Interest income drives Axis Bank net up 32 per cent

Private-sector lender Axis Bank Ltd today reported a 32 per cent rise in its net profit for the first quarter ended 30 June over the same period last year, mainly driven by a significant rise in net interest income.

The Ahmedabad-based bank posted a first-quarter net profit of Rs741.88 crore, compared with Rs562.04 crore in the first-quarter of 2009. On a per share basis, earnings for the quarter rose 16 per cent to Rs17.95 from Rs15.50 in the year-ago quarter.

Net interest income during the quarter grew 45 per cent to Rs1,513.77 crore from Rs1,045.63 crore in the corresponding quarter last year.

The bank posted a net interest margin of 3.71 per cent, higher than the 3.34 per cent during the June quarter last year, but lower than the 4.09 per cent in the fourth quarter of the preceding year. The quarter-over-quarter decline in the NIM was primarily on account of the increase in cost of savings bank deposits and higher reserve requirements as mandated by the Reserve Bank of India.

Non-interest income for the quarter was Rs1,000.78 crore, up 4 per cent from Rs958.57 crore in the same period last year. Total income of the bank amounted to Rs4,326.37 crore, compared with Rs3,864.13 crore in the corresponding quarter last year, registering a 12 per cent growth.

Operating profit before provisions and contingencies for the quarter rose 23 per cent to Rs1,450.05 crore from Rs1,176.36 crore in the prior-year quarter.