Axis Bank, the country’s third largest private bank, posted a 19 per cent jump in net profit for the October-December quarter on the back of healthy interest income and higher margins.
The net profit was at Rs 1,604 crore compared with Rs 1,347 crore in the year-ago period.
Net interest income (difference between interest earned and expended) increased to Rs 2,984 crore, up 20 per cent, from Rs 2,495 crore in Q3 last fiscal. Other income grew by a meagre 2 per cent to Rs 1,644 crore.
Total income during the quarter increased 11 per cent to Rs 9,434 crore from Rs 8,580 crore in Q3FY13, as per the release filed with the Bombay Stock Exchange.
Non-performing assets
Gross non-performing assets (NPAs) deteriorated to Rs 3,008 crore (1.25 per cent) as on December 31, 2013 from Rs 2,275 crore (1.10 per cent) as on December 31, 2012.
Net NPAs increased to Rs 1,003 crore (0.42 per cent) from Rs 679 crore (0.33 per cent).
As on December 31, 2013, total advances rose 18 per cent to Rs 2.11 lakh crore, while deposits were up 7 per cent at Rs 2.62 lakh crore.
Net interest margin
Net interest margin was up at 3.71 per cent during the quarter against 3.57 per cent in Q3FY13.
In the three months ended December 31, 2013, the bank added 96 branches and 532 ATMs to its network of 2,321 branches and 12,328 ATMs across the country.
Shares of Axis Bank were trading a tad weak at Rs 1,173.50, down 0.4 per cent against its previous close on the BSE.