Private sector lender Axis Bank reported 38.28 per cent rise in its net profit at Rs 735.14 crore for the second quarter ended September 30 on account of increase in interest income. It had a net profit of Rs 531.64 crore during the July-September quarter of the last fiscal. The half yearly net profit went up by 35 per cent to Rs 1,477.02 crore compared to Rs 1,093.68 crore during the same period last year,Axis Bank Chairman Adarsh Kishore said after the board meeting in Shanghai. The bank's net interest income rose to Rs 1,615 crore during Q2,2010-11,compared to Rs 1,150 crore in the same quarter a year ago,a growth of 41 per cent. The bank's advances grew by 36 per cent Rs 1,10,593 crore as against Rs 81,044 crore in the same quarter a year ago. The 16 year old bank,ranked 11th in India,held its first board meeting in China within days of obtaining the RBI approval to upgrade its representative office here to branch. The move will help the bank take advantage of the bourgeoning India-China trade,which is set to touch USD 60 billion this year. Axis Bank also reported a 18.63 per cent rise in total income at Rs 4,657.49 crore as on September 30,from Rs 3,925.94 crore in the year-ago period. Fee income registered a growth of 18 per cent rising to Rs 849 crore in the second quarter compared to Rs 719 crore,with contributions from all major businesses in the bank. However,treasury income declined by 52 per cent for the quarter ended September 30 at Rs 108 crore as compared to Rs 224 crore in the same quarter a year ago. Even the net interest margin moderated to 3.68 per cent compared to 3.71 per cent at the end of June,2010. The net interest margin was 3.52 per cent in the second quarter of 2009-10. The bank's net non performing assets (NPAs),as a proportion of net customer assets,decreased to 0.34 per cent as on September 30 compared to 0.35 per cent a year-ago. The gross NPAs as a proportion of gross customer assets stood at 1.12 per cent compared to 1.21 per cent as at the end of second quarter last fiscal. The bank's balance sheet size increased by 31.72 per cent to Rs 1,99,833 crore,while its capital adequacy ratio stood at 13.68 per cent as on September 30. Kishore,former Finance Secretary,said the Axis Bank wants to expand its operations in China as the two countries have emerged as the major engines of growth in the world. He said China has emerged as the second largest economy in the world,while India has emerged as third largest purchasing power next only to US and China.
