Mumbai/Calcutta, July 22: Axis Bank today reported an 18 per cent growth in net profits for the first quarter ended June 30 on the back of lower provisions. However, a marginal rise in its bad loans came in as a disappointment.
The private sector lender posted a net profit of Rs 1,666.76 crore compared with Rs 1,408.93 crore in the corresponding period of last year. This came after provisions came down to Rs 386.60 crore over Rs 712.25 crore in the year-ago period.
During the three month period, the private sector lender’s net interest income (interest earned minus interest expended) rose 16 per cent to Rs 3,310 crore from Rs 2,865 crore last year. The bank recorded a stable net interest margin (NIM) of 3.88 per cent.
A recovery in demand for both domestic and industrial paints has pulled up the profit of two major paint manufacturers — Asian Paints and Kansai Nerolac for the first quarter ended June 30, 2014.
Asian Paints reported a standalone net profit of Rs 308.8 crore, registering a growth of 8.8 per cent over the same period a year ago.
Standalone income from operations during the quarter increased 18.2 per cent to Rs 2,740.7 crore over the first quarter a year ago. Total income rose to Rs 2,789 crore from Rs 2,371 crore in June 2013. On a consolidated basis, net profit stood at Rs 338.7 crore, an increase of 23.1 per cent.
The net profit of Kansai Nerolac stood at Rs 72.98 crore during the quarter, registering a growth of 19.78 per cent over the same period a year ago. Gross sales increased 17.04 per cent to Rs 1,095.08 crore from Rs 935 crore a year ago.