Axis Bank's first quarter (April-June) earnings disappointed the street on all counts with the profit falling 21.4 percent to Rs 1,555.5 crore on yearly basis, impacted by sharp surge in provisions. However, it was supported by other income and operating profit.
Net interest income, the difference between interest earned and interest expended, grew by 11.4 percent to Rs 4,516.92 crore in the quarter ended June 2016 compared with Rs 4,056.23 crore in same period last fiscal.
The bank said net advances grew 21 percent YoY, led by retail, which grew 24 percent YoY and followed by corporate credit which grew 21 percent YoY.
Net interest margin declined on sequential basis to 3.79 percent from 3.97 percent.
Net profit was estimated at Rs 1,933.4 crore and net interest income at Rs 4,582.4 crore for the quarter, according to average of estimates of analysts polled by CNBC-TV18.
Other income (non-interest income) jumped 19 percent to Rs 2,738.3 crore driven by fee income and trading profits on yearly basis.
Fee income for Q1FY17 grew 11 percent YoY to Rs 1,719 crore. The key driver of fee income growth was retail banking, which increased 19 percent YoY and constituted 42 percent of the bank's total fee income. Trading profits for the quarter grew 41 percent YoY to Rs 911 crore
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