Axis Bank net up 21%

Net interest margin (NIM) saw a sequential fall of 7 bps and stood at 3.79 per cent.

Mumbai | Published:October 18, 2013 4:15 am

Axis Bank has reported a 21.25 per cent jump in net profit to Rs 1,362 crore for the quarter ended September 30. Net profit growth was supported by a 26 per cent rise in net interest income,which stood at Rs 2,936 crore at the end of the quarter.

The lender saw an increase of 11 per cent year-on-year in non-interest income,which was due to a 7 per cent rise in fee income,which stood at Rs 1,432 crore.

The bank reported trading profit worth Rs 5 crore during the quarter. Axis Bank transferred 96 per cent of government securities holding to the ‘held-to-maturity’ category from the ‘available for sale’ category,said Somnath Sengupta,executive director and head-corporate centre.

The bank chose not to amortise the mark-to-market losses arising out of a sharp jump in bond yields during the quarter and took a hit worth Rs 114 crore during the July-September period.

Net interest margin (NIM) saw a sequential fall of 7 bps and stood at 3.79 per cent.

“We think our NIMs are going to be fairly stable through the year. It is not going to be possible to maintain this because we raised capital around Rs 5,300 crore earlier this year. As it gets utilised and we raise deposits,naturally,the cost of funds will increase before some of it goes down. However,we should be above 3.5 per cent for the rest of the year,” said Sengupta.

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