Axis Bank Q1 net profit up 19% at Rs 1,978.44 crore

Private sector lender Axis Bank on Friday reported an 18.7 per cent increase in net profit for the first quarter ended June 30, 2015, at Rs 1,978.44 crore as compared with Rs 1,666.76 crore in the same quarter of the previous fiscal.

Net interest income for the bank grew 23 per cent to Rs 4,056.23 crore as compared with Rs 3,310.49 crore in Q1 of FY15, the bank said. Net interest margin during Q1FY16 was 3.81 per cent.

The bank’s core operating revenue for Q1FY16 grew by 20 per cent (YoY) to Rs 5,708 crore.

Robust revenue performance combined with slower growth in operating expenses led to the bank’s core operating profit registering a 31 per cent growth (YoY) in Q1FY16 and stood at Rs 3,446 crore.

The bank’s gross non performing assets (NPAs) and net NPAs stood at 1.38 per cent and 0.48 per cent respectively. The bank held provision coverage of 78 per cent as on June 30, 2015, as a proportion of gross NPAs, including prudential write-offs. The provision coverage before accumulated write-offs was 86 per cent, Axis Bank said.

The bank’s gross NPA was Rs 4,251 crore against Rs 4,110 crore as on March 31, 2015. During the quarter, the bank added Rs 1,186 crore to gross NPAs, recoveries and upgrades were Rs 120 crore and write-offs were Rs 925 crore.

The cumulative value of net restructured advances as on June 30, 2015, stood at Rs 8,515 crore, constituting 2.8 per cent of net customer assets.Other income (comprising fee, trading profit and miscellaneous income) for Q1FY16 recorded a strong growth of 36 per cent (YoY) and stood at Rs 2,298 crore as against Rs 1,691 crore during the same period last year.

Fee income grew 13 per cent (YoY) during the quarter to reach Rs 1,551 crore.
DH News Service