Indian private lender Axis Bank reported its quarterly profit on Saturday, which slightly missed analysts' forecasts. Higher operating expenses and a decrease in income from other sources offset strong lending growth and reduced provisions.
Axis Bank, the third-largest private bank in the country by assets, recorded a net profit of 7,003 crore rupees (US$737.5 million) for the quarter ending September 30. This figure significantly exceeds the 5,090 crore rupees recorded a year earlier.
According to data collected by LSEG, the average analyst forecast was 7,124 crore rupees. Income from other operations, which includes profits from bonds and other investments, decreased by 1.4 percent to 6,531 crore rupees.
The rise in bond yields and rupee volatility during the quarter put pressure on the treasury of the Mumbai-based bank, restraining earnings despite the expansion of lending across various segments.
Banks across India demonstrated confident lending growth during the quarter in both corporate and retail portfolios. Net interest income increased by 11.8 percent, reaching 15,371 crore rupees, supported by a 23 percent rise in total loans. Meanwhile, deposits grew by 20.7 percent compared to the previous year.
Provisions for potential bad loans and other unforeseen expenses decreased by 52.2 percent, amounting to 1,694 crore rupees. It is worth noting that the gross non-performing asset ratio at the end of September stood at 1.16 percent, lower than the 1.28 percent recorded three months prior.
