Axis Bank – Rock Solid Performance

Axis Bank reported Rs4.0bn of net profit for Q2FY09. The robust earnings has been driven by better than expected NII and other income. The NII has grown by 55.2%yoy, while other income grew by 81.4%yoy. The operating profit grew 88.9%yoy to Rs8.7bn led by robust growth in the operating income.

The liability profile remained strong with CASA maintained at 40% of the deposits. While the assets saw some slippages, as the GNPA increased by Rs700mn over Q1FY09, the provision cover remained strong at 52.6%. The provisions for the quarter were higher at Rs2.6bn driven by a sharp increase in NPA provisioning. The NPA provisioning increased 110.5% to Rs2.4bn in Q2FY09.

Axis Bank is expected to report full year EPS of Rs 41.2 for FY09.