Axis Bank Q4 net up 18% at Rs 1,842 cr, propose share split

Declares dividend of Rs 20/share; total income rises 12%

Axis Bank, the third largest private sector lender in the country, today said its net profit for the quarter ended March 31, 2014, had increased by 18.5% from a year earlier to Rs 1,842 crore.

Higher interest income, improved net interest margin and lower provisions aided the bank's earnings growth during the three-month period.

Net interest income, or the difference between interest income and interest expense, was at Rs 3,166 crore in the fourth quarter, up 18.8% from a year ago.

Net interest margin improved 19 basis points, on a year-on-year basis, to 3.89% during this period.

"Axis Bank reports over a billion dollars in net profit for the first time...Net profit for 2013-14 grows 20% to Rs 6,218 crore," the private lender said in a statement.

The bank pared its provisions to Rs 505 crore during the quarter from Rs 595 crore in the corresponding period of last year as credit quality remained healthy. Gross non-performing asset (NPA) ratio was at 1.22%, while net NPA ratio was at 0.42% at the end of March, 2014.

The bank held provision coverage of 78% as a proportion of gross NPAs, including prudential write-offs. The cumulative value of net restructured advances were Rs 6,079 crore, representing 2.39% of net customer assets.

Advances were up 17%, on a year-on-year basis, at Rs 230,067 crore driven by 31% growth in domestic retail advances. Retail loans accounted for 36% of the bank's net domestic advances.

Deposits grew by 11% to Rs 280,945 crore. The daily average current account savings account deposits (CASA) constituted 39% of the bank's deposits in the fourth quarter.

Axis Bank closed 2013-14 with a capital adequacy ratio 16.07%. Tier I capital adequacy ratio 12.62%.

Separately, the bank said its board of directors has approved a stock split. The board has considered and approved sub-division of one equity share of the bank having face value of Rs 10 each into five equity shares of face value Rs 2 each, the lender said in a notice to Bombay Stock Exchange (BSE).

The sub-division of shares is subject to approval of shareholders and other statutory and regulatory permissions, as applicable.

Decides to split one equity share into five

The bank today said its board of directors has approved stock split. The board has considered and approved sub-division of one equity share of the bank having face value of Rs 10 each into five equity shares of face value Rs 2 each, the lender said in a notice to Bombay Stock Exchange (BSE).

The sub-division of shares is subject to approval of shareholders and other statutory and regulatory permissions, as applicable.

The board has also recommended a dividend of Rs 20 per equity share.