Axis Bank, one of the most renowned private banks in the country, has more than doubled its net profit for the third quarter, beating the estimates put forth by industry analysts. For the third quarter of the current fiscal year, the company reported a net profit of Rs.1,681 crore, up 131% from Rs.726.44 crore in the same period of last year. Following this stellar third-quarter results, the bank’s share prices increased by about 6% on Wednesday’s morning trade.
For the third quarter, analysts from Bloomberg estimated a net profit of Rs.1,251 crore. This means that the bank has exceeded the estimates of industry analysts by a large margin. Axis Bank has attributed this growth to a significant increase in its other income.
This includes various service fees from customers, commissions from selling third-party products, gains from securities transactions, charges for sharing ATM, commissions from issuing letters of credit, etc. This other income witnessed a 54% growth on a year-over-year basis. Total earnings from other income for the third quarter stood at Rs.4,001 crore.
Axis Bank also reported that its net interest income for the third quarter increased 18.4% to Rs.5,604 crore. Net interest margin for this period increased to 3.47% from 3.36% in the previous quarter.
In addition to its financial performance, the bank also reported an improvement in its asset quality. Gross non-performing assets for the third quarter declined marginally to 5.75% as against 5.96% in the second quarter of the current fiscal year. At the end of the third quarter, the bank’s net bad loan ratio decreased to 2.36% from 2.54% in the previous quarter.
Axis Bank has also reported significant growth in various other aspects. On a year-over-year basis, its domestic loan growth stood at 18%. During this period, the bank also reported a 20% growth in its retail loan book. Of the total advances of the bank, retail advances stood at 49%.