Axis Bank

A healthy rise in Net Interest Income (NIM) and other income helped boost the Q4FY15 net profit of Axis Bank to Rs.2180 crore, up 18% (YoY). NIM for the quarter rose 20% to Rs.3799 crore while non-interest income or other income rose 21% to Rs.2687 crore. The key contributor to the fee income of the Bank was Retail Banking, which grew by 29% and this comprised 38% of the Bank’s total fee income in FY15. During the quarter, trading profit of the Bank was at Rs.275 crore while miscellaneous income stood at Rs.288 crore.

Provisions for bad loans during Q4 rose sharply to Rs.710 crore, up 40% (QoQ and YoY). And in terms of asset quality, things look good. Gross NPA and Net NPA, both remained status quo on a sequential basis at 1.34% and 0.44% respectively. Recoveries and upgrades were Rs.188 crore and write-offs were Rs.214 crore. During the quarter, slippages slipped to Rs.610 crore, down 14% and the Bank did fresh restructuring to the tune of Rs.1540 crore.

The Bank’s Advances grew 22% (YoY) to Rs.2,81,083 crore at end of FY15 of which retail advances rose 27% and comprised 40% of Bank’s net advances. Corporate credit rose 23% and accounted for 45% of net advances. Total deposits rose 15% at Rs.3,22,422 crore. Retail Term deposits grew 27% and constituted 60% of Term Deposits and CASA and Retail Term deposits constituted 78% of Total Deposits.

The Board of the Bank yesterday approved the proposal to seek enabling approval of shareholders for increase in the cap of foreign investment in the Bank from 62% to 74% of its paid up equity capital of the Bank.