Mumbai, Jan. 15: Axis Bank today beat analyst estimates by posting a 22 per cent rise in net profit for the third quarter ended December 31 at Rs 1,347 crore on the back of higher retail loans and a strong fee income.
The country’s third largest private lender had posted a net profit of Rs 1,102 crore in the same period last year.
Brokerages such as Edelweiss had expected the bank to report a net profit of Rs 1,319 crore.
The bank’s scrip hit a new 52-week high on the bourses today on news of the strong performance.
On the National Stock Exchange, the scrip touched an intra-day peak of Rs 1,431, before ending lower at Rs 1,428, rising Rs 41.90 or 3 per cent.
On the asset front, the retail book led with a 45 per cent year-on-year jump. Retail advances stood at Rs 48,068 crore at the end of the quarter and accounted for 27 per cent of net advances of the bank, which was up 22 per cent from last year.
Home loans contributed around 68 per cent to the loan book and it was followed by auto loans at 12 per cent.
The bank’s advances showed a 21 per cent growth at Rs 1,79,504 crore after including SME, agri and advances to large and mid-corporate houses.
Buoyed by a strong growth in its loan book, net interest income (NII) rose nearly 17 per cent to Rs 2,495 crore during the quarter. NII is interest earned minus interest paid.
Other income rose 13 per cent to Rs 1,615 crore driven by a 15 per cent growth in fee income at Rs 1,405 crore. Retail banking fee, which rose 35 per cent, was primary to the growth of fee income.