Axis Bank net up 25%, to sell part of AMC biz to Schroders

Axis Bank, India’s third largest private bank (by market cap) reported net profit of Rs 1,277 crore, up 25 percent over last year. A CNBC-Tv18 poll estimated a net profit rise of 16 percent at Rs 1,183.5 crore.

Interest income went up to Rs 6,060 crore from Rs 4,366 crore a year ago. Net Interest Margin came at 3.55 percent against 3.44 percent a year ago.

Employee cost rose more than 33 percent to reach Rs 529 crore compared to Rs 396 crore a year ago.

Gross non performing assets came at 0.94 percent against 1.01 percent a year ago. Net NPA came at 0.25 percent against 0.26 percent against last year.

Consolidated net profit for the group for the year ended 31 March 2012 stood at Rs 4,220 crore against Rs 3,340 crore last year, a jump of 26.3 percent.

Total advances of the bank grew 19 percent to Rs 1,69,759 crore over the year. Total deposits grew 16.3 percent to Rs 2,20,104 crore.

Capital adequacy ratio now stays at 13.66 percent at the end of the year. The current and savings accounts (Casa) ratio has been maintained at 42 percent for the quarter. Provisions have come down to Rs 139 cr against Rs 254 crore last year.

Axis Bank also approved the sale of 25 percent stake in its AMC (asset management company) business to Schroders. Axis hopes to get the nod for the stakesale by October. However, the management confirmed there are no immediate plans to spin off the private equity buisness.

It also revised the share swap in the Enam deal from 5.7:1 to 5:1. This means one share of Enam for every 5 shares of Axis Bank. Manish Chokhani has been announced to be the CEO of Axis Sales. The bank recently got RBI nod for the Enam Securities deal.

The bank, after the result, said, there is no immediate requirement to raise capital. It is confident of growing at higher pace than the industry in financial year 2013. It might raise equity in the next 9-15 months. The bank said there is no plan to cut base rates as costs will have to fall before base rate is cut. It plans to maintain its margins on loans intact.