Axis Bank gains post Q3 results

The stock rallied 6% to Rs 412 after the bank reported a 15% yoy growth in net profit at Rs 2,175 crore for Q3FY16

Axis Bank has rallied 6% to Rs 412 on the BSE in early morning trade after the bank reported a 15% year-on-year (yoy) jump in net profit at Rs 2,175 crore in the October-December quarter (Q3FY16) on the back of higher net interest income and other income.

Net interest income, the difference between interests earned and expended, increased by 16% to Rs 4,162 crore in the quarter ended December. Other income, which includes fees, commissions etc also rose 15% to Rs 2,338 crore.

The bank’s gross non-performing assets (NPA) and Net NPA levels were 1.68% and 0.75% respectively in Q3FY16 as against 1.38% and 0.48% respectively, in the previous quarter, Axis Bank said in a press release.

As a prudent measure, the Bank has fully recognized the necessary impairment and the resultant provisioning impact of the asset reclassification as per RBI’s assessment in the current quarter itself, it added.

On the balance sheet front, advances for the quarter grew by 21% yoy, which is strong, considering the slower credit growth in the economy, according to Angel Broking.

Retail advances grew 27% yoy and accounted for 40% of the net advances of the Bank.

At 09:29 a.m. the stock was up 5% at Rs 408 on the BSE. A combined 4.72 million shares changed hands on the counter on the BSE and NSE so far.

Meanwhile, the stock recovered more than 10% from its 52-week low of Rs 367 touched on the BSE in intra-day trade on January 18.