For the quarter ended-March 31, 2011, Axis Bank posted a net profit of Rs 1,020 crore, up 33 per cent from Rs 765 crore in the corresponding quarter last year.

For the full year 2010-11, the bank posted a net profit of Rs 3,388 crore (Rs 2,515 crore), up 35 per cent.

The growth was on account of increase in both net interest income and fee income, Mr Somnath Sengupta, Executive Director and Chief Financial Officer, Axis Bank.For the year 2010-11 the bank has recommended a dividend of 140 per cent or Rs 14 a share having a face value of Rs 100.

During the fourth quarter, Axis Bank's fee income grew 58 per cent and for the full year it grew 30 per cent. However, income from trading was lower. For the quarter, trading income was Rs 58 crore (Rs 103 crore) and for the full year it was Rs 497 crore (Rs 822 crore).

Growth in credit was across all sectors, such as large corporates, infrastructure, mid-corporates and retail.

Infrastructure segment accounts for 14 per cent of total advances, retail, 19 per cent and agriculture, 11 per cent.

This year, advances are likely to grow by 25 per cent and deposits will track the advances growth, Mr Sengupta said.

The provision coverage ratio increased to 81 per cent (72 per cent last year).

“The quality of assets has improved, so provisioning was lower,'' Mr Sengupta said.

There was slight decline in Net Interest Margin, which fell to 3.65 per cent (3.75 per cent) for the full year. The target for NIM in FY2012 is 3.25-3.5 per cent.

“NIM would depend on how we can manage growth of our low cost deposits and how we can pass on the additional cost to borrowers,” Mr Sengupta said.

Although share of low cost deposits (current and savings accounts) has declined, it is not a matter of concern, he added.

In 2010-11, the bank added 407 branches and over 2,000 ATMs to its network.

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