Higher interest income and stable loan growth helped Axis Bank post a 22 per cent increase in net profit at Rs 1,555 crore in the January-March quarter.
The country’s third largest private bank had posted a net profit of Rs 1,277 crore in the year-ago quarter.
Net interest income (the difference between interest earned and expended) increased by 24 per cent during the quarter at Rs 2,665 crore. ‘Other income’ grew 26 per cent to Rs 2,007 crore driven by higher trading and fee incomes. The bank recorded net interest margin of 3.70 per cent in Q4 FY13.
“Going forward, NIM will be in the 3.25-3.50 per cent range,” said Somnath Sengupta, Executive Director, Axis Bank.
For the full-year ended March 31, 2013, net profit grew 22 per cent to Rs 5,179 crore against Rs 4,242 crore in FY12.
NII rose by 21 per cent to Rs 9,666 crore in FY13 from Rs 8,018 crore in FY12.
As on March 31, the bank’s advances (year-on-year) grew 16 per cent to Rs 1.97-lakh crore. Retail advances, which constitute 27 per cent of total loans, grew 44 per cent, while corporate loan growth was slower at eight per cent.
Agriculture loan growth, however, declined by 14 per cent to Rs 14,845 crore from Rs 17,340 crore.
“We expect retail portfolio to be 30 per cent of the total loans by year end,” Sengupta added.
As on March 31, total deposits increased 15 per cent to Rs 2.53 lakh crore.
The bank restructured assets worth Rs 791 crore in the reporting quarter. As on March 31, 2013, the total restructured assets stood at Rs 4,368 crore.
The bank’s board proposed a dividend of Rs 18 per share in FY13.
The shares of Axis Bank had ended 0.24 per cent higher at Rs 1,443.80 per share on the Bombay Stock Exchange.
Following investigations after the expose by online magazine Cobrapost, the bank has denied an instances of money laundering in its branches.
“Inquiries have been initiated by external and internal agencies and there is no evidence of any systemic money laundering,” Sengupta said. The Reserve Bank of India has completed its investigation.
Axis Bank has appointed KPMG as their external audit agency for investigating the allegations in its 12 branches. Sengupta refused to give a timeframe on the completion of the investigations.
The bank has shifted 20 employees allegedly involved in the Cobrapost expose from the branches to the administrative offices.