India's third largest private sector lender Axis Bankon
Friday reported a 25% year-on-year jump in its fourth quarter net profit
(Jan-March) at Rs 1,277 crore, strengthened by higher interest
income. Net interest income or the difference between interests earned and
paid, climbed 26% to Rs 2,146 crore.
The numbers are partially better than market expectations. A
CNBC-TV18 poll predicted a net profit growth of 16 while NII at
26.5%.
Net interest margin (NIM) rose to 3.55% from 3.44% in the
corresponding quarter of the previous year. Fee inocme rose 8% y-o-y to Rs
1,327 crore.
For the fiscal year 2011-12, net profit rose at a similar
pace by 25 to Rs 4,242 crore. The bank’s loan book expanded by 19% to Rs 1.42
lakh crore.
During the year, the gross non-performing asset (NPA) ratio
improved to 0.94% as against 1.01% a year back. The net NPA ratio too fell
marginally from 0.26% to 0.25%. Consequently, provisions and contingence fell
to Rs 1,143 crore as against Rs 1,280 crore.
In the Jan-March quarter, the bank restructured loans worth
Rs 558 crore. Total restructured assets stood at Rs 3,060 crore as
against Rs 1,930 crore.
Deposits grew a little above 16% to Rs 2.20 lakh crore.
Demand deposits (current account + saving account), however increaed at a
faster pace by 18% to Rs 91,422 crore. Hence, the share of CASA to total
deposits improved to 42% compared with 41% a year back.
"Overall the bank has posted good Q4 earnings. The
asset quality improvment coupled with better loan recovery dismisses any future
threat to the bank. It has recovered Rs 593 crore as against Rs 121 crore in
Q4, FY11," said Nilanjan Karfa, a banking analyst from Brics Securities.
Also read: UK-based Schroders AMC to
buy 25% stake in Axis MF
Source: www.moneycontrol.com
Thanks,
Gaurav Agarwal
Head Dealer
DENIP Consultants Pvt Ltd
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