Axis Bank beats Street, Q3 net up 22%

The Axis Bank stock rose 2.64 per cent on the BSE to close at Rs 1,422.45. The bank's net interest margin during the quarter rose to 3.57 per cent, up 11 bps sequentially. Somnath Sengupta, executive director, corporate centre, Axis Bank, said the bank hoped to maintain margins at these levels.

Axis Bank reported stable asset quality in the October-December quarter with NPAs marginally lower at 0.33 per cent of total assets compared with 0.39 per cent last year. On a sequential basis, net NPAs remained unchanged.

However, the bank restructured Rs 368 crore worth of loans during the quarter, higher than Rs 323 crore worth of assets in the September 2012 quarter. The lender had restructured loans amounting to Rs 295 crore in the corresponding quarter last year.

Provisions and contingencies for the quarter stood at Rs 386.83 crore, lower than Rs 509.42 crore reported last year. This was due to a writeback worth Rs 33 crore the bank received during the quarter due to depreciation in provisions, Sengupta said, adding that the bank's provision coverage ratio was 81 per cent.

During the quarter, other income grew 13 per cent y-o-y to Rs 615 crore, driven by growth in fees, which stood at Rs 405 crore, up 15 per cent from the same period last year.

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