A strong showing from the retail franchise propelled Axis Bank’s net profit and net interest income for the quarter ended 31 March 2013
Axis Bank reported net interest income (NII) for Q4FY13 at Rs2,665 crore against Rs2,146 crore for the same period last year. The bank recorded a net interest margin (NIM) of 3.70% in Q4FY13. Its operating profit for Q4FY13 37% year-on-year (y-o-y) to Rs2,800 crore from Rs2,038 crores in Q4FY12.
Consequently, the net profit for the quarter ended March 2013 grew 22% y-o-y to Rs1,555 crore from Rs1,277 crore. The results were driven by the strong growth of its retail franchise. Savings bank deposits grew 23% y-o-y. The main business segments driving fee growth during the quarter were treasury and DCM, which grew 41% y-o-y, followed by retail banking which grew 32% y-o-y.
Current Account-Savings Account (CASA) and retail term deposits now constitute 68% of total deposits. Daily Average CASA for Q4 FY13 constituted 37% of total deposits. The bank’s total deposits as on 31 March 2013 stood at Rs2,52,614 crore when compared to Rs2,20,104 crore for the same period last year.
During the quarter, the bank raised equity capital through a qualified institutional placement (QIP) and a preferential allotment to promoters aggregating Rs5,537 crore to support future growth. The shareholders’ funds of the bank grew 45% y-o-y and stood at Rs33,108 crore as on 31 March 2013.
However, more worryingly was the bank’s non performing assets which deteriorated a bit. Its net non-performing assets (nNPA) stood at 0.32% of the net customers’ assets for the March 2013 quarter when compared to 0.25% of the net customers’ assets for the same period last year. Its gross non-performing assets (gNPA) stood at 1.06% of the gross customers’ assets when compared to 0.94% for the corresponding previous period. The bank’s capital adequacy ratio (CAR) was 17% as on 31 March 2013. The Tier-I capital adequacy ratio was 12.23% as on 31 March 2013, compared to 9.45% as on 31 March 2012.
During Q4FY13, Axis Bank added 160 branches and 882 automated teller machines (ATMs) to its network across the country and at the end of 31 March 2013, had a network of 1,947 domestic branches and extension counters and 11,245 ATMs situated in 1,263 cities and towns, compared to 1,622 domestic branches and extension counters, and 9,924 ATMs situated in 1,050 cities and towns last year.
The board of directors has proposed a dividend of Rs18 per share.
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