India's Axis Bank quarterly profit rises 37.6%, but misses estimates on higher costs
- Despite strong 23% loan growth and reduced bad loan provisions, Axis Bank's quarterly profit missed targets, impacted by higher expenses and lower other income
MUMBAI: Indian private-sector lender Axis Bank reported on Saturday a quarterly profit that narrowly missed analyst expectations, as higher operating expenses and weaker other income offset robust credit growth and lower provisions.
Axis Bank, the country’s third-largest private bank by assets, posted a stand-alone net profit of 70.03 billion Indian rupees ($737.5 million) for the quarter ended on September 30, compared with 50.90 billion rupees a year earlier.
Analysts, on average, had forecast a profit of 71.24 billion rupees, according to LSEG-compiled data.
Other income, which includes earnings from bonds and other investments, fell 1.4% to 65.31 billion rupees.
Rising bond yields and volatility in the rupee during the quarter weighed on treasury income at the Mumbai-based lender, tempering earnings even as lending expanded across segments.
Banks across India reported strong loan growth during the quarter across corporate and retail portfolios.
Net interest income grew 11.8% to 153.71 billion rupees, helped by a 23% rise in total loans. Deposits increased 20.7% from a year earlier.
Provisions for potential bad loans and other contingencies fell 52.2% to 16.94 billion rupees.
The gross non-performing asset ratio stood at 1.16% at end-September, compared with 1.28% three months earlier.
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