Axis Bank
India’s third largest private sector lender Axis Bank reported Q2FY14 total income and net interest income of Rs. 9,375 crore and Rs. 2,937 crore, up 3.5% and 2.5%, respectively QoQ. Although other income representing repatriation of overseas accumulated profits lead to sharp increase on YoY basis, lower fee income and declining trading income kept it flat on QoQ basis at Rs. 1,766 crore. Bank’s cost-to-income ratio stayed at moderate levels of 41.5% in Q2, with EPS of Rs. 29.
Bank reported 3.69% NIM for Q2 (3.82% for H1) on back on 7% quarterly increase in deposits, with low-cost CASA ratio being maintained at 43%, aided by a branch network of 2,225 and 11,796 ATMs. However, growth in advances lagged peers, rising only 1.6% during 3 months ended 30th September 2013. Bank’s capital position very healthy with CAR (as per Basel III) at 15.85%, thanks to the Rs. 5,500 crore QIP and preferential allotment undertaken in January this year, which keeps it adequately capitalized and fuel growth. With asset quality being maintained – net NPAs at Rs. 838 crore, expanding to 0.37% from 0.35% as of 30th June 2013, bank has recorded growth without adding stressed assets.