Healthy margins and loan growth helped the country’s third largest private sector lender Axis Bank to post an 18 per cent growth in net profit at Rs 1,842 crore for the three-month period ending March 31, 2014.
Net profit in the fourth quarter of the previous year was at Rs 1,555 crore.
The bank’s net interest income (NII), interest earned less interest expended rose 19 per cent in Q4FY14 to Rs 3,166 crore from Rs 2,665 crore in the year-ago quarter. During the quarter, both other income and fee income grew 10 per cent to Rs 2,213 crore and Rs 1,780 crore respectively.
During the quarter, the bank recorded a net interest margin of 3.89 per cent as against 3.70 per cent in Q4FY13.
As on March end 2014, the bank’s total advances rose 17 per cent year-on-year to Rs 2.30 lakh crore, driven by growth in retail loans at 31 per cent. Retail loan portfolio share grew to 36 per cent of net domestic advances of the bank as compared to 32 per cent last year. Agriculture advances saw a growth of 20 per cent, while SME loan growth was at 19 per cent.
Total deposits increased 11 per cent to Rs 2.80 lakh crore from Rs 2.52 lakh crore as on March last year.
Gross non-performing assets deteriorated to Rs 3,146 crore as on March 31, 2014 as compared to Rs 2,393 crore as on March last year.
Gross NPA ratio was up at 1.22 per cent from 1.06 per cent. Net NPA ratio also worsened to 0.40 per cent from 0.32 per cent, while sequentially it declined by 2 bps from 0.42 per cent.
Full year results
For the 12-month period, net profit grew by 20 per cent to Rs 6,218 crore as compared to Rs 5,179 crore in FY13. NII rose 24 per cent to Rs 11,952 crore during FY14 from Rs 9,666 crore in FY13.
Other Income (comprising fee, trading profit and miscellaneous income) for the full year grew 13 per cent to Rs 7,405 crore as against Rs 6,551 crore in the previous year.
The bank’s board recommended a dividend of Rs 20 per equity share to its shareholders. A dividend of Rs 18 was paid last year.
Axis Bank shares ended at Rs 1534.45 per share, higher by 1.10 per cent from the previous close on BSE.