Private sector lender Axis Bank reported strong quarterly earnings for the October-December quarter, driven by a robust growth in non-interest income.
Axis Bank reported a net profit of Rs 1,900 crore for the quarter ending December 31, 2014, a year-on-year (y-o-y) growth of over18 per cent. Analysts polled by NDTV had estimated its net profit at Rs 1,844 crore.
Net interest income, or interest earned over interest expended, of the bank grew over 20 per cent y-o-y to Rs 3,589 crore in the reporting period. Analysts polled by NDTV had estimated its net interest income at Rs 3,640 crore.
The private lender had reported a net profit of Rs 1,604 crore on net interest income of Rs 2,984 crore in the same period of the previous fiscal.
Other incomes, or non-interest income of the bank, grew by a robust 24 per cent y-o-y in the quarter to Rs 2,039 crore.
However, higher provisions for bad assets weighed on its profit. The bank has made a provision of Rs 507 crore in the December quarter for bad assets, against Rs 202 crore in the same period last year.
Axis Bank reported stable asset quality sequentially. Its gross non-performing assets stood at 1.34 per cent of total advances in the December quarter against estimates of 1.3 per cent.
Its board has approved a fund raising plan of Rs 15,000 crore through issue of long-term bonds on a private placement basis.
As of 12 p.m., shares in Axis Bank traded 0.67 per cent higher at Rs 517.50 apiece, outperforming the broader Nifty, which was flat at 8,494.