AXIS Bank Ltd has posted a net profit of Rs. 11535.20 mn for the quarter ended June 30, 2012 as compared to Rs. 9423.50 mn for the quarter ended June 30, 2011.
Total Income has increased from Rs. 60492.70 mn for the quarter ended June 30, 2011 to Rs. 78183.70 mn for the quarter ended June 30, 2012.
Net Interest Income and Net Interest Margin
The Bank’s Net Interest Income rose 26% YOY to Rs2,180 crores during Q1FY13 from Rs1,724 crores during Q1FY12. The net interest margin was 3.37% in Q1FY13, compared to 3.28% during Q1FY12.
Fee income during Q1FY13 stood at Rs1,154 crores up 9% YOY. During Q1FY13, Retail Banking and Business Banking segments were the key drivers for fee income growth. Retail Banking registered a growth of 17% YOY, rising to Rs322 crores. Business Banking fees grew 16% YOY and stood at Rs110 crores. Treasury and DCM segment fees grew 13% YOY and stood at Rs238 crores.
Fee income from Agriculture & SME Banking grew 36% YOY to reach Rs63 crores. Large and Mid-Corporate Credit (including Infrastructure) fees contracted marginally by 1% YOY and stood at `409 crores. Fee income from Equity Capital Markets (including Trusteeship Services) too saw a contraction by 29% YOY and stood at Rs12 crores.
The Bank generated Rs150 crores of trading profits during Q1FY13, compared to Rs70 crores during Q1FY12, a growth of 114% YOY. The share of trading profits to operating revenue was 4% in Q1FY13, compared to 2% in Q1FY12.
Balance Sheet: As on 30th June 2012
Capital and Shareholders’ Funds
The shareholders’ funds of the Bank were Rs24,253 crores as on 30th June 2012 growing 21% YOY from Rs20,017 crores as on 30th June 2011. The Capital Adequacy Ratio (CAR) for the Bank was 13.03% (excluding net profit for Q1FY13), as on 30th June 2012, compared to 12.53% (excluding net profit for Q1FY12) as on 30th June 2011. The Tier-I capital adequacy ratio was 9.02% (excluding net profit for Q1FY13) as on 30th June 2012, compared to 9.36% (excluding net profit for Q1FY12) as on 30th June 2011.
The profit of Q1 for both financial years has not been reckoned for computation of Tier-I capital, as stipulated by Reserve Bank of India. If the net profit of Rs1,154 crores for Q1 this year is included, the total CAR and Tier-I CAR as on 30th June 2012 would be 13.51% and 9.49% respectively.
Of the Investment book, share of government securities was 65%. Investments in other securities such as corporate bonds, equities, preference shares, mutual funds etc accounted for the balance. 78% of the government securities have been classified in the HTM category while 97% of the Bonds & Debentures portfolios have been classified in the AFS category.
NPAs and Restructured Assets
Gross NPAs as proportion of gross customer assets and Net NPAs as a proportion of net customer assets were unchanged vis-à-vis previous year and stood at 1.06% and 0.31% respectively for the period ended 30th June 2012. The Bank held a provision coverage of 79% as on 30th June 2012 (as a proportion of Gross NPAs including prudential write-offs). The provision coverage (as a proportion of Gross NPAs) before accumulated write-offs was 90%.
During the quarter, the Bank added Rs456 crores to Gross NPAs. Recoveries and upgrades of Rs62 crores and write-offs of Rs108 crores during the quarter resulted in a closing position of Rs2,092 crores of Gross NPAs as on 30th June 2012, as against Rs1,573 crores as on 30th June 2011.
The Bank restructured assets aggregating Rs628 crores during Q1FY13. The cumulative value of assets restructured till 30th June 2012, rose to `3,827 crores (1.95% of gross customer assets). Of the outstanding pool, assets amounting to `1,231 crores have displayed a satisfactory repayment track-record of two years. Adjusting for these assets, restructured assets would constitute 1.32% of gross customer assets.