Axis Bank net profit up 3% in Oct-Dec on strong loan growth

MUMBAI: Axis Bank reported a steady operating performance in Dec quarter, with net profit rising 3% year-on-year to Rs 6,490 crore, supported by strong loan growth and higher fee income, even as margins moderated. The bank's net interest income increased 5% from a year earlier to Rs 14,287 crore, on the back of 14% growth in advances to Rs 11,59,052 crore. Corporate loans rose 27% year-on-year, while lending to small and medium enterprises grew 22%. However, retail loans, which form bulk of the bank's advances, grew only 6%. Net interest margin moderated to 3.64% from 4.06% in the year-ago quarter.

The bank management said that the drop in share of retail loans was because of a decision to go slow because of stress in some segments in the past and retail disbursements have now picked up.

Total deposits grew 15% to Rs 12,60,786 crore, with current and savings accounts (CASA) deposits up 14%. The balance sheet expanded 15% to Rs 17,52,171 crore.

Total income from operations rose 5% to Rs 20,512 crore.