The Hindu Business Line : Axis Bank Q4 net up 61% on growth in income

Mumbai, April 20 Axis Bank reported a growth of 61 per cent in net profit at Rs 581 crore for the fourth quarter ended March 31, against Rs 361 crore in the same quarter last year, aided by growth in its fee income and trading profits.

Mr Somnath Sengupta, President, Finance and Accounts, Axis Bank, said it was a most exceptional quarter for the bank. The bank saw strong growth in its core income stream, which included net interest income, fee income and trading profits.

The bank’s board has recommended a dividend of Rs 10 per share of Rs 10.

Given that the bank has a capital adequacy ratio of almost 14 per cent, there is no need to raise fresh equity for a year or more, Mr Sengupta said.

The bank’s fee income grew 42 per cent to Rs 664 crore and the trading profits rose 272 per cent to Rs 166 crore. Out of the trading profit, Rs 111 crore came from government securities, said Mr Sengupta.

Within fee income, Rs 229 crore came from retail banking operations, Rs 185 crore from credit, Rs 100 crore from treasury, Rs 85 crore from business banking and Rs 63 crore from capital market operations.

Full year

For the full year 2008-09, the bank posted a net profit of Rs 1,815 crore (Rs 1,071 crore), a growth of 69 per cent. Net interest income grew by 43 per cent to Rs 3,686 crore (Rs 2,585 crore). Other income increased by 61 per cent to Rs 2,897 crore (Rs 1,795 crore)

The bank’s net interest margin fell to 3.37 per cent (3.93 per cent). The cost of funds increased to 6.64 per cent (5.82 per cent), which exerted pressure on the bank’s NIM.

The share of current and savings account deposits to total deposits fell to 43 per cent (46 per cent). The slowdown in the growth of CASA deposits and the steep rise in the cost of funds resulted in slower growth of net interest income, the bank said in a press release.

The net NPAs declined marginally to 0.35 per cent (0.36 per cent). The bank also restructured loans worth Rs 996 crore.

The shares of Axis Bank closed at Rs 510.3, up 6.5 per cent from Friday’s close on the BSE.

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