Axis Bank

Declaring its Q2FY13 numbers closely on the heels of RIL, much after market hours yesterday, the third largest private sector bank has posted a good set of Q2FY13 numbers, on a YoY but QoQ, some pressure is evident. YoY, net profit at Rs.11.23 crore was up 22% but QoQ it was marginally down 2.6%. NII at Rs.2327 was up 16% on a YoY and 8% on a QoQ.  Other income, which apart from commissions and other fees also included gain on partial sale of investment in two wholly owned subsidiaries, which is why it was up 29% (YoY) at Rs.1593 crore.  In terms of segmental break-up, treasury continues to remain the largest contributor and revenue was up 4.5% (QOQ) at Rs.104 crore and EBIT rose from 0.6% to 1.8%. Corporate and wholesale banking revenue rose 4.3% and EBIT slipped from 33% to 25%. Retail banking at Rs.45 crore showed a 8% growth in revenue and EBIT was smartly up from 1.12% to 4%. It increased its share of retail lending to 26% of the total book as against 21% on a YoY. Trading profits were at Rs.207 crore during Q2FY13. CASA was at 41% and CAR declined to 12.995 v/s 13.03% (QoQ).

Though the loan book expanded 23% on a YoY, its gross NPA at 1.10% was higher than 1.06% in Q1FY13 and 1.08% in Q2Fy12. Net NPA at 0.33% was slightly better than 0.34% on YoY but sequentially it was up from 0.31%. Provisions were at Rs.509 crore as compared with Rs.259 crore in previous quarter. It restructured assets aggregating Rs 323 crore during Q2FY13 and the cumulative value of assets restructured till 30th September 2012, stood at Rs 4,068 crores constituting 2.04% of gross customer assets and this would surely include the likes of Deccan Chronicle, Seven Hills Hospital, ICOMM and many more.