The third largest private sector lender Axis Bank today sounded bullish about growth this fiscal on the back of a robust 33.5% rise in net profit at over Rs 1,020 crore in quarter to March driven by a massive jump in total interest incomes.
During the quarter, the bank saw its fee income from large and mid-corporate growing 68%, treasury by 79% and retail by 45%. For the full year, fee income stood at Rs 3,790 crore, up 30% over Rs 2,925 crore.
Though there has been a marginal deceleration in the net interest margin (NIM) in Q4, which came down to 3.44% against 3.81% and to 3.65% from 3.75% for the full year, a 48.3% jump in interest income to Rs 5,817 crore in Q4, coupled with a decline in stressed assets, could take care of the decline.
The bank had a net profit of Rs 764.8 crore in Q4 of FY10. During the quarter, the interest income improved to Rs 4,366.6 crore against Rs 2,988.4 crore.
"We are hopeful of improving upon the robust numbers in FY11 in the current fiscal. I expect advances growth to be around 25% , which would be above industry average. A similar growth is expected on deposit front too," executive director and chief financial officer Somnath Sengupta told PTI in a conference call here today.
On the Enam deal, Sengupta said, they had an in-principle approval from RBI, under which, the bank was asked not to allow any Enam shareholders who may buy into Axis shares a position on the board of the bank.
On whether Enam chairman Vallabh Bansali would be on the board, he said, no call has been taken on this. He also ruled out any renegotiation of the price it paid for the deal, which was questioned by RBI, saying the regulator has not told them anything about it. .
Source: www.moneycontrol.comThanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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