Axis Bank on Saturday reported a 23% year-on-year increase in standalone quarterly net profit, aided by lower provisions, even as its pre-provision operating profit grew just 1.3%.
For the June quarter, the Mumbai-headquartered private sector bank's standalone net profit stood at ₹7,114 crore compared with ₹5,806 crore a year ago. Its pre-provision operating profit increased to ₹11,659 crore.
The bank set aside ₹2,223 crore as provisions and contingencies, 44% less than what it was in the year-ago period.
Axis Bank said it has not drawn down from the additional provisional buffer of ₹2,001 crore it had created in the fourth quarter of the previous fiscal to cover potential risks arising out of the West Asia conflict.
The lender's net interest margin for the quarter stood at 3.46% compared with 3.8% a year ago. Its net interest income (NII), meanwhile, rose by 8% year-on-year at ₹14,646 crore, backed by a 19% expansion in gross advances to ₹12.62 lakh crore at the end of June.
The bank's other income stood 7% lower year-on-year at ₹6,735 crore on account of a 62% fall in trading income at ₹537 crore.
Deposits grew 18% year-on-year to ₹13.7 lakh crore.
Managing director Amitabh Chaudhry said the liquidity generated through FCNR-B deposits mobilisation would give the bank an opportunity to grow advances. "We will now focus on deployment," he said at a post-earnings media call.
Axis Bank did not divulge how much it has raised through FCNR-B deposits so far.
