17, that were higher with analyst expectations.
Net Interest Income (NII) or the bank's core income stood at ₹15,372 crore. That is a growth of 11.8% from last year. A CNBC-TV18 poll was working with a number of ₹14,970 crore.
Net profit for the period stood at ₹7,003.3 crore, lower than with the CNBC-TV18 poll estimate of ₹7,132 crore. On a year-on-year basis, Axis Bank's bottomline grew by 37.6%.
Axis Bank's asset quality remained stable from the June quarter with gross NPA in absolute terms at ₹16,778 crore from ₹17,124.3 crore in June, while Net NPAs stood at ₹5,054 crore from ₹5,192.6 crore in the last quarter. In percentage terms, Axis Bank's gross NPA stood at 1.16%, while Net NPA stood at 0.35%. During the June quarter, Axis Bank had reported gross NPA and Net NPA of 1.28% and 0.39% respectively.
As per its provisional business update for the June quarter, Axis Bank's Gross Advances had grown by 22.7% to ₹13,846 crore, while total deposits had grown by 20.7% from last year to ₹14,521 crore.
The bank had mobilized FCNR (B) deposits worth $10.62 billion as of September 30, and a portion of that was utilized to reduce the non-retail term deposits during the quarter, resulting in a 8.6% sequential decline.
Loans extended by the bank's international branches to customers as leveraging facility stood at $4.57 billion, and adjusted for these loans, Axis Bank's gross advances would have grown by 17% from last year, and 2.6% sequentially, while deposits would have grown by 17% year-on-year and 2.6% from the June quarter.
Axis Bank also issued standby letters of credit to other lenders in respect to loans against FCNR (B) deposits. That amount stood at $4.69 billion.
Shares of Axis Bank ended little changed ahead of the results announcement at ₹1,290. The stock is up 4% in the last one month and is barely managing to stay above the flat line on a year-to-date basis.
