Net profit of Axis Bank, the country’s third largest private sector lender, rose 19 per cent to ₹1,916 crore during the July-September quarter on the back of higher net interest income and reduction in provisions.
The bank posted ₹1,610-crore profit in the same quarter of the previous financial year. Net interest income, the difference between interest earned and expended, increased 15 per cent to ₹4,062 crore in the quarter. Other income, including income from fee, trading profit, etc., increased 5 per cent to ₹2,041 crore.
But it increased marginally compared to 1.34 per cent in the corresponding quarter a year-ago.
However, provisions and contingencies for the quarter fell 2.46 per cent from a year ago to ₹707 crore. Even on a sequential basis, provisions declined from ₹1,122 crore in the quarter ended June.
Net interest margin, a key indicator of a bank’s profitability, declined 12 basis points to 3.85 per cent from the same quarter a year ago.
Advances were up 23 per cent year-on-year to ₹2.98 lakh crore driven by domestic retail loans and corporate credit.
The bank remained well capitalised with a capital adequacy ratio of 14.37 per cent.
The bank said that during the quarter it acquired the entire share capital of Axis Securities Europe for a consideration of ₹19.02 crore from Axis Capital, a wholly-owned subsidiary.
On Tuesday, the shares of Axis Bank ended almost flat at ₹521.30 against its previous close on the BSE.