AXIS Bank announces Q3 FY10 Net Profit of Rs. 655.98 Crores, up by 30.97% YOY
9m FY10 Net Profit of Rs. 1,749.66 Crores, up by 41.80%

Mumbai, January 15, 2010:

Financial Highlights

• Net Interest Income (NII) and Net Interest Margin (NIM)

The Bank continued to build an India-wide presence through its 949 branches and extension counters, and 4,055 ATMs across 586 cities and towns. During the quarter, the Bank added 33 branches and 189 ATMs. The daily average balances of Savings Bank deposits during the quarter grew 39% yoy and those of Current Account deposits grew 22% yoy. Demand deposits constituted 42% of total daily average deposits during Q3FY10, higher than the level of 35% observed during Q3FY09 and 39% observed during Q2FY10. The Bank posted a NIM of 4.00% during Q3FY10, higher than the NIM of 3.12% during Q3FY09 and 3.52% during Q2FY10. The increase in NIM during Q3FY10 was on account of a higher share of demand deposits in total deposits, reduction in cost of term deposits and the impact of equity issued in Sep’09.

The Bank’s advances grew by 13% yoy, from Rs. 75,328 crores as on 31st Dec’08 to Rs. 84,770 crores as on 31st Dec’09, while investments rose to Rs. 49,274 crores from Rs. 42,111 crores, over the same period, a growth of 17% yoy. The NII rose to Rs. 1,349 crores during Q3FY10 from Rs. 930 crores during Q3FY09, a growth of 45% yoy.

• Fee income

Fee income registered a growth of 29% yoy, rising to Rs. 800 crores during Q3FY10 compared to Rs. 619 crores in Q3FY09, with contributions from all major businesses in the Bank. Fee income from Large and Mid Corporate Credit grew 69% yoy, followed by that from Retail Business (38% yoy), Treasury (33% yoy), SME and Agri lending businesses (18% yoy) and Business Banking (13% yoy). Compared to Rs. 1,783 crores in 9MFY09, fee income in 9MFY10 stood at Rs. 2,145 crores, up by 20% yoy.

• Trading Profits

The Bank generated Rs. 170 crores of trading profits during Q3FY10, as compared to Rs. 114 crores during Q3FY09, a robust growth of 49% yoy. The share of trading profits to operating revenue was 7% in Q3FY10, same as that in Q3FY09.

• NPAs and restructured loans

Net NPAs, as a proportion of net customer assets, increased to 0.46% as on 31st Dec’09 compared to 0.39% as on 31st Dec’08 and 0.45% as on 30th Sep’09. Gross NPAs as a proportion of gross customer assets stood at 1.23% as on 31st Dec’09, compared to 0.90% as on 31st Dec’08 and 1.21% as on 30th Sep’09. The Bank had a provision coverage of 69.07% as on 31st Dec’09 (as a proportion of Gross NPAs) after considering technical write-offs. The provision coverage (as a proportion of Gross NPAs) before accumulated write-offs was 87.83%.

The Bank has restructured loans aggregating to Rs. 87 crores during Q3FY10. The cumulative value of assets restructured till 31st Dec’09 was Rs. 2,309 crores, constituting 2.43% of gross customer assets. The diminution in fair value against the restructured loans during the quarter was Rs. 2 crores and has been provided for.

• Investment Portfolio

The book value of the Bank’s investment portfolio as on 31st Dec’09 was Rs. 49,274 crores, of which, Rs. 28,734 crores was in government securities, while Rs. 20,540 crores was in other investments, including corporate bonds, equities, preference shares, mutual funds etc. 94% of the government securities have been classified in the HTM category while 99% of the Bonds & Debentures portfolio has been classified in the HFT and AFS categories.


(This is a press release from Axis Bank)