India’s third largest private sector lender Axis Bank on 16th January 2015 reported a rise in its net profit to Rs. 1899.76 crores for the third quarter ending December 2014. Profit for the same quarter last fiscal year was Rs. 1604.11 crore.
Total income for the third quarter FY2015 has increased to Rs. 10928.81 Crore. For the third quarter last fiscal year FY2014, Axis bank had reported total income of Rs. 9433.55 crore.
Other income like commission earned from guarantees or letters of credit, fees earned from providing services to customers, selling of third party products, ATM sharing fees jumped to Rs. 2039 crores, grew 24% YOY.
Axis bank’s fee income grew 16% YOY during the quarter to reach Rs. 1,686 crores. The key contributor to the fee income of the Bank was Retail Banking, which grew by 41% YOY. During the quarter, trading profit of the Bank was Rs. 329 crores, while miscellaneous income stood at Rs. 24 crores.
Net interest income grew by 20.3 percent to Rs. 3589 crore in third quarter ending December 2014 compared to Rs. 3524.85 crores of Q2 FY2015 and Rs. 2894 crore during the third quarter of last fiscal year.
Axis Bank’s Operating Revenue for Q3FY15 grew by 22% YOY to Rs. 5,629 crores and for 9MFY15 grew by 15% YOY to Rs. 16,103 crores. With slower growth in operating expenses, the Bank’s Operating Profit and Net Profit have also shown healthy growth. The Bank’s Operating Profit for Q3FY15 grew by 27% YOY to Rs. 3,315 crores. The Net Profit for both Q3FY15 and 9MFY15 grew 18% YOY to Rs. 1,900 crores and Rs. 5,177 crores respectively.
Savings Bank Deposits of Axis bank registered strong growth, rose 15% YOY to Rs. 79,953 crores as on December 31, 2014, and 18% YOY to Rs. 71,844 crores on Daily Average Basis for 9MFY15. Retail Term Deposits grew 24% YOY, constituted 62% of Term Deposits.
As on 31st December 2014, Axis Bank’s Gross NPA was Rs. 3,902 crores as against Rs. 3,613 crores as on 30th September 2014 and Rs. 3008.2 crores for the third quarter of last fiscal year, grew 29.7 percent year-on-year and 8 percent quarter-on-quarter. During the third quarter FY2015, Axis Bank added Rs. 708 crores to Gross NPAs. Recoveries and upgrades were Rs. 225 crores and write-offs were Rs. 194 crores.
Net NPA surged to Rs. 1250.67 Crores, declined 24.6 percent YoY and up 6 percent QoQ.
During Q3FY15, Axis Bank added 53 branches to its network across the country and at the end of 31st December 2014, it had a network of 2,558 domestic branches and extension counters and 12,874 ATMs situated in 1,708 centres, compared to 2,321 domestic branches and extension counters and 12,328 ATMs situated in 1,580 centres last year.
Axis Bank’s Advances grew 23% YOY to Rs. 2,60,567 crores as on 31st December 2014. Retail Advances grew 24% YOY and stood at Rs. 99,219 crores as on 31st December 2014 and accounted for 38% of the net advances of the Bank. Corporate credit grew 25% YOY and stood at Rs. 121,543 crores and accounted for 47% of net advances. SME advances grew by 17% YOY and stood at Rs. 39,805 crores and accounted for 15% of the net advances.
The book value of Axis Bank’s investments portfolio as on 31st December 2014, was Rs. 1,22,374 crores, of which Rs. 74,069 crores were in government securities, while Rs. 24,904 crores were invested in corporate bonds and Rs. 23,401 crores in other securities such as equities, preference shares, mutual funds etc.
image source: axisbank